These 7 Auto Insurance Companies Are The Best For Young Drivers
December 26, 2019
Whether you are new driver on the road, or you’re a seasoned expert, you have to be covered by insurance when you’re on the road. It’s required by almost every state. And you need at least liability coverage. However, the hard truth is that if you’re young you’ll be paying more than your 35 year old brother. That’s heavily based on your age.
The reason why you’re paying higher rates than people over the age of 30 is because you’re labeled “at risk”. Someone in their 40’s or 50’s is considered safer just based on experience. Insurance companies will charge you more because you’re more likely to get in an accident – which costs them more money.
Although age isn’t the only determining factor on your car insurance price, it’s a big one. However, there are car insurances that can help cut down on these low age costs. We found 8 auto insurance companies that are the best for young adults.U
Widely known for their association with the US military, USAA has an outstanding record of customer service since 1922. Veterans and active military are their biggest customers, but they offer many discounts to family of those in past or present service.
USAA has implemented many ways to cut down on premium prices, such as:
- After maintaining a clean driving record for five years, you can receive the Safe Driver Discount.
- Receive a discount after taking a Defensive Driving or a driver training course.
- Vehicle discounts for multiple vehicles, newer vehicles, and driving your vehicle under a certain amount of miles.
- Good student discount when a student under 25 maintains at least a 3.0 GPA.
- Discounts when you refer someone who signs up, customer loyalty, and multi-policy purchasing from USAA.
- Discount for those who garage their cars on military base and choose comprehensive insurance coverage.
Liberty Mutual was voted 2nd for customer satisfaction in a 2012 study by J.D. Powers. Along with some of the cheapest minimum coverage policies around, they also offer some substantial discounts.
- Discounts include: home owner, military, early bird shopper, good student, student away discount, accident/violation free, multi-car, and a few other small discounts.
- Accident Forgiveness, meaning after your first claim your rates won’t go up. This is helpful for newer/younger drivers.
- New car replacement: if you buy a new car and are in an accident within the first year, Liberty Mutual will make sure you get enough money to buy the same car again. Most insurance policies will only pay out the depreciated value of the car which can be thousands less than you just paid for the car.
Liberty Mutual has some of the highest costs for adding new teenage drivers. But, for young adults they offer some of the lowest minimum coverage policies along with other ways to save.
Everyone knows GEICO from the infamous lizard on all of their commercials. They stand by the slogan, “saving you 15% or more on your car insurance”. GEICO has amped up their customer service and ways to reach the company. You can now visit agents, reach them on twitter or get a quote online.
Some way you could save with GEICO are:
- Having safety airbags (up to 25% savings) or full-front airbags (up to 40% savings)
- Anti-theft system and anti-lock brakes
- Remain accident free and after five years, receive up to 26% discount on your premium.
- Defensive driving course or drivers education classes
- Military and emergency deployment
- Full time students between ages 16-24 who maintain an academic record of 3.0 GPA and higher
Esurance was bought by Allstate and joined forces with one of the best known businesses in the game. It’s easy to get a quote online, or reach the 24/7 toll-free customer service line. Esurance also makes it easy to manage your auto insurance policy and your claims online.
- Esurance has what’s called “fast 5 discount” – you can get 5% off of your first term premium just by receiving a quote from them.
- Get the Switch and Save discount (of 5%) when you switch your car insurance to Esurance without any lapse in-between.
- Save 10% when you pay in full in one lump sum instead of monthly payments.
- Their claim free discount varies from state to state, but just by driving safely you can save. All drivers on policy must go 5 years without a claim in order to receive this. At least one person on the policy has 5-plus years of driving experience. *In some states, comprehensive claims under $1,000, glass-only claims, and emergency road service claims won’t disqualify you from the discount.
- Defensive Driver course discount
- Good student discount (at least 3.0 GPA)
- Anti-theft devices installed
State Farm makes it easy to get a quote either online or through an agent. They are one of the most widely known companies in the insurance world. Many have noted State Farm’s ability to respond quickly and provide excellent customer service. It’s no wonder their slogan is “State Farm is there!”. Here are some of their discounts that a young adult would want to take advantage of:
- Safe driving discount after 3 year period with no accidents or traffic violations. This is a shorter length of time than other insurance companies that require a 5 year period of safe driving.
- Good student discount (GPA of at least 3.0)
- Multi-vehicle discount
- Steer Clear course offered by State Farm discount
- Defensive driving and less driving can also reduce your auto insurance premiums
On State Farm’s web site you can find a tool you can use to determine how your rate might rise or fall, depending on different circumstances, whether it’s adding a teen driver or getting a speeding ticket.
Progressive’s website is rated as one of the best overall. Comparison shopping is made easy with their comparison tool. If you are buying a policy on your own as a young driver, Progressive may be a good option for you. Progressive has some of the most competitive pricing in auto insurance. Make sure you get a quote to see what you could be saving.
Discounts with Progressive include:
- Snapshot by Progressive is a driving monitor that personalizes your rate based on your actual driving. Meaning, if you’re a good driver, you pay less. Age does not contribute to this savings.
- If you have no accidents or traffic violations in the past three years, you could earn nearly 1/3 off your policy price.
- If you’re comfortable signing your documents online, they will give you a discount of nearly 8%. In addition, go paperless and receive your documents via email and receive a discount.
- If you are 18 years old or younger and are added to a policy, instead of raising the price, they will help offset it a bit with the teen driver discount.
- Good student discount. Maintain a “B” average and save. Along with student on a policy who is in college, more than 100 miles from your residence, and is 22 years or younger.
- Automatic payment through a checking account will get you a small discount, too.
This is for anyone who lives in llinois, Indiana, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, or Wisconsin. It is easily one of the most affordable companies for teen and college-aged drivers. Erie Insurance is well-known for its competitive price and quick claims service.
Erie offers young drivers discounts between 5 and 20 percent.
- Youthful Driver Discount is any unmarried driver under 21 who still live with their parents.
- Youthful Longevity Discount is for any unmarried driver who have spent consecutive years insured by ERIE auto policy under a parents or guardian.
- Driver Training Discount is for young drivers under 21 who have completed a drivers training course.
- They also offer a discount for college students who is away from home at school and are not driving their vehicle.
- Accident Forgiveness for the first at-fault accident claim
- For each consecutive policy year in which you don’t file a claim, your deductible will be reduced by $100 (up to a maximum amount of $500)
For more information on the young driver discounts ERIE provides, check out their website.
Extra Tips for Young Drivers
As a driver under the age of 25, you want to take advantage of all the discounts that you can. Here are some quick tips to lower those costs:
- Consider taking advantage of driving monitors that many insurance companies are now using. It will track your driving and charge you based on how well and how often you drive. This is a great way to cut down on costs, as it doesn’t take into consideration your age, rather your driving habits.
- Follow the rules of the road and practice safe driving. With many companies, going accident/violation free for 3-5 years can significantly cut down on your premium.
- Take your academics seriously. If you’re still in school, you can receive discounts so many places if you maintain good academic performance. Your auto insurance is one of those places.
- Get accurate quotes. You’ll never know what you can be saving if you don’t compare prices and get quotes for your auto insurance. It’s important to ask about discounts and then see how much you could be saving!
Don’t think that just because you’re young you have to pay outrageous prices for your auto insurance. There’s many ways can cut down on costs and these auto insurance companies can help you do just that. Make sure you take advantage of them!
Quick Money Savings Tip For Safe Drivers
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