Learning how to navigate car insurance rates as a young adult driver – and finding the best one for your budget – isn’t always the easiest feat. Going online and selecting the cheapest rate may be convenient and efficient, but the type of coverage you receive may not best fit your needs.
While the average rates for car insurance for young drivers aren’t as affordable as those for adults older than 25, it is significantly less than how much teens pay – $5,914 per year. The national average annual rate for young adults aged 20-24 is $3,092, according to recent data.
“Since young drivers pay some of the highest auto insurance rates, getting every discount you qualify for is essential,” says Laura Adams, MBA, an award-winning author, podcaster, and founder of The Money Stack. “For instance, if you’re a good student, away at school without a vehicle, or working in certain professions, it can reduce your premium. Likewise, if you have good credit, bundle auto and home or renters insurance, or enroll in a pay-as-you-drive program, it reduces your auto rate.”
Learn more about average rates for car insurance for young drivers, including annual and monthly premiums, the cheapest rates by insurance company and how state rates differ for young driver insurance.
- USAA offers the cheapest annual full coverage car insurance rates for young drivers aged 20-24 at $2,203 or $184 monthly — 34% less than the national average.
- USAA offers the cheapest annual state minimum car insurance rates for young drivers at $521.
- Hawaii offers the most affordable average car insurance rates for young adult drivers at $1,521 annually. Louisiana is the most expensive at $4,738 annually.
Our take on car insurance for young adults
While the average national car insurance rate for young drivers is $3,092 annually, many insurance companies and states are offering lower rates. Hawaii tops the list of the cheapest states for young adult drivers’ car insurance with average premiums at $1,521 and USAA, Auto-Owners, Travelers and Geico offer affordable liability and full coverage premiums.
If a state minimum meets your needs, you could save quite a bit on car insurance as a young adult. However, you must consider your driving needs, risks and finances before purchasing car insurance. If you are unable to easily afford a new vehicle should yours be totaled in an accident, you may want to consider some additional coverage limits and options to your policy.
Check out our detailed guide on how to shop for car insurance for young drivers
Average car insurance rates for young adults
The national average premium for car insurance for young adult drivers aged 20-24 is $3,092, but that doesn’t mean you can’t find a lower rate.
As a young adult, your budget is likely one of your top priorities. Keeping costs low and affordable may be your monthly goal. Before you start shopping for the best car insurance coverage for your needs, take a moment to identify what you need from a policy.
It’s a good idea to research what coverage options are available and consider what happens next if you were to be involved in an accident or a natural disaster. For example, would you have enough funds to purchase a new car if needed?
It is also a good idea to consider your driving habits and how often and far you drive. This can help you identify possible discounts for savings, such as low mileage, good driver or safe vehicle rate reductions.
Remember, state minimums may be the most affordable rate option but offer the least amount of protection. Full coverage, a combination of collision and comprehensive car insurance, offers you and your vehicle the most protection.
Collision car insurance coverage covers damages from accidents, including repair costs or vehicle replacement, regardless of fault. Comprehensive car insurance provides coverage for incidents unrelated to car accidents, such as theft, vandalism, broken windshields, fire, floods, hail and other natural disasters and animal collisions.
How much does car insurance cost for young adults in each state?
When determining how much car insurance costs, states often look at specific data. According to the Insurance Information Institute, these range from crime, population, medical care, claims and litigation and car repairs to weather trends and state requirements.
The cheapest states for young adults with full coverage car insurance are:
- Hawaii – $1,521
- North Carolina – $2,030
- New Hampshire – $2,215
- Maine – $2,281
- Ohio – $2,365
The most expensive states are:
- Louisiana – $4,738
- Florida – $4,321
- Kentucky – $3,831
- Washington, D.C. – $3,780
- Michigan – $3,719
While Hawaii tops the list for the most affordable rate in the country for young driver car insurance, it’s important to remember that different ZIP codes and the vehicle you drive can impact this number.
| State | Annual Full Coverage Rate | Monthly Full Coverage Rate |
|---|---|---|
| Alabama | $2,959 | $247 |
| Alaska | $2,880 | $240 |
| Arizona | $3,118 | $260 |
| Arkansas | $3,254 | $271 |
| California | $3,623 | $302 |
| Colorado | $3,592 | $299 |
| Connecticut | $3,183 | $265 |
| Delaware | $3,704 | $309 |
| Florida | $4,321 | $360 |
| Georgia | $3,484 | $290 |
| Hawaii | $1,521 | $127 |
| Idaho | $2,482 | $207 |
| Illinois | $2,562 | $214 |
| Indiana | $2,594 | $216 |
| Iowa | $2,696 | $225 |
| Kansas | $3,151 | $263 |
| Kentucky | $3,831 | $319 |
| Louisiana | $4,738 | $395 |
| Maine | $2,281 | $190 |
| Maryland | $3,219 | $268 |
| Massachusetts | $2,646 | $221 |
| Michigan | $3,719 | $310 |
| Minnesota | $3,307 | $276 |
| Mississippi | $3,402 | $284 |
| Missouri | $3,321 | $277 |
| Montana | $3,588 | $299 |
| Nebraska | $3,129 | $261 |
| Nevada | $3,463 | $289 |
| New Hampshire | $2,215 | $185 |
| New Jersey | $3,231 | $269 |
| New Mexico | $3,271 | $273 |
| New York | $2,961 | $247 |
| North Carolina | $2,030 | $169 |
| North Dakota | $2,751 | $229 |
| Ohio | $2,365 | $197 |
| Oklahoma | $3,579 | $298 |
| Oregon | $2,677 | $223 |
| Pennsylvania | $3,099 | $258 |
| Rhode Island | $3,516 | $293 |
| South Carolina | $3,333 | $278 |
| South Dakota | $3,596 | $300 |
| Tennessee | $2,901 | $242 |
| Texas | $3,162 | $264 |
| Utah | $3,010 | $251 |
| Vermont | $2,566 | $214 |
| Virginia | $2,446 | $204 |
| Washington | $2,599 | $217 |
| Washington, D.C. | $3,780 | $315 |
| West Virginia | $3,361 | $280 |
| Wisconsin | $2,796 | $233 |
| Wyoming | $3,167 | $264 |
Cheapest car insurance rates for young adults
In the breakdown of average annual costs for car insurance for young adult drivers, Auto-Owners offers the cheapest rate for all coverage options, starting at $616 annually for state liability car insurance and topping out at $2,655 annually for full coverage.
Learn more about coverage options and annual average rates from the companies below.
The cheapest average annual state minimum insurance rates for young drivers are USAA at $521, followed by Geico ($611), Auto-Owners ($616) and Travelers ($770). Keep in mind that USAA is only available for military community members and their families.
While these are affordable rates, ranging from $43 to $64 monthly, state minimum liability car insurance is bare-bones – it covers another driver’s property and bodily injuries up to a specific limit. You may pay out-of-pocket expenses if you don’t have enough coverage.
Learn more about the average annual rates for young adult drivers and coverage limits offered in the following chart.
| Company | State Minimum Rate | Liability (50/100/50) | Full Coverage Rate |
|---|---|---|---|
| USAA | $521 | $656 | $2,203 |
| Geico | $611 | $801 | $2,710 |
| Auto-Owners | $616 | $721 | $2,655 |
| Travelers | $770 | $933 | $2,601 |
| Progressive | $863 | $1,084 | $3,444 |
| State Farm | $910 | $1,120 | $3,472 |
| Nationwide | $940 | $1,100 | $2,718 |
| Allstate | $994 | $1,239 | $4,175 |
| Farmers | $1,412 | $1,847 | $4,722 |
Cheapest monthly car insurance rates for young drivers
The cheapest full coverage car insurance rates for young adult drivers aged 20 to 24 start at $184 monthly from USAA. However, Travelers, Auto-Owners, Geico and Nationwide are close with monthly rates ranging from $184 to $227.
These rates are more affordable than the $493 monthly national average for teen car insurance and higher than the monthly national car insurance average of $159 for adults aged 25-60.
See what other car insurance companies offer for monthly car insurance premiums for young adults in the chart below. If these averages are still too much for your budget, contact the car insurance companies directly to inquire about what potential car insurance discounts and savings are available to you.
| Company | Monthly Full Coverage Rate |
|---|---|
| USAA | $184 |
| Travelers | $217 |
| Auto-Owners | $221 |
| Geico | $226 |
| Nationwide | $227 |
| Progressive | $287 |
| State Farm | $289 |
| Allstate | $348 |
| Farmers | $394 |
Laura Adams
Author, podcaster and founder of The Money StackHow can young drivers save money on car insurance?
“Since young drivers pay some of the highest auto insurance rates, getting every discount you qualify for is essential. For instance, if you’re a good student, away at school without a vehicle, or working in certain professions, it can reduce your premium. Likewise, if you have good credit, bundle auto and home or renters insurance, or enroll in a pay-as-you-drive program, it reduces your auto rate.”
Resources & Methodology
Sources
Insurance Information Institute. “What determines the price of an auto policy?” Accessed February 2024.
Methodology
CarInsurance.com editors collected 2023 rates from Quadrant Information Services for a 20- to 24-year-old male driving a Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductible. We analyzed 51,088,003 records, 34,588 ZIP codes and 167 insurance companies nationwide.
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Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
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John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
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Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.