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 $1,913 per year on auto insurance — 24% more than the national average. 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 here. You should consider this data as a starting point — our profile is simply a generic base.
AVERAGE PREMIUMS FOR 24-YEAR-OLDS: BY COMPANY
How does gender impact your rate?
The difference in what men versus women pay for auto insurance is far more evident when drivers are young — and therefore, less experienced on the road. On average, male drivers between the ages of 16 and 23 paid 14% more in premium than their female counterparts. This gap starts to shift as these young drivers age.
AVERAGE 6-MONTH PREMIUM FOR 24-YEAR-OLD DRIVERS BY GENDER
Annually, male drivers at this age pay 8% more than do female drivers or an extra $144 per year. See below to see a more detailed breakdown of the cheapest insurers by gender.
What's the cheapest car insurance company for 24-year-old male drivers?
Using the same driver profile we used above, we surveyed some of the most popular insurance providers to find the most affordable rate for a male 24-year-old driver.
AVERAGE 6-MONTH PREMIUM FOR 24-YEAR-OLD MALE DRIVER
|Insurance Company||6-Month Premium||Monthly Premium|
What's the cheapest car insurance company for 24-year-old female drivers?
We conducted the same survey as above but with female drivers at age 24. Again, GEICO and USAA came out on top, offering an average monthly payment of about $111 — which comes out to a savings of over $30 a month compared to other insurance providers.
AVERAGE 6-MONTH PREMIUM FOR 24-YEAR-OLD FEMALE DRIVER
|Insurance Company||6-Month Premium||Monthly Premium|
The most effective way to land the most affordable premium — at any age — is to compare your options before the end of every policy period. Don't be afraid to shop around. We can help you find the best rate, no matter your age, driving history, or location, and help you compare quotes from insurers across the US. Enter your ZIP code below to get started.
Compare rates quickly and easily
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 Michigan, 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.
AVERAGE PREMIUMS IN THE MOST EXPENSIVE STATES FOR AUTO INSURANCE
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.
AVERAGE 6-MONTH PREMIUM BY CREDIT SCORE
|Very Poor||Fair||Good||Very Good||Exceptional|
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. Drivers with no high school diploma pay only an average of $25 more per year than those with degrees.
AVERAGE 6-MONTH PREMIUM BY EDUCATION LEVEL
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.
AVERAGE 6-MONTH PREMIUM BY VEHICLE TYPE
Why bother looking at other companies?
Because your rate is dependent on many components to your driving profile that change, you should be continually looking for car insurance every six months. When you celebrate a birthday, change vehicles, or experience another major life event, you should remember to shop for car insurance.
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.
AVERAGE ANNUAL INCREASE IN PREMIUM BY VIOLATION TYPE
|Speeding 11 - 15 MPH Over Limit||$337|
|Speeding 16 - 20 MPH Over Limit||$385|
|Speeding 21 - 25 MPH Over Limit||$460|
Bundle your policies
Getting a renters insurance policy with the same company can save you money! Renters insurance policies cost around $150 a year and cover your liability and your belongings in the event you are found liable for damages or your belongings are destroyed. Find more information on renters insurance here and learn more about discounts for bundling auto and renters insurance here.
AVERAGE BUNDLING SAVINGS FOR RENTERS
|Renter||Renter with Multi-Policy||Annual $ Savings|
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!
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.