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

esurance logo

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.

young adult car insurance

Learn Who Made Our List of Best Car Insurance For Young Adults.

Plus More Details On Each Company, Why You Need Auto Insurance, What Does It Cover, And How To Apply For Coverage.

young adult car insurance

Learn Who Made Our List Of Best Car Insurance For Young Adults.

Plus More Details On Each Company, Why You Need Auto Insurance, What Does It Cover, And How To Apply For Coverage.

1. Esurance

5.0

esurance logo

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:

  • DriveSense Mobile App – Teens and young drivers get discounts for safe driving.
  • Alumni discounts for graduates of a Pac-12 school
  • “Switch and Save,” gives you a discount for switching from another insurance provider.
  • Teen drivers are eligible for good grade discounts.
  • You can bundle renters and home insurance for even more savings.

2. Progressive

4.7

progressive logo

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.

  • Discounts for extended periods of safe driving
  • Multi-vehicle and multi-policy discounts
  • Price breaks for paying your annual policy in full
  • Teen drivers are eligible for good grade discounts.
  • Discounts for purchasing policies online

3. Statefarm

4.5

state farm logo

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.

  • Increase your discount by taking their Steer Clear course
  • Discounts for 3 years of a clean driving record
  • Low mileage drivers can also shave double-digit percentage points off their policy.
  • Discounts for good grades
  • Discounts for multiple vehicles or policies.

4. Quote Wizard

4.4

quote wizard logo

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:

  • Stats about the company
  • How many complaints are filed each year.
  • Measures of financial strength for claims paying ability.
  • Best and worst features as reported by verified customers.
  • Metrics about pricing, overall purchase experience, and policy offerings
  • Whether there are mobile apps available to pay your bill or view your policy. 
  • Typical discounts that other customers have taken advantage of with this company

5. Liberty Mutual

4.3

liberty mutual logo

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:

  • Alumni discounts for college grads from a variety of universities
  • Discounts for membership to one of 14,000 professional organizations or employers
  • Automobile safety features like lane anti lock breaks, can reduce the cost of a policy.
  • Discounts for students that live on campus 
  • Accident forgiveness, which keeps rates the same after one accident
  • The new car replacement clause for the first year gives your car full replacement value

best car insurance for young adults

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.

Liability: 

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.

Comprehensive: 

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: 

  • Missiles or explosions
  • Falling objects
  • Theft, vandalism, or larceny 
  • Fire
  • Civil commotions and riots
  • Windstorm or hail
  • Earthquakes
  • Running into an animal
  • Water or flooding
  • Miscellaneous mischief

Having comprehensive insurance will probably be required by any lender or lienholder if you decide to lease or buy your car with a loan.

Collision: 

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.

Uninsured Motorist: 

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.

THE SIMPLY INSURANCE WAY

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What Makes Up A Car Insurance Policy?

Your Deductible

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:

  • Driving record
  • Where you live
  • Level of coverage
  • Discount eligibility
  • Age and experience of the driver
  • Make, model, and value of the vehicle 
  • Safety features built-in or added to the vehicle

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.

INSURANCE WHERE YOU LIVE

Car insurance by state.

How To Lower The Cost Of Car Insurance For Young Adults

While you should expect to pay a higher price until you get a bit older, I wanted to give you a few of our recommendations for lowering your premiums.

  • Keeping a high GPA if you are in College.
  • Increase your insurance deductible, which will lower your premiums.
  • Remove coverage you don't need from vehicles you own.
  • Ask for a "low mileage" discount if you don't drive as often.
  • Bundle some of your policies
  • Take a drivers safety class for lower rates. 

Take Action

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.


Sa El

About the author

Sa El is the Co-Founder of Simply Insurance and a licensed Insurance Agent with over 11 years of experience in the industry.  He specializes in Life & Health Insurance and is certified in Long Term Care Insurance in the state of Georgia. He is also an Official Member of the Forbes Finance Council, a licensed real estate agent in the state of Georgia (License #382602), an entrepreneur, insurance educator, and freelance writer.

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