Best car insurance for young adults

best car insurance for young people

The 5 Best Car Insurance Offers for Young Adults

Young adults pay a higher price to insure their vehicles. Young males spend an average of $800 more in premiums annually. There are still discounts available to those under 35 to help lower the costs. Here are the five best car insurance deals available for teens and young adults.

5 Best Car Insurance Offers for Young Adults

  • Amica: Best if your parents are Amica customers
  • Esurance: Known for low rates
  • Geico: Offers military discounts
  • Liberty Mutual: Discounts for drivers of environmentally friendly vehicles
  • Progressive: Safe driver discount offered after three years

Best Car Insurance for Young Adults: Our Recommendations

Amica – Offers a Loyalty Discount

Amica was founded in 1907 and is the oldest auto insurer in America. Their policies offer young adults several ways to reduce their premiums. These include:

  • Good Driving Discount – Applies if you have no at-fault violations or accidents in three years
  • Good Student Discount – Takes 25% off your premium until you turn 25
  • Legacy Discount – Reduces the cost if your parents have had an Amica policy for five or more years
  • Student Away at School Discount – Applies if you are a full-time student at a college away from home and drive only when you are at home

Esurance – Lowest Car Insurance Rates in the Industry

It is always worth getting a quote from Esurance because they are known for their low rates and digital servicing model. But they don’t stop at just the rates. You can also qualify for these additional discounts:

  • Fast 5 – Apply online to score 5% off your premium instantly
  • Pay-in-Full – Instead of making monthly payments, pay your premium in full for a 10% discount
  • PAC 12 – You get 15% off if you attend college at a school located in the PAC 12 conference
  • Switch & Save – Transfer your current coverage to Esurance and receive 5% off

Geico – Offers Military Discounts

Geico offers the ability to get your policy online, by phone, email or by visiting an agent in person. It also uses Twitter for customer service needs, a convenience that appeals to younger drivers. Some of the applicable discounts offered by Geico include:

  • Federal Employee – Receive 8% off your premiums if you work for the federal government
  • Military – Military personnel get a 15% discount
  • Family Pricing – Offers the same policy rates to all members of the family
  • Accident Forgiveness – No premium surcharge for the first at-fault accident

Liberty Mutual – Discount for Hybrids and Electric Vehicles

Liberty Mutual was founded in 1912 and is one of the largest insurance providers in the United States. The company offers some great discounts for young drivers ensuring a place on our list of the best car insurance for young drivers. Options include:

  • Alternative Energy – Enjoy savings when you drive a hybrid or electric vehicle
  • Advanced Safety Features – You save if your vehicle is equipped with adaptive headlights and electronic stability control
  • RightTrack – Rewards you with up to a 30% discount for your good driving habits
  • Online Purchase – Discounts your premium when you buy your policy online
  • Liberty Mutual ByMile – Customized savings offered to low-mileage drivers

Progressive – Earn a Safe Driver Discount in 3 Years

Last but not least of our list of the best car insurance for young driver is Progressive’s offer. The NAIC rated Progressive as excellent due to receiving fewer customer complaints than its competitors. Their superior AM Best financial rating proves the company has the funds to pay out claims when needed. It is also known for offering low auto insurance rates. Taking advantage of some of its discounts makes your premiums that much more affordable.

  • Name Your Price Tool – Enter how much you want to pay, and this tool will match you with any available policies
  • Snapshot – Install the snapshot device in your vehicle to receive up to a $130 discount on your driving habits and usage
  • Safe Driver Discount – Rewards you with up to a 31% discount for no moving violations or at-fault accidents in three years
  • Continuous Coverage – Get a discount for having a few years of coverage under your belt

The Bottom Line

Each of our best car insurance choices offers discounts to help lower the cost of your higher premium. The good news is, rates will go down as you get older, get married and purchase a home.

Quick Questions

Why is auto insurance higher for young adults?

Insurance providers set their rates based on risk, and teenagers and those below the age of 25 are considered inexperienced behind the wheel with a tendency to be distracted drivers. 

 What is the best insurance for teen drivers? 

Geico and Progressive offer the lowest rates for teen drivers.

Does having an older car lower the insurance rate for a young adult? 

Yes, older cars cost less to insure because they are less valuable.

Are you confused by all the car insurance choices available to you? Check out our Ulitmate Guide to Choosing Car Insurance here.

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