Best Car Insurance for Young Drivers

How teens and under-25s can find affordable coverage

💰 The Reality Check

Young drivers pay the highest car insurance rates of any age group:

Teen (16-19)

$6,500+/yr

Young Adult (20-24)

$3,800/yr

Adult (25-34)

$2,600/yr

Best Insurers for Young Drivers

GEICO

Lowest base rates for young drivers. Good student discount up to 15%. Military discount up to 15% if parents serve.

Best for: Most young drivers

State Farm

Steer Clear program for under-25s. Good student discount up to 25%. Drive Safe & Save telematics up to 30% off.

Best for: Students with good grades

Progressive

Snapshot program rewards safe driving regardless of age. Good for proving you're not a typical young driver.

Best for: Safe young drivers willing to use telematics

USAA (Military Only)

If a parent is military, you can join. Lowest rates period, plus excellent coverage for young drivers.

Best for: Military families

10 Ways to Lower Young Driver Rates

1. Stay on Parents' Policy

Usually 50%+ cheaper than your own policy

2. Good Student Discount

B average (3.0 GPA) saves 10-25%

3. Defensive Driving Course

4-8 hour course saves 5-15%

4. Telematics Programs

Prove you're safe for up to 30% off

5. Drive an Older Car

Skip collision/comprehensive on cheap cars

6. Choose a Safe Vehicle

Sedans cost less to insure than sports cars

7. Higher Deductible

$1,000 deductible saves 15-30%

8. Student Away Discount

Living at college 100+ miles away qualifies

9. Pay in Full

Avoid monthly installment fees (5-10%)

10. Wait for 25

Rates drop significantly at age 25

FAQs

Should I stay on my parents' policy or get my own?

Stay on your parents' policy if possible—it's usually 50%+ cheaper. You only need your own policy if you: own the car in your name, don't live with parents, or your parents refuse to add you.

Will my rates drop at 25?

Yes, usually 10-20%. But the biggest drops come from years of clean driving, not just age. Start building that record now.

The Bottom Line

Young driver insurance is expensive, but you can cut costs significantly. Stay on parents' policy, maintain good grades, and use telematics to prove you're a safe driver. GEICO and State Farm typically offer the best rates for young drivers.