What Is The Best And Cheapest Car Insurance For First Time Drivers Under 25?

Updated August, 2020
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The best and cheapest insurance for first time drivers under 25, varies. Your location, and policy type can make a big difference. You should try to join your parent's policy for the lowest rates. Depending on your exact age, you could be spending roughly $750-$6,000 annually. 

The average insurance cost for a first time driver under 25

We've put together a list of national, annual averages for car insurance costs based on age. We've also specified the pricing as a state minimum policy, liability car insurance, or full coverage. This gives you a good jumping-off point when researching insurance. Keep in mind, average pricing is lower if you qualify to be on your parent's policy.

Age Avg. State Minimum Liability Insurance Full Coverage
16 $2,661 $3,306 $7,297
17 $2,208 $2,520 $6,119
18 $1,910 $2,172 $5,399
19 $1,346 $1,525 $3,873
20 $1,175 $1,329 $3,454
21 $916 $1,035 $2,737
22 $836 $942 $2,503
23 $772 $868 $2,321
24 $724 $813 $2,179

What affects car insurance prices for a driver under 25?

  • The Age When They Received Their License- Usually, the more driving experience a young driver has, the lower their insurance could be. For instance, a driver who started at 16 is more likely to have lower rates than a driver who started driving at 18.
  • Driving History- Young driver insurance rates are already the highest in the country. If your driver has a history involving an accident this can make their rates soar. 
  • Speeding Tickets and Other Offenses- Any sort of prior offense, such as a speeding ticket will increase your rates greatly. Maintaining a safe driving record, that shows you're responsible goes a long way.
  • Driver’s Education- A lot of insurers offer a discount for par-taking in a safe drivers course.
  • Separate Insurance Versus Parents’ Insurance- If you're a young driver that still lives at home, you can save hundreds of dollars by being on your parent's policy.
  • State Laws- States vary in their pricing. For instance, someone in North Carolina pays significantly less than someone in Florida.

Money-saving tips for young drivers

We've compiled a list of discounts available for teens and young drivers. These are easy discounts that most people can qualify for.

Be sure to take advantage of any discounts you can to lower your rates as much as possible!

  • Good Student Discounts- By having good grades, a teen demonstrates understanding responsibility. This qualifies them for a discount with most insurance companies. 
  • Defensive Driving Class- Look into discounts offered to teens and young drivers who take part in ""Driver's Ed"" or similar courses. 
  • Occasional Operator- A teen driver who only drives limited hours such as to and from school can save. They can be added to their parent's policy as an ""Occasional Operator"" to receive a discount.
  • Student Away- For students who are ""away at school"", some companies will lower the parent's rates when they are not home.
  • Low-Mileage- If you know you won't be driving often, ask your insurer about a low-mileage discount. This is something almost anyone can take advantage of, not just teens.
  • Anti-Theft Devices- Some insurers offer a discount when you install an anti-theft device in your vehicle. The discount will vary on your state and the type of anti-theft device.
  • Safe Driving- With today's technology, you can download apps that monitor your driving habits. Some insurers give discounts for good driving while using these apps.
  • Type of Car- Buying a cheaper, older car will cost you less with insurance than buying a new sports car. Since the car is worth less, your insurance is less. You can save further by dropping comprehensive and collision coverage.
  • Adding Another Driver to Your Policy- You can lower your rate by adding a more experienced driver to your policy. Especially if you are a first-time driver, this can be very beneficial. Just make sure they have no previous claims or convictions.

How to begin your search

Finding the best and cheapest car insurance for a driver under 25, can be a challenge. It requires research, shopping around, and asking for applicable discounts. Everyone is different. What might work well for your friend could be an awful deal for you. Don't be afraid to reach out to insurers over the phone and ask questions. 

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