Best Cheap Car Insurance for Young Adults in 2023
As a teen driver grows into a young adult, the things that affect their car insurance rates change. Good-grade discounts may become a thing of the past, but drivers who have kept their driving records clean and have good credit should find that their premiums go down as they get out of their teens and early 20s.
Young adults can save money on car insurance if they are no longer tied to the high risk that insurance companies associate with younger, less experienced drivers, especially teens. When setting rates, insurers also look at where you live, what kind of car you drive, and your gender.
In most states, you have to have auto insurance. Car insurance is not only required by law, but it can also help protect your assets and possibly your financial future. Check out our list of the Best Cheap Car Insurance for Young Adults to find a plan that fits your budget and needs.
Who gives young adults the best rates?
Best prices for people in the military: Our study found that USAA, which only sells car insurance to U.S. military members, pre-commissioned officers, veterans, and their spouses and children, has the best rates for young adults. A policy from USAA costs an average of $1,219 per year for a young adult female driver.
This is about $539 less than the average policy from the other companies we looked at. The average cost of a policy from USAA for a young adult male driver is $1,280 per year, which is $580 less than the national average.
Best rates for people who aren’t in the military: Geico has the best rates for drivers who aren’t in the military or have no family members who are. The average annual rate for a young adult female driver is $1,346, which is about $412 less than the average rate of the 10 insurance companies we looked at. Men will pay an average of $1,357, which is $503 less than the average rate across the country.
Your car insurance rates will be different from those shown here. This is because your rates are based on many different factors.
More About the Companies with the Cheapest Car Insurance for Young Adults
The price of car insurance is important, but young drivers should look for more from an insurance company than just a low price. Customers of different insurance companies get different levels of service and happiness. Some insurance companies offer extras for young drivers, such as free repairs after an accident or roadside help. Here are the five auto insurance companies that charge the least for young adults.
USAA
USAA is the best car insurance company in the United States, according to our list. USAA has a great reputation among its member-customers for how it handles claims and treats customers. It also has affordable car insurance rates for young adults.
USAA has the best rates for young adults who drive, based on our research. With USAA, a young adult male driver can expect to pay $1,280 a year for car insurance. Based on our data, the average rate for a woman at this age is $1,219 per year. In our study of the largest insurance companies in the United States, we found that both of these prices are more than $500 less than the average price for this age group.
USAA only sells car insurance to U.S. military members, pre-commissioned officers, veterans, and their spouses and children. This means that many people won’t be able to join.
Geico
Geico is tied for third place on our list of the best auto insurance companies. Our study shows that Geico’s rates are among the lowest of the companies we looked at.
Geico is one of the least expensive insurance companies for young adults. Our study shows that a young adult male driver can expect to pay $1,357 per year and a young adult female driver can expect to pay $1,346 per year. For our young adult driver profile, the study rate for the male is more than $500 below the national average, while the representative rate for the female is more than $400 below the national average.
State Farm
In our list of the best auto insurance companies, State Farm is in second place.
If you are a young adult looking for insurance, you are likely to find that State Farm’s rates are not the lowest, but they are cheaper than average. In our study, a young adult female driver can expect to pay $1,381 a year for insurance, while a young adult male driver will pay $1,537. These rates are $377 and $323 less than the average rate for this age group from the 10 companies we looked at.