Cheap Car Insurance for 22-Year-Olds

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Although pop-culture makes a big deal out of turning 22 (thanks, T-Swizzle), your insurance company isn't going to be throwing up the sparklers any time soon. They treat the age very similar to most years in your early 20s. While you pay $154 less per year on auto insurance simply by turning 22, you are still paying more than twice the national average. A lot of that has to do with being a young driver — you have less experience driving, smaller insurance history, and overall less life experience, which all of which equates to more risk for insurance companies. And, in a business that surrounds itself in avoiding risk, being young and inexperienced is a tricky area. Let’s break down the ins-and-outs of car insurance for 22-year-olds in order to make sure you’re getting the absolute best rate.


Follow these tips to find affordable car insurance at 22-years-old:

  1. By Company
  2. By Gender
  3. By Education
  4. By Credit Score
  5. By Location
  6. By Vehicle
  7. What are some ways to save?
  8. Car Insurance for 22-year-olds: Summed Up




The company you keep


All companies should not be seen as equal when it comes to choosing car insurance, as we can see below. As an average, 22-year-olds (on their own 6-month policy) paid $1,0115 for auto insurance in 2016 which is considerably higher than the national average of $661. So, in order to really understand the insurance arena for young drivers, we decided to conduct a survey amongst the top 5 companies across 5 zip codes in the US. Using a profile outlined here, we discovered that Progressive is the cheapest for 23-year-old drivers, with Geico in a close second. Now, we understand we are discussing 22-year-old drivers here, so consider our data as a jumping off point when looking for car insurance.


Our Findings: Car Insurance for 23-year-olds

Location State Farm All State Geico Progressive Liberty Mutual
Scranton, PA $1,402 $1,420 $876 $737 $1,284
Columbus, OH $1,087 $987 $578 $574 $1,584
Fresno, CA $1,608 $775 $813 $994 $2,136
Aurora, CO $1,690 $1,368 $1,194 $966 $2,130
McKinney, TX $1,260 $1,847 $913 $973 $2,190
Average $1,409 $1,279 $875 $855 $1,865





Why does your gender matter with your premium?


As you age, the difference between men and women in car insurance premiums begins to fade. At the national average level, the difference between men and women for auto insurance premiums is only $1 — if it exists at all The difference between the two at 22 is still over $200 per year and is a reflection of the risk associated with young male drivers in terms of an increase of accidents and citations. But, rest assured that as you age, the difference will fade.


Average Premiums on a Family Plan by Gender

Age Male Female Difference
21 $1,797 $1,643 $154
22 $1,701 $1,584 $116
23 $1,619 $1,522 $97




Your location's effect on your premium


While you shouldn’t pick your location based on what your insurance premium will be, you should still consider its effect. Living in a crowded metropolitan area will cause your premium to be higher, as more densely-packed cities are considered more likely to cause a claim given the population size. Moreover, living in coastal areas where floods are likely such as Louisiana will increase your premium.


Annual Premium for the Most Expensive States for 22-Year-Olds

State Premium
Louisiana $8,114
Michigan $6,557
Texas $5,910
Delaware $4,909
Kentucky $4,450




Education and your car insurance


In the traditional route of life, most 22-year-olds have graduated from college and with that, comes some insurance savings. Insurance companies use the correlation between higher amounts of education and a decreased severity and frequency of claims to lower premiums with people with more education. Fair or not, the difference is only moderate.


Avg Annual Premium in 2016 Based on Education

None High-School Bachelors Masters PhD
$1,355 $1,342 $1,323 $1,320 $1,319




Credit score and your insurance score


Your credit score is one of the biggest rating factors for insurance companies and it can be incredibly impactful on your premium. Statistically, drivers with lower credit (below 524) pay more than twice the amount for car insurance than drivers with excellent credit (823 or more). Just like your education, this has to do with the correlation between drivers with lower credit and an increased number of severe claims. From an insurance perspective, if there is more risk associated with insuring a person with a poor credit score, they will cushion this risk with a higher premium.


Avg Annual Premium in 2016 Based on Credit Score

Poor Below Fair Fair Good Excellent
$2,411 $1,934 $1,571 $1,323 $1,130




And your ride?


When your insurance is calculated, it entails aspects about you and your car via the VIN (vehicle identification number). So, just like having poor credit is an indicator of a higher premium, having a fancy car will also increase your premium. Vehicles with a high MSRP rating that are more expensive for your insurance company to replace will result in a higher premium. If you’re trying to avoid paying more for auto insurance, consider a moderate vehicle.


Average Annual Premium based on vehicle-type in 2016

Cars Hybrid Luxury Car SUV Truck Van
$1,369 $1,454 $1,618 $1,259 $1,361 $1,224




What are some ways to save?


Depending on your path in life, there are some ways to save on car insurance. Whether you're still in school or have since graduated, we have some tips for you.


Good student and defensive driver

These discounts are pretty straight forward. In order to be a good student, you must have a GPA above a 3.0 and submit proof to your insurance company every policy period. In order to qualify for the defensive driver, you must take an actual defensive driving course and again, supply proof. While the amount varies per company, if you take advantage of both of these discounts, you can expect an average savings of $138 per year.


Average Annual Savings for Good Student and Good Driver Discount

Age Male Female
21 $202 $117
22 $176 $103
23 $151 $88


Keep a clean driving record

This goes without saying, but it’s imperative as a young driver to stay out of trouble. While your age is already counting against you, you don’t want a DUI or unnecessary citation on your record, as it will affect your rate massively. In most states, you will be charged for a citation or at-fault accident for 3 years. Meaning, if you are rated for a DUI, your premium will raise $5,156 for the 3 years you are rated for that. If, however, you’re in California, you’ll actually be charged 10 years for that citation — a number we’re afraid to calculate ($17,190 for auto insurance over 10 years).


Accident/Violation Premium Increase
None
Speeding 11 - 15 MPH Over Limit $141
Speeding 16 - 20 MPH Over Limit $153
Speeding 21 - 25 MPH Over Limit $165
At-Fault Accident $306
Reckless Driving $499
Racing $523
DUI $529

Bundle your policies

If you’re living on your own, you must likely have a renter’s policy. A renter’s policy acts as a liability policy for yourself as well as protects your personal property. While they’re both usually pretty inexpensive, they can also save you on your auto insurance if you get them from the same company. Through a multi-policy, your insurance rewards you for putting two policies with their company.


Annual Savings in 2016

Renter Renter with Multi-Policy
$1,323 $1,250

Shop around

Because your premium can change as you do, it’s important to shop for car insurance every 6 months with as many companies as possible. Only with us can you view hundreds of different premiums at once.





Summary: Car Insurance for 22-year-olds

Being 22 is a considerable middle point in terms of auto insurance. While you have experienced some insurance savings, your youthful age still burdens you with a higher than average premium. Overall, you pay $981 more for auto insurance than the national average. Still, considering the data we pulled from 5 top insurance companies, you should begin your search with Geico and Progressive as well as consider the discounts and options we outlined.



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Methodology for our Company by Company Analysis


We randomly selected 5 zip codes in 5 different areas across the US by using the 5 most popular companies in the US based on net premiums written. Here are the zip codes we selected:


  • Columbus, OH - 43216
  • McKinney, TX - 75070
  • Fresno, CA - 75070
  • Scranton, PA - 93722
  • Aurora, CO - 80013

With that created, we created our user profile: a 23-year-old male driver. This is the information we chose to use:


  • Joe's DOB: 08/01/1994
  • Vehicle: 2015 Toyota Carmy, owned, 12,000/year
  • Driving Record: no accidents or citation
  • Education: BA
  • Licensed at: 17
  • Occupation: Marketing Representative
  • Insurance History: 6 years with previous company, limits at 100/300/100