Best Car Insurance for Young Adults
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Choosing the best auto insurance for young adults, whether under a parent's policy or starting a new one, requires keen attention, often more than what an adult might need.
Finding the most suitable insurance for young adults combines challenges and opportunities. The upside? A wide array of companies are available at your disposal. The downside? This abundance of choices necessitates thorough research to secure the best rates.
But fear not. We are here to guide you. Our analysis compares various insurers, focusing primarily on their suitability for young adults. This is crucial to ensure you embark on your financial journey with a solid footing.
To determine the top car insurance company for young adults, we delved into several key aspects:
- Customer Service Ratings: Understanding how well these companies assist and support their clients.
- Financial Stability of the Insurance Company: Evaluating the insurer's capacity to fulfill claims and financial obligations.
- Rates for Young Drivers: Identifying companies offering lower rates specifically tailored for younger motorists.
- Extras: Exploring additional benefits like accident forgiveness or discounts for young drivers.
- Minimum Coverage: Assessing options for those seeking essential coverage at affordable rates.
Our comprehensive approach is designed to pinpoint the best auto insurance options, catering to young motorists' unique needs and budget constraints.
Related: Car Insurance Calculator
In this article
Overview of the best car insurance company for young adults
Before we get into greater detail, here’s a snapshot of the best car insurance companies for young adults and who we think the auto insurance carrier is best for. These companies work well with new drivers, students, and young adult drivers, and while not always cheap car insurance, they provide affordable car insurance with ample insurance discounts.
Insurer | Best For |
Easy claims process | |
Military families | |
If you like using a mobile app | |
Competitive rates | |
Digital experience | |
If you have a strict budget | |
American Family | Numerous coverage options |
Customer service | |
Accident forgiveness | |
Range of discounts |
Save $1,604 (or more) per year on car insurance today.
- 2-minute quote
- State minimum coverage
- Full coverage
- Explore top brands
Best car insurance companies for young adults
State Farm
Jake from State Farm can help all drivers feel special — including young adults. State Farm is the largest auto insurance provider in the U.S., but it hasn’t stopped this insurance titan from providing great service and coverage to millions of drivers.
State Farm offers standard coverage for each state and an impressive list of coverage options. Options include roadside assistance, car rental reimbursement, and rideshare driver coverage. You also have the option of specialty coverage, with teen drivers being one of them.
If you like the coverage options, you’ll love the discounts. State Farm offers discounts for everything from good grades and driving to reduced insurance premiums if you’re away at school.
State Farm’s overall customer satisfaction is high among the auto industry ratings.
USAA
If you or your parents are part of a military family, you’ll want to pay close attention to all USAA offers. It’s hard to beat the customer service, competitive rates, and financial powerhouse USAA has to offer.
USAA has a reputation for providing exceptional rates for its members. In addition to the standard auto coverage options, including roadside assistance and total loss protection, there are at least nine discounts available to members. USAA works hard to get you the lowest rate possible, from safe drivers to the length of military service.
Although not officially ranked with the JD Power 2023 U.S. Auto Claims Satisfaction Study, USAA scored 900 out of 1,000 points.
The only reason USAA isn’t ranked #1 is due to the strict requirements for membership. Unless you’re part of the military family somehow, you won’t have access to competitive rates, discounts, and fantastic customer service.
Esurance
Founded in 1999, Esurance is an Allstate company promising to make insurance as simple as possible. Esurance is for those who prefer a complete digital experience without going through an agent for a car insurance quote or to get questions answered.
Esurance has several discounts younger drivers may be able to take advantage of. You're eligible for discounts if you are a PAC-12 student or alumni.
The DriveSense mobile app tracks your driving habits and provides feedback. You don’t have to be an Esurance customer to use the app, but you get an additional discount on your premiums if you are.
The app gives you everything you need to do with car insurance. File a claim. Track your claim. Make a payment. Call for roadside assistance. In other words, the app is another way Esurance makes the car insurance process easier.
While Esurance is a relatively young company (compared to the age of the other insurance giants), it has Allstate's power for its financial backing. Esurance wasn't included in the JD Power 2023 U.S. Auto Claims Satisfaction Study.
Nationwide
Nationwide is another big-time insurance company with plenty of star power and financial strength. With Nationwide, you can also get various specialized coverage options and programs to customize your car insurance policy for your budget, whether you’re famous or not.
Nationwide has specialty options such as gap coverage, roadside assistance, total loss deductible waiver, and accident forgiveness. These are important options because they’re not always available with other mammoth-sized insurance companies.
Nationwide is available in almost every state and offers nine discounts to lower premiums. We also like how Nationwide offers the On Your Side Review yearly to ensure you get the most discounts and best coverage possible.
Nationwide performed well in the JD Power 2023 U.S. Auto Claims Satisfaction Study, scoring 875 out of 1,000.
Geico
When it comes to discounts, Geico doesn’t kid around. And young adults have access to these discounts just like anyone else.
From good student to good driver, Geico has several discounts younger drivers can qualify for. Geico also has a long list of affinity membership discounts. You might be eligible if you’re a member of one of the 500+ groups, such as sororities, fraternities, or college alumni.
In addition to discounts, Geico offers many coverage options and the standard auto coverages you need so that you can customize your policy based on your budget. Optional coverages include emergency roadside assistance, car rental reimbursement, and a mechanical breakdown option (similar to an extended car warranty).
Geico makes it easy to manage your policy on your smartphone or online. You can submit your information online or through the app for instant access or work with an agent if you need to. Geico’s website and app are known for a great user experience — so you can get on with your life if you have an accident.
Customer service rankings are also strong — scoring 871 out of 1,000 in the JD Power 2023 U.S. Auto Claims Satisfaction Study.
Progressive
It’s hard to turn on the television without seeing a funny Progressive commercial, but Progressive's ability to save for young adults is no laughing matter. Progressive is well known for offering its policyholders an extensive list of discounts.
Progressive provides all the standard auto insurance coverages you need, plus a long list of options. The options available range from roadside assistance, loan/lease payoff, car rental reimbursement, and even coverage on your custom and after-market equipment (which is hard to find with insurance companies).
You have numerous coverage options and many discounts to lower your premiums. Discounts for drivers include multi-car, multi-line policy, or using the Snapshot: Safe driver discount program. Progressive also has the Name Your Price Tool, which helps you customize your auto policy to fit your current budget — and these are all available to young adults.
Progressive gets dinged a fair amount in the JD Power 2023 U.S. Auto Claims Satisfaction Study, ranking well below the industry average at 18th. But overall, Progressive deserves a look because of the discounts and rates for young adults.
American Family
American Family Insurance is only available in 19 states, but it’s worth it for young adults to review if you live in a serviced area. The company offers a wide range of coverage options, including ones not offered by other big-name companies (like gap coverage). You can customize your policy with various custom coverage levels, all while still keeping your discounts.
American Family offers discounts —from safe driving to college students away from home to good student discounts. There’s even a discount offered if you spend time volunteering.
The app gets 4.8/5 stars because of its ease of use and ability to handle everything policy-related on your smartphone.
The JD Power 2023 U.S. Auto Claims Satisfaction Study found the company to be above the industry average by four points. With the number of discounts available and the intuitive app, you’ll likely find the right policy for your budget as a young adult.
Overall, the combination of discounts, options, and strong financials make American Family a great choice for young adults.
Farmers
Farmers Insurance offers standard coverage for autos, but you’ll like the unique options Farmers offers, from roadside assistance, rideshare, and gap insurance to extended equipment coverage.
Farmers is easy to work with, too, with an intuitive website and tech-savvy app for all digital lovers. You can start a claim through the app, request roadside assistance, make payments, and even get fast quotes for coverage. Farmers use a large network of agents and provide 24/7 customer service if you want a human voice.
Farmers ranks just above the industry average in the JD Power 2023 U.S. Auto Claims Satisfaction Study.
Allstate
Allstate features coverage options you don’t always find with other insurance companies. For instance, specialty coverage, such as rideshare insurance or custom sound equipment coverage. Allstate has an equally impressive list of discounts, so you might be able to get the premium to work for your budget. Among the numerous discounts are good grades, driver away from home, and green vehicles.
Programs such as accident forgiveness and Deductible Rewards to further help with premiums. It’s also worth noting that the versatile app has high ratings and positive reviews. But the app has extra features such as a Digital Locker (to keep track of your belongings) and a place to keep track of your digital identity.
Allstate ranked above the industry average in the JD Power 2023 U.S. Auto Claims Satisfaction Study.
Liberty Mutual
Founded in 1912, Liberty Mutual is no stranger to providing comprehensive insurance policies that include young adults. Liberty Mutual can save you money by bundling your insurance policies (such as renters and auto) and through many other discounts.
Liberty Mutual offers basic auto coverage but has many options to customize your policy further. Options for your policy include collision, Liberty Mutual Deductible Fund (where your deductible reduces over time), gap coverage, and roadside assistance.
Liberty Mutual offers several discounts, such as discounts for paperless statements, good grades, safe driving, and students away from home.
Liberty Mutual could use some improvement in terms of overall customer satisfaction. In the JD Power 2023 U.S. Auto Claims Satisfaction Study, Liberty Mutual has ranked six spots below the industry average. However, the digital experience and discounts still make it a top choice.
Best car insurance for young adults summary
Insurer | JD Power 2023 Top 18 Rank | Discounts for young drivers |
5 | Yes | |
N/A | Yes | |
N/A | Yes | |
14 | Yes | |
16 | Yes | |
18 | Yes | |
American Family | 9 | Yes |
12 | Yes | |
8 | Yes | |
19 | Yes |
Quick car insurance quotes
In your quest for quick car insurance quotes, leveraging services that simplify this task is incredibly beneficial. Platforms such as Gabi have partnered with numerous auto insurance companies, facilitating an easier comparison-shopping process for you. These free services, which earn their revenue from the insurers, provide an efficient avenue for obtaining free quotes, ensuring you get access to the best offerings in a matter of minutes.
These platforms are especially useful in presenting not just average rates but also potential car insurance discounts, aiding you in finding a policy that aligns with your financial plan. Additionally, they offer insights into various add-ons, allowing for a customized insurance package. This includes options like collision coverage, comprehensive coverage, and importantly, liability coverage, which is essential for protecting you against financial losses in case you're held responsible for an accident. By using these tools, you're equipped not only to find a suitable insurance plan but one that comprehensively addresses your needs, balancing affordability with thorough coverage.
Save $1,604 (or more) per year on car insurance today.
- 2-minute quote
- State minimum coverage
- Full coverage
- Explore top brands
If you’re wondering about staying on your parent’s auto policy...
There are circumstances where you need your auto insurance policy and when it’s okay to stay with your parents. Usually, staying on your parent’s policy is less expensive, so trying to stay on is understandable.
You can stay on your parent's policy if:
- They own your car, and you live with them
- They own your car, and you’re a full-time student away from home
- You live with them, they own your car, and you’re married
You need to get your own policy if:
- You own your car — even if you live with your parents
- Your parents own your car, but you no longer live with them
If you and your parents have joint ownership, then it’s up to the insurance company to classify you as a dependent.
FAQs
How can I save more money on car insurance while I’m young?
We get it. When you’re starting, every.single.dollar.counts. And insurance isn’t where you want to cut too many corners but don’t want to overpay. There are a few things you can do to lower your bill:
- Choose a less expensive car to drive, an older car, and a car with anti-theft devices and safety features, which may mean special discounts.
- Keep your credit score intact. Yes, car insurance companies are paying attention.
- Take a defensive driving course. Students who take driver's education outside of school can also find discounts to help them save money.
- Maintain good grades. If you are a student, your GPA matters to insurance companies, and many offer good student discounts if you have a B average or greater.
- Keep a claim-free driving history. The bottom line is that a moving violation, at-fault accident, DUI, or speeding ticket will drive up your car insurance costs. According to The Zebra, one ticket can cost you as much as $1,200. The more you can avoid a ticket and keep your driving record clean, the better off your auto insurance rates will be.
Read our Best Cheap Car Insurance Companies to find the cheapest car insurance available.
How much of a deductible should I carry?
A deductible is an amount you’re responsible for with a car accident before your insurance coverage kicks in. You can go low ($250) or a higher deductible ($1,000) — almost anywhere between. The higher your deductible, the lower your premium will be. However, if you must pay out of pocket, you must make sure you can cover the amount with savings.
A good rule of thumb is to have enough in the bank to cover your deductible. If you only have $300 in savings, then a $250 deductible could be better. However, if you have $500 in savings, a $500 deductible would be better, and your premium would be lower.
I’m planning to move to another state. Will my car insurance rates go up?
It’s amazing how much of an impact location has on your car insurance. Of course, there are other factors, but the location is major. The Insurance Information Institute has a helpful guide on car insurance's most expensive and least expensive states.
Louisiana, Michigan, Florida, the District of Columbia, and New York round out the Top 5 most expensive states for car insurance. If you plan to move to North Dakota, Maine, Iowa, South Dakota, or Idaho, you’re lucky — those are the least expensive states.
Do I need car insurance if I go to college but leave my car at home?
You might be tempted to cancel your auto insurance if your car is sitting at home while you’re away at school or for an extended period of time. Whatever you do, you should always keep your insurance intact. Not only is it a state requirement for most states, but you’ll continue to have protection if your car is stolen, damaged by nature, or vandalized.
If you’re worried about spending too much on a premium, talk to your agent or carrier to let them know your car isn’t going with you. This might make you eligible for additional discounts, lowering your bill.
Why should I use this guide?
Adulting is fun. Okay, that’s a stretch. But whatever we think about getting older, for most people, it means we take on more responsibility. And nothing says adult quite like obtaining an insurance policy.
But this doesn’t mean that we are automatically wiser just because we’re older. Researching and pulling the information together takes time, especially for important financial decisions. This guide is intended to help anyone who is researching the best options.
The bottom line
When you’re younger and haven’t been driving for many years, car insurance rates may be the last thing on your mind. But car insurance is something we all have to have. Choosing a company like State Farm, which is at the top of our list because of great discounts, coverage options, and the smooth claims process, is one way to start making financial decisions.
There’s never a better time than now to make good financial choices. Whether it’s your or your parent's money, it’s a shame to waste it.
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Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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