Automobile insurance rates continue to go up, especially for teenage and young adult drivers. This can put a significant strain on finances, especially in families where parents pay some or all of the car insurance premiums. But by following proven strategies, cheap car insurance for young drivers is possible without sacrificing coverage.

Get cheap car insurance for young drivers

It pays (literally) to shop around for cheap insurance for young drivers. By reading our expert tips, you’ll learn how to reduce expenses related to car insurance for young people without having to switch policies or carriers. But if you do decide to switch carries, we’ve also included which auto insurance companies have the best rates. 

Here are 6 tips to get the cheapest car insurance for young drivers

  1. Shop around
  2. Remain on parent’s policy
  3. Assign the right car to the young driver
  4. Qualify for discounts
  5. Change your coverage and deductible
  6. Use helpful technology

1. Shop around

Make no mistake: Young drivers incur higher car insurance premiums because statistics show their age demographic is riskier for accidents and irresponsible driving. Consequently, it will almost always be more costly to insure a teenage or young adult driver than an older and more experienced driver.

“Younger drivers are typically the most expensive to insure due to their inexperience and a general perceived lack of maturity and responsibility,” Duncan France, owner/agent of Duncan France State Farm Agency in Broomall, Pennsylvania, says.

Nevertheless, it’s a good idea to request coverage quotes from at least a few different insurers and compare offers carefully, the experts agree.

“Insurance rates can vary significantly between carriers, and this is even more true for younger drivers,” says Greg Martin, president of Brandon, Florida-headquartered Think Safe Insurance, LLC. “That’s why it’s wise to shop around.”

Janet Ruiz, director of Strategic Communication for the New York City-based Insurance Information Institute, seconds those sentiments.

“There are many options for car insurance. Shop online and get comparison quotes. Also, call an insurance broker who handles multiple companies,” she says.

When shopping around for coverage, look for a company and a policy that offers the best value, quality, and reputation, as well as an agent you can grow with.

“AM Best is a company that gives ratings based on the financial strength of insurance companies. Going with a company that has strong financial ratings will ensure they are in a position to pay a claim if that unfortunate situation occurs,” says Martin. “You can also search for online reviews and J.D. Power-type ratings to make sure that others are satisfied with the service they receive.”

Additionally, while assessing offers and rate quotes, be sure to compare the same types of coverage.

“Different limits and different deductibles can make a big difference. And you want to ensure that your young driver has the right level of coverage, too. It doesn’t help to have cheap insurance for young drivers if it doesn’t cover what you need it to when a claim needs to be made,” Martin cautions.

Choose a trusted insurance agent carefully, too.

“A good insurance agent will give you sound advice much as they would to their own family and make sure they are always acting in your best interest,” France adds

2. Remain on parent’s policy

An excellent place to start shopping for car insurance for young people is with the family’s existing car insurance carrier. You can request a quote to add your young driver to your existing policy as either a primary driver or occasional driver on a designated vehicle, or request a quote for a separate policy in your child’s name.

“Staying on your parent’s policy allows you to benefit from some of their preferred ratings and discounts, possibly including discounts for multiple policies like homeowners insurance, multiple cars, and more established credit,” says Martin.

Keep in mind that the vehicle owner in question needs to pay for the insurance policy, which means that the young driver may have no choice but to remain on mom and dad’s policy.

“If the parents own the car or are financing it and have their name on the title, they are the ones who will need to purchase the insurance. This will often be less expensive than a youthful driver purchasing insurance individually for the first time,” Ruiz says. “However, in this scenario, the young driver needs to at least partially live in the parent’s household.”

3. Assign the right car to the young driver

The young driver in your household likely has a designated vehicle they exclusively drive or share with you. But if this automobile is the most valuable one in your family, you might want to reassign your son or daughter to a different car.

“If your young driver is going to remain on your policy, having that driver assigned to your family’s cheapest car to insure is a smart strategy, as this can lower your premiums,” notes France. “It’s usually more prudent, however, to have the young driver listed as a primary policyholder on their own policy with the car they drive the most. With this approach, one or both parents should also be listed on that separate policy if they drive the car occasionally so that you can take advantage of household discounts like a multiple policy discount, if possible.”

If your child is assigned to a car with a high safety rating based on government crash tests and other criteria, you may also pay less.

4. Qualify for discounts

Aside from discounts for things like having multiple policies, there are other ways families and their young drivers can be eligible for rate reductions.

One of the most commonly applied is a good student discount. If your son or daughter earns a B average or better in high school or college – up to age 25 – they may qualify for a good student discount that can shave 5 percent to 25 percent from your premiums.

You can further save money if your young driver takes an optional defensive driving course. Your insurance agent can recommend an appropriate course available online or in-class.

“Before you pay for a course out-of-pocket, however, ask your insurance company if they provide a discount for that class,” Martin advises.

Suppose your child will be attending a college or university more than 100 miles away from home, and they don’t need to bring a vehicle with them. In that case, you can also apply for a “student away at school” discount, which can reduce that policy’s rates by as much as 15 to 30 percent.

Note that your young driver may also qualify for an accident-free discount, especially if they are younger than age 21 and maintain a stellar driving record with no claims over a set period.

Another roundabout discount to pursue? “Parents can also work closely with their child to help them build and improve good credit, which can lower insurance rates for them over time,” suggests France.

5. Change your coverage and deductible

Consider altogether dropping collision and comprehensive coverage. If your young driver has an older vehicle, especially one that isn’t often driven, you may not need comprehensive and collision coverage.

“You can have comprehensive only and delete collision coverage if your car is paid off. Collision is usually the more expensive coverage, and you can choose a higher deductible for just collision and a lower deductible for comprehensive,” says Martin. “A lot of times, this makes the most sense because raising the comprehensive deductible doesn’t necessarily save a lot of money. When considering these options, you want to compare how much coverage you’re potentially losing – the value of the car minus your deductible – versus how much you’d actually save. It doesn’t make sense for every situation.”

Overall, increasing your deductible, say from $500 to $1,500, can significantly lower your yearly premiums. Just be sure you can afford to pay the deductible out of pocket, if necessary.

6. Use helpful technology

Your insurance company may offer a telematics device that can yield crucial data about their driving habits when connected to your young driver’s vehicle.

“This is usually a beacon that plugs into your vehicle or is run through an app on your phone. A telematics device allows your insurer to provide a truly customized rate based on safe driving habits. This may result in a lower rate quote,” says France.

Ask your insurance company, as well, if using a dashcam device will trigger rate savings.

“Having a second pair of eyes on the road in the form of a dashcam will provide transparency if an accident were to occur,” says Christopher Lee, owner of EyewitnessDashCams.com in Santa Clara, California. “Insurance companies may offer dash cam discounts.”

6 Proven ways to get cheap car insurance for young drivers

Which auto insurance companies have the best rates for the young adults?

To help you buy the most affordable coverage, in the chart below you’ll see average rates by company for each state for drivers age 20 for state minimum liability limits.

StateCompanyAverage Annual Rate
AlaskaAllstate$563
AlaskaGeico$576
AlaskaState Farm$638
AlaskaProgressive$1,154
AlabamaAllstate$918
AlabamaGeico$486
AlabamaMid Century$1,339
AlabamaNationwide$1,429
AlabamaProgressive$1,119
AlabamaState Farm$1,071
ArkansasGeico$608
ArkansasState Farm$687
ArkansasAllstate$857
ArkansasProgressive$1,003
ArkansasFarmers$1,039
ArkansasNationwide$1,369
ArizonaGeico$541
ArizonaAllstate$832
ArizonaState Farm$1,048
ArizonaProgressive$1,183
ArizonaFarmers$1,354
ArizonaNationwide$1,373
CaliforniaGeico$573
CaliforniaUnited Financial$918
CaliforniaNorthbrook$1,005
CaliforniaState Farm$1,176
CaliforniaAmco$1,287
CaliforniaFarmers$1,469
ColoradoGeico$517
ColoradoState Farm$825
ColoradoAllstate$1,196
ColoradoFarmers$1,253
ColoradoProgressive$1,282
ConnecticutGeico$1,045
ConnecticutState Farm$1,217
ConnecticutAllstate$1,339
ConnecticutNationwide$1,830
ConnecticutForemost$2,045
ConnecticutProgressive$2,375
DCGeico Gen$623
DCState Farm$1,206
DCAllstate$1,360
DCProgressive$2,134
DCNationwide$2,175
DelawareGeico$1,054
DelawareAllstate$1,510
DelawareProgressive$1,585
DelawareState Farm$1,770
DelawareNationwide$2,350
FloridaGeico$802
FloridaState Farm$1,342
FloridaProgressive$1,648
FloridaAllstate$2,109
Florida21st Century$2,435
GeorgiaGeico$587
GeorgiaNationwide$1,078
GeorgiaState Farm$1,134
GeorgiaAllstate$1,426
GeorgiaProgressive$1,601
HawaiiGeico$303
HawaiiState Farm$407
HawaiiAllstate$453
HawaiiFarmers$806
HawaiiProgressive$826
IowaGeico$363
IowaState Farm$490
IowaAllstate Fire$600
IowaAmco$632
IowaFarmers$764
IowaProgressive$861
IdahoGeico$487
IdahoState Farm$532
IdahoProgressive$557
IdahoAllstate$813
IdahoFarmers$846
IdahoDepositors$1,026
IllinoisState Farm$453
IllinoisGeico$520
IllinoisAmco$783
IllinoisAllstate$923
IllinoisProgressive$1,082
IllinoisIllinois Farmers$1,486
IndianaGeico$464
IndianaIllinois Farmers$707
IndianaState Farm$759
IndianaProgressive$899
IndianaNationwide$901
IndianaAllstate$1,080
KansasGeico$446
KansasState Farm$667
KansasAllstate$767
KansasNationwide$832
KansasProgressive$1,054
KansasFarmers$1,149
KentuckyGeico$702
KentuckyState Farm$1,348
KentuckyAllstate$1,602
KentuckyNationwide$1,761
KentuckyProgressive$2,108
LouisianaGeico$920
LouisianaState Farm$1,364
LouisianaAllstate$1,504
LouisianaProgressive$2,362
MassachusettsState Farm$574
MassachusettsGeico$755
MassachusettsProgressive$1,213
MassachusettsAllstate$1,796
MarylandGeico$1,053
MarylandNationwide$1,149
MarylandState Farm$1,150
MarylandAllstate$1,295
MarylandProgressive$1,448
MaineGeico$449
MaineState Farm$790
MaineAllstate$827
MaineProgressive$946
MichiganGeico$826
MichiganProgressive$1,391
MichiganTitan$2,164
MichiganAllstate$2,697
MichiganState Farm$3,768
MichiganFarmers$5,994
MinnesotaGeico$773
MinnesotaState Farm$839
MinnesotaAllstate$1,041
MinnesotaIllinois Farmers$1,164
MinnesotaProgressive$1,391
MinnesotaAllied$1,398
MissouriGeico$425
MissouriState Farm$756
MissouriAllstate$845
MissouriAllied$861
MissouriProgressive Cas Ins Co$1,101
MissouriFarmers$1,128
MississippiGeico$579
MississippiState Farm$814
MississippiNationwide$818
MississippiProgressive$1,036
MississippiAllstate$1,120
MontanaGeico$428
MontanaState Farm$502
MontanaProgressive$671
MontanaDepositors$682
MontanaAllstate$904
MontanaMid Century$957
North CarolinaGeico$315
North CarolinaState Farm$353
North CarolinaProgressive$370
North CarolinaFarmers$394
North CarolinaNationwide$404
North CarolinaAllstate$413
North CarolinaNationwide$616
North DakotaAllstate$576
North DakotaState Farm$582
North DakotaGeico$633
North DakotaAllied$648
North DakotaMid Century$731
North DakotaProgressive N$850
NebraskaGeico$464
NebraskaAllstate$522
NebraskaState Farm$586
NebraskaMid Century$732
NebraskaAllied$733
NebraskaProgressive$1,092
New HampshireGeico$432
New HampshireAllstate$696
New HampshireState Farm$778
New HampshireNationwide$974
New HampshireProgressive$2,336
New Jersey21st Century$713
New JerseyGeico$817
New JerseyAllstate$1,289
New JerseyProgressive$1,596
New JerseyState Farm$1,874
New MexicoGeico$421
New MexicoState Farm$739
New MexicoFarmers$1,073
New MexicoAllstate$1,108
New MexicoProgressive$1,135
NevadaGeico$823
NevadaVictoria$1,088
NevadaAllstate$1,271
NevadaState Farm$1,328
NevadaMid Century$1,343
NevadaProgressive$1,632
New YorkGeico$609
New YorkProgressive$1,292
New YorkAllstate$1,388
New YorkState Farm$1,727
New YorkForemost$1,764
New YorkNationwide$2,304
OhioGeico$501
OhioState Farm M$592
OhioAllstate$692
OhioProgressive$1,009
OhioFarmers I$1,012
OhioNationwide$1,625
OklahomaGeico$522
OklahomaState Farm$763
OklahomaAllstate$987
OklahomaFarmers$1,030
OklahomaProgressive$1,433
OregonGeico$951
OregonState Farm$1,051
OregonNationwide Ins Co Of Amer$1,344
OregonAllstate$1,370
OregonFarmers$1,405
OregonProgressive$1,790
PennsylvaniaGeico$449
PennsylvaniaNationwide$588
PennsylvaniaState Farm$813
PennsylvaniaAllstate$1,142
PennsylvaniaProgressive$1,432
Rhode IslandState Farm$826
Rhode IslandGeico$1,001
Rhode IslandAllstate$1,874
Rhode IslandNationwide$2,146
Rhode IslandProgressive$2,150
South CarolinaAllstate$769
South CarolinaGeico$883
South CarolinaProgressive$1,399
South CarolinaNationwide$1,453
South CarolinaState Farm$1,938
South DakotaGeico$389
South DakotaProgressive Northern Ins Co$463
South DakotaState Farm$520
South DakotaAllstate$610
South DakotaMid Century$771
South DakotaAmco$815
TennesseeGeico$502
TennesseeNationwide Affinity Co of Amer$707
TennesseeState Farm$750
TennesseeProgressive$995
TennesseeMid Century$1,071
TennesseeAllstate$1,071
TexasGeico$610
TexasFarmers$768
TexasAllstate$969
TexasState Farm Mut Auto Ins Co$1,046
TexasColonial$1,396
TexasProgressive$1,498
UtahGeico$490
UtahAllstate$873
UtahMid Century$1,226
UtahState Farm$1,294
UtahAllied$1,430
UtahProgressive$1,711
VirginiaAllstate$590
VirginiaState Farm$690
VirginiaGeico$715
VirginiaNationwide$842
VirginiaProgressive$1,222
VermontGeico$352
VermontAllstate$531
VermontNationwide$807
VermontState Farm Mut Auto Ins Co$822
VermontProgressive$1,077
WashingtonGeico$697
WashingtonState Farm$729
WashingtonFarmers$1,086
WashingtonAllstate$1,154
WashingtonProgressive$1,211
WashingtonNationwide$1,214
WisconsinGeico$363
WisconsinState Farm$579
WisconsinAllstate P$645
WisconsinArtisan & Truckers$785
WisconsinMid Century$1,037
WisconsinAmco$1,070
West VirginiaGeico$709
West VirginiaState Farm$811
West VirginiaAllstate$839
West VirginiaProgressive$1,152
West VirginiaNationwide$1,215
WyomingGeico$376
WyomingState Farm$551
WyomingAllstate$741
WyomingFarmers$820

More Resources: Car insurance rates for teens

To see average car insurance rates for teens, the articles listed below feature rates by age, state and gender:

Final thoughts on how to get low insurance for young drivers

Insuring a young driver is never quite as cheap as we want it to be. They are considered higher risk drivers due to inexperience and maturity, and for good reason. By following the tips we’ve provided, you’ll be on your way to getting the best rates possible for your young driver.

Aside from the insurance cost, having a young driver might cause you a lot of sleepless nights from worry. Making sure you’ve got the right insurance coverage will give you the peace of mind that they are adequately covered while out on the road.