Cheapest car insurance for young adults in 2025

Key takeaways

• Average full coverage car insurance rates for 20-year-olds are 104 percent more than the national average. 
• On average, 25-year-old drivers pay 39 percent less for full coverage than 20-year-olds.
• Auto-Owners, Travelers and Geico offer some of the cheapest insurance for young adults. 
• Young drivers may be able to save on their premiums by shopping around, looking for discounts and maintaining clean driving records. 

Budgeting for car insurance as a young adult can be a challenge. When you move out of your parents’ house and establish your own car insurance policy for the first time, you may be shocked to learn that insurance companies usually charge drivers under age 25 more if they’re on their own policy. If your car insurance bill has you discouraged, there’s good news: shopping around, practicing defensive driving and identifying the best discounts for your profile can help you find affordable auto insurance without having to wait for your 25th birthday.

What is the cheapest car insurance for young drivers?

To find the cheapest insurance for young adults, Bankrate’s insurance experts reviewed average premium data from Quadrant Information Services. We also evaluated potential discounts, endorsements, digital tools and customer satisfaction scores to help you get a good price without sacrificing coverage or service. The companies below are a mix of regional and national carriers and are a good place to start when you’re ready to request car insurance quotes.

The rates below are averages. Your rates will vary based on your personal rating factors like location, vehicle type, driving record and, in most states, credit history and gender. However, age is not a car insurance rating factor in Massachusetts and Hawaii, although carriers in Massachusetts are allowed to consider the number of years you have been a licensed driver. 

Cheapest car insurance for 20-year-olds

Statistical evidence from the IIHS and NHTSA indicate that teenagers face a higher accident risk than many other age groups, largely due to inexperience, speeding, distracted driving and underage alcohol use. Many of these same risks still apply to 20-year-olds, but they’ve also had several years to prove they are safe and responsible drivers. 20-year-old drivers should start to notice their rates begin to gradually fall after their teenage years, given they’ve maintained a clean driving record. All that said, car insurance for 20-year-olds is still relatively expensive.

Below are the cheapest providers for 20-year-old drivers, according to Bankrate’s research. As a point of reference, the national average premium for 20-year-old drivers is $5,458 per year for full coverage.

Cheapest car insurance for 21-year-olds

According to the NHSTA, the 21 to 24 age bracket made up 29 percent of fatal crashes involving alcohol-impaired drivers, the highest of all other age brackets. Reaching the legal drinking age can be an exciting time, but it comes with the responsibility of understanding the legal limit and getting a ride home when you need one. For this reason, most car insurance providers keep rates fairly elevated for 21-year-olds.

The national average premium for 21-year-old drivers is $4,537 per year for full coverage. The table below summarizes the cheapest carriers for 21-year-olds based on average full coverage rates. 

Cheapest car insurance for 22-year-olds

At 22 years old, you may be approaching your college graduation date. Along with your diploma, you may start to receive slightly more affordable quotes from insurance providers. However, it’s important to note that these savings might be offset upon graduation when you lose your eligibility for good student discounts. As a substitute, you could look into providers that offer affiliation discounts through certain professions, organizations or alumni groups.

The following car insurance companies offer some of the cheapest average car insurance rates for 22-year-olds. Bankrate found that the national average full coverage premium for 22-year-old drivers is $4,186 per year.

Cheapest car insurance for 23-year-olds

By age 23, you're likely beginning to establish yourself in your adult life. This includes potentially purchasing and managing your own insurance policy, as opposed to being included on your parents’ policy. In fact, if you don’t still live at home, most insurance providers will require you to have your own policy. Unfortunately, having your own policy as a young adult is typically more expensive, which makes it even more important to shop around and compare quotes if finding the cheapest policy is your priority.

The companies showcased below offer cheap car insurance rates for 23-year-olds, according to our research. Bankrate found the national average premium for 23-year-old drivers is $3,928 per year for full coverage.

Cheapest car insurance for 24-year-olds

As much as you love your first car, you may finally be thinking about an upgrade as a 24-year-old. However, while you may have gotten used to your rates incrementally dropping year-over-year, this could change if you purchase a vehicle that has a higher replacement value, which almost certainly drives up insurance costs. A similar principle also applies to your living situation. If you move away from home to a big city where traffic is denser and crime rates are higher, you may see your rates go up.

That said, 24-year-olds who are driving the same car and living in the same spot should see their premiums continue to fall as long as they avoid tickets and accidents. On average, 24-year-olds pay $3,724 per year for full coverage car insurance. 

Cheapest car insurance for 25-year-olds

You may have seen your rates gradually decline over your early 20s, but savings usually become more noticeable at 25 years old, as long as you’ve maintained a clean driving record and, in relevant states, a good credit rating.

On average, 25-year-old drivers pay $3,308 per year for full coverage car insurance. This is still 24 percent more than the national average rate of $2,678 for adult drivers. On the other hand, it’s about 39 percent less than the average for 20-year-olds. 

How young drivers can save on auto insurance

All of the carriers listed above offer affordable car insurance for young adults on average — but there’s no single best car insurance company for all young drivers. Because car insurance rates are highly personalized, your savings strategy needs to be tailored to your unique situation. Consider the following options to help lower your car insurance bill in your twenties:

• Evaluate your annual mileage: If you work from home or take public transportation regularly, consider how much you actually drive in a year. Depending on your annual mileage, you may want to see if any low mileage car insurance options may be a good fit for your lifestyle.
• Use a telematics program: Telematics programs track real-time driving behavior in exchange for car insurance discounts. If you’re a safe driver and this is available by your carrier and in your state, sharing your driving data could help you beat the statistics associated with your demographic and prove that you’re worthy of cheaper rates.
• Avoid tickets and accidents: Car insurance companies see speeding tickets and accidents as an indicator or risky driving behavior and typically raise rates as a result. Maintaining a clean driving record may help you save on your premium. 
• Shop around: Carriers use proprietary rating algorithms, so you may see significantly lower rates with one carrier compared to another. Most insurance experts recommend comparing at least three quotes to see where you could get the cheapest car insurance for young drivers.
• Build your credit: In all states except California, Hawaii and Massachusetts, insurance companies charge higher rates for customers with fair to poor credit scores. Building credit quickly in your twenties could help you find affordable rates sooner. 

Car insurance discounts for young adults

Most car insurance companies offer at least a handful of discounts, including ones geared towards young drivers. Here are some of the best car insurance discounts commonly available for young drivers:

• Good student discount: Young drivers that are still in college and maintain high grades may be able to qualify for this discount.
• Safe driving course discount: By completing an approved safe driving course, young drivers may be able to apply this discount to their car insurance policy for additional savings.
• Affiliation discounts: Young adults who are in the military or part of a certain profession, organization or alumni group may be able to earn a special discount from certain car insurance companies.
• Loyalty discounts: Certain insurance carriers, like USAA and Farmers, offer discounted rates to young adult drivers who start a policy of their own after being insured on a parent’s policy. 

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze March 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2023 Toyota Camry, commute five days a week and drive 12,000 miles annually. 

These are sample rates and should only be used for comparative purposes. 

Age: Rates were calculated by evaluating our base profile with the ages 20-25 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.