Can I get good car insurance if I'm under 25?
Last updated: January 1
Young drivers may wonder, "Can I get good car insurance if I'm under 25?" The answer is yes. Young adults and teen drivers alike can still find reliable coverage at an affordable price.
Age does not affect the types of coverage young drivers can obtain for their vehicle, although it is one of the factors taken into account for premium costs. Here are some ways young drivers may be able to get quality coverage while taking advantage of auto insurance discounts.
What is the best car insurance for young adults?
The best car insurance for young adults always comes down to individual needs. If you drive your vehicle frequently – to and from work or school – it may be wise to have more protection than if you only drive your vehicle 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 protect the other driver if you’re at fault.
There are ways to keep costs down, too, regardless of whether you’re a young or new driver. The safer your vehicle is, for instance, the more you’re likely to save. Insurers like when your vehicle has a high crashworthiness rating, safety equipment and anti-theft devices, all of which could help lower your rate or land you auto discounts.
What kind of auto insurance coverage do I need?
Young adults looking for quality auto insurance coverage may want to consider two things: Which coverages are required in your state and which optional coverages you may want to buy to help protect yourself, your passengers and your vehicle.
First, remember that most states legally require you to carry auto liability insurance, which helps pay for the other person's expenses if you cause an accident. Some states may also require you to have other coverages, such as uninsured motorist coverage or personal injury protection. Finally, if you lease or finance a vehicle, comprehensive or collision insurance may be required by the lease or finance company. These additional coverages are typically optional on a car insurance policy: medical payments coverage, rental reimbursement coverage, gap insurance coverage and towing and labor cost coverage.
What factors determine the cost of car insurance for young drivers?
Many factors go into determining an auto insurance premium. One of them is driving experience. Because younger drivers have less experience driving, they tend to be at a higher risk for filing a claim. This is why rates may be higher for less experienced drivers than seasoned drivers.
Is it possible to find low-cost insurance for young drivers?
Age alone doesn’t determine auto premiums, which is why young drivers can absolutely find low-cost insurance. Other factors that go into determining auto premiums include but aren’t limited to:
- The type of vehicle you drive.
- Accident and auto theft rates in your area.
- How often you drive your vehicle.
- The coverages on your policy.
- Safety features in your vehicle.
- Whether you buy your policy upfront.
Additionally, your premium can change when your auto policy renews. Driving without being at-fault in an accident, making timely payments or installing more safety features may help lower rates at renewal.
Are there discounts available for young drivers?
Some auto 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.
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 premium payments. 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. The main reason you likely aim to do well in school is to get a degree and land a good job but saving money on auto insurance could be the icing on the cake.
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 (HR) 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've moved out of your parents’ house, do you rent an apartment? Drivers under 25 who have renters insurance may qualify for a multi-policy discount. If you buy auto insurance and renters insurance from the same company, check with your insurer about bunding your insurance policies and you may save some money.
Switching to 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 adults under 25 may qualify for. Look at all of your options, talk to your insurer to make sure you are taking advantage of the discounts available to you. If you do, you may find that it's not only possible to get good car insurance as a young adult, but also at a good price.
Get help finding the right insurance policy as a young driver
Whether you’re a young or seasoned driver, it’s always a good idea to compare auto insurance quotes from multiple companies to help ensure you get the best price. Compare auto quotes with the same coverages, so that you’re getting the most accurate comparison. Many online quoting systems will suggest and help you arrange coverages based on the information you provide.
And remember, keep driving safe – over time you may see that premium go down.