Best Affordable Car Insurance for Young Drivers
When you’re a young driver looking for the best car insurance, you might feel overwhelmed. Your lack of experience can make finding affordable coverage a challenge. However, some companies consistently offer more affordable options. Our research indicates that USAA and Geico are often among the most budget-friendly choices for drivers in their 20s.
Other Insurance: Navigating the Complex World of Home Insurance
Cheap Insurance Rates for Young Drivers
Young drivers typically pay significantly higher premiums for car insurance due to their inexperience. Although drivers in their early 20s might find cheaper options than teenagers, they still face higher costs compared to drivers in their 30s and older.
Best Insurance Providers for 21-Year-Olds: Full Coverage
USAA offers the most affordable full-coverage insurance for 21-year-olds, with rates averaging $218 per month or $2,613 annually. Travelers and Geico also provide competitive rates for this age group. Full coverage usually includes liability, comprehensive, and collision insurance, protecting you and your vehicle in various scenarios.
| Cheapest Young Driver Insurance | Monthly Car Insurance Estimate | Annual Car Insurance Estimate |
| USAA | $218 | $2,613 |
| Travelers | $219 | $2,627 |
| Geico | $250 | $2,998 |
| Nationwide | $261 | $3,134 |
| Auto-Owners | $274 | $3,293 |
| Erie Insurance | $275 | $3,303 |
| Progressive | $327 | $3,929 |
| American Family | $367 | $4,401 |
| State Farm | $374 | $4,491 |
| Allstate | $448 | $5,373 |
| Farmers | $451 | $5,418 |
Cheapest Minimum Coverage for 21-Year-Olds
For 21-year-olds, USAA also offers the lowest rates for minimum coverage at $62 per month or $743 per year. Geico and Auto-Owners provide similarly affordable options for those needing just basic coverage. It’s important to note that minimum-liability insurance only covers other parties in an accident and does not include your vehicle.
| Cheapest Young Driver Insurance | Monthly Car Insurance Estimate | Annual Car Insurance Estimate |
| USAA | $62 | $743 |
| Geico | $80 | $960 |
| Auto-Owners | $85 | $1,015 |
| Travelers | $86 | $1,034 |
| Erie Insurance | $99 | $1,190 |
| Nationwide | $116 | $1,387 |
| Progressive | $118 | $1,421 |
| State Farm | $134 | $1,613 |
| Allstate | $145 | $1,746 |
| American Family | $173 | $2,071 |
| Farmers | $190 | $2,281 |
Best Insurance for 25-Year-Olds: Full Coverage
Insurance rates decrease as you age, making coverage more affordable for 25-year-olds than for 21-year-olds. According to our data, Travelers is the cheapest full-coverage option for this age group, with average rates of $166 per month or $1,987 per year. USAA and Geico also offer competitive rates.
| Cheapest Young Driver Insurance | Monthly Car Insurance Estimate | Annual Car Insurance Estimate |
| Travelers | $166 | $1,987 |
| USAA | $182 | $2,179 |
| Geico | $192 | $2,302 |
| Nationwide | $196 | $2,352 |
| Auto-Owners | $205 | $2,459 |
| Erie Insurance | $207 | $2,483 |
| Progressive | $226 | $2,707 |
| American Family | $262 | $3,144 |
| State Farm | $269 | $3,228 |
| Allstate | $317 | $3,808 |
| Farmers | $341 | $4,086 |
Cheapest Minimum Coverage for 25-Year-Olds
Opting for basic coverage can save money for 25-year-olds. If you qualify, USAA offers the lowest rates, with averages of $48 per month or $578 per year. Auto-Owners, Geico, Travelers, and Erie also have rates under $70 per month.
| Cheapest Young Driver Insurance | Monthly Car Insurance Estimate | Annual Car Insurance Estimate |
| USAA | $48 | $578 |
| Auto-Owners | $59 | $705 |
| Geico | $61 | $729 |
| Travelers | $62 | $741 |
| Erie Insurance | $69 | $831 |
| Progressive | $81 | $967 |
| Nationwide | $82 | $987 |
| State Farm | $90 | $1,077 |
| Allstate | $107 | $1,288 |
| American Family | $117 | $1,404 |
| Farmers | $129 | $1,554 |
When shopping for affordable car insurance, compare your options. The cheapest provider in your state might not be the best fit for your needs, so thorough research is essential.
State-by-State Cheapest Insurance for Young Drivers
Our data shows that 21-year-olds pay an average of $4,186 per year for full coverage, while 25-year-olds pay $3,070. For minimum coverage, 21-year-olds pay $1,441, and 25-year-olds pay $1,009. However, rates vary significantly by state and provider. Below, we cover the average rate for full and minimum coverage for young drivers in each state along with the cheapest company and its rates.
Cheapest Insurance for 21-Year-Olds by State
While rates for 21-year-olds are high, they are typically lower than those for teenage drivers. Travelers and Geico are often the cheapest companies for 21-year-olds, whether you’re looking at minimum or full coverage by state. We omitted USAA from these tables because it isn’t available to everyone, but USAA is often one of the cheapest options.
| State | Average Full-Coverage Cost for 21-Year-Olds | Cheapest Provider for 21-Year-Olds | Cheapest Provider Cost |
| Alaska | $3,783 | Geico | $2,085 |
| Alabama | $3,260 | Travelers | $2,105 |
| Arkansas | $3,705 | Progressive | $3,343 |
| Arizona | $5,069 | Geico | $2,129 |
| California | $4,725 | Geico | $2,891 |
| Colorado | $4,302 | American National | $2,180 |
| Connecticut | $5,701 | Geico | $3,000 |
| District of Columbia | $4,340 | Erie Insurance | $3,188 |
| Delaware | $5,095 | Travelers | $2,459 |
| Florida | $5,829 | Geico | $3,588 |
| Georgia | $4,645 | Central Insurance | $2,801 |
| Hawaii | $1,580 | Geico | $1,206 |
| Iowa | $3,251 | Pekin Insurance | $2,263 |
| Idaho | $2,610 | Geico | $1,614 |
| Illinois | $4,479 | Travelers | $2,573 |
| Indiana | $3,409 | Travelers | $2,107 |
| Kansas | $4,040 | Travelers | $2,413 |
| Kentucky | $4,134 | Travelers | $2,416 |
| Louisiana | $7,340 | Southern Farm Bureau | $3,864 |
| Massachusetts | $5,090 | Plymouth Rock | $2,838 |
| Maryland | $4,764 | Travelers | $2,948 |
| Maine | $2,563 | Travelers | $1,433 |
| Michigan | $6,529 | Geico | $3,160 |
| Minnesota | $3,788 | Travelers | $2,501 |
| Missouri | $3,808 | Travelers | $2,268 |
| Mississippi | $3,313 | Nationwide | $2,031 |
| Montana | $3,620 | State Farm | $1,948 |
| North Carolina | $2,653 | Progressive | $1,061 |
| North Dakota | $3,369 | American Family | $2,024 |