Cheap Car Insurance for Young Adults
- Drivers between the ages of 20-25 pay an average of $280 per month for car insurance.
- The cheapest auto insurance for young drivers is Travelers.
The best way to see accurate rates for your unique driving profile is by comparing quotes. Get started below.
The best cheap car insurance companies for young drivers
We recommend Travelers, USAA, and GEICO as the best car insurance companies for those in their early 20s. These companies earned solid marks throughout our rigorous review process and offer the lowest rates. OUr top picks combine affordability, relevant discounts, and programs tailored to meet the unique needs of younger drivers. Read more about each option below.
Best for military drivers: USAA
- $220 per month for young drivers
- Zebra review score: 4.1/5 stars
- Stellar customer service reputation and a good student discount
- Applicants must meet USAA's military eligibility requirements
Cheapest overall: Travelers
- $207 per month for young drivers
- Zebra review score: 3.8/5 stars
- Typically the most affordable major company
GEICO
- $231 per month for young adults
- Zebra review score: 3.8/5 stars
- Second cheapest option for most drivers
Updating data...
| Company | Avg. Monthly Premium | Avg. 6 Mo. Premium |
|---|---|---|
| Travelers | $207 | $1,241 |
| USAA | $220 | $1,317 |
| GEICO | $231 | $1,388 |
| Progressive | $291 | $1,748 |
| Farmers | $332 | $1,994 |
| Nationwide | $335 | $2,009 |
| State Farm | $364 | $2,185 |
| Allstate | $420 | $2,520 |
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
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Average auto insurance rates by age
"People tend to think that their insurance rates dip at age 25," says Summer Popovich, licensed insurance advisor and member of The Zebra's in-house independent agency, "And it's generally true for those who've been driving since 16—they've got a solid nine years under their belt. But if you waited until you were 18-21 to get your license, insurers still see you as relatively new behind the wheel. So, don't be surprised if turning 25 doesn't bring the rate drop you were hoping for, compared to those who started driving earlier."
✏️ Read more about what Summer had to say about insuring your drivers by expanding the section below the table.
Source: The Zebra
On the whole, the price difference between young women and men is not as wide as you might expect. On average, young male drivers only pay around $15 per month more than female drivers.
Other factors young drivers don't always consider
In a conversation with Summer Popovich, she gave deeper insights into why young drivers— even those with clean records— face high insurance costs. She highlighted three key trends observed by her and her fellow agents:
- How long you've had your license. "We hear more and more people are getting their license later in life, say 18-21. This could be because their parents didn't want the financial responsibility or because the state they lived in has extended permit driving. Either way, by 25, they don’t have as much driving experience as someone who started at 16 and their rates will reflect this."
- Vehicle choice. "Sure, a Mercedes or BMW looks cool, but those high insurance costs add up. I'd advise my younger self: Start with a reliable, budget-friendly car, build a solid insurance record, and beef up your coverage and liability limits. THEN go for that dream car! And remember, check in with us about insurance costs before signing that loan!"
- Not understanding all the rating factors. "I spoke with two 23-year-olds in Georgia with very different insurance histories. One had stuck with the same insurer for three years, and after comparing rates, she cut her premium in half — quite the achievement in a state where rates keep rising. The other 23-year-old's history was at the opposite end of the spectrum. Her history was less steady, including a few lapses in coverage over a three-year period. She frequently changed policies with each new car purchase and accumulated past due balances, unaware of how such actions influenced her rates and insurers' readiness to cover her."[2]
The good news? There are steps you can take to save!
Insider knowledge, trusted guidance.
Cheapest states for young adult drivers
Location is an important rating factor when it comes to insurance premiums. The following map shows the average rates by state for young adult drivers (ages 20-25), according to our data.
Updating data...
Source: The Zebra
How life events affect young drivers' auto insurance costs
Turning 20-something comes with a lot of change—and that can show up in your car insurance bill. Whether you're moving out, switching jobs, or buying your first car, big life shifts can mean big adjustments to your rates. Here’s a quick look at why that happens and how to be ready.
Marriage and car insurance
- Add your spouse to your policy—or officially exclude them. Skipping this step isn’t an option, and exclusion means they’re not covered to drive your car. That can be a problem if you swap cars or can’t drive.
- Update your name and address. If you don’t, you could see higher premiums, claim issues, or even policy cancellation.
- You will likely see your premium drop! Just by updating your marital status from single to married, you can expect your car insurance premiums to drop by about $89 per year.
Living with roommates
- Most insurers require you to list anyone you live with on your policy—even if they don’t drive your car. Why? Because roommates often share vehicles, and insurers want to account for the risk.
- You’ve got two options: add them to your policy (or get added to theirs), or formally exclude them.
- If they’re excluded, they can’t drive your car—if they do, and something happens, your insurance won’t cover it.
Buying a home and car insurance
Homeownership opens up some car insurance savings possibilities.
- Multi-policy discounts. This happens when you bundle your auto and homeowners insurance policies with a single company.
- Even if you don't bundle, you'll probably see your car insurance rates drop. Homeowners are seen as more financially stable by insurance companies.
Getting off your parents' insurance policy
- If you live on your own and drive, yes—you’ll need your own policy.
- Still living with your parents and only driving their car? You might be covered under theirs.
- If you've moved out, your rate will change based on your new ZIP code.
- College students on campus without a car should ask about a “student away from home” discount.
How to save on car insurance in your 20s
Aside from your teenage years, your 20s will be the most expensive time to insure your car. While you're seen as more responsible by insurers, finding a reasonable auto insurance rate can still feel challenging. Here's how you can keep those premiums in check:
- Compare quotes at renewal: Rates can drop as you age—shopping around is one of the best ways to avoid overpaying.
- Pick a practical car: Reliable, affordable vehicles cost less to insure than flashy sports cars.
- Look for discounts: Save by going claims-free, enrolling in auto-pay, paying in full, or having safety features in your car.
- Take a defensive driving course: Drivers under 25 may qualify for a discount—insurers see you as a lower risk.
- Keep your grades up: A "B" average or better can unlock a good student discount.
- Bundle policies: Combine auto with renters or homeowners insurance to cut costs and simplify billing.
- Don’t let your coverage lapse: Gaps in insurance can lead to higher premiums down the road.
Frequently asked questions: Insurance for young adult drivers
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.