Posted by Finding quality and affordable car insurance for young adults can be quite daunting and expensive because they are always considered inexperienced by auto insurance providers.
According to Marketwatch, a globally recognized insurance comparison site, the average cost of car insurance for young adults is $2,786 per year and $232 per month, and this can be beyond the reach of a good number of young people who want to get their four-wheel mobile runner insured.
Yes, finding car insurance as a young individual is more than just a financial decision; it’s a step toward responsibility and independence. As a result, you must find coverage that provides the protection you need without breaking your bank account.
Here, we will give you some insights on which insurer provides the best services and walk you through everything you need to know about finding affordable car insurance.
So whether you’re just starting or looking for a better deal on your current policy, walk around with me.
Reasons Why Car Insurance is Important for Young Adults
The following are some of the reasons why you should have car insurance as a young adult:
- It can help you get the medical care you need if you’re injured in an accident
- Car insurance is legally required in many countries
- It protects you from financial liability if you’re in an accident
- Your peace of mind and security are secured with this insurance
- It can help you get your car repaired or replaced if it’s damaged in an accident.
It Can Help You Get the Medical Care You Need if You’re Injured in an Accident
If you’re injured in an accident, your car insurance can help pay for your medical bills. This is important for young adults who may not have access to health insurance through a job or a parent’s policy.
In addition, some car insurance policies offer personal injury protection (PIP) coverage, which can help pay for your medical expenses even if the accident was your fault.
Car Insurance is Legally Required in Many Countries
The specific requirements vary by location, but they typically include liability insurance, which covers the costs of any injuries or damage you cause to others in an accident.
Not having car insurance can result in fines or other penalties, so it’s important to make sure you’re covered before hitting the road.
It Protects You From Financial Liability if You’re in an Accident
This is one of the most important reasons to have car insurance. Let’s say you’re found at fault in an accident. You could be held liable for the other driver’s medical bills, property damage, and other expenses.
Without car insurance, these costs could easily bankrupt you. Even if you’re a careful driver, it’s important to have car insurance to protect yourself from the financial consequences of an accident.
Your Peace of Mind and Security are Secured With This Insurance
Having car insurance gives you peace of mind, knowing that you’re protected if you’re ever involved in an accident.
You can drive with confidence, knowing that your insurance will cover you in the event of an unexpected incident.
It can help You Get your Car Repaired or Replaced if it’s Damaged in an Accident
This is especially important for young adults, who may not have the financial resources to cover these costs on their own.
In some cases, car insurance can even provide a rental car while your car is being repaired or replaced. This can be a lifesaver if you rely on your car to get to work or school.
List of 15 Best Affordable Car Insurance for Young Adults
Below is a list of the cheapest car insurance for young adults:
- GEICO
- State Farm
- Progressive
- Allstate
- Farmers
- USAA
- Liberty Mutual
- Nationwide
- Erie Insurance
- The Hartford
- American Family
- Travelers
- The General
- AAA
- Amica Mutual.
Insight on the Most Affordable Car Insurance for Young Adults
1. GEICO
- Year Founded: 1936
- Location: USA
- Average Annual Premium: $1,844
Pros
- GEICO offers affordable rates
- It has a strong reputation for customer service
- Offers a variety of discounts.
Cons
- It doesn’t offer as many coverage options as some other insurers
- Some customers have reported slow claims processing
- Doesn’t offer as many discounts as some other insurers.
Description
Government Employees Insurance Company is one of the best affordable car insurance companies for young adults.
GEICO offers a variety of car insurance products, which include comprehensive and collision coverage, roadside assistance, and rental car reimbursement.
This firm is known for its competitive rates, easy-to-use website, and mobile app. It also offers a variety of discounts to its policyholders.
2. State Farm
- Year Founded: 1922
- Location: USA
- Average Annual Premium: $2,322
Pros
- It is a well-known and reputable company
- Has a variety of products and services
- Offers 24/7 claims hotline and online account management
- Has a strong financial rating.
Cons
- May not have as many options as some other insurers
- It has limited availability in some areas.
Description
State Farm is another one of the largest car insurance companies, and it’s a good option for young adults.
It offers a variety of car insurance products, including comprehensive and collision coverage, and it also offers several discounts, including discounts for good students, safe drivers, and those who bundle their car insurance with other types of insurance.
State Farm is known for its excellent customer service and high rating from A.M. Best. It’s also one of the most widely available car insurance companies, with agents in several places.
3. Progressive
- Year Founded: 1937
- Location: USA
- Average Annual Premium: $2,872
Pros
- Offers 24/7 claims hotline and online account management
- Has a strong reputation for customer service.
Cons
- May not be the best option for drivers with bad credit or a poor driving record.
Description
Progressive is a car insurance company that’s known for its wide range of customizable coverage options, competitive rates, and personalized approach to insurance.
It offers a variety of car insurance products, such as comprehensive and collision coverage, and it has several discounts available for young adults.
Progressive has excellent customer service that is highly rated, and it offers several convenient ways to file claims and manage your policy.
4. Allstate
- Year Founded: 1931
- Location: USA
- Average Annual Premium: $3,633
Pros
- Has a wide range of products and discounts
- Offers 24/7 claims hotline and online account management
- Offers accident forgiveness and disappearing deductible options.
Cons
- It has limited availability in some areas
- May have a high number of customer complaints.
Description
Allstate is a car insurance company that’s known for its customer service, financial stability, and wide range of products and discounts.
It offers a variety of car insurance products, including comprehensive and collision coverage, and it has several discounts available, including multi-policy discounts, safe driver discounts, and good student discounts.
5. Farmers
- Year Founded: 1928
- Location: USA
- Average Annual Premium: $3,295
Pros
- It offers comprehensive coverage options
- Farmers Insurance has a strong financial rating
- Has a mobile app for easy access to your account.
Cons
- May not have as many local agents as some other insurers
- It may also have limited coverage options in some states.
Description
Farmers is a car insurance company that’s known for its commitment to its customers, financial strength, and personalized service.
It has some of the best coverage out there and allows you to customize your plan according to your needs and budget.
6. USAA
- Year Founded: 1922
- Location: USA
- Average Annual Premium: $1,609
Pros
- Has an excellent reputation for customer service
- Offers discounts for members of the military
- Has a mobile app for easy access to your account.
Cons
- It is only available to members of the military and their families.
Description
USAA is a car insurance company that’s well-known for its exceptional customer service, competitive rates, and focus on serving military members and their families.
This insurance company has an excellent rating from A.M. Best, which is the highest rating possible, and it’s one of the most highly rated car insurance companies in the U.S. and the world.
7. Liberty Mutual
- Year Founded: 1912
- Location: USA
- Average Annual Premium: $2,604
Pros
- Liberty Insurance has a strong financial rating
- Has a mobile app for easy account management
- Offers accident forgiveness and vanishing deductible options.
Cons
- Has a high number of customer complaints.
Description
Liberty Mutual is one of the best car insurance companies that offers competitive rates, great customer service, and a wide range of products and discounts to young individuals.
It has been in business for over 100 years, has an A rating from A.M. Best, and is known for its commitment to protecting customers and providing value for their money.
8. Nationwide
- Year Founded: 1884
- Location: USA
- Average Annual Premium: $2,147
Pros
- Offers 24/7 claims support
- It has a strong reputation for customer service
- Has a strong financial rating
- Offers accident forgiveness and vanishing deductible options.
Cons
- They don’t have local agents in all areas
- May have a higher number of customer complaints than some other insurers.
Description
This is another car insurance company that provides great customer service and competitive rates to its customers.
There are various car insurance products, such as comprehensive and collision coverage, as well as several discounts available that this firm offers.
9. Erie Insurance
- Year Founded: 1925
- Location: USA
- Average Annual Premium: $2,103
Pros
- Has an excellent reputation for customer service
- Offers a variety of products and discounts
- Has an easy-to-use mobile app.
Cons
- May not have the same level of coverage options as some other insurers.
Description
This is a regional car insurance company that’s known for its excellent customer service, affordable rates, and customizable policies.
Erie, just like the other discussed firms, offers a variety of car insurance products to their customers. These products include comprehensive and collision coverage.
Also, it has some discounts available, such as safe driver discounts and multi-policy discounts.
10. Hartford
- Year Founded: 1810
- Location: USA
- Average Annual Premium: $2,715
Pros
- It has an excellent reputation for customer service
- Offers a variety of coverage options, including unique discounts.
Cons
- May not offer as much customization as some other insurers.
Description
Hartford is a car insurance company that’s known for its customer-focused approach, competitive rates, and high-quality products.
This provider has been in business for over 200 years and is one of the oldest car insurance companies in the U.S.
11. American Family
- Year Founded: 1927
- Location: USA
- Average Annual Premium: $2,469
Pros
- Has an excellent reputation for customer service
Offers accident forgiveness and vanishing deductible options.
Cons
- Does not offer as many discounts as its competitors
- It limited the customization options for policies.
Description
American Family Insurance is a car insurance company that has been in business for over 90 years. It’s one of the largest car insurance companies that offers a wide range of car insurance products.
American Family also offers some discounts, such as good driver discounts, multi-policy discounts, and discounts for students and new drivers. It has a strong focus on customer service and provides a variety of resources to help customers with their insurance needs.
12. Travelers
- Year Founded: 1864
- Location: USA
- Average Annual Premium: $2,513
Pros
- Reliable and financially strong company
- Excellent customer service
- Offers a variety of insurance products.
Cons
- May not have as many customization options as some other insurers.
Description
Travelers is one of the largest insurance companies in the U.S., with over 140 years of experience. It offers a variety of insurance products, including car insurance, homeowners insurance, and renters insurance.
It also offers commercial insurance products, such as business owners’ policies and workers’ compensation insurance.
Travelers has a reputation for being a reliable and financially strong insurance company.
13. The General
- Year Founded: 1963
- Location: USA
- Average Annual Premium: $2,150
Pros
- Low prices
- Easy online sign-up process
- 24/7 customer service.
Cons
- Has a high number of customer complaints.
Description
The General is a car insurance company that is based in Nashville, Tennessee. It’s known for offering low-cost car insurance, with a focus on providing affordable coverage for high-risk drivers.
Also, it offers several products and a variety of discounts to young adults. The General is a smaller car insurance company, but it has a solid reputation and is licensed in all 50 states in the United States.
14. AAA
- Year Founded: 1902
- Location: USA
- Average Annual Premium: $3,067
Pros
- Excellent reputation for customer service
- Offers a variety of discounts
- Has a long history of being a trusted insurance provider.
Cons
- May not offer as much customization as some other insurers
- Has a higher-than-average number of customer complaints.
Description
AAA Insurance, also known as the American Automobile Association, is a car insurance company that’s well-known for its roadside assistance services.
It has a strong reputation for providing excellent customer service and has a 24/7 claims hotline. It also offers several discounts, such as multi-policy discounts and good driver discounts.
15. Amica Mutual
- Year Founded: 1907
- Location: USA
- Average Annual Premium: $1,836
Pros
- High customer satisfaction ratings
- Offers a variety of discounts, including vanishing deductible options
- Has an excellent reputation for claims handling.
Cons
- May not offer as much flexibility in claim handling as some other insurers.
Description
Amica Mutual Insurance is a car insurance company that’s known for its high customer satisfaction ratings and its commitment to its customers.
It offers a variety of car insurance products and also offers several discounts for good drivers and students.
Tips to Find the Best Rate and Save Money on Car Insurance as a Young Person
- Get quotes from multiple insurers
- Ask about discounts
- Bundle your car insurance with other policies
- Ask about usage-based insurance options
- Maintain a clean driving record
- Maintain good credit
- Pay your bills on time
- Raise your deductible
FAQs on The Best Cheap Car Insurance for Juniors
Do young adults pay more for car insurance?
Generally, young adults pay more for car insurance than older, more experienced drivers. The reason for this is that young adults are considered higher-risk drivers due to their lack of experience, and statistics show they are more likely to be involved in accidents.
What factors affect car insurance rates for young adults?
Several factors can affect car insurance rates for young adults. Some of these factors are age, driving experience, driving record, location, type of car, credit score, deductible amount, etc.
Can young adults get discounts on car insurance?
Yes, there are several discounts that young adults can qualify for to help them save money on car insurance. For example, many insurance companies offer good student discounts to young drivers who maintain a certain GPA. Additionally, some companies offer discounts for taking a defensive driving course.
Can young adults stay on their parent's car insurance policy?
Yes, young adults can stay on their parents' car insurance policy as long as they meet certain criteria. Typically, the young adult must be a full-time student, live with their parents, and be under a certain age (usually 25 or 26).
Recommended Reads:
- 10 Best Car Insurance for New Drivers Over 30
- 5 Importance of Cargo Insurance
- 10 Best Car Insurance for Low-Mileage Drivers
- Best Medical Insurance in New York
- 10 Best Medical Insurance in the UK.
Conclusion
Finding the best affordable car insurance for young adults requires you to consider a variety of factors, such as age, location, driving history, the type of coverage needed, etc.
Additionally, young adults may be able to stay on their parent’s car insurance policy if they meet certain criteria.
The best way to find the most affordable car insurance for a young adult is to compare quotes from multiple companies and check for available discounts.
It’s also important to read the fine print to understand what is and is not covered by the policy. With some research and careful consideration, young adults can find an affordable car insurance policy that meets their needs.