Finding the best cheap car insurance for young adults under 25 can take time, but it is certainly a useful investment if you want to avoid overpaying for auto coverage each month. Because insurance rates for young drivers under the age of 25 can vary widely between car insurance companies, comparing quotes online can help new drivers get the cheapest policy and save thousands in premiums. Here are some of the best auto insurance companies for young drivers and tips on how to find the cheapest car insurance rates for your needs.
Best Car Insurance Companies For Young Adults
Because young new drivers pay more for car insurance due to limited driving experience, it is important that young adult such as recent graduates, college students and teens look for the lowest rates. And the only way to know which insurance companies offer cheap rate quotes for young drivers is to actually complete a car insurance comparison.
Below, find the top 10 cheapest car insurance companies for young adults and drivers.
- Liberty Mutual
- State Farm
- Amica Mutual
- American National
- American Family
Please note that USAA is only open to active and retired members of the military and their families.
How To Get The Cheapest Car Insurance For Young Adults
Whether you’re adding a teenage driver to your family’s car insurance policy or are a young adult in your 20’s looking for affordable coverage, there are a number of steps you can take to get the cheapest car insurance rates for young drivers.
Here are some discounts you can ask for as well as tips to saving money on your premiums.
Combined Policies Save Money
While young adults and teen drivers can buy their own insurance policies, studies show that staying on a parents’ policy can save over $3,000 per year, on average. If you qualify, get covered under a single auto insurance policy and opt to pay your parents back for your portion of the premiums.
Driver’s Education Classes
Receiving a permit from a formal driver’s education course can help you obtain cheaper car insurance for your young driver. Most school districts offer at least a summer education course available to students. This concept is catching on by more schools around the country as a means of providing quality driver’s education and preparing students to become good drivers.
However, if your child’s school doesn’t provide a certified driver’s ed class, you may contact your insurance carrier to get information on credible and approved courses offered by private companies. Insurers may offer discounts of up to 10% for young drivers who complete an approved driver’s course.
The benefits of formal courses are that these programs stress the importance of road safety, awareness, and basic driving skills for young drivers. Students will also complete practice driving courses that will help with real world experience and improve hand-eye coordination. Studies conducted in 2015 show that these training programs decrease the likelihood of traffic tickets, collisions, and accident-related injury or death.
Ultimately, these formal classes are probably the best way for teenagers and new drivers to fully prepare for driving on the open road. In some states, like Texas and California, these classes will also aid young drivers in passing licensing exams.
Car Insurance Discounts
Just like taking a driver’s education course will help you lower your premiums, there are other ways to get cheap rates. Some insurers offer car insurance discounts for young adults who:
Get Good Grades
If you want the best car insurance rates for young drivers, make sure your college student or teen gets good grades in school. Students with a B or better average in school are, statistically, 35% less likely to have an auto accident within their first year of driving. Because of this decreased risk, insurance companies are willing to offer a “Good Student Discount” that ranges from 10% to 25% off regular rates.
Leave Their Car At Home
Many insurers provide young adult drivers a discount when they attend a college or university more than 100 miles away from home and decide to leave their car behind. While students are still fully covered when they drive their vehicles at home during summer and winter breaks, insurers offer discounts of up to 25% off due to decreased driving risk.
Sign A Driving Contract
Parents can find cheap insurance for young adults when they sign a driving contract that:
- limits the number of passengers in their car.
- promises to always wear a seat belt.
- pledges to never text while driving.
The driving contract helps minimize distractions, peer pressure and liability risk.
Types of Insurance Coverage For Young Drivers
Chances are, unfortunately, your young driver is going to end up in at least one minor collision. Though choosing the right insurance policy is important for every driver, it is especially critical for parents wanting to protect their young adult drivers. You will have the option between just liability insurance and full coverage, and parents may really want to evaluate the pros and cons of each.
Liability Car Insurance Coverage
General liability car insurance for young adults will only provide coverage for damage the driver is responsible for causing. Then bodily injury liability pays the medical expenses of the driver and passengers that have been injured in the accident.
Depending on your specific situation, this may or may not be the best car insurance policy for your family. Obtaining cheap car insurance for a young adult driver may be the goal, but what if the coverage is just not enough? Huge out-of-pocket expenses could defeat the purpose of insurance coverage altogether. Therefore, if you are going to choose just liability protection, make sure you have more than your state’s minimum car insurance coverage.
Full Coverage Car Insurance
For young adults who get a new car when they pass their license exam, full coverage auto insurance is required. Most auto lenders will require both comprehensive and collision car insurance. Comprehensive auto insurance handles damage to the vehicle from weather or fire, and collision coverage only handles damages that occur during a wreck or car accident.
Remember, the probability of a car accident is significant with a young driver, so protecting yourself with a good insurance policy could just save you from financial ruin in the future. To make sure your young driver realizes the risks you, as parents, are taking, sit down and discuss the financial, legal, and other consequences of driving.
Get Cheap Auto Insurance Quotes
MyCarInsurance123 helps consumers find cheap car insurance quotes by offering a complete rate comparison tool from the best companies. By comparing quotes and companies online, we hope you find better coverage and lower premiums, resulting in the best car insurance for young drivers under the age of 25.