It can always be a little frustrating when it’s time to add your date of birth on your auto insurance quote when you are younger than 25. Most auto insurance companies are going to make you pay more than the average premium.
There is no denying that young drivers are less experienced, riskier, and get into more accidents than older drivers. This is why premiums are so high for young adults.
However, there are many companies that you can take advantage of today. In this article, I will help you to find the best car insurance for new drivers under 25.
How age affects auto insurance rates?
The younger you are the more expensive your insurance premium will be. When you are in your teens such as 16 -19 years old, you are usually looking at $3000 – $6000 a year on your premium. Always remember that your premium can be cheaper than this.
That is why it is crucial that you compare quotes today! Rates vary depending on your car, state, driving history, discounts, gender, etc. When you turn 20, average rates begin to lower. After 21 you can end up paying hundreds less. Average rates continue to lower as you age, but then they will jump back up at the age of 65.
GEICO
GEICO is among the top Fort Lauderdale insurance companies. I have been using GEICO since I was 19 years old because they always gave me the cheapest insurance premiums in Florida. As a young college student, I needed to save as much as possible. I was paying hundreds less than other insurance companies with one year old car. What I love about GEICO is that you have many discounts available to you.
Defensive Driving Discounts – If you have completed a defensive driver’s course you may be able to save on car insurance. Every state has different rules and qualifications.
Good Student – If you do well in school, then you can end up saving 15% discount on certain coverages.
Organization discount – GEICO offers awesome savings to alumni association members. All that you have to do is search for your college, fraternity, or organization and you can save big. With hundreds of universities and organizations available to you there is a strong chance that you will find your organization. Just to name a few colleges that qualify for a discount, you have Xavier University, West Virginia University, University of Wisconsin, University of Utah, University of North Carolina, Ohio University, Hawaii Pacific University, Princeton University, Purdue University, and more.
Customer loyalty – GEICO offers a multi-car discount like most auto insurers do. This is great if you are on your parent’s policy. Insure multiple cars and save up to 25%.
Liberty Mutual
Many young drivers have been able to receive a cheaper premium with Liberty Mutual. Liberty Mutual offers many discounts for teens. If you have a child that is over 100 miles away for school, then you are eligible for a Liberty Mutual discount.
Just like with GEICO there is a discount for students, under the age of 25, who maintain a B average.
Alumni and Professional Affiliations – You can save up to 10% on your auto insurance by being a member of the 14,000+ employers and associations that partner with Liberty Mutual.
Accident forgiveness – If you know anything about me, then you know I love accident forgiveness and you should as well. Once again, statistically younger drivers get into more accidents than older drivers. If you have ever been in an accident then you know by now that insurance companies will jack up your premium after your first accident. With Accident forgiveness you don’t have to worry about your premiums going up after an accident even if it’s your fault. This is going to save you a lot in the long run.
Erie Insurance
Erie Insurance is an American multi-line insurance company that was founded in 1925. Erie is one of the best hidden secrets. It’s not one of the most popular companies such as GEICO or Progressive but Erie does have great reviews and they are known for offering cheap insurance for drivers 20 – 30 years old.
On average 20 year-old females with no accidents can pay thousands less than the national insurance average. If you are under 21 years old, unmarried, and you still live with your parents, then you may qualify for their young driver’s discount.
This discount is not available in North Carolina. Erie also offers a reduced usage discount. Why pay for inactivity? This is perfect if you are not using your car for 90 consecutive days during the policy period.
Nationwide
Nationwide is known for their awesome song. “Nationwide is on your side.” They are also known for having many discounts for young drivers. If you are under 25 and you are trying to save with Nationwide, then you can save with their anti-theft device discount.
Nationwide is another company that offers accident forgiveness and a good student discount. If you are young and you would like to show off your impressive driving habits, then Nationwide offers a SmartRide program for all ages. You will immediately save when you sign up for the program. You could save up to 40% by driving safe. It’s simple to get started.
Sign up! In about 10 days you will receive a small device, then drive. The amount that will be discounted to you all depends on how well you drive. The device factors in your nighttime driving, miles driven, hard braking, and idle time in traffic. To track your discount all that you have to do is go online. The best thing about this program is that your premium will never increase because of it.
AAA
There are many discounts for being an AAA member that young drivers can take advantage of. If you drive less than 10,000 miles a year, then why are you paying extra for car insurance? One thing that stuck out when I compared AAA to Allstate and many other insurance providers was that AAA offers a reduced mileage discount on top of low premiums.
In addition to their reduced mileage discount AAA also offers a safe driver’s discount. If you have less than 3 points on your license, then you will qualify. Another thing that I love about AAA is that you are given deals for various different companies.
You are given deals for IHop, Bass Pro Shops, AMC, Macys, Papa John’s, PetSmart, Amtrak, Barnes & Noble, Busch Gardens, Champs Sports, Dell, CVS, travel vacations, and more. The only drawback of AAA is that you will have to pay a fee to sign up for AAA.
COUNTRY
COUNTRY Financial offers extremely low rates especially in Oregon and Georgia. If you want to take advantage of your clean driving record, then COUNTRY Financial is a great company to do it with. One thing that we all hate is when our auto insurer jacks up our prices for nothing. COUNTRY increases insurance rates far less than some of the largest insurance providers in the world. Out of a 5-point scale for insurance rates increases COUNTRY receives a 5.0 score.
If you or your fiancé is at least 21 years old, then you can save with their engaged couple discount. If you are a newly licensed driver or if you have a newly licensed child, then you may qualify for up to a 10% discount by completing their Simply Drive course. You can also save 10% with their new vehicle discount. Are you a teacher, firefighter, police officer, or paramedic? If so you can be saving 5 – 10% on auto insurance with COUNTRY.
Additional coverage options with COUNTRY include emergency roadside assistance, vehicle rental and trip interruption, safety glass coverage, personal effects coverage, and The Keeper – new car coverage.
Travelers
Travelers is an old insurance company that was founded by James Goodwin Batterson who was an American designer and builder.
Travelers has been around for almost 200 years and it is perfect for young drivers who are having difficulty finding an affordable insurance quote. With Travelers you can save up to 15% with consistent on time payments.
Their other discounts include multi-policy, multicar, home ownership, safe driver, continuous insurance, hybrid, early quote discounts, and more. There are a plethora of discounts that you can take advantage. Also, Travelers offers a great IntelliDrive Program. IntelliDrive is a great 90-day program where your good driving behavior will be rewarded with up to 20% savings.
Choose the right company
There are many awesome companies on this list. Not only are they awesome because of affordability but they are awesome because of discounts and claim satisfaction. Don’t be afraid to compare quotes today. Compare quotes to see which one offers the cheapest insurance in your state.