Auto Insurance for Young Adults
Auto insurance for young adults can be expensive so we want to help you find the cheapest auto insurance rates possible. We all know that teen drivers pay the most for car insurance especially on full coverage but as you transition into adulthood auto insurance rates can still be on the high side. Many of us in our younger years are on our parent or legal guardian’s policy, this is the wisest and cheapest way to insure your teenage drivers. But as we get older and on our own there are many factors that can affect how much young adults pay for car insurance.
Here are a few factors that auto insurance companies look at when they are setting their rates for young drivers:
- Credit score
- Driving record
- Claims History
- Type of vehicle you drive
These are just a few of the factors that auto insurance companies use to set their prices.
See our video below to learn more about how auto insurance companies set their rates.
New drivers who are just getting out of their teens and into their early 20’s should expect to see their auto insurance rates drop significantly as long as they have a good driving record. It is still cheaper to stay on your parents' policy as long as possible to take advantage of the discounts they are getting. If you do have tickets and accidents even once you get in your 20’s you will still experience high insurance prices. One thing that also hinders young adults from finding affordable car insurance is their credit score. Many auto insurance carriers look heavily at credit when setting their prices. Many young adults do not have much of a credit score. Credit scores take lots of time to build so many young drivers get clipped for higher auto insurance rates in some cases not fault of their own. Because in the credit world no credit can be looked up on as bad credit.
Click here to learn more about bad credit auto insurance
Even though paying for car insurance is not a fun way to spend your money it is necessary to be legal to drive. Almost every state requires you to carry their legal limit of state minimum insurance before you are legal to drive. Full coverage insurance is not mandated by law to carry but if you are financing the vehicle then the lienholder will require you to carry comprehensive and collision insurance to protect their interest in the vehicle.
Click here to read more about full coverage insurance
Since there are so many factors that go into insurance companies setting their rates it is important that young adults share accurate information when you are getting quotes for your vehicle. Sharing inaccurate information to your insurance company will result in inaccurate quotes and higher monthly payments in the future.
Click here to read more about how auto insurance companies set their rates
Which auto insurance companies are best for young adults?
There is no one auto insurance company that is the best for young driver in every situation. There are few auto insurance companies that really set their niche market targeting younger adults though with a good driving record. Here are a few of the top ones we found:
- Save Money Car Insurance
- State Farm
Click here to read more about the best insurance carriers
The price of car insurance is very important for young drivers but just as important is to find an insurance company that has great customer service and a claims department. Many auto insurance companies can offer low rates but when it comes time to paying a claim and handling billing issues, they can be a nightmare to deal with.
Additional resources about the best auto insurance companies for young adults:
How to find the cheapest auto insurance for young adults
Finding cheap auto insurance for young adults can be very difficult. But there are things you can do as a young adult to save money on your car insurance. Above all else though young drivers should get as many quotes as possible. The more quotes you get the better your chances are to save money on your insurance.
See our article below to learn more about quote comparison sites for young drivers.
The second most important thing young adults can do to save money on car insurance is to keep a clear driving record for three consecutive years. Safe drivers are among the most rewarded when it comes to good auto insurance rates.
When getting off your parents' policy for the first time you will experience a loss of certain discounts. For example, if your parents own their home and have good credit, they will have big discounts for bundling home and auto together and also for having good credit. These two things alone can save up to 40% on your auto insurance policy. So, when a young adult leaves their parents policy, they leave these discounts behind.
In addition to these two crucial things for young drivers to do on their auto insurance policies we have some more fundamental things that all young drivers can attempt to do for more discounts on car insurance. Here is what we advise you to do as far as discounts are concerned:
- Sign up for auto pay
- Enroll in paperless billing
- Keep your insurance continuous for at least 6 months
- Pay your policy in full for 6 months
- Good student discount
Always be sure to ask your insurance agent for as many discounts as possible when getting quotes. Not all discounts are given upfront when you call to get quotes.
Click here to learn more about getting quotes for young drivers through an independent agent
Additional resources for young adult to use if you have a bad driving record or license issues:
Many young drivers are purchasing auto insurance through new InsureTech companies that offer driver tracking devices that tracks how safely you drive and reward safe drivers but penalize bad drivers. So, if you are a young adult and drive safely you can get some nice discounts. But for the most part younger drivers tend to drive a little more reckless and these companies can hit you hard on an increase in your monthly rates.
What are the cheapest cars to insure for young adults?
The cheapest cars to insure for young adults will depend on if you are searching for full coverage insurance or liability only insurance. As far as liability insurance it really won't matter what kind of vehicle you choose because it usually will be about the same price. Except for large vehicles like trucks or vans, this is because large vehicles can inflict more damage on other vehicles and property. So young drivers will pay more for liability insurance on these larger vehicles compared to a smaller car.
To learn more about liability auto insurance for young adults see our below link: https://www.aautoandhomeinsurance.com/liability-car-insurance/
As far as full coverage insurance for young adults we recommend avoiding sports cars, expensive vehicles, and brand new vehicles. These are the three segments of vehicles insurance companies really charge young adults more money for. Here are a few of the cheaper full coverage vehicles for young adults to insure:
- Chevy Impala
- Kia Sedona
- Chevy Aveo
- Hyundai Sonata
- Honda CRV
Click here to learn more about new car insurance for young adults
How young adults can save on auto insurance
In addition to asking for all the discounts we mentioned above another way for young adults to save on car insurance is to carry state minimum liability. This is the cheapest policy offered to young adults and also the least amount of coverage. This policy will just cover the damage you do to a 3rd party and will not cover your vehicle itself; you would need full coverage insurance for that. It is important to note though if your car is financed you will not be able to carry liability only but instead be required to carry full coverage. Buying the correct vehicle, choosing proper coverages, and selecting the proper deductibles are also an important part on saving money. Different vehicles will result in different auto insurance prices especially on full coverage insurance. Contacting your insurance agent before you purchase a vehicle is very important for young adults to secure a good auto insurance price.
Young adults have different coverage needs for each situation. It is important for young drivers to consult their insurance company or agent to go over the coverage options before choosing a plan.
Additional resources for different coverage options for young drivers:
FAQs regarding auto insurance for young drivers:
Who has the cheapest auto insurance for young drivers?
No one company is cheapest for all young drivers, but we did find that Progressive, Geico, and USAA have competitive rates for young adults.
What auto insurance is best for young adults?
As far as the best insurance for young adults it depends on your situation. Like we mentioned above the cheapest option for young adults is state minimum liability only. But cheapest is not always the best so we recommend discussing your situation with a licensed insurance professional to find out what is the best insurance coverage for you.
How can young people get cheap insurance?
The two big keys for young people to get cheap insurance is to keep a clear driving record and keep your insurance continuous. But the best way overall is to stay on your parents policy if you can, this will almost always be the best way for young adults to save on car insurance.