Cheap Car Insurance for 24-Year-Olds

What's the average car insurance rate for 24-year-olds?

Becoming 24 is the first step into the semi-daunting milestone of your mid-twenties. While you’re only one year away from the big year of insurance savings, you are still paying an average of $1,790 per 6-month policy on auto insurance. Understandably, this makes the need for insurance savings quite urgent. Because it may seem like a daunting task, we decided to create the best practices for car insurance at 24 — starting first with how to choose a quality, affordable insurer and what the most important factors are when it comes to calculating your rate.

What is the cheapest company for you?

Cutting right to the key question: which company is the cheapest? We decided to sample eight of the most recognized companies using a driver profile outlined below. You should consider this data as a starting point — our profile is simply a generic base.

Interested in how each company stacks up in terms of customer satisfaction? Check out our guide to the top-rated car insurers.

Why does your location matter?

Insurance is regulated by the laws of your state and calculated by your zip code, which means it's location-dependent. If you live in a state with high insurance regulations, such as Florida, you can expect your insurance premium to be high regardless of the company you chose. Furthermore, if you live in a ZIP code that is in a coastal region, you can expect the threat of flooding to cause your premium to be higher.

Sometimes, it’s not your company that determines your rate but rather where you live.

Why should you think about your credit score?

There are many things that affect your car insurance premiums but your credit score is a significant rating factor. Insurance companies see drivers with poor credit (524 or below) as more likely to file a claim than drivers with above an 823 credit score. What’s more, the claims they file are more likely to be costlier than claims filed by drivers with higher scores.

Learn more about how good credit and bad credit affect car insurance rates.

However, some states — California, Hawaii, and Massachusetts — ruled this practice as discriminatory and feel that your driving history with annual mileage is a better indicator of your driving behavior. Just another reason why your location matters!

How does your education impact your insurance?

Similar to your credit score, insurance companies see higher amounts of education as a risk-reducing factor and thus will lower your premiums. Unlike your credit, however, the difference is rather minimal. 

Why should you choose a moderate vehicle?

If your end goal for shopping for car insurance is to save money, you should think about the impact a car like a brand new BMW will have on your premium. Vehicles with a high MSRP will result in a higher premium as your insurance company needs to reduce their financial exposure.

Look for discounts

In addition to following our steps above, there are some additional discounts you should think about. Let’s get to it.

Good driver discount

This discount is automatically added to your policy when you are quoted using your driver's license number. In addition to receiving a discount for a good driving record, you should try to avoid the premium increases that come from a driving citation or incident listed below.

Bundle your policies

Getting a renters insurance policy with the same company can save you money! Renters insurance costs around $150 a year and covers your liability and your belongings in the event you are found liable for damages or your belongings are destroyed.

Good student and defensive driver discounts

Drivers who are under 25 are eligible for these discounts as long they have proof. In order to qualify for the good student discount, you must have a GPA above a 3.0 (or B average). For the latter, you need to have taken a pre-approved course and provide proof to your insurer that you have taken the course. While the amount of these discounts decrease as you age, you can see an average savings of $107 per year!

Summed up

While turning 24 means you’re making headway into your mid-twenties, you still pay quite a bit more than others in the same age bracket. Starting your search with USAA and GEICO are great ways to get the ball rolling — but be sure to pay attention to your financial health, location, and driving history. Shopping around every six months is one of the best ways to ensure you're getting the best rate.