Cheap Car Insurance for 22-Year-Olds

#adulting is hard work—let us handle the insurance for you

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 Allstate 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.



Ready to start comparing rates?

Compare Now



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
Additional Resources:

Cheap Car Insurance for 22-Year-Olds

Car Warranty vs. Insurance: Which You Need and When
Car Warranty vs. Insurance: Which You Need and When
Sep 07, 2017

Anyone who has ever owned a “lemon” (a car that’s a dud) knows how stressful and costly car repairs can...

Labor Day Car Sales 2017: Summer’s Last Hurrah
Labor Day Car Sales 2017: Summer’s Last Hurrah
Aug 29, 2017

Often it seems that Labor Day comes when we need it the most. School is back in session, we’ve dropped...

10 of the Most Expensive Home Repairs (and How to Prevent Them)
10 of the Most Expensive Home Repairs (and How to Prevent Them)
Jul 11, 2017

Buying a home involves a lot of expenses. There are the obvious ones like the the down payment and monthly mortgage....

Should You Tip Your Uber Driver?
Should You Tip Your Uber Driver?
Jun 20, 2017

By now, you’re accustomed to getting around via ridesharing services like Uber and Lyft. The convenience of using a smartphone...

How Do Car Insurance Companies Determine Rates?
How Do Car Insurance Companies Determine Rates?
Jun 15, 2017

If you’re one of the 250 million drivers in the United States, you’re required by law to have car insurance....

Free Car Services: Where & When to Find Them
Free Car Services: Where & When to Find Them
Jun 07, 2017

According to AAA, car maintenance costs average almost $800 per year for U.S. drivers. But if your car has a...

Your Moving Manual: All the Boxes You Need to Check (and Pack!)
Your Moving Manual: All the Boxes You Need to Check (and Pack!)
May 24, 2017

Moving is a big thrill, a big hassle, and all-in-all, a big deal. For many people, it’s also the biggest...

Memorial Day Car Sales 2017: Don’t Get Caught
Memorial Day Car Sales 2017: Don’t Get Caught
May 18, 2017

You simply cannot avoid the Memorial Day weekend sales frenzy: “Half off” this, “buy-one-get-one” that. Alongside remembering the holiday’s true...

6 Reasons to Leave Your Car Insurance Company
6 Reasons to Leave Your Car Insurance Company
May 05, 2017

You might be familiar with a few scenarios that could make your auto insurance rates change: You bought a new...

15 Preventative Home Maintenance Tips That Save You Money
15 Preventative Home Maintenance Tips That Save You Money
May 04, 2017

No doubt there are plenty of benefits of owning your own home: freedom from rent and landlord rules, contributing to...

5 Financial Literacy Lessons for Millennials
5 Financial Literacy Lessons for Millennials
Apr 28, 2017

Millennials have a lot of unique challenges when it comes to personal finance. Many went to college, graduated into a...

How to Use Your Car to Get Out of Debt
How to Use Your Car to Get Out of Debt
Mar 29, 2017

If you’ve ever been in debt (or you are right now), you know how all-consumingly stressful it can be. And...

Everything You Need to Know about Buying a Car from Walmart
Everything You Need to Know about Buying a Car from Walmart
Mar 21, 2017

Soon people all over the U.S. may be able to come home with groceries for the week, new school clothes...

Buying a Vehicle with Your Tax Return? Here’s What You Need to Know
Buying a Vehicle with Your Tax Return? Here’s What You Need to Know
Feb 16, 2017

It’s officially tax season which of course means a lot of paperwork, searching for receipts, and trying not to toss...

#ZebraChat Recap: New Year’s Financial Resolutions
#ZebraChat Recap: New Year’s Financial Resolutions
Jan 18, 2017

On January 10, we kicked off our inaugural #ZebraChat, our new monthly, hour-long Twitter chat where we’ll discuss personal finance,...

7 Reasons You Should Absolutely Shop for Car Insurance Every 6 Months (Even If You’re Not Buying a Car)
7 Reasons You Should Absolutely Shop for Car Insurance Every 6 Months (Even If You’re Not Buying a Car)
Jan 17, 2017

Car insurance is meant to provide protection from a large financial burden in the event of a crash, but how...

When Is It Worth It to Pay for More Liability Coverage?
When Is It Worth It to Pay for More Liability Coverage?
Nov 23, 2016

Every driver must carry his or her state’s minimum limit of liability coverage. This consists of coverage that protects other...

Rent-a-Bridesmaid? Odd Things You Can Rent in Today’s Sharing Economy
Rent-a-Bridesmaid? Odd Things You Can Rent in Today’s Sharing Economy
Nov 10, 2016

In the sharing economy, people rent goods and services directly from each other and everything is facilitated by technology. Business...

Buying a Car in 21 Steps: Your Detailed Checklist & Timeline
Buying a Car in 21 Steps: Your Detailed Checklist & Timeline
Oct 25, 2016

Buying a car can be daunting, especially if you’ve never done it before. It’s also a highly personal experience. Car...

The 2016 Guide to Buying a Car Online
The 2016 Guide to Buying a Car Online
Oct 12, 2016

Online shopping is now commonplace for most people—we’ll buy shoes, airline tickets, even groceries—but the idea of researching, shopping, financing,...

7 Things You Never Knew Impacted Your Car Insurance
7 Things You Never Knew Impacted Your Car Insurance
Aug 24, 2016

When searching for an auto insurance policy, there are things we expect will impact our rates: demographic details like age,...

50 Research-Based Tips to Save on Car Insurance
50 Research-Based Tips to Save on Car Insurance
Aug 08, 2016

Finding the right car insurance can be frustrating and complex — no thanks to varying state coverage requirements and overhyped...

What’s the Least Expensive Car to Insure?
What’s the Least Expensive Car to Insure?
Aug 03, 2016

When shopping for a new car, most people thinking about purchase price, safety, and fuel economy, but what about the...

Which States Have the Cheapest Car Insurance?
Which States Have the Cheapest Car Insurance?
Aug 02, 2016

Car insurance companies consider all sorts of factors to assess risk and set rates for different drivers. Here at The...

10 Cars That Are Cheap To Insure AND Fun To Drive
10 Cars That Are Cheap To Insure AND Fun To Drive
Jul 09, 2016

When shopping for cars, some people look for the best safety features and latest tech, some want excellent gas mileage,...