Cheap Car Insurance for 24-Year-Olds

You're getting older, which means more savings on insurance. Discover what you qualify for today.

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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 $1,921 per year on auto insurance — over twice the national average! Understandably, this makes the need for insurance savings to be 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 an insurer and what the most important factors are when it comes to calculating your rate.

 

How can I find cheap car insurance at 24?
  1. Choose the right company
  2. Think about your location
  3. Pay attention to your credit score
  4. Cash in on your education
  5. Choose a moderate vehicle
  6. Shop different companies
  7. Look for discounts
  8. Summary

 


 

What is the cheapest company for you?

 

Cutting right to the key question — which company is the cheapest? — we decided to sample five companies across five zip codes using a profile outlined here. You should consider this data as a starting point — our profile is simply a generic base. 

 

Our Findings: Car Insurance for 24-year-olds

Insurance CompanyAverage 6-Month Premium
State Farm$946
Allstate$1,509
GEICO$1,152
Progressive$1,104
Liberty Mutual$1,865

 

 


 

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.

 

Annual Premium for the Most Expensive States

StatePremium
Michigan$4,337
Kentucky$4,189
Rhode Island$4,031
Louisiana$3,967
New York$3,824


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.

 

Average Annual Premium Based on Credit Score in 2018

PoorBelow FairFairGoodExcellent
$2,574$2,132$1,751$1,480$1,261

 

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 $36 more per year than those with degrees.

 

Average Annual Premium in 2018 Based on Education

NoneHigh SchoolBachelorsMastersPhD
$1,503$1,485$1,470$1,464$1,464

 

 


 

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 of 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 Annual Premium Based on Car Type in 2018

SedanHybridLuxury CarSUVTruckVan
$2,116$2,016$1,953$1,802$1,621$1,657

 

 


 

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 Increase in Annual Premium in 2018

Accident/ViolationPremium Increase
None 
Speeding 11 - 15 MPH Over Limit$308
Speeding 16 - 20 MPH Over Limit$342
Speeding 21 - 25 MPH Over Limit$381
At-Fault Accident$617
Reckless Driving$1,034
Racing$1,084
DUI$1,086

 

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.

 

Annual Savings in 2018

RenterRenter with Multi-Policy
$1,470$1,393

 

Good Student and Defensive Driver

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!

 

AgeMaleFemale
23$151$88
24$135$78
25$17$17

 

 


 

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 Progressive and State Farm 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.

 

 

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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 - 93722
  • Scranton, PA - 18505
  • Aurora, CO - 80013

With that created, we created our user profile: a 24-year-old male driver. This is the information we chose to use:

  • 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

Recent Questions:

Cheap Car Insurance for 24-Year-Olds

Should both my girlfriend and I be on the car title?

I would only put the title in one name — whoever will own and register the vehicle. Putting two people on the title may only complicate things unnecessarily and make it harder to sell.

I am a 24 year old new driver. What should I expect the range of prices for car insurance should be?

The average 24-year-old in NY paid $2,431.57 for car insurance last year. However, this will no way reflect how much you pay.

What caused my premium to increase?

Having a lapse in coverage and an accident will likely cause a high increase in your premium. Once you've had insurance again for six months, without a lapse, your rates will start to get better.

Can I keep my married child on my car insurance policy in South Carolina?

It would really depend on your insurance and why you want your child to remain on your policy. If your child uses your vehicle regularly when he or she visits, speak to your insurance company about adding them as a non-resident driver.