Teenagers and young adult drivers pay some of the highest rates for car insurance. The high car insurance rates from your teen years may not start dropping significantly until you reach your mid-20s. However, purchasing your own policy can come with benefits, such as access to more discounts.
Most states require at least liability coverage by law, though having a more complete policy is strongly recommended. Since budget is likely a big factor in your decision when buying car insurance, it's helpful to shop around and compare rates from several reputable companies.
A local independent insurance agent can do this for you and help you find the most affordable car insurance for young drivers. Using a car insurance calculator can also give you a better idea of how much you can expect to spend on your young adult car insurance policy. Whether you value cheap rates or digital tools, here are some of the best car insurance options for young adult drivers, broken down by category.
Key Takeaways - Best Car Insurance for Young Adult Drivers in 2026
USAA has the cheapest average car insurance rates for young drivers in 2026, at $1,815 per year for 25-year-old females and $1,905 for males.
Young drivers can earn discounts on car insurance by maintaining a good grade average or living away from home while in school.
Staying on a parent's policy is usually cheaper than getting your own policy, until about age 22-23.
Working with a local independent insurance agent is strongly recommended, as they can shop and compare young adult car insurance quotes and coverage options for you to find the best deal.
The 6 Best Car Insurance Companies for Young Adults in 2026
- Best Car Insurance for Young Adults for Low Rates: USAA
- Best Car Insurance for Young Adults for Discounts: Auto-Owners Insurance
- Best Car Insurance for Young Adults for Customized Policies: Nationwide
- Best Car Insurance for Young Adults for Digital Tools: Progressive Insurance
- Best Car Insurance for Young Adults for Local Agencies: Liberty Mutual
- Best Car Insurance for Young Adults for Accident Forgiveness: Liberty Mutual
Best Car Insurance for Young Adult Drivers for Low Rates: USAA
When it comes to reliably low base rates for young adults, USAA is second to none. The carrier offers affordable young-adult car insurance policies with average annual premiums of $1,815 for 25-year-old females and $1,905 for males.
With over a century of experience and an "A++" rating from AM Best, USAA has plenty to offer. Its mobile app and website simplify coverage management and claims filing experiences. However, USAA's coverage is only available to military members and their families.
USAA earned the top spot for low rates compared to many other carriers we studied. It offers ample discounts, including new vehicle, multi-car, annual mileage, and vehicle storage. If your parents previously had a USAA policy, you might even be eligible for a family discount.
| Pros: | Cons: |
|---|---|
Affordable premiums
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Not BBB-accredited
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Numerous discounts
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Some mixed customer feedback
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"A++" AM Best rating
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Coverage is only available to military members and their families
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Best Car Insurance for Young Adult Drivers for Discounts: Auto-Owners Insurance
Auto-Owners was founded in 1916 and has an "A+" rating by AM Best. The carrier also offers a long list of discounts for young adults, as well as three savings programs specifically designed for young drivers. Good student discounts, student-away-at-school discounts, and more are available.
The insurance company also offers a teen monitoring discount, which evaluates driving habits using a GPS system in the car. Good driving behavior is rewarded with monthly savings. A 20-year-old driver can expect to pay an average of $3,755 annually for coverage. The drawback to Auto-Owners insurance is that it's only available in 26 states and D.C.
| Pros: | Cons: |
|---|---|
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Numerous discounts
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Coverage is only available in 26 states and D.C.
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Numerous endorsements
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Premiums may be higher than other carriers
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Rewards for good driving behavior
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Below-average ratings from J.D. Power for digital experience
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Best Car Insurance for Young Adult Drivers for Customized Policies: Nationwide
If you're a fan of customized coverage, Nationwide could have the perfect solution for you. Since 1926, Nationwide has provided comprehensive coverage options, and it’s been BBB-accredited since 1955. The company has strong financial ratings across the board, including an "A+" from AM Best.
Nationwide offers numerous add-on coverage options for young drivers to customize their policies, including gap insurance and roadside assistance. Young drivers can also qualify for discounts by enrolling in the carrier's SmartRide program, which monitors driving behavior and offers a 10% discount for signing up.
Savings of up to 40% are available for good driving habits. Nationwide can also help infrequent young drivers save money with its SmartMiles pay-per-mile program.
Nationwide is also the cheapest carrier for adding a young adult driver to a family policy, with increased rates ranging from $181 per month for a 20-year-old to $117 per month for a 25-year-old.
| Pros: | Cons: |
|---|---|
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Numerous endorsements
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No coverage available in Alaska, Hawaii, Louisiana, or Massachusetts
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Financially stable carrier
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Lower-than-average claims satisfaction scores on a recent J.D. Power survey
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Multiple savings programs
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Best Car Insurance for Young Adult Drivers for Digital Tools: Progressive Insurance
Progressive Insurance is another long-standing, reputable carrier, with over 80 years of experience and an "A+" rating from AM Best. The company originally focused on auto insurance, and that legacy is reflected in features such as Progressive’s Name Your Price tool and guarantee-backed repairs from in-network shops. Progressive's Snapshot telematics program helps drivers save about $322 per year on average.
With a robust website, a powerful mobile app, and the Snapshot program, Progressive provides a complete digital experience. The app allows you to file and track claims, request changes, pay your bill, and more. In addition, the Progressive website includes useful calculators and detailed insurance information.
| Pros: | Cons: |
|---|---|
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Almost fully digital experience from start to finish
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Only available in 40 states
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Plenty of discounts to offset higher premiums
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Poor BBB rating
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Ranked third in customer satisfaction for digital experiences from J.D. Power
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Lower-than-average customer satisfaction rating from J.D. Power
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Best Car Insurance for Young Adult Drivers for Local Agencies: Liberty Mutual
Backed by a century of experience and a good rating from AM Best, Liberty Mutual has an expansive network of local agents and a solid standing with the BBB. Liberty Mutual offers customizable options, affordable rates, an online customer portal, and 24/7 claims reporting.
If you value local agents, Liberty Mutual is the place to go. The company works exclusively with independent insurance agents to ensure a knowledgeable experience, tailored to your needs, particularly those unique to your geographic area.
Best Car Insurance for Young Adult Drivers for Accident Forgiveness: Liberty Mutual
With Liberty Mutual, you only pay for the coverage you need. And for teens and young adult drivers just starting out, every penny counts. This insurance provider offers more than 110 years of experience, 24/7 claims reporting, and strong ratings from AM Best and BBB.
Discounts are also available for going paperless, paying online, successfully completing the RightTrack driver safety program, and more. RightTrack can help drivers save up to 30% each year for good driving habits.
Young adults can be high-risk drivers. With its accident forgiveness program, Liberty Mutual keeps your premium the same after an accident. However, drivers under 25 face stricter eligibility requirements for accident forgiveness than older drivers. To qualify, drivers under age 25 must have five consecutive years of incident-free driving to have their first accident forgiven.
| Pros: | Cons: |
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Customizable coverage and discounts
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Stringent accident forgiveness requirements
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Drivers under 25 may be eligible for accident forgiveness
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Only covers first accident
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Highly experienced, well-rated national insurer
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Below average customer satisfaction ratings for digital experiences from J.D. Power
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What Factors Influence Car Insurance Rates for Young Adults?
Several factors can influence young adults’ car insurance rates, depending on the state in which they're insured. Not all rating factors, such as credit score, are allowed in all locations; California, Hawaii, Massachusetts, and Michigan strictly prohibit credit-based scoring for car insurance. Common factors that can influence car insurance rates are:
- Driver age: Drivers under 25 typically pay higher premiums.
- Vehicle type and age: Valuable or unsafe cars are usually more expensive to insure.
- Credit score: Good credit may lead to more affordable coverage. However, this rating factor is not allowed in all states.
- Driver gender: Females are statistically lower-risk customers than males, so they may pay less for coverage.
- Location: High crime and traffic rates can increase the risk of claims, so urban drivers might pay more for coverage.
- Annual mileage: More frequent driving means a higher chance of accidents and, thus, higher rates.
- Desired coverage: The more coverage you need, the higher your premiums will be.
A local independent insurance agent can help you find affordable car insurance for young adults in your area.
Average Cost of Car Insurance for Young Adults in 2026
The average cost of car insurance for young adults varies by driver age. For example, the average car insurance cost for a 20-year-old is $189 per month for an individual policy and an additional $181 per month when added to a family policy. The table below compares average car insurance rates by age 20 to 25.
| Driver Age | Individual Policy Monthly Rate | Family Policy Monthly Rate |
|---|---|---|
| 20 | $189 | $181 |
| 21 | $152 | $132 |
| 22 | $141 | $134 |
| 23 | $127 | $138 |
| 24 | $121 | $130 |
| 25 | $111 | $117 |
Of course, the cost of your specific policy can vary based on the factors outlined above. Be sure to work with an independent insurance agent to shop and compare quotes.
Family policy vs. individual policy: which saves more?
Staying on a parents' policy can help you save an average of $1,000 per year before age 23. Switching to individual coverage starts to make sense around age 22-23, with the clearest savings at age 25. However, it's important to understand that minors can't sign their own car insurance policy without an adult co-signer. You can also ask an independent insurance agent for more advice when choosing between a family vs. individual car insurance policy.
Cheapest Car Insurance for Young Adults by State in 2026
The cost of cheap car insurance for young adults ranges from $78 per month in Hawaii to $653 per month in Michigan. The table below compares the cheapest carrier and rate for young adults by state this year.
| State | Cheapest Carrier | Cheapest Annual Premium | Cheapest Monthly Premium |
|---|---|---|---|
| AK | GEICO | $2,637 | $220 |
| AL | GEICO | $2,386 | $199 |
| AR | GEICO | $2,913 | $243 |
| AZ | GEICO | $1,788 | $149 |
| CA | State Farm | $3,087 | $257 |
| CO | State Farm | $3,239 | $270 |
| CT | GEICO | $3,521 | $293 |
| DC | GEICO | $2,029 | $169 |
| DE | State Farm | $3,263 | $272 |
| FL | GEICO | $3,029 | $252 |
| GA | State Farm | $4,200 | $350 |
| HI | GEICO | $941 | $78 |
| IA | GEICO | $1,532 | $128 |
| ID | State Farm | $1,643 | $137 |
| IL | State Farm | $3,354 | $279 |
| IN | GEICO | $1,713 | $143 |
| KS | Allstate | $2,548 | $212 |
| KY | State Farm | $2,451 | $204 |
| LA | State Farm | $6,573 | $548 |
| MA | GEICO | $1,949 | $162 |
| MD | Allstate | $4,226 | $352 |
| ME | GEICO | $1,382 | $115 |
| MI | GEICO | $7,832 | $653 |
| MN | State Farm | $2,910 | $242 |
| MO | Allstate | $1,772 | $148 |
| MS | State Farm | $3,076 | $256 |
| MT | State Farm | $2,042 | $170 |
| NC | GEICO | $1,154 | $96 |
| ND | GEICO | $1,862 | $155 |
| NE | Allstate | $1,955 | $163 |
| NH | Allstate | $1,747 | $146 |
| NJ | GEICO | $2,375 | $198 |
| NM | State Farm | $2,824 | $235 |
| NV | GEICO | $3,450 | $287 |
| NY | Allstate | $6,346 | $529 |
| OH | GEICO | $1,684 | $140 |
| OK | Allstate | $2,519 | $210 |
| OR | GEICO | $2,613 | $218 |
| PA | State Farm | $3,555 | $296 |
| RI | State Farm | $2,315 | $193 |
| SC | GEICO | $2,168 | $181 |
| SD | State Farm | $1,985 | $165 |
| TN | GEICO | $2,314 | $193 |
| TX | GEICO | $2,301 | $192 |
| UT | GEICO | $2,485 | $207 |
| VA | Nationwide | $2,019 | $168 |
| VT | Nationwide | $2,039 | $170 |
| WA | GEICO | $2,074 | $173 |
| WI | State Farm | $2,336 | $195 |
| WV | State Farm | $1,962 | $164 |
| WY | State Farm | $2,040 | $170 |
Best Cars to Insure for Young Adult Drivers
The Subaru Outback is the cheapest car to insure for young adults, averaging just $107 per month. The MINI Cooper ($110 per month), Subaru Forester ($111 per month), and Honda CR-V ($113) are also highly affordable. Your choice of vehicle can help you save an average of $300-$400 per year on car insurance. The table below compares the cheapest cars to insure for young adults in 2026.
| Vehicle | Average Annual Premium | Average Monthly Premium | Average Annual Savings |
|---|---|---|---|
| Subaru Outback | $1,279 | $107 | $387 |
| MINI Cooper | $1,321 | $110 | $344 |
| Subaru Forester | $1,333 | $111 | $333 |
| Honda Fit | $1,346 | $112 | $320 |
| Honda Odyssey | $1,350 | $112 | $316 |
| Honda CR-V | $1,354 | $113 | $312 |
| Toyota Tacoma | $1,394 | $116 | $272 |
| Mazda CX-5 | $1,401 | $117 | $264 |
| Ford F-150 | $1,402 | $117 | $264 |
| Ford Escape | $1,404 | $117 | $262 |
Life Events Can Affect Car Insurance Rates for Young Adults
Major life changes can also influence your car insurance premiums. Your auto insurance costs reflect aspects like your financial stability, who’s driving your car, and your overall risk level. The following life events could affect your costs:
- Getting married: Married people are generally seen as lower risk, and couples typically move their vehicles to one policy for simplicity. Both may help reduce your premiums.
- Moving in with roommates: Roommates may occasionally borrow your car. Because of this, insurers will typically ask that your roommates be listed on the policy, which can increase the cost. Your roommates may also be excluded from your policy; in which case, your insurance provider may require proof that they have their own insurance.
- Buying your first home: Homeowners are generally seen as financially responsible, which often translates to lower premiums. If you bundle your homeowners and car insurance, you may also qualify for a bundling discount.
- Adding a teen: If you add a teen driver to your own policy as a young parent, this can lead to higher car insurance rates.
If you go through any major life changes, be sure to let your independent insurance agent know. They can help update your policy for you and find any new discounts you may qualify for to reduce your premiums.
Car Insurance Discounts for Young Adults: How Much You Can Save in 2026
As you age, you'll eventually become ineligible for your parents’ car insurance policy or for discounts, such as student driver discounts. However, you may become eligible for other car insurance discounts, including:
- Good student discounts (~10%-25%)
- Student-away-at-school discounts (~14%)
- Multi-car discounts (up to 25%)
- Defensive driving course discounts (~5%-15%)
- Low-mileage discounts (~10%-25%)
You may also score discounts for enrolling in autopay, paperless billing, or programs that monitor your safe driving habits. Ask your independent insurance agents about all the additional young driver auto insurance discounts that may be available to you, including good student discounts for car insurance.
Telematics and pay-per-mile programs for young adults
Nationwide offers the SmartRide telematics program, which can help you save up to 40% on average. Progressive's Snapshot program helps drivers save an average of $322 per year. Other programs offered by major carriers include Liberty Mutual RightTrack, Allstate Drivewise, and USAA SafePilot. However, California bans telematics-based pricing exclusively.
Good student and student-away-from-home discount specifics
The average good student discount helps drivers save 12% on their coverage, though Allstate's discount is up to 20%. A student-away-at-school requires the insured student to be up to 100 miles or farther from home with no car kept at school, and earns you an average savings of 14%. Ask an independent insurance agent for more information about how to qualify for car insurance discounts for college graduates.
FAQs About Car Insurance for Young Adults
Which car insurance is cheapest for young adults?
Variables like location, eligibility for discounts, and driving history can cause cost differences between individuals, even if their coverage is identical. However, USAA generally offers the most affordable premiums for young adults, averaging $1,815 for 25-year-old females. USAA's auto insurance is only available to military members and their families, though. Travelers, Erie, and Auto-Owners are the cheapest carriers for non-military members.
How much car insurance do young adults need?
You should always have the minimum liability coverage and other types of coverage required by your state. However, accidents are expensive. Young drivers’ increased driving risks and probable inability to cover high out-of-pocket costs mean that they could benefit from more robust coverage with higher limits. Coverage limits of at least 100/300/100 for liability, plus comprehensive and collision coverage, are typically recommended for most young adults. However, if the budget allows, increase your coverage to 250/500/100.
Is car insurance cheaper once you turn 25?
Once you turn 25, your perceived risk begins to decrease, and your premiums are likely to also. The average car insurance premium drops between 20% and 30% once drivers reach age 25, while the biggest single-year price drop is from age 20 to 21, with an average savings of $588 per year on a family policy. However, changes like being taken off your parents’ policy or aging out of good student discounts could mean increases in your rates.
How can I lower my car insurance rates in my 20s?
Start by finding a provider that offers customizable coverage and discounts that you’re eligible for. Enroll in a telematics program to save an average of 10%-30%, bundle your car insurance with renters insurance to save an average of 5%-25%, and choose a higher deductible to save an average of $200-$400 per year. Keep in mind that raising your deductible means you'll pay more if you file a claim. Also, be sure to shop annually for coverage with help from an independent insurance agent.
Should I stay on my parent's insurance policy in my 20s?
If you still live with your parents, you may enjoy lower costs on their policy. However, if you move into your own place, it’s often best to get your own coverage. Most young adults save an average of $1,000 or more per year by staying on a parent's policy before age 23. It usually pays off to switch to your own policy around age 22-23 once you no longer share an address.
What gender pays more for car insurance?
Males may have higher premiums because they’re statistically more likely to get into accidents. It’s also more likely for those accidents to be more serious and incur higher costs. On average, male drivers pay about 9% than their female 20-year-old counterparts. However, this gap narrows to just 2% by age 25. Certain states, however, including HI, MA, MI, MT, NC, and PA, prohibit gender as a rating factor for car insurance.
What is the cheapest car insurance for young adults in 2026?
USAA has the cheapest average premiums of $1,815 per year for eligible military families. For non-military, Travelers, Auto-Owners, and Erie are the next-cheapest carriers.
How much can a good student discount save on car insurance?
The average good student discount can help you save 12% on your car insurance, while Allstate's discount is as high as 20%. You typically must maintain a B grade average or a 3.0 GPA to qualify.
At what age is car insurance cheapest for young adults?
Car insurance rates drop every year from 20 to 25, with the biggest jumps at ages 21 and 25 (20%-30%). After 25, most carriers no longer consider the driver to be a youth.
An Independent Insurance Agent Can Help You Find the Cheapest Car Insurance for Young Adults
When you're ready to find affordable car insurance as a young adult driver, no one's better equipped to help than a local independent insurance agent. These agents have access to all the carriers on our list and many others near you. They'll shop and compare quotes and policy options for you to find the best deal.
Sources
https://www.bankrate.com/insurance/car/young-drivers/#best-car-insurance-for-young-drivers
https://www.thezebra.com/auto-insurance/driver/age/cheap-car-insurance-young-adults/
https://www.usnews.com/insurance/auto/cheapest-car-insurance-for-young-adults
https://www.moneygeek.com/insurance/auto/cheapest-car-insurance-for-young-adults/
https://www.progressive.com/auto/discounts/snapshot/