Drivers with less experience are far more likely to be involved in an accident and make a claim than those who have been on the road for years. The insurance rate reflects this greater likelihood. As such, there is every need to obtain car insurance for young drivers.
Car insurance is essential for all drivers (it’s even required in 48 states), but it’s especially important for new drivers, whose lack of years makes them more likely to be involved in an accident. Finding the right policy, on the other hand, can be difficult. What kind of protection do you require? How do you strike a balance between cost and coverage? Is collision insurance really necessary? It’s a lot, but we’re here to assist.
Find the best car insurance rates and deals for new and young drivers. Affordable insurance policies are available for good students and for teens who’ve had accidents.
What is Young Driver Insurance?
Anyone between the ages of 17 and 25, with a provisional or full UK driving license, is commonly referred to as a “young driver.” Many insurance firms offer customized policies to help young drivers get behind the wheel without breaking the bank in an effort to help them get behind the wheel without breaking the bank. These usually entail the installation of black boxes, which track information like your speed, how quickly you brake and turn, the time of day you drive, and the distance you go.
However, many young drivers are thought to have a higher risk of accidents and are therefore more expensive to insure due to their age and lack of experience. According to Green Pass Training, one out of every four 18 to 24-year-olds has a car accident within two years of passing their driving test.
This means that regardless of whether you’re a cautious driver or not, your rates will almost certainly be high because they’re influenced by the actions of other drivers.
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What Factors Influence Car Insurance Costs?
When comparing the best car insurance for young adults or teens, you’ll see that most providers base their pricing on the same factors. The majority of the cost is determined by these factors:
- Age: young drivers have less driving experience and hence pose a greater risk.
- Credit score: Because creditworthiness is a good indicator of responsibility, premiums go up as credit scores go down. Unfortunately, the majority of young adults lack a credit history, putting them at a disadvantage.
- Vehicle: Choosing a vehicle with a high safety rating and innovative safety technology can help you save money. Car insurance companies also assess the type of vehicle to estimate the cost of repair or replacement.
- Your premium is heavily influenced by your location. If you live in a metropolis, you will experience higher rates of auto theft than if you reside in a rural location. The amount of coverage that is required varies by state.
Finally, the insurance firm takes into account the level of protection you desire. You will pay more if you choose the most expensive plan. Your deductible will also affect the cost of your premium.
READ ALSO: Best Car Insurance For College Students
13 Best Car Insurance For Young Drivers
The best vehicle insurance companies for young drivers are listed below.
1. StateFarm Insurance
Cost: $456 per month
One of the top vehicle insurance companies for young drivers is State Farm. It is the country’s largest vehicle insurer and a well-known insurance brand. The monthly cost of this insurance quote was $456. As a result, in our investigation, it was neither the cheapest nor the most costly vehicle insurance for young drivers.
State Farm Insurance gives over 25% off for good students (ages 16 to 25 with a 3.0 GPA), as well as savings for those who have finished driving training and college students who are away at school and don’t have easy access to a car.
State Farm offers rideshare insurance in addition to the normal coverages you’d expect from a major insurer. This is necessary for anyone driving for a service like Uber, which may appeal to a college student looking for a way to supplement their income. Furthermore, the organization provides 24-hour roadside assistance, providing further peace of mind to both parents and young drivers.
Advantages
- A wide range of discounts are available for younger drivers.
- Customer service ratings that are above average
- Coverage for ridesharing is available.
Disadvantages
- Only through agencies is this product available.
- Offers fewer optional coverages than some competitors.
SEE ALSO: Progressive Auto Insurance Review 2023: Everything You Need To Know
2. Allstate Insurance
Cost: $761 per month
For young drivers looking to save money, Allstate is another alternative. Apart from saving money, it also helps drivers improve their skills behind the wheel, which is very important during this formative period. As a result, it has also been shown to be the greatest option for high school pupils.
Teenagers and college students can save in a variety of ways with this company. A Smart Student Discount is available for drivers under the age of 25. Students can save money if they maintain a 2.7-grade point average or attend a school that is at least 100 miles away from where the car is parked.
The only disadvantage is that it is one of the most costly vehicle insurance suppliers for young drivers.
Advantages
- Offers the teenSMART driver program, which requires a 2.7 GPA to qualify for a student discount.
- Offers Usage-based insurance based on mileage
Disadvantage
- Customer service scores are below average.
3. GEICO Insurance
Cost: $174 per month
Even though no vehicle insurer spends more money on advertising than GEICO, it is one of the finest insurance companies for college students and teens.
GEICO had one among the most affordable quotations in our review, at $174 per month.
Up to 16 primary discounts can be added to that cheap rate. There’s also a 15% discount for good students. The company’s DriveEasy app encourages safe driving practices while also offering the opportunity to earn additional policy reductions.
GEICO also offers discounts to students and graduates of numerous universities in addition to these basic discounts. Greek clubs and alumni organizations from dozens of colleges can take advantage of its association discounts.
Advantages
- Discounts for student organizations
- Coverage Calculator is an award-winning smartphone app.
Disadvantages
- Ratings for claims are below average.
- Local agents are hard to come by.
4. Progressive Insurance
Cost: $297 per month
Progressive may appear to be a newbie to the insurance industry. However, the company has been around since 1937 and operates in all 50 states. It’s our recommendation for the finest teen and college student discounts.
Progressive has a lot of savings options for teens and college students, which we like. Its good student discount saves you 10% on average. For individuals who are away at school, the company also offers a young driver discount and a remote student discount. Customers who opt for a paperless policy or pay their semi-annual payment in full may be eligible for further savings.
Advantages
- Additional money-saving options
- There are numerous claim alternatives available.
Disadvantages
- Customer service ratings are lower than those of certain competitors.
- Rates may differ depending on the sales channel.
READ ALSO: Progressive Insurance Reviews: Is It Legit Or Scam | How It Works
5. Amica Insurance
Cost: $647 per month
The customer service of Amica is well-known. Customers are likely to be pleased with the company’s claims service as a result of all of this. While our $647-per-month quote was one of the most expensive in our research, the company does offer a variety of discounts to help teens and college students save money.
Discounts are available for persons under 21 who have completed a driving education course, students aged 15 to 25 who maintain a B average in school, and college students who are away at school and do not have access to a car. They also provide a loyalty discount to under-30s whose parents have had an Amica auto policy for at least five years.
Advantages
- Customer service and claims are both highly rated.
- Several discounts are available for teenagers and college students.
Disadvantages
- There are no local agents.
- One of the most costly in our research
6. USAA Insurance
USAA has a long history of providing insurance and other financial services to members of the United States military and their families. For children of military members or students on active service or in the reserves, the company is a wonderful vehicle insurance option.
The company’s list of teen and college student discounts isn’t as long as some of its competitors. They do, however, provide good students and new drivers who have completed basic driver training a discount.
Children of USAA members can also save an additional 10% with their family discount.
Pros
- Focus on servicing the troops and their families in the United States.
- If the vehicle is stored on a military base, you will receive a discount.
- Customer satisfaction scores are higher.
Cons
- There are less student discounts than competitors.
- To receive a quote, you must be a member of USAA.
READ ALSO: 20 Best Mobile Home Insurance Companies In 2023
7. Auto Mile Insurance
Cost: $94.64 + $0.11 per mile per month
The pay-per-mile coverage offered by Mile Auto is part of a growing trend in automobile insurance. It’s a trend that can potentially save a lot of money for teens or college students who drive far less than the usual number of miles—perhaps because they leave their automobiles parked for long periods of time.
Mile Auto charges consumers a monthly base payment for pay-per-mile insurance. The corporation then keeps track of how many miles are driven each month and charges a few cents per mile.
Pros
- Drivers with low mileage can save a lot of money.
- There is no need to place a black box in the car to track mileage. Full coverage insurance are available.
Cons
- There are six states where this product is available.
- There are a few deals available.
- For people who drive a lot, this may not be the best solution.
- The website is lacking in information.
8. Erie Insurance
Since 1925, Erie Insurance has provided auto insurance. The firm is well-known for its excellent claim settlement record and overall client service. In fact, in its 2020 U.S. Auto Claims Satisfaction Study, J.D. Power ranked Erie as the number seven insurance company in the country.
Erie Insurance has an excellent website for a tiny insurance business that allows clients to do a lot with their coverage. You may use the site to get a car insurance quotation, locate a local Erie Insurance agent, pay your premium, file an auto-glass claim, and more.
Erie has recently released a mobile app for Android devices. You can manage your billing, track claims, and more from there.
Pros
- Financial stability and dependability have a long history.
- Young drivers can get good rates.
- Discounts for drivers under the age of 21
Cons
- Not available in every state
- There is no way to file a claim online.
9. Savvy Insurance
The Best Car Insurance Companies For Young Adults – Savvy makes getting estimates from various carriers simple and quick. You’ll select your current insurance company from a drop-down menu, enter your login credentials, and let Savvy connect to your current policy.
A third-party site that specializes in assisting organizations like Savvy in gathering such details while keeping your information safe secures the connection.
One of the best features of Savvy is that it automatically pulls in your current premium amount as a reminder. To compare rates, you don’t need to know the amount or search it up!
You’ll be given a list of providers who can beat your current rate, as well as dollar amounts if they’re available. Before you can see the quote, you may need to go to the provider’s website and fill out some additional information.
10. Gabi Insurance
Gabi is an expert at quick quote comparisons. Simply create an account, connect it to your insurance provider, and compare up to 20 different rates from some of the industry’s best insurers.
The platform makes it simple to save money on auto insurance. You can also obtain insurance through Gabi if you’re a renter or a homeowner. Even if you want to purchase a policy via them, the rate quotes are free and there are no fees for using the service.
However, one of the nicest features of Gabi is that it continues to save you money even after you’ve signed up. Gabi will alert you if it finds a cheaper offer elsewhere at the time of your insurance renewal. Your rates will remain low as a result of this. Gabi consumers, on the other hand, save an average of $961 per year.
11. Liberty Mutual Insurance
This is another excellent vehicle insurance option for young drivers. Because of its complete coverage and advantages, this insurance is the best vehicle insurance for teenagers. Lifetime Repair Guarantee, Accident Forgiveness, Roadside Assistance, Rental Auto Reimbursement, and other Liberty Mutual car insurance advantages may be beneficial to young drivers.
Above all, Liberty Mutual has a good reputation in the insurance industry. It has an A+ rating with accreditation from the Better Business Bureau (BBB) and an A financial strength grade from AM Best.
12. AAA Insurance
Roadside assistance and car rental discounts aren’t the only things AAA is known for. You can get reduced insurance prices with your membership – even if your teen is on the policy.
AAA car insurance has an A+ BBB rating and is widely regarded as a leader in the industry. Several AAA auto insurance savings are available with coverage, including pet coverage, new vehicle replacement, and accident forgiveness, among others.
FAQs On Car Insurance For Young Drivers
Car insurance should cover the following features:
Liability
Comprehensive
Collision
Uninsured motorist coverage
Medical payments coverage
The majority of the cost is determined by these factors:
Age
Credit score
Vehicle
Your premium is heavily influenced by your location
The best car insurance for young drivers includes:
State Farm
Allstate
Progressive
Sabi
Savvy
USAA
Erie Insurance
Amica
GEICO
Gabi
AAA
Liberty Mutual
Auto Mile
Conclusion
Car insurance is often expensive, especially for young people with a short driving record. These car insurance companies offer the best discounts, the lowest rates, and the easiest applications.
References
- thebalance.com– best car insurance for teens and college students
- forbes.com– best car insurance for teens and college students
- moneyunder30.com– best car insurance for teens and young drivers
- investopedia.com– best car insurance for teens
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