Top 5 Cheapest Car Insurance for those Under 25-Years Old

Last Updated on November 14, 2019

Car insurance companies like to discriminate against younger drivers who are under 25 years old. Since statistics show that drivers in this age group are more likely to get into accidents, insurance companies charge them higher rates as a result. This is the worst time in someone’s life to have to pay high insurance rates because they likely are not making that much money.

With that being said, there are some advantages that younger drivers have. When they choose the amount of coverage they want to have, most young drivers will choose the lowest amount of coverage possible. After all, these young drivers don’t have very many assets to protect in comparison to older drivers. So, young drivers don’t need to choose a high amount of coverage. As a result, they won’t be paying as big a premium as they would if they had chosen more coverage.

5 Cheapest Car Insurance for Under 25 Year old

Below are the top 5 cheapest car insurance companies for drivers under 25 years old. Some of these insurance companies are regional instead of national. Regional car insurance companies typically have cheaper rates for younger drivers. The only thing is they are not well advertised which is why a lot of people don’t know about them. But even if you’re not in the same region as these insurance companies, you should still research your local region and see if you can find a local company that has a cheaper rate than the bigger national companies.

1) Erie – Erie Insurance is a company based in Erie, Pennsylvania. They are one of the cheapest car insurance companies in the nation. The average annual car insurance rate that drivers pay is $1,052. The only downside is that Erie is only available in 9 states. But if you’re fortunate enough to be in one of these states, you can find insurance rates between 20% and 40% cheaper than what bigger companies would offer.

2) Geico – Although Geico is the second biggest insurance company in the United States, it is also the second cheapest company too. The average annual cost of insurance with them is $1,067. Geico is available in nearly every state, some of which have special discounts for younger drivers who successfully pass a driver training class and get good grades in school.

3) American Family – There are about one thousand cities throughout the United States which have American Family auto insurance availability. Young drivers have found rates with American Family to be about 10% to 30% cheaper than the average for their state. The average annual cost with American Family is $1,099.

4) Auto Owners – Despite being available in 26 states, not too many people know about Auto Owners car insurance. The average annual cost for car insurance with Auto Owners is roughly $1,201. Those who are students can earn a discount with them.

5) Progressive – Progressive is one of the top car insurance companies in the United States. The average annual cost for car insurance with Progressive is about $1,241. Those who stay loyal to the company will earn discounts, as long as they don’t get into any accidents.

Read also: Top 5 Cheap car Insurance in Florida

Regardless of which car insurance company a young driver chooses, there are other things they can do to lower their premiums or get discounts on them. You can graduate from a driver’s education class or install anti-theft devices in your vehicle to get discounts on car insurance. If you are a student in high school or college, you can sometimes get a discount if you can maintain above a B average in your classes. This shows insurance companies that you are a responsible person and will likely be responsible behind the wheel as well.


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