What’s the Best Car Insurance For Young Adults? Top 10 Revealed

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One of the most essential purchases for any driver is auto insurance, as having a minimal amount of liability coverage is the law in all fifty states. This is to ensure that there's someone to pay for damages in the event of a car crash without every accident resulting in a lengthy court case. But finding the right car insurance company can be tricky, and even more so finding the best car insurance for young adults who are buying insurance for the first time.

Young drivers pay more for car insurance because of their lack of driving experience, which means they are far more likely to have an accident than more experienced drivers. Teenagers pay the highest rates when added to their parents' insurance policies. The costs remain high until young drivers are twenty-five, with some policies not lowering until age thirty. Every insurance policy is different, but the best car insurance for young adults will work with its drivers and reward good drivers rather than ignoring responsibility and punishing even the slightest lapse.

Buying car insurance for the first time can be intimidating, especially if you're newly on your own and are figuring out the adult world. We've put together a list of the ten best car insurance for young adults on the market today. Read on to discover the best car insurance for young adults and take the stress out of getting on the road!

Best Car Insurance For Young Adults FAQz

1. How Do I Determine The Best Car Insurance For Young Adults?

Price is a big factor, but you should also be looking at other factors like accident forgiveness, rate reductions for good driving, benefits, legal representation in accidents, and the freedom the policy gives you for passengers and other risk factors.

2. How Does The Best Car Insurance For Young Adults Determine My Rates?

Price is a big factor, but you should also be looking at other factors like accident forgiveness, rate reductions for good driving, benefits, legal representation in accidents, and the freedom the policy gives you for passengers and other risk factors.

3. Does The Best Car Insurance For Young Adults Give Me Opportunities To Save?

Yes, and many will give you discounts for taking a defensive driving program, keeping your grades up if you're a college student, and bundling your car insurance with any other insurance policies.

4. When Do I Need My Own Insurance Policy?

If you're living outside your parents' home and have a vehicle, you need an insurance policy. Insurance is tied to zip codes, so if you change location your insurance details will change

5. How Do I Learn About And Purchase The Best Car Insurance For Young Adults?

All the major policy networks have websites covering their plans and have live support to help you with any questions. You should also look at online reviews and seek advice from other policyholders.

How We Reviewed

The following list of the best car insurance for young adults was reviewed based on the following parameters – policy plans, affordability of monthly premiums, accident policies, legal coverage, other features, discounts, apps and websites, and ease of filing claims.

Overall Price Range

Car insurance premiums decrease with age, and the average six-month premium for a 16-year-old new driver on their parents' plan is around $$$. That will drop to $$ for a 20-year-old on their own plan and will drop to just over $ by age 25. Most reputable car insurance policies have similar rates, so if you see one significantly higher they're not a good bet.

What We Reviewed

  • Liberty Mutual
  • GEICO
  • Esurance
  • Progressive
  • Erie
  • Metromile
  • USAA
  • Nationwide
  • American Family Insurance
  • Allstate

​Liberty Mutual


Features

​Liberty Mutual is one of the most popular insurance companies on the market, getting high marks for customer satisfaction and positive reviews for its responsive agents. Known for its partnerships with community organizations and employers, it's the default insurance company many are familiar with. It's open to everyone and features a variety of user-friendly features.

Coverage Options***

Liberty Mutual mostly offers basic insurance policies through employers and community organizations, giving them a more limited menu.

Discounts***

Liberty Mutual gets high marks for its discount opportunities for young adults. This includes a good student discount for students up to age 25 with a B average or higher; a new graduate discount and a newly married discount, and a discount for every vehicle safety feature installed in your car.

Apps/Website****

Liberty Mutual offers a mobile-friendly app and desktop website to check rates, browse features, and file claims.

Ease of Filing Claims*****

Liberty Mutual has some of the best customer service, and it is easy to file claims with their website or through an agent.

Pros

  • Many discounts for young drivers
  • New Car Replacement coverage ideal for accidents within a year of purchasing a new car
  • Easy to sign up through an employer or organization

Cons

  •  Limited coverage options
  • One of the more expensive options for this age range

GEICO


Features

Everyone's heard of the GEICO Gecko, and this company boasts of its low rates and its ability to save you money. It has a convenient website where you can get a quote, but they've also added real-world agents and a dedicated Twitter support account. With more than five hundred membership and employee groups getting discounts, GEICO is an ideal option for someone on a tight budget.

Coverage Options****

GEICO gets high marks for its coverage tailored to every person's needs, and it has insurance policies ideal for both single young adults, newlyweds, and young families.

Discounts*****

GEICO offers a variety of popular discounts, including a family pricing program that matches rates, an accident forgiveness program, a good-driver program that can save an accident-free driver up to 26%, a good-student discount, and discounts for the military and federal employees.

Apps/Website****

A mobile app and desktop website are easy to use for filing claims and getting quotes.

Ease of Filing Claims****

GEICO has limited in-person resources, but their website and phone bank are easy to use.

Pros

  • One of the lowest-cost plans for young drivers
  • A strong list of useful discounts
  • Accident forgiveness program is helpful for everyone on a policy

Cons

  • Claims can be slow to process
  • Customer service waits can be long

Esurance


Features

Esurance gets high marks for its low-cost insurance options, making them a popular choice for new drivers. They reward good drivers, reducing rates for time without accidents and prioritizing fast and convenient service. Their coverage options are limited, giving them a reputation as a no-frills insurance outlet, but they're a good option for low-maintenance drivers who want basic liability coverage.

Coverage Options***

They offer basic insurance plans, providing coverage in case of accident, and their plans are designed to be one-size-fits-all.

Discounts****

Esurance discounts reward good drivers, featuring a reduction in your premium if you go five years with no at-fault accidents or moving violations. They also offer a good-student discount for full-time students with a B average, a discount for anyone attending a PAC 12 university, a discount of up to 5% for anyone who switches to Esurance, and a 5% discount for anyone who applies online.

Apps/Website***

The online app is easy to use and the website lets you file claims and browse rates.

Ease of Filing Claims***

It's easy to file a claim and the customer service agents are on hand to answer questions, but the claim response rate is longer than the average.

Pros

  • Low-cost insurance option for young drivers
  • A good list of student discounts
  • Rewards good drivers

Cons

  • Limited plan options
  • Claims can take longer to process than with other companies

Progressive


Features

An online-based insurance company that touts its low rates and promises comprehensive coverage, this is the top auto insurance site on the internet. It prizes customer service, promising to find you the best rate even if it's at another company. Its name-your-price tool makes it easy to find an insurance policy tailored to your financial situation.

Coverage Options***

Progressive offers a limited range of low-cost insurance policies geared towards safe, low-maintenance drivers.

Discounts***

Progressive offers discounts for safe drivers who avoid accidents, having multiple vehicle and policy plans, for anyone paying in full or purchasing online, and for teen drivers with good grades.

Apps/Website*****

Progressive has the most in-depth and easy-to-use website and app on the market.

Ease of Filing Claims****

Progressive offers customer service from a local agent or through the phone.

Pros

  • Averages the lowest cost of any policy on the list
  • Website has many useful tools
  • Recommends the lowest rate, even from a competitor

Cons

  • Limited policy options
  • Fewer discounts than competitors

Erie


Features

A local insurance company operating in Illinois, Indiana, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin, Erie gets high marks for affordability and customer service. They have insurance policies geared towards young drivers, including a competitive program for safe drivers. Rated A+ by AM Best, they have among the best customer service in the business.

Coverage Options****

As a smaller company, their options are more limited than some other companies. However, they offer more personal service that makes it easy to build an insurance policy for you.

Discounts****

Erie's discounts are geared towards young drivers, rewarding those who take a driving class and who live at home and are under 21.

Apps/Website****

Erie has a detailed, responsive website that makes it easy to sign up. Their App is new, launched only a year ago, and is basic compared to that of competitors.

Ease of Filing Claims*****

Erie has good customer service and has among the fastest responses in the industry.

Pros

  • Low cost for college students
  • Discounts geared towards safe drivers
  • Fastest claim response in the business

Cons

  • Not available in all states
  • Fewer discounts than other companies

Metromile


Features

An ideal option for those who need the most basic coverage and don't drive much, Metromile is a low-cost insurance outlet operating in California, Illinois, New Jersey, Oregon, and Washington. If you drive less than 10,000 miles a year, this is a pay-per-mile insurance option that can save you up to $ a year. It's ideal for those who live around good public transportation.

Coverage Options**

This is a no-frills auto insurance option with a basic plan for those who drive limited miles.

Discounts**

Metromile doesn't offer special discounts beyond a multi-vehicle deal, but it's a good way to get covered at a fraction of the cost.

Apps/Website****

The website and app are no-frills but functional and easy-to-use.

Ease of Filing Claims****

Metromile's simple business model gets high marks for its fast responses.

Pros

  • Cheaper for students who don't drive much.
  • Ideal for basic liability coverage
  • Fast claim response

Cons

  • No-frills coverage
  • Not available in all states

USAA


Features

A high-quality insurance agency associated with the US military, USAA is open to all service members and veterans, along with spouses, children, and grandchildren of service members. Known for its excellent customer service, it has a variety of discounts that drive down the often-high premiums for young drivers. Any young person who joins the military is eligible for membership while attending college.

Coverage Options*****

USAA gets high marks for not just offering auto coverage, but homeowners insurance and coverage for boats, motorcycles, and rental cars.

Discounts****

USAA offers discounts for driver training courses, a five-year safe driving record, and a good grade record. It also offers a free adapter to link your vehicle with your smart phone, and a discount if your car is housed on military bases.

Apps/Website****

The USAA app and website are easy to navigate and let you browse your coverage and plans

Ease of Filing Claims*****

USAA gets top marks for customer service through the website or a toll-free number.

Pros

  • Low rates for eligible customers
  • Rewards safe driving and good grades
  • Insures all your assets

Cons

  • Only open to military members and family

Nationwide


Features

Nationwide gets the highest marks for policy perks on the list, with opportunities for major savings for young drivers willing to put up with more oversight. They have the most forgiving policy for accidents and offer 24/7 roadside assistance. Their SmartRide program offers major discounts for those willing to have their driving monitored.

Coverage Options****

Nationwide offers a variety of plans for all insurance needs, allowing customers to balance cost with oversight.

Discounts*****

Nationwide's accident forgiveness plan is its biggest perk, but it also offers a good-student discount for those with a B average, for those with an employer who participates in a discount plan, and those who meet safe driving criteria.

Apps/Website****

Nationwide has a detailed, easy-to-use app and desktop site that lets you price your coverage and make purchases.

Ease of Filing Claims****

Nationwide customer service is above average and claim response time is praised.

Pros

  • Good marks for discounts and perks
  • Roadside assistance and GPS support
  • Website is one of the best

Cons

  • Some discount options lead to intrusive surveillance
  • More expensive than the average

American Family Insurance


Features

An older, low-cost insurance company that has a good reputation, American Family Insurance is known for its Teen Safe Driver program that takes up to 10% off premiums once the teen uses the app for a year or completes 3,000 driving hours. Providing service to America's heartland, it favors those who drive older vehicles and have safety features in their car.

Coverage Options****

American Family Insurance has limited plan options but can insure multiple vehicles and is available nationwide.

Discounts***

American Family Insurance has limited discounts but offers lower premiums for young drivers who maintain a safe driving record and install the app in their car.

Apps/Website****

The website is no-frills but functional, and the app works with the car to track safe driving habits.

Ease of Filing Claims****

American Family Insurance gets high marks for its customer service and prompt claims response.

Pros

  • Low-cost insurance policies
  • Policies geared towards safe driving and new drivers
  • App has a safe-driver program for the car

Cons

  • Limited discount options

Allstate


Features

Allstate is the best option for students away from college for the first time, offering on-site agents to walk you through the process. Full-time students who complete a driver's ed program can get discounts for safe driving and good grades. The company offers lower rates if you're only driving part-time while away at school.

Coverage Options*****

As one of the biggest insurance companies, they get high marks for having a plan for every customer.

Discounts****

Safe-driver programs and good-student discounts are useful for young drivers, and multi-car plans are cheaper.

Apps/Website****

Allstate's app and website get high marks for ease of use, and their customer service is responsive.

Ease of Filing Claims****

Allstate takes claims in person, by phone, and on the website.

Pros

  • Ideal for students on their own for the first time
  • Rewards safe driving and good grades
  • Flexible policy options

Cons

  • Not one of the cheaper policies

The Verdict

All ten of the insurance policies on this list delivered quality service and deep student discounts, whether through good-driver programs or a unique pay-per-mile approach. However, one stood out for its combination of excellent customer service and low rates. Available nationwide, American Family Insurance gets our nod for the best car insurance for young adults on the market today.

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