What is the best car insurance for young drivers?
By Allstate
Last updated: January 1
The best car insurance for a young driver will always come down to the driver’s individual needs. If you’re a young driver looking for the right insurance, here are a few tips to aid you in your search.
If you drive your car often – to and from work or school – it may be better to have more protection than if you only drive your car on the weekends. That means having coverage that could help reimburse you for repairs if you’re in an accident, as opposed to the bare minimum coverage, which helps cover the other driver if you’re at fault.
Can you get affordable car insurance if you’re under 25?
Yes, as a young driver you can get affordable car insurance, even if you’re under the age of 25. Age alone doesn’t determine car insurance premiums.
There are ways to keep costs down, too, regardless of whether you’re a young or new driver. For instance, the safer your car is, the more likely you are to save on your car insurance premium. Insurers like when your car has a high crashworthiness rating, safety equipment, and anti-theft devices, all of which could help lower your rate or land you car insurance discounts.
What factors impact the cost of car insurance for a young driver?
Many factors go into determining your car insurance cost. These include things like:
- The type of car you drive
- Accident and auto theft rates in your area
- How often you drive your car
- The specific coverages on your policy
- Your car’s safety features
- Whether you pay for your policy upfront or monthly
Additionally, your premium can change when your car insurance policy renews. Driving without being at-fault in an accident, making timely payments, or installing more safety features may help lower rates at renewal. Plus, more and more insurers are offering safe-driving programs that monitor your driving behaviors and reward you for safer driving.
What kind of auto insurance coverage do I need?
As a young driver looking for quality protection, you’ll need to consider two things: which coverages are required in your state, and which optional coverages may help better protect you, your passengers, and your car.
Here are the most common required coverages:
- Auto liability insurance is a required coverage in most states. It helps pay for the other driver’s expenses if you cause an accident.
- Uninsured motorist coverage is required in some states, and helps cover your repairs and medical bills if an uninsured or underinsured driver is to blame for an accident.
- Personal injury protection (PIP) and medical payments coverage help cover medical expenses if you’re involved in an accident. Depending on which state you’re in, you may be required to carry one of these coverages.
If you’re leasing or financing your car, you may be required by the lease holder or lender to get comprehensive or collision insurance coverage.
Other common optional coverages that may be worth considering include:
If you have unique needs, you may want to consult with an insurer to see what other coverages make sense. As an example, if you use your car for ridesharing, you will need to get separate rideshare insurance/a>.Are there car insurance discounts available for young drivers?
Some insurance companies offer different types of discounts designed specifically for young drivers. Here are a few you may be eligible for, depending on your state and insurer:
Good student discounts
If you're a full-time student under 25, you may qualify for a discount on your car insurance that could help lower your premiums. Here's the catch - you will likely have to maintain good grades. But nobody's suggesting that only "A" students are eligible for discounts. Many insurance companies specify that as long as student drivers can maintain a B average, they may qualify for a student discount.
Discounts through work
Young adults who work for certain corporations, or even a small to medium-sized business with special discount programs, may qualify for an auto insurance discount. Speak with your human resources department to find out if your company is taking part in a group car insurance discount plan.
Bundling discounts if you need renters insurance
If you rent an apartment or house, you could qualify for more savings. Young drivers who have renters insurance may earn a multi-policy discount. If you buy auto insurance and renters insurance from the same company, check with your insurer about bundling your insurance policies.
Pay-per-use car insurance
If you’re working and/or taking classes remotely, you may not spend much time on the road. Or you may choose to routinely take public transportation to work and/or school. If you don't drive your car often, you may be eligible to get a pay-per-use car insurance policy, which is often cheaper than a regular car insurance policy. Be sure to consult with your insurance provider to see what's available where you live.
There are many other discounts young drivers may qualify for. Talk to your insurer to make sure you’re taking advantage of all the discounts available to you. If you do, you may find that it's easy to get reliable car insurance at a good price, even as a young adult.
Get help finding the right insurance policy
Whether you’re a young or seasoned driver, it’s always a good idea to compare car insurance quotes from multiple companies to help ensure you get the best price. Compare auto quotes with the same coverages, deductibles, and limits so that you’re getting the most accurate comparison. Many online quoting tools will help you decide on coverages or make suggestions based on the information you provide.
And remember, keep driving safely – over time you may see that premium go down.