Key Takeaways on Young America Insurance
- Average full coverage car insurance rates for 20-year-olds are 104% higher than the national average.
- By age 25, drivers pay about 40% less for full coverage than 20-year-olds.
- Companies like Auto-Owners, Travelers, and Geico offer some of the cheapest insurance for young adults.
- Young drivers can lower their premiums by shopping around, seeking discounts, and maintaining a clean driving record.
Understanding Young America Insurance for Young Adults
Budgeting for car insurance as a young adult can be challenging, especially when moving out and getting your own policy. Car insurance companies typically charge higher rates for drivers under 25. However, there are ways to reduce costs, such as shopping around, practicing safe driving, and maximizing available discounts.
Cheapest Car Young America Insurance for Young Drivers
To find the best deals on car insurance for young adults, industry experts analyzed average premium data, customer satisfaction scores, and discount opportunities. Below are the cheapest providers for young drivers in 2025.
Cheapest Car Insurance for 20-Year-Olds
The national average premium for 20-year-olds is $5,374 per year for full coverage. Here are the cheapest options:
| Insurance Company | Monthly Premium | Annual Premium |
|---|---|---|
| NJM | $281 | $3,376 |
| Erie | $314 | $3,774 |
| Auto-Owners | $311 | $3,734 |
| USAA | $320 | $3,844 |
| Geico | $352 | $4,223 |
Cheapest Car Insurance for 21-Year-Olds
The national average premium for 21-year-olds is $4,450 per year.
| Insurance Company | Monthly Premium | Annual Premium |
| NJM | $252 | $3,028 |
| USAA | $253 | $3,035 |
| Erie | $304 | $3,646 |
| Auto-Owners | $268 | $3,221 |
| Travelers | $289 | $3,467 |
Cheapest Car Insurance for 22-Year-Olds
The national average premium for 22-year-olds is $4,108 per year.
| Insurance Company | Monthly Premium | Annual Premium |
| NJM | $235 | $2,824 |
| American Family | $363 | $4,360 |
| Erie | $270 | $3,235 |
| Geico | $256 | $3,077 |
| USAA | $240 | $2,880 |
Cheapest Car Insurance for 23-Year-Olds
The national average premium for 23-year-olds is $4,108 per year.
| Insurance Company | Monthly Premium | Annual Premium |
| NJM | $215 | $2,582 |
| American Family | $350 | $4,203 |
| Geico | $240 | $2,874 |
| Auto-Owners | $230 | $2,758 |
| USAA | $228 | $2,734 |
Cheapest Car Insurance for 24-Year-Olds
The national average premium for 24-year-olds is $3,654 per year.
| Insurance Company | Monthly Premium | Annual Premium |
| NJM | $208 | $2,500 |
| Erie | $231 | $2,771 |
| American Family | $350 | $4,199 |
| Geico | $228 | $2,739 |
| Auto-Owners | $215 | $2,576 |
Cheapest Car Insurance for 25-Year-Olds
The national average premium for 25-year-olds is $3,251 per year.
| Insurance Company | Monthly Premium | Annual Premium |
| NJM | $202 | $2,418 |
| Travelers | $216 | $2,595 |
| Geico | $210 | $2,524 |
| Erie | $223 | $2,671 |
| Nationwide | $215 | $2,584 |
How Young Drivers Can Save on Auto Insurance
Even though young drivers generally pay higher insurance rates, there are strategies to lower costs:
- Evaluate Annual Mileage: Low-mileage drivers may qualify for cheaper rates.
- Use Telematics Programs: Some insurers offer discounts for good driving habits.
- Maintain a Clean Record: Avoiding accidents and tickets helps keep premiums low.
- Compare Quotes: Getting multiple quotes ensures you find the best rate.
- Build Credit: In most states, insurers consider credit scores when setting rates.
Car Insurance Discounts for Young Adults
Many insurers offer discounts for young drivers, including:
- Good Student Discount: Available for students with high grades.
- Safe Driving Course Discount: Completing a defensive driving course can lower rates.
- Affiliation Discounts: Military members and certain professionals may qualify.
- Loyalty Discounts: Some insurers offer lower rates for drivers transitioning from a parent’s policy.
Frequently Asked Questions
What is the best car Young America Insurance company for young adults?
Top providers include NJM, Erie, Geico, Auto-Owners, and USAA. However, rates and availability vary by location.
Do young adults need car insurance?
Yes, nearly all states require at least minimum liability coverage.
Why do insurance companies charge more for young drivers?
Young drivers are more likely to be involved in accidents, leading to higher premiums.
When do car insurance rates go down?
Typically, rates decrease after age 25 as drivers gain experience and maintain clean records.
Final Thoughts on Young America Insurance
Finding affordable car insurance as a young adult requires research and strategic planning. By comparing rates, maximizing discounts, and maintaining a clean driving record, young drivers can secure the best possible rates with Young America Insurance. Always shop around and reevaluate your policy to ensure you’re getting the best deal in 2025.
Want to know more about other insurances, Read our latest articles.
