There’s one word that describes car insurance for people under 25; Unfair.
But the truth is that the highest number of speed-related fatal vehicle crashes are in the 15 to the 20-year-old-age group, but if you’re between the ages of 21 to 25, then you’re probably still paying more than you should.
To help you overcome this price discrimination, we found the best car insurance for males and females under 25.
Our #1 Pick
After reviewing several companies, we found the best car insurance for young adults to be Esurance. They are known to have some of the lowest rates in the car insurance space and they have great discounts.
As Seen On...
As one of the first companies to sell car insurance online, Esurance has been known from day one as a provider of low rates for drivers of all ages and the best insurance for new drivers.
Now that Allstate has acquired Esurance, they’re even better equipped to provide low-cost, benefit-rich coverage for drivers of all ages.
In fact, you can get a 5% discount just for applying online via their Fast 5 program.
Other ways that Esurance can help you save include:
Progressive is known as one of the most ethical insurance companies because they’ll help you shop around for providers.
They promise that if they find a rate that’s lower than theirs, then they’ll disclose that information so that you can find the best provider for your needs.
The company also has a tool called “Name Your Price,” which isn’t just lip service.
You can tell Progressive what you’re comfortable paying, and they’ll do their best to match you with a policy that fits your financial situation.
Do you drive less than 12,000 miles per year? If so, you can save big bucks with MetroMile.
This company caters specifically to low-mileage drivers. This means that the less you drive, the less you pay. Sounds fair, right?
If you only drive a few thousand miles a year, your insurance premiums can rival what a 40-year-old female with a perfect driving record would be.
To track your mileage, you do need to install a device in your vehicle that has a built-in GPS. As long as you’re not worried about sharing your driving habits with a third-party company, then you’ll be thrilled with your savings.
4. Quote Wizard
It can be tedious to shop individual providers, so a tool called Quote Wizard can help take the headache out of getting the best deal.
With Quote Wizard, you can compare 30 companies side by side and choose the best-priced policy that has the coverage you need.
Given that not all companies provide insurance in all 50 states, checking Quote Wizard before getting excited about a policy can prevent heartache and FOMO (fear of missing out).
Quote Wizard will also share a summary of all of the reviews written by real customers.
To get started with QuoteWizard all you have to do is click on the name of an insurance company and you’ll see the following information:
5. Liberty Mutual
While car insurance for young adults does tend to be higher, Liberty Mutual goes out of its way to structure policies that are friendly for teens and younger people.
Here are some ways that Liberty Mutual can help you save:
What’s the Cost of Car Insurance for New Drivers Under 25?
Insurance companies have sophisticated algorithms that determine your risk and figuring out if you are going to end up having an accident or filing a claim.
Things that affect your premium will be:
Your years of driving experience are the number one determinant of the rate you’ll pay.
Males pay more than females for auto insurance. Partially due to their need for speed and also potentially due to their immaturity, more poor judgment, and penchant for more reckless driving. Yes, we know it’s an unfair stereotype!
The Value Of Your Car
Newer and more expensive cars cost more to repair and replace, which drives up insurance premiums.
The amount of coverage and limits such as deductibles will also be part of determining your overall costs.
What Other Factors Affect Car Insurance for Young Adults?
While you can’t control your age, gender, or the car you’ve already chosen, other factors are in your control that can have a dramatic effect on your auto insurance rates. These include:
How much you drive
The less you drive, the lower your risk of an accident. Often, insurance companies take your driving frequency and distance into account.
Where you live
Each zip code has a risk profile, which includes theft, accidents, etc. Lower risk zip codes enjoy lower premiums. You can also pay less if your car is garaged.
It sounds draconian, but yes, car insurance companies can hike your premiums if you have bad credit.
The only exceptions are the states of California, Hawaii, and Massachusetts. If you live in one of these three states, then checking your credit to determine your premiums is off-limits.
Best Way to Reduce the Cost of Car Insurance for Young Drivers
Even though you may be in for a few more years of inflated car insurance prices, there are some steps you can take to lower those rates. Here are our top recommendations:
The Different Types of Car Insurance Coverage
There are several different types of coverage you can get with your car insurance policy. It's essential to understand what these different parts of your policy will cover.
Except for New Hampshire and Virginia, liability insurance is required in all 50 states and covers your cost if you are held liable for an accident and have to pay a victim's expenses.
However, this is the absolute minimum insurance you can purchase and it is comprised of both property damage liability and bodily injury liability.
When you buy a policy it will cover you for three different limits under those above coverage.
These limits are known as the limits of liability which is essentially the insurer's max liability to cover you.
You can find them on the declarations page and they usually look something like this (20/40/10) all expressing the different levels of coverage.
This optional coverage (often called comp insurance) goes beyond basic liability, and is usually purchased with collision insurance.
This part of the policy will have its own deductible that can be raised or lowered based on what you can afford.
Types of things covered by comprehensive insurance are:
Having comprehensive insurance will probably be required by any lender or lienholder if you decide to lease or buy your car with a loan.
This level of coverage is often required if you are leasing or financing a vehicle. and will pay out if your car hits another car or object and you need to repair or replace your car.
Your collision coverage will have it's own deductible and limits of liability. Like with any policy, the lower the deductible, the higher the premiums.
Collision insurance is optional in every states; however, your lender may require this coverage if you purchase a car with a loan.
Approximately 13% of Americans don’t have auto insurance, and in Florida, that number is close to 27%.
If you’re involved in a car accident, and the person at fault doesn’t have insurance, then an insurance policy with uninsured motorist will cover the costs to make you whole.
Also, if someone only buys the minimum amount of insurance it might not be enough to cover everything.
But with coverage for uninsured or under-insured motorists it would cover the excess of what you’re owed.
Personal Injury Protection
Personal injury protection (PIP), is also called no-fault insurance, or medical payments coverage.
If an accident happens, regardless who is at fault, this part of the policy will cover you and your passengers medical bills.
This part of the coverage will only activate for items not covered by your health insurance.
While many states make personal injury protection optional, you might not need it if you have good health insurance. However, you could leave your self open for more risk.
What Makes Up A Car Insurance Policy?
Whenever you file a claim, you’ll have to pay a deductible, which is the amount you must pay before the insurance company starts assisting with payouts.
Deductibles vary, but the most common is $500. You can also get lower deductible policies, but the trade off is that your monthly premiums will rise.
Another option is a higher deductible policy. Even though you’ll have to pay more out-of-pocket if there’s an incident, your premium will be lower.
The Monthly Premiums
The premium is the amount you pay for a car insurance policy. The amount of the premium varies by provider, and it takes into account the following:
Glass Coverage & Deductible
Coverage for your glass is probably the most underrated coverage in my opinion. However, depending on the type of car you have it could be very well worth it.
Recently, our neighborhood was part of some type of mass vandalism and the windows on one of our cars were completely destroyed.
Cost to replace both windows $3,500 - Our glass deductible was only $50.00 can you imagine if we didn't have glass coverage on our cars.
It can be wise to add glass coverage to your policy to protect you from these unexpected expenses and be sure to search for a policy with a separate glass deductible.
Take Action - You Decide
Finding the best car insurance for new drivers under 25 doesn't have to be difficult; in fact you can click here or on one of the above buttons to compare quotes.
The truth is that no matter how good your driving record is, if you are under 25 you're most likely going to pay more for the same coverage as an older person.
With car insurance being required in most stats your focus should be on getting the best coverage for the best price based on your age.
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