Are you paying too much for auto insurance? If you’re a teenager or in your twenties, then the answer to the question is probably yes.
The good news is that if you know what to look for, you can potentially save hundreds of dollars annually on your car insurance.
If you’re looking for cheap car insurance for young drivers under 21 or the best auto insurance for teenage drivers, take a look at our top five choices.
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...
Find Out Who Made Our Best Car Insurance For Young Adults List!
Plus More Details On Each Company, Discounts Available, What Car Insurance Covers, And What's The Makeup Of A Car Insurance Policy.
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.
3. State Farm
One of our favorite tools that State Farm has on their site is a simulator that helps you calculate how much your insurance will go up or down based on specific circumstances.
For example, as you’re shopping around, you might be curious how much your policy will go up if your teenager gets a speeding ticket or has an accident.
Their simulator will give you a reasonably accurate picture of what to expect before you commit to a policy.
State Farm has the typical discounts offered by most insurance companies, including a few extras.
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.
You’ll be able to see at a glance if your potential insurance company has a tendency to raise rates, process claims quickly, and has excellent customer service.
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:
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
There is no need to wait around, if you want the best car insurance for young drivers 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, young people are likely going to pay more for the same coverage as an older person.
Still, not all coverage is created equal, so be sure to compare policies before making a final decision.
With car insurance being required in most stats your focus should be on getting the best coverage for the best price.
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