Are you a driver under 25? Are you looking for the best car insurance for drivers under 25? If yes then you’re in the right place. In this article, we’ve compiled a list of cheap car insurance for drivers under 25.
On so many occasions, we see younger drivers struggling to find low-cost auto insurance coverage. The rate of this varies significantly among younger drivers, particularly those between the age of 20-25. This is why you can find someone in his 20s paying $2k for full coverage while someone who is 25 paying $1k.
Car insurance can be expensive for teen drivers. With the number of insurance companies out there, so many adults find it difficult to find a good and affordable rate that will favor them when they’re in their 20s.
A lot of car Insurance companies out there prefer to offer insurance to older drivers with years of experience compared to younger drivers in their 20-25. This is why drivers of 25 years always end up paying a higher premium for car insurance.
Why is it so? The answer is simple. Younger adults are considered in experience and the probability of them crashing their car is higher. These insurance companies regard those younger adults as high-risk insurers. According to the National Highway Traffic Safety Administration (NHTSA), younger adults are more likely to get into an auto crash compared to older adults who are considered the experienced ones.
In this article, you’ll learn how to find the best rates for car insurance under 25.
How Much Is the Cost For Cheap Car Insurance For Drivers Under 25?
So many insurance companies out there usually charge higher when someone within the age of 25 years is purchasing insurance compared to older adults who are buying insurance too. This is why as a younger fellow looking to purchase auto insurance, it is very important to compare quotes in other to find the best cheap full insurance coverage for drivers under 25.
In most cases, an average insurance coverage policy for a 20-year-old driver is $2,465 per year, while the same insurance plan cost for a 25-years old individual is $1,402 per year.
Also Read: Property Insurance
Annual Break Down Of The Average Car Insurance For Drivers Under 25.
| 20-Year-Old | $2,465 |
| 21-Year-Old | $1,957 |
| 22-Year-Old | $1,818 |
| 23-Year-Old | $1,648 |
| 24-Year-Old | $1,543 |
| 25-Year-Old | $1,402 |
Best Car Insurance Companies For Adults Under 25
GEICO
GEICO is considered the cheapest car Insurance company for Adults under 25. The company which was founded by Leo Goodwin Sr. and his wife Lillian Goodwin in 1936 was later sold to federal government employees
The Government Employees Insurance Company (GEICO) is an auto insurance company founded in the United State Of America. The company has its headquarters in Chevy Chase, Maryland. The company currently ranks as the second-largest auto insurer in the united states, after Farm. GEICO currently writes private automobile insurance in over 50 states and the District of Columbia states.
The GEICO Field representative is responsible for selling out policies as local agents over the phone.
Some people might get confused when they see the name “Government”, they usually think its a government property. The company operates as a private corporation that is not affiliated with any U.S. government organization.
GEICO company is known to cover over 23 million vehicles across the united state with a record of over 40,000 employees.
Reasons Why You Should Consider Using GEICO
- They have one of the best customer services. GEICO customer support ensures they put customer satisfaction above any other thing
- They have a Robust website and mobile app
- There are different discounts tailored for GEICO customers no matter which coverage they’re going for depending on the state.
- The company has an annual rate of $1,182. This is one of the best offers you can get out there.
The Best And Cheapest Car Insurance Companies By Age
Below is the full coverage insurance policy, which includes liability, comprehensive, and collision coverages. Liability-only coverage is less expensive than full coverage insurance, but it does not provide any financial protection if your vehicle is stolen or damaged.
| Age 20 | Allstate | $2,180 |
| Age 21 | GEICO | $1,695 |
| Age 22 | GEICO | $1,562 |
| Age 23 | GEICO | $1,369 |
| Age 24 | GEICO | $1,293 |
| Age 25 | GEICO | $1,207 |
State Farm
State Farm is also a low-cost insurance company that offers low-cost policies to younger adults. The company, which is regarded as the largest auto insurer in the united states offers many coverage options, from auto insurance for teen drivers to rental cars and more. When using the company, you can save an average of $597.
The company relies on exclusive agents which are also known as captive agents to sell insurance and state farm products. The company grew so larger that it added some additional financial services such as banking and mutual funds.
With state farm, you can always find the best coverage that will cover your needs. This coverage varies depending on the state of the individual.
Auto Insurance Coverage Options Available At State Farm
Collision insurance: The Collision insurance coverage covers object collision, or overturn of the vehicle in an accident.
Rental Insurance: The car rental insurance can be helpful When damage that’s covered by your comprehensive or collision insurance has your car undrivable or in the repair shop, car rental reimbursement.
Emergency Roadside Service: In the scenario where your vehicle breaks down at the road site, state farm will ensure it covers or pay for common, reasonable expenses you need to get your vehicle back in service.
Rideshare Insurance: The ride share insurance is meant to cover individuals using their vehicle uber or Lyft.
Comprehensive Insurance: This insurance covers your vehicle when stolen or damaged by something other than a collision or rolling over. E.g damage caused by fire, wind, hail, flood, theft, and more.
Progressive Insurance
Progressive Insurance Company is another cheap insurer for new drivers. The company started operation on March 10, 1937, and was founded by Jack Green and Joseph M. Lewis, and is headquartered in Mayfield Village, Ohio. Progressive is known to insure passenger vehicles, motorcycles, RVs, trailers, boats, PWC, and commercial vehicles.
Progressive Insurance Company offers rates based on age and gender.
Below is their rate based on age and gender.
| Age | Gender | Price |
| 17-Years-Old | Female | $6,988 |
| 17-Years-Old | Male | $7,709 |
| 25-Years-Old | Female | $1,605 |
| 25-Years-Old | Male | $1,635 |
If you look at the table above, you’ll realize that that the older an individual the lower the price for insurance coverage.
The company is known to operate in three different segments which are;
- The personal Line segment
- The Commercial Auto segment
- The Other-indemnity segment
The Personal Lines segment writes insurance for private passenger automobiles, motorcycles, boats, and recreational vehicles through both an independent agency channel and a direct channel.
The Commercial Auto segment writes primary liability and physical damage insurance for automobiles and trucks owned by businesses primarily through the independent agency channel.
The Other-indemnity segment provides professional liability insurance to community banks, principally directors, and officers liability insurance. It also provides insurance-related services, primarily providing policy issuance and claims adjusting services in 25 states for Commercial Auto Insurance Procedures/Plans
All State Car Insurance
Allstate is an American Insurance company that was founded in1931 as part of Sears, Roebuck and Co., it was spun off in 1993. The company has an headquarters in Northfield Township, Illinois, near Northbrook since 1967. As at 2019, the company has a total asset of US$119.950 billion, total equity of US$25.998 billion and 45,780 employees.
Allstate has a rate of $211 Monthly for teen (17-years-old) and $107 monthly for 21 years old.
Liberty Mutual Auto Insurance
Liberty Mutual Auto Insurance (Founded 1912) is also considered as a cheap auto insurance company that offers coverage for vehicles owned by young adults below 25. Even though the company regards this young drivers as higher risk, the company still ensures that it provide affordable coverage for this young drivers.
Liberty Mutual group an american diversified global insurer that is regarded as the sixth-largest property and casualty insurer in the United States. The company is located in Boston, Massachusetts, and featuring the Statue of Liberty. As at the time of writing this article, the company has over 45,000 employees in over 900 locations across the world.
As of December 31, 2021, Liberty Mutual Insurance had $156.043 billion in consolidated assets, $128.195 billion in consolidated liabilities and $48.2 billion in annual consolidated revenue. The company which was founded in 1912, is known for its wide range of insurance products and services, including personal automobile, homeowners, workers’ compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, fire insurance and surety. The cost of auto insurance for a 25 year old is $3,348 while a 18 year old might be $7,396.
The rate for liberty mutual insurance might be different from others because of some major factors like Age, Credit score and some other factors.
What Is the Best Car Insurance for New Drivers Under 25?
The best car insurance for an adult under 25 is the liability-only insurance only if he is still paying for his car. This will enable you to avoid paying for comprehensive or collision insurance. But in the case of you getting into an accident, an investigation shows that you’re at fault, and you’ll have to pay from your pocket to fix or repair your car.
If you buy liability-only insurance, consider signing up for additional coverages to protect your finances, such as uninsured or underinsured motorist (UI/UIM) coverage or personal injury protection (PIP) insurance.
Conclusion/Final Verdict
If you read the article to the end, I believe you’ll be able to make the right decision when it comes to getting the right coverage for your vehicle.
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