The average cost of insuring a young driver (ages 16-25) in the US
There's no getting around it: insuring a young driver, 16-25 years of age, is expensive. If you're a parent who hasn't thought about the cost of insuring your young motorist when they're of age, prepare yourself (and your budget) for a potential sticker shock. Using our national database of car insurance prices we can tell you that, on average, it costs $6,297 per year ($524 a month) to cover a young driver in the US; 57.37% more than what experienced drivers typically pay. These prices vary wildly based on a number of factors so keep reading to understand how rates are determined and we'll help you get the cheapest possible car insurance for your teen or young adult.
What is the best car insurance company for young drivers?
Given all of the disparate factors affecting a young driver's car rate, determining the cheapest car insurance company for your teen or young adult will depend heavily on your location. Where you live is very closely correlated with pricing. We strongly recommend entering your zip code below to see which car insurance company has the best deal for young people in your area.
Finding cheap car insurance for new drivers and teens
Car insurance for new drivers and teens could never be described as “cheap”, but we'll help you understand what you can expect to pay to cover a young person in your area. Below is a list of US states where we've noted which car insurance company is best for teen and new drivers as well as the potential savings you can expect versus other providers in that state. Car insurance prices, across the board, are in large part determined by laws and regulations governing the industry in your state. For car insurance data more specific to your own location, enter your zip code or city above or click on your state below.
States with highest car insurance rates for young drivers
State |
Avg. Yearly Premium (for ages 16-25) |
Top Provider for New Drivers |
Potential Switch Savings |
$12,013 |
$2,718 |
||
$10,495 |
$5,358 |
||
$10,285 |
$5,452 |
||
$9,787 |
$5,108 |
||
$9,322 |
$6,003 |
||
$9,292 |
$2,731 |
||
$8,832 |
$4,809 |
||
$8,349 |
$5,614 |
||
$8,132 |
$3,468 |
||
$8,025 |
$3,830 |
||
$7,831 |
$4,859 |
||
$7,791 |
$804 |
||
$7,066 |
$3,415 |
||
$6,998 |
$1,023 |
||
$6,971 |
$3,205 |
||
$6,839 |
$3,551 |
||
$6,743 |
$3,835 |
||
$6,726 |
$3,693 |
||
$6,718 |
$3,107 |
||
$6,649 |
$4,583 |
||
$6,511 |
$2,347 |
||
$6,379 |
$2,647 |
||
$6,364 |
$2,389 |
||
$6,302 |
$3,224 |
||
$6,263 |
$2,136 |
This might be the point where that sticker shock hits you. For those living in states such as Rhode Island, Connecticut and Michigan, the cost of insuring a young driver may be as much as the price of a used car per year. Even within this list you'll see a ton of variance. In Missouri, for example, you'll pay 48.35% more than if you lived just up north in bordering Iowa, a difference of $2,122 per year for a young driver's car insurance policy.
States with lowest car insurance rates for young drivers
State |
Avg. Yearly Premium (for ages 16-25) |
Top Provider for New Drivers |
Potential Switch Savings |
$1,781 |
$985 |
||
$3,286 |
$1,344 |
||
$3,375 |
$1,142 |
||
$4,090 |
$1,958 |
||
$4,109 |
$1,337 |
||
$4,276 |
$1,472 |
||
$4,389 |
$1,834 |
||
$4,497 |
$969 |
||
$4,594 |
$1,377 |
||
$4,650 |
$2,186 |
||
$4,779 |
$1,738 |
||
$4,799 |
$1,765 |
||
$4,991 |
$1,983 |
||
$5,035 |
$1,659 |
||
$5,200 |
$1,380 |
||
$5,216 |
$2,371 |
||
$5,352 |
$1,587 |
||
$5,582 |
$2,173 |
||
$5,605 |
$2,084 |
||
$5,796 |
$2,384 |
||
$5,885 |
$2,319 |
||
$5,960 |
$3,020 |
||
$6,003 |
$2,873 |
||
$6,240 |
$952 |
||
$6,262 |
$2,249 |
Here is our list of states where you might be able to save a bit of money on a new driver's car insurance policy. You'll notice that states like Illinois, which borders Michigan, have a much lower rate––nearly $4,500 a year less–for young drivers. If you're a Californian relocating to Connecticut on the east coast expect to pay almost 1.5 times more than you already are. Enter your zip code above to find out exactly what you'd pay in your area for a new driver's car insurance.
The disparity in car insurance rates for teens and young adults mostly has to do with the amount of individual car insurance regulation is required by each state. Companies that operate in these high-cost states must cover certain (expensive) things, such as compulsory personal injury protection with unlimited medical benefits, and these costs are passed down to the customer. Studies have also shown there is a higher rate of insurance fraud and number of uninsured drivers on the roads in many of these states, raising premium rates for everyone.
How are car insurance rates determined for young drivers?
Auto insurance rates for young adults are determined the same way as they are for older drivers–by an algorithm that estimates the amount of monetary risk your insurance company will be taking on covering you and yours. There are several rating factors that determine insurance premiums, including:
- Location: Where you live is very strongly correlated with the price you'll pay for car insurance for a young person. This is because various state regulations on car insurance are at play in your area. But variables such as weather and crime levels are huge determiners as well and are closely tied to location. Prices can vary wildly across the nation. In Jacksonville, FL, insurance for a typical young driver is $7,544 per year while in Boise, ID, insurance costs $2,678.
- Rural vs Urban: More accidents occur when more people are on the road. Crime is also higher in urban areas so typically larger cities are going to have higher car insurance rates for everyone, including and especially young drivers. Compare a rural place such as Wenatchee, WA (population 34,000) at $2,504 per year for a young driver to Seattle, WA (population 724,000) at $6,799, for example.
- Your Age: If you're a new driver at or below the age of 25, you're considered a “young driver”. Experience is a huge benefit for safe driving under all conditions so, as we've discussed above, car insurance will be considerably more expensive for new drivers. Expect to pay a bit less each year after you hit that “10 years of experience” (26 years old for the person who got a license at 16) mark with your driving.
- Credit history: Bad credit or having no credit history at all can be a barrier to getting car insurance for young people. If you can get your teen onto a parent or family plan, you'll save money that way and also avoid having to establish credit at an age where it might be difficult or impossible (16-18 year olds).
- Vehicle make, model and value: Your car insurance company is essentially guaranteeing the value of your vehicle so it makes sense that an older, less expensive car would cost less to insure. Vehicle extras, mileage and the overall cost of potential replacement also factor heavily. While newer cars have safety features you'll want for your teen or young driver, these cars typically cost more to insure.
- Gender: The fact is, women are safer drivers than men in the US. Since men (younger men especially) are involved in twice as many accidents, car insurance companies charge them more for the doubled risk they are assuming.
- Marital status: Many 16-25 year old drivers are not married but if you happen to have signed nuptials as a young adult, car insurance companies will often give a discount to married drivers, regardless of age. Don't expect this marriage discount on young driver's insurance to mitigate the steep up-charge you'll get for just being an inexperienced driver though.
- Amount of Coverage: States have a minimum amount of car insurance you're required to purchase to stay on the road. You might end up paying the full bill for your young driver's accident if you're not paying for full coverage. Here are the basics to look for on your teen's car insurance policy:
- Liability Insurance – covers in an accident that is your teen's fault.
- Collision coverage – covers damage to your car.
- Personal injury coverage – covers medical costs associated with an accident.
- Comprehensive coverage – covers other damaging situations such as a deer strike, weather damage or theft.
- Uninsured motorist protection – covers damage from another driver who is not insured.
- All of these types of insurance have premiums, co-pays and minimum spends that differ based on your plan details. Pay careful attention to the details of your teen's plan with regard to the above. Even with all of the above coverages, you can still end up paying a large portion of the repair bills, depending on your plan's maximums and limits.
Car insurance discounts for students and young drivers
When you're between the ages of 16-25, there are a few ways to knock down the price your car insurance premium. Discounts and bargains are available for good students and those still on their parent's family plans. While no number of situational discounts will make a young adult's car insurance “cheap”, here are some of the ways young drivers can get a bit of a deal:
Joining a parent or guardian's plan: If possible, you'll save a lot of money by putting a young adult on a family or parent's existing plan. You won't need a credit check and some discounts such as home ownership, marriage and other mitigating factors could help you save money on the additional new driver. The car insurance company wants to keep your entire family with them for years to come, and potentially win over this new driver as a customer someday too, so this is one of the biggest ways to save money on a new teen driver.
Drivers education: Signing your teen or new driver up for a driver's education class is one of the best ways to avoid an accident, but less importantly, will help that young adult save on car insurance as well. Insurance companies sometimes offer a discount for new drivers who take a driver’s ed course.
“Away at School” discounts: If you're away for college or vocational training and don't need a car that often (but still need insurance for occasional driving), ask about “away at school” discounts. Discounts of 15-35% are available for these types of young drivers who won't be driving as often. Sometimes there is a limit of being “at least 100 miles away” from home so be sure to check that for the full-time student discount.
High grades: In at least one way, it literally pays to get good grades in school. Some insurance companies now offer car insurance discounts for students able to maintain a B (3.0) grade point average. High educational achievement is correlated with better drivers so many insurance companies are passing that savings on to you.
Car insurance for new and young drivers is expensive almost everywhere in the US but we hope the information found above, and on our local pages help you save a bit of money.