Teenagers and people in their early 20s, including many high school and college students, pay some of the highest rates for car insurance across the country. These new drivers lack a driving history.
Insurance companies formulate their rates using existing data that shows how younger people and those with no driving experience typically drive more recklessly, get into car accidents, and receive a variety of citations, like speeding tickets.
In this review, we will take a look at the least expensive car insurance options for teens, students, and new drivers. We will also provide tips for lowering your car insurance premium.
Best Cheap Car Insurance for Teens
According to Savvy data obtained by Kelley Blue Book, the cheapest car insurance provider for the youngest drivers is American Family at $182.96 per month on average for car insurance. However, the insurer only operates in 19 states, mostly in the West and Midwest.
We chart out the top-five best and cheapest auto insurance for drivers in the 18- to 24-year-old set using the data from Savvy. Read more about the company’s methodology.
RELATED STORIES: Best Cars for Teens: The List Every Parent Needs
|Monthly Rate for 18 to 24-Year-Olds|
American Family is followed by Mercury, The General, SafeAuto, and USAA car insurance.
RELATED STORIES: Our Favorite EV Safety Features and Brands That Offer Them
Best Cheap Insurance for Students
According to research from The Zebra, USAA, if you qualify, is among the cheapest and best insurance for high school students who drive, costing an estimated $355 a month.
USAA only offers insurance to active and former members of the military, and their children and spouses.
After USAA, the cheapest for students is State Farm. For coverage with this insurer, a high-school student will pay an estimated $429 per month on average. The next three cheapest companies for high-school students are GEICO, Nationwide, and Allstate.
College students, on the other hand, can expect to pay a bit less for car insurance. This is because most of them will have at least some driving experience under their belts.
According to data from The Zebra, the cheapest car insurance company for college-age students is also USAA, with the average premium at $209 per month. For those who do not qualify for USAA, a State Farm policy will cost them $275 a month on average. They can also expect favorable rates from GEICO, Nationwide, and Progressive.
RELATED STORIES: Best Cars for College Students
Best Cheap Insurance for New Drivers
The cheapest option for new drivers is GEICO. According to The Zebra, a driver with no insurance history, regardless of age, pays $633 for a six-month premium with GEICO.
The next cheapest option is State Farm (charging new drivers an average of $646 for a six-month policy), followed by Nationwide (with a policy rate of $661). New drivers may also want to check out Progressive. Its six-month premiums for new drivers come to $688 on average.
How Can I Get a Lower Car Insurance Rate?
- Make good grades. The best way teenagers and students can lower their auto insurance premiums is getting good grades. Many car insurance companies offer good-grades discounts.
- Distant student. In addition, if you are a college student and living away from home (more than 100 miles), you may qualify for a student away from home discount if you are on your parent’s policy. Keep in mind that you will be eligible for this discount only if you do not plan to have your own car while away from home.
- Good driver discount. Another great option for teens, students, and new drivers is telematics. Telematics is new technology and basically consists of an app that you download on your phone to track how you drive. If the app deems you a good driver, you will be eligible for significant discounts. However, keep in mind that not all insurance companies offer this option.
- Shop around. To find the best car insurance rates that work for you, it’s best to shop for quotes with various insurers and discuss all your coverage options and discounts. Don’t forget to ask about discounts for car safety features. That will help you get the lowest rate. You can start with this tool from GEICO.
Related Car Insurance Stories: