Cheap Car Insurance for Young Drivers

Cheap car insurance for young drivers can be hard to find, but not impossible.

Kayda NormanSeptember 10, 2020

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It’s finally happened. You’re living on your own, independent from your family and able to make your own way. While most people know to budget for groceries and rent, you even remembered to include oft-forgotten expenses like car insurance in your monthly bills.

To cut costs, consider shopping around for a lower car insurance rate. Although comparing auto insurance rates is easy, finding cheap car insurance for a young driver is going to take some work. Rates for young drivers are higher on average than for most other age groups except teens.

Young drivers, or those between 20 and 25 years old, are less experienced and seen as a risk by insurers. In fact, drivers in their early 20s are more likely to get into a crash than older adults, according to the National Highway Traffic Safety Administration.

Still, finding cheap car insurance for young drivers isn’t impossible. The best way to find lower rates is to shop around and compare car insurance quotes with at least three auto insurers.

What age is a young driver?

While some might categorize a “young driver” as anyone 16 to 25 years old, or even anyone under 30, this analysis focuses on those 20 to 25 years old. Because car insurance rates for teens and young adults can vary significantly, this breakdown gives a more accurate depiction of the average auto insurance rates for a young driver. Annual rates generally continue to drop after age 25, but not as steeply. Once you reach 70, rates begin to increase on average.

Looking for a deeper dive into teen car insurance rates? Check out our in-depth look at finding the cheapest car insurance for teens.

How much is car insurance for young drivers?

The average car insurance rate for a young driver is $2,241 per year for full coverage, according to NerdWallet’s analysis of the five largest auto insurers in the nation. In comparison, the average auto insurance rate for a 40-year-old driver is $1,523 annually — $718 less per year.

To find these rates, we looked at 2020 average car insurance rates for young drivers from the five largest auto insurance companies in every ZIP code in all 50 states and Washington, D.C.  The top five car insurers in the country are State Farm, Geico, Progressive, Allstate and USAA*.

Full coverage car insurance refers to a combination of coverages. For our analysis, this includes liability, comprehensive, collision, uninsured/underinsured motorist protection and any additional state-mandated coverage. Rates in this analysis are for drivers with good credit and a clean driving record.

Although these averages can give you a better idea of what to expect as you shop around, average rates aren’t always a good indicator for what you’ll end up paying. Other factors like your auto insurer, car make and model, gender, location and driving record will impact your final price. We’ve sliced the data in several ways to help find the best car insurance for young drivers.

Want an even better estimate of your car insurance rate? NerdWallet’s car insurance comparison tool can help.

*USAA is available only to active military, veterans and their families.

What company offers the cheapest car insurance rates for young drivers?

Out of the nation’s five largest insurers, USAA offers the lowest annual insurance rates for young drivers, on average, for both full and minimum coverage. For those without a military connection, Geico has the cheapest auto insurance rates on average.

Rates can vary drastically from company to company because every insurer uses its own unique formula based on factors such as demographics, driving record and vehicle make and model. While one insurer might charge 20% more for living in a city with high crime, another might increase rates by only 10%. What’s more, car insurance companies don’t make these formulas public. The only way you can find the cheapest car insurance for you is by shopping around.

Auto insurance rates for young drivers

Here are the average annual rates for drivers ages 20 to 25 for full and minimum coverage from the largest companies.

Company

Full coverage

Minimum coverage

$2,996

$910

$1,711

$599

$2,467

$893

$2,383

$905

$1,651

$594

Car insurance rates by age for young drivers

Geico has the cheapest rates (besides USAA), on average, for all ages in our young drivers 2020 rate analysis.

Although Geico has the lowest rates on average, it’s important to note this analysis is for the nation’s top insurers only, and a smaller local insurer might very well offer cheaper rates.

National average car insurance rates for drivers 20 to 22 years old

Company

20-year-olds

21-year-olds

22-year-olds

Allstate

$3,824

$3,212

$2,998

Geico

$2,282

$1,844

$1,702

Progressive

$3,473

$2,729

$2,459

State Farm

$3,092

$2,670

$2,452

USAA*

$2,152

$1,721

$1,628

*USAA is available only to active military, veterans and their families.

National average car insurance rates for drivers 23 to 25 years old

Company

23-year-olds

24-year-olds

25-year-olds

Allstate

$2,847

$2,730

$2,364

Geico

$1,575

$1,493

$1,369

Progressive

$2,239

$2,064

$1,837

State Farm

$2,225

$2,060

$1,804

USAA*

$1,550

$1,486

$1,368

*USAA is available only to active military, veterans and their families.

Cheap car insurance for young drivers by state

The cheapest car insurance company for young drivers varies by state. For example, the cheapest average full coverage rate for a young driver in Idaho is $679, while the cheapest average rate in Kentucky is over $2,000.

State regulations also impact rates. For instance, Hawaii doesn’t use age as a factor when calculating car insurance rates.

Use the table below to see the cheapest car insurance company for young drivers for a full coverage policy in your state. This table excludes USAA, which often has the cheapest rates on average but is available only to military members and their families.

State

Company

Full coverage average rate

Alabama

Allstate

$1,634

Alaska

Geico

$1,604

Arizona

Geico

$1,235

Arkansas

Southern Farm Bureau Casualty

$1,386

California

$1,842

Colorado

$1,059

Connecticut

Geico

$1,568

Delaware

Geico

$1,613

Florida

Geico

$2,964

Georgia

$1,918

Hawaii

Geico

$928

Idaho

American National

$679

Illinois

Pekin

$1,029

Indiana

Pekin

$951

Iowa

Pekin

$1,077

Kansas

Farm Bureau Financial Services

$1,467

Kentucky

Geico

$2,346

Louisiana

Southern Farm Bureau Casualty

$2,748

Maine

Geico

$868

Maryland

Geico

$2,057

Massachusetts

State Farm

$736

Michigan

Geico

$1,633

Minnesota

Farm Bureau Financial Services

$1,226

Mississippi

Mississippi Farm Bureau

$1,595

Missouri

Missouri Farm Bureau

$1,889

Montana

Farmers Union

$1,580

Nebraska

Farmers Mutual of Nebraska

$1,355

Nevada

Geico

$1,459

New Hampshire

Concord Group

$1,073

New Jersey

$1,736

New Mexico

Farm Bureau Financial Services

$1,593

New York

Main Street America

$817

North Carolina

Geico

$814

North Dakota

Geico

$1,293

Ohio

American Family

$1,060

Oklahoma

Geico

$1,115

Oregon

QBE

$1,594

Pennsylvania

Geico

$1,075

Rhode Island

State Farm

$1,437

South Carolina

American National

$882

South Dakota

Farmers Mutual of Nebraska

$1,362

Tennessee

Geico

$1,273

Texas

Geico

$1,622

Utah

Geico

$1,394

Vermont

Concord Group

$1,161

Virginia

Erie

$1,206

Washington

Geico

$1,306

Washington, D.C.

$1,642

West Virginia

$1,520

Wisconsin

Pekin

$1,128

Wyoming

State Farm

$1,581

Find the cheapest car insurance for young drivers in your state

In a separate 2020 rate analysis, NerdWallet looked at the 5 cheapest car insurance companies for 25-year-old drivers with various backgrounds and credit histories in every state.

Find the cheapest car insurance companies for good young drivers in your state below.

Car insurance rates for young drivers by gender

When it comes to car insurance rates for young drivers, gender matters. Our rate analysis of the top five largest insurers show that on average young male drivers have higher car insurance rates than young female drivers across all ages.

The good news for men is that this rate difference gets smaller with age. As you can see below, auto insurance rates for 20-year-old males are $255 more on average per year than a female driver. However, rates for 25-year-old males are only $40 more per year, on average, than their female counterparts.

Average car insurance rates for young drivers by age and gender

Age

Female driver

Male driver

Annual difference

20

$1,873

$2,128

$255

21

$1,549

$1,732

$183

22

$1,449

$1,583

$134

23

$1,348

$1,462

$114

24

$1,275

$1,372

$97

25

$1,160

$1,200

$40

Why are rates for young men higher than rates for young women? Insurers believe men are more likely to take risks while driving.

According to a 2017 study from the NHTSA, male drivers were involved in more speeding-related fatal crashes than female drivers across all age groups. Among drivers 21 to 24 years old, 15% of females were involved in a speeding-related crash compared with 31% of males.

To find a better price, young men should take shopping around for car insurance seriously. For example, average rates for young men from Geico are only $63 higher than for women. Not bad, considering rates for young men who use Allstate are $234 higher on average than for young women.

Best car insurance for young drivers by gender

Company

Female driver

Male driver

Annual difference

Allstate

$1,836

$2,070

$234

Geico

$1,123

$1,186

$63

Progressive

$1,629

$1,731

$102

State Farm

$1,536

$1,752

$216

USAA*

$1,088

$1,158

$70

*USAA is available only to active military, veterans and their families.

Even 20-year-old male drivers, who see the biggest rate difference compared with women in the young drivers demographic, can save by comparing rates.

Taking time to shop around could save young men hundreds of dollars per year. For example, car insurance rates for 20-year-old men with Allstate are $445 more per year, on average, than for a 20-year-old woman. Meanwhile, rates from Geico for the same male profile are $87 higher, on average, than for a female.

Cheap car insurance by gender for 20-year-olds

Company

Female driver

Male driver

Annual difference

Allstate

$2,255

$2,700

$445

Geico

$1,505

$1,592

$87

Progressive

$2,227

$2,485

$259

State Farm

$1,963

$2,334

$371

USAA*

$1,414

$1,528

$114

*USAA is available only to active military, veterans and their families.

Average car insurance rates for young drivers by state

Location can make a big difference when it comes to your auto insurance rates, mainly because each state has different regulations and requirements.

Here are the average car insurance rates for a young driver in each state and Washington, D.C., for full and minimum coverage based on the nation’s five largest insurers.

State

Full coverage

Minimum coverage

Annual difference

National Average

$2,470

$936

$1,534

$2,236

$608

$1,627

$2,515

$915

$1,600

$3,764

$1,222

$2,542

$2,343

$878

$1,465

$2,808

$944

$1,864

$2,788

$841

$1,947

$3,218

$1,591

$1,627

$2,645

$1,110

$1,534

$3,467

$979

$2,488

$3,000

$1,364

$1,636

$1,094

$358

$736

$1,665

$433

$1,231

$1,585

$575

$1,010

$2,174

$859

$1,315

$1,984

$721

$1,263

$2,344

$740

$1,603

$4,005

$1,641

$2,364

$4,220

$1,583

$2,636

$1,624

$638

$987

$3,079

$1,459

$1,621

$1,650

$680

$969

$3,791

$1,974

$1,817

$2,012

$844

$1,167

$3,014

$1,030

$1,984

$2,555

$883

$1,672

$2,830

$702

$2,128

$1,303

$487

$815

$1,743

$544

$1,199

$1,938

$568

$1,370

$1,884

$729

$1,155

$2,958

$1,335

$1,623

$2,095

$663

$1,433

$3,616

$1,541

$2,075

$3,192

$1,604

$1,588

$1,608

$658

$950

$2,592

$780

$1,812

$1,974

$979

$995

$2,218

$733

$1,485

$3,283

$1,431

$1,852

$2,520

$1,046

$1,474

$1,894

$442

$1,452

$2,006

$710

$1,296

$3,608

$1,334

$2,273

$2,264

$1,023

$1,241

$2,109

$858

$1,251

$1,976

$583

$1,392

$1,908

$767

$1,140

$2,758

$1,425

$1,333

$1,725

$579

$1,145

$2,460

$848

$1,612

$1,924

$504

$1,420

Average cost of car insurance for 20-year-olds by state

Of the young drivers demographic, 20-year-old drivers have the highest annual car insurance rates on average.

Here’s what our analysis of 2020 car insurance rates by state shows for 20-year-old drivers with good credit and no recent accidents:

  • Hawaii is the cheapest state for full coverage insurance with an average annual rate of $1,105, followed by North Carolina and Idaho.

  • Louisiana is the most expensive state for full coverage at $5,650 per year on average (In Kentucky, the average was only $1 less per year).

  • Hawaii is the cheapest state for minimum-required car insurance with an average annual rate of $362. North Carolina and Iowa have the next cheapest yearly rates on average.

  • Michigan has the most expensive minimum-required car insurance on average per year at $2,605.

See below for how your state stacks up for both full and minimum coverage rates for 20-year-old drivers.

State

Full coverage

Minimum coverage

Annual difference

Alabama

$3,637

$1,303

$2,334

Alaska

$2,949

$824

$2,125

Arizona

$3,162

$1,222

$1,939

Arkansas

$5,229

$1,716

$3,512

California

$3,496

$1,180

$2,316

Colorado

$3,930

$1,245

$2,686

Connecticut

$4,581

$2,242

$2,339

Delaware

$4,131

$2,040

$2,091

Florida

$4,464

$1,217

$3,246

Georgia

$4,303

$1,977

$2,326

Hawaii

$1,105

$362

$743

Idaho

$2,119

$796

$1,322

Illinois

$3,101

$1,248

$1,853

Indiana

$2,659

$993

$1,666

Iowa

$2,170

$592

$1,578

Kansas

$3,127

$1,023

$2,104

Kentucky

$5,649

$2,367

$3,282

Louisiana

$5,650

$2,234

$3,416

Maine

$2,563

$1,027

$1,536

Maryland

$4,476

$2,022

$2,454

Massachusetts

$2,467

$990

$1,477

Michigan

$5,140

$2,605

$2,535

Minnesota

$2,666

$1,112

$1,554

Mississippi

$3,384

$1,227

$2,157

Missouri

$4,143

$1,462

$2,681

Montana

$3,983

$1,046

$2,938

Nebraska

$2,697

$811

$1,886

Nevada

$4,958

$2,186

$2,772

New Hampshire

$2,574

$1,016

$1,558

New Jersey

$4,080

$1,804

$2,276

New Mexico

$2,811

$918

$1,893

New York

$4,378

$2,208

$2,170

North Carolina

$1,459

$539

$920

North Dakota

$2,306

$729

$1,577

Ohio

$2,142

$896

$1,246

Oklahoma

$3,457

$1,078

$2,379

Oregon

$2,616

$1,313

$1,304

Pennsylvania

$3,108

$1,051

$2,057

Rhode Island

$4,888

$2,150

$2,738

South Carolina

$3,380

$1,450

$1,931

South Dakota

$2,483

$601

$1,882

Tennessee

$2,696

$985

$1,712

Texas

$4,883

$1,893

$2,990

Utah

$3,189

$1,444

$1,745

Vermont

$3,045

$824

$2,221

Virginia

$3,056

$1,273

$1,783

Washington

$2,765

$1,147

$1,618

Washington, D.C.

$3,493

$1,488

$2,005

West Virginia

$3,415

$1,180

$2,235

Wisconsin

$2,402

$828

$1,574

Wyoming

$2,477

$648

$1,829

Average cost of car insurance for 21-year-olds by state

On average, auto insurance rates for 21-year-old drivers are around $500 lower per year than for 20-year-olds for a policy with full coverage.

Here’s what our analysis of 2020 car insurance rates by state shows for 21-year-old drivers with good credit and no recent accidents:

  • Hawaii is the cheapest state for full coverage insurance with an average rate of $1,092 per year, followed by North Carolina and Maine.

  • Louisiana is the most expensive state for full coverage at $4,646 per year on average.

  • Hawaii is the cheapest state for minimum-required car insurance with an average rate of $358 per year. South Dakota and Iowa have the next-cheapest yearly rates on average.

  • Michigan has the most expensive minimum-required car insurance annually on average at $2,084.

See below for how your state stacks up for both full and minimum coverage rates for 21-year-old drivers.

State

Full coverage

Minimum coverage

Annual difference

Alabama

$2,720

$1,012

$1,708

Alaska

$2,388

$662

$1,726

Arizona

$2,546

$970

$1,576

Arkansas

$4,074

$1,356

$2,718

California

$3,029

$1,020

$2,009

Colorado

$2,946

$902

$2,045

Connecticut

$3,528

$1,755

$1,773

Delaware

$2,839

$1,505

$1,333

Florida

$3,757

$1,050

$2,707

Georgia

$3,171

$1,447

$1,725

Hawaii

$1,092

$358

$734

Idaho

$1,714

$634

$1,080

Illinois

$2,382

$947

$1,435

Indiana

$2,181

$798

$1,383

Iowa

$1,807

$482

$1,325

Kansas

$2,479

$802

$1,676

Kentucky

$4,205

$1,748

$2,457

Louisiana

$4,646

$1,760

$2,886

Maine

$1,703

$691

$1,012

Maryland

$3,340

$1,596

$1,745

Massachusetts

$2,106

$804

$1,302

Michigan

$4,020

$2,084

$1,936

Minnesota

$2,146

$906

$1,240

Mississippi

$2,770

$966

$1,804

Missouri

$3,231

$1,094

$2,136

Montana

$3,057

$772

$2,285

Nebraska

$2,106

$610

$1,496

Nevada

$3,903

$1,699

$2,205

New Hampshire

$2,083

$810

$1,272

New Jersey

$3,253

$1,450

$1,802

New Mexico

$2,217

$707

$1,510

New York

$3,370

$1,699

$1,670

North Carolina

$1,315

$494

$821

North Dakota

$1,908

$599

$1,309

Ohio

$1,733

$713

$1,021

Oklahoma

$2,818

$859

$1,959

Oregon

$2,168

$1,075

$1,093

Pennsylvania

$2,344

$769

$1,575

Rhode Island

$3,524

$1,552

$1,971

South Carolina

$2,659

$1,119

$1,540

South Dakota

$1,997

$474

$1,523

Tennessee

$2,199

$785

$1,414

Texas

$3,899

$1,443

$2,456

Utah

$2,446

$1,113

$1,333

Vermont

$2,025

$627

$1,398

Virginia

$2,169

$883

$1,286

Washington

$2,048

$831

$1,217

Washington, D.C.

$2,882

$1,205

$1,678

West Virginia

$2,659

$917

$1,742

Wisconsin

$1,859

$632

$1,227

Wyoming

$2,136

$561

$1,575

Average cost of car insurance for 22-year-olds by state

On average, you can expect auto insurance rates to be about 7.7% lower for a 22-year-old than for a 21-year-old, NerdWallet’s analysis found.

Here’s what our analysis of 2020 car insurance rates by state shows for 22-year-old drivers with good credit and no recent accidents:

  • Hawaii is the cheapest state for full coverage insurance with a yearly rate of $1,092 on average, followed by North Carolina and Massachusetts.

  • Louisiana is the most expensive state for full coverage with an average annual rate of $4,160 on average.

  • Hawaii is the cheapest state for minimum-required car insurance with an average annual rate of $358. Iowa and South Dakota have the next cheapest yearly rates on average.

  • Michigan has the most expensive minimum-required car insurance with a yearly rate of $1,991 on average.

See below for how your state stacks up for both full and minimum coverage rates for 22-year-old drivers.

State

Full coverage

Minimum coverage

Annual difference

Alabama

$2,471

$903

$1,568

Alaska

$2,235

$608

$1,627

Arizona

$2,356

$880

$1,476

Arkansas

$3,644

$1,180

$2,464

California

$2,820

$945

$1,875

Colorado

$2,720

$812

$1,908

Connecticut

$3,215

$1,591

$1,624

Delaware

$2,663

$1,376

$1,287

Florida

$3,482

$979

$2,503

Georgia

$2,997

$1,371

$1,627

Hawaii

$1,092

$358

$734

Idaho

$1,551

$558

$993

Illinois

$2,152

$844

$1,308

Indiana

$1,960

$710

$1,250

Iowa

$1,656

$431

$1,225

Kansas

$2,292

$718

$1,574

Kentucky

$3,921

$1,593

$2,328

Louisiana

$4,160

$1,556

$2,604

Maine

$1,552

$653

$899

Maryland

$3,064

$1,460

$1,604

Massachusetts

$1,394

$544

$850

Michigan

$3,823

$1,991

$1,832

Minnesota

$2,013

$841

$1,172

Mississippi

$2,536

$869

$1,667

Missouri

$2,981

$1,007

$1,973

Montana

$2,799

$681

$2,118

Nebraska

$1,886

$556

$1,331

Nevada

$3,559

$1,542

$2,017

New Hampshire

$1,859

$716

$1,144

New Jersey

$2,940

$1,336

$1,604

New Mexico

$2,066

$651

$1,415

New York

$3,144

$1,572

$1,573

North Carolina

$1,293

$484

$809

North Dakota

$1,749

$545

$1,204

Ohio

$1,616

$656

$960

Oklahoma

$2,558

$772

$1,786

Oregon

$1,935

$956

$979

Pennsylvania

$2,205

$726

$1,480

Rhode Island

$3,220

$1,403

$1,817

South Carolina

$2,511

$1,041

$1,471

South Dakota

$1,894

$440

$1,454

Tennessee

$2,008

$707

$1,301

Texas

$3,660

$1,329

$2,331

Utah

$2,215

$998

$1,217

Vermont

$1,885

$567

$1,318

Virginia

$2,034

$820

$1,213

Washington

$1,860

$744

$1,115

Washington, D.C.

$2,657

$1,112

$1,545

West Virginia

$2,436

$834

$1,602

Wisconsin

$1,685

$564

$1,122

Wyoming

$1,946

$501

$1,444

Average cost of car insurance for 23-year-olds by state

Although your car insurance rates likely won’t drop dramatically when you turn 23, the average car insurance rate for a 23-year-old was 29.4% lower than the average rate for a 20-year-old driver in our analysis.

Here’s what else our analysis of 2020 car insurance rates by state shows for 23-year-old drivers with good credit and no recent accidents:

  • Hawaii is the cheapest state for full coverage insurance with an average annual rate of $1,092, followed by North Carolina and Massachusetts.

  • Louisiana is the most expensive state for full coverage at $3,933 per year on average.

  • Hawaii is the cheapest state for minimum-required car insurance with an average rate of $358 per year. Iowa and South Dakota have the next cheapest yearly rates on average.

  • Michigan has the most expensive minimum-required car insurance on average per year at $1,861.

See below for how your state stacks up for both full and minimum coverage rates for 23-year-old drivers.

State

Full coverage

Minimum coverage

Annual difference

Alabama

$2,282

$834

$1,449

Alaska

$2,088

$559

$1,529

Arizona

$2,195

$803

$1,393

Arkansas

$3,483

$1,120

$2,364

California

$2,672

$895

$1,776

Colorado

$2,575

$757

$1,819

Connecticut

$2,911

$1,451

$1,460

Delaware

$2,523

$1,313

$1,210

Florida

$3,236

$926

$2,310

Georgia

$2,727

$1,225

$1,502

Hawaii

$1,092

$358

$734

Idaho

$1,483

$529

$954

Illinois

$1,987

$780

$1,207

Indiana

$1,898

$681

$1,217

Iowa

$1,579

$403

$1,176

Kansas

$2,211

$685

$1,526

Kentucky

$3,742

$1,516

$2,226

Louisiana

$3,933

$1,441

$2,493

Maine

$1,483

$626

$857

Maryland

$2,759

$1,336

$1,423

Massachusetts

$1,341

$523

$818

Michigan

$3,553

$1,861

$1,692

Minnesota

$1,879

$786

$1,093

Mississippi

$2,393

$808

$1,585

Missouri

$2,812

$948

$1,864

Montana

$2,598

$625

$1,972

Nebraska

$1,772

$519

$1,253

Nevada

$3,302

$1,375

$1,927

New Hampshire

$1,753

$672

$1,081

New Jersey

$2,708

$1,230

$1,479

New Mexico

$1,959

$614

$1,345

New York

$2,994

$1,481

$1,512

North Carolina

$1,278

$479

$799

North Dakota

$1,600

$498

$1,102

Ohio

$1,528

$615

$913

Oklahoma

$2,406

$715

$1,691

Oregon

$1,822

$897

$925

Pennsylvania

$2,075

$675

$1,400

Rhode Island

$2,957

$1,291

$1,666

South Carolina

$2,328

$954

$1,374

South Dakota

$1,756

$405

$1,351

Tennessee

$1,874

$655

$1,219

Texas

$3,389

$1,226

$2,163

Utah

$2,074

$935

$1,138

Vermont

$1,798

$537

$1,261

Virginia

$1,903

$767

$1,135

Washington

$1,715

$680

$1,036

Washington, D.C.

$2,490

$1,035

$1,455

West Virginia

$2,287

$785

$1,502

Wisconsin

$1,590

$527

$1,063

Wyoming

$1,831

$479

$1,351

Average cost of car insurance for 24-year-olds by state

Auto insurance rates continue to slowly drop as you reach your mid-20s. Full coverage car insurance rates for a 24-year-old are 5.8% lower, on average, than a 23-year-old driver’s rates, according to NerdWallet’s analysis.

Here’s what else our analysis of 2020 car insurance rates by state says about 24-year-old drivers with good credit and no recent accidents:

  • Hawaii is the cheapest state for full coverage insurance at $1,092 per year on average, followed by Massachusetts and North Carolina.

  • Louisiana is the most expensive state for full coverage with an average annual rate of $3,728.

  • Hawaii is the cheapest state for minimum-required car insurance at $358 per year on average. Iowa and South Dakota have the next cheapest yearly rates on average.

  • Michigan has the most expensive minimum-required car insurance on average per year at $1,800.

See below for how your state stacks up for both full and minimum coverage rates for 24-year-old drivers.

State

Full coverage

Minimum coverage

Annual difference

Alabama

$2,154

$772

$1,382

Alaska

$1,995

$525

$1,470

Arizona

$2,084

$756

$1,328

Arkansas

$3,324

$1,061

$2,263

California

$2,515

$850

$1,665

Colorado

$2,476

$722

$1,753

Connecticut

$2,734

$1,356

$1,377

Delaware

$2,400

$1,257

$1,143

Florida

$3,072

$885

$2,187

Georgia

$2,589

$1,170

$1,419

Hawaii

$1,092

$358

$734

Idaho

$1,425

$503

$922

Illinois

$1,871

$731

$1,140

Indiana

$1,739

$623

$1,117

Iowa

$1,502

$378

$1,124

Kansas

$2,145

$657

$1,487

Kentucky

$3,565

$1,437

$2,128

Louisiana

$3,728

$1,359

$2,368

Maine

$1,413

$593

$820

Maryland

$2,564

$1,240

$1,324

Massachusetts

$1,229

$484

$746

Michigan

$3,407

$1,800

$1,608

Minnesota

$1,803

$752

$1,051

Mississippi

$2,266

$760

$1,506

Missouri

$2,663

$895

$1,768

Montana

$2,488

$589

$1,899

Nebraska

$1,704

$493

$1,211

Nevada

$3,189

$1,320

$1,870

New Hampshire

$1,642

$626

$1,016

New Jersey

$2,556

$1,169

$1,387

New Mexico

$1,872

$582

$1,290

New York

$2,858

$1,422

$1,436

North Carolina

$1,253

$469

$784

North Dakota

$1,532

$473

$1,059

Ohio

$1,440

$579

$861

Oklahoma

$2,285

$674

$1,611

Oregon

$1,738

$855

$883

Pennsylvania

$1,962

$643

$1,319

Rhode Island

$2,798

$1,213

$1,586

South Carolina

$2,228

$902

$1,326

South Dakota

$1,693

$385

$1,308

Tennessee

$1,731

$602

$1,129

Texas

$3,144

$1,148

$1,996

Utah

$1,946

$875

$1,072

Vermont

$1,728

$512

$1,216

Virginia

$1,814

$732

$1,081

Washington

$1,642

$649

$993

Washington, D.C.

$2,319

$962

$1,357

West Virginia

$2,118

$733

$1,385

Wisconsin

$1,520

$499

$1,020

Wyoming

$1,756

$461

$1,295

Average cost of car insurance for 25-year-olds by state

Rates drop significantly between 20 and 25. On average, auto insurance rates for a 25-year-old driver are 41% lower than for a 20-year-old driver. Of course, these lower rates are for young adults with a clean driving record. Any recent DUIs, speeding tickets or other traffic infractions will increase rates.

Here’s what our young drivers analysis of 2020 car insurance rates shows for drivers with good credit and no recent accidents or tickets:

  • Hawaii is the cheapest state for full coverage insurance with an average annual rate of $1,092, followed by Maine and Ohio.

  • Louisiana is the most expensive state for full coverage at $3,202 per year on average.

  • Iowa is the cheapest state for minimum-required car insurance at $315 per year on average. South Dakota and Hawaii have the next cheapest yearly rates on average.

  • Michigan has the most expensive minimum-required car insurance with an average annual rate of $1,504.

See below for how your state stacks up for both full and minimum coverage rates for 25-year-old drivers.

State

Full coverage

Minimum coverage

Annual difference

Alabama

$1,827

$669

$1,158

Alaska

$1,759

$472

$1,287

Arizona

$1,715

$635

$1,080

Arkansas

$2,909

$900

$2,009

California

$2,316

$776

$1,540

Colorado

$2,080

$608

$1,471

Connecticut

$2,340

$1,153

$1,187

Delaware

$1,992

$1,057

$935

Florida

$2,791

$815

$1,976

Georgia

$2,210

$993

$1,217

Hawaii

$1,092

$358

$734

Idaho

$1,218

$428

$790

Illinois

$1,549

$602

$947

Indiana

$1,467

$521

$946

Iowa

$1,274

$315

$959

Kansas

$1,809

$556

$1,253

Kentucky

$2,948

$1,186

$1,762

Louisiana

$3,202

$1,150

$2,052

Maine

$1,183

$490

$693

Maryland

$2,272

$1,099

$1,173

Massachusetts

$1,208

$481

$727

Michigan

$2,803

$1,504

$1,299

Minnesota

$1,562

$668

$894

Mississippi

$1,982

$670

$1,312

Missouri

$2,254

$771

$1,482

Montana

$2,053

$499

$1,554

Nebraska

$1,463

$417

$1,046

Nevada

$2,786

$1,126

$1,660

New Hampshire

$1,393

$537

$856

New Jersey

$2,213

$1,020

$1,193

New Mexico

$1,647

$504

$1,143

New York

$2,406

$1,241

$1,165

North Carolina

$1,218

$458

$759

North Dakota

$1,365

$421

$944

Ohio

$1,185

$487

$698

Oklahoma

$2,026

$581

$1,444

Oregon

$1,567

$781

$786

Pennsylvania

$1,616

$536

$1,080

Rhode Island

$2,309

$977

$1,332

South Carolina

$2,012

$810

$1,201

South Dakota

$1,539

$346

$1,192

Tennessee

$1,527

$526

$1,001

Texas

$2,670

$966

$1,704

Utah

$1,713

$773

$939

Vermont

$1,371

$431

$940

Virginia

$1,677

$669

$1,008

Washington

$1,418

$554

$864

Washington, D.C.

$2,026

$861

$1,165

West Virginia

$1,848

$639

$1,209

Wisconsin

$1,291

$426

$866

Wyoming

$1,397

$371

$1,026

Should young drivers buy their own car insurance?

Teenagers generally save hundreds of dollars by staying on a parent’s car insurance policy. Young drivers, however, might not get such a big price break.

Young drivers who move to a state with lower car insurance rates and fewer minimum insurance requirements would likely benefit from an individual policy. However, some states might require you buy a stand-alone policy. If you’re living on your own year-round (and not just for college), you’ll need to buy your own insurance regardless.

Whether you should stay on your family’s policy depends on a number of factors including your driving record, gender, credit score and location. For example, since rates for young men are generally higher than for young women, you might want to stay on a parent’s insurance longer if you’re a male.

How young drivers can save on car insurance

Rates for young drivers may be more than most other age groups, but it’s still possible to find ways to save. Use these tips to reduce your rates:

Shop around. As discussed, your rates can differ tremendously based on the insurer you use. To make sure you have the best car insurance, young drivers (like all drivers) should consider shopping around every year. After all, just because you had the cheapest rates a year ago doesn’t mean you still do. As you shop around, remember to compare rates for a stand-alone policy versus staying on your family’s insurance, if that’s still an option.

Take advantage of discounts. Many auto insurers offer discounts that cater to young drivers including:

  • Good student discount.

  • Discount for young drivers who take a defensive driving course.

  • Student away-from-home discount (if you are on a parent’s policy).

  • Multi-policy discount if you have renters or homeowners insurance.

Usage-based insurance. If you’re a good driver, you might benefit from usage-based insurance. Usage-based policies still use factors like location, and age, but also use your driving behavior to determine your car insurance rate. Driving habits like speeding and hard braking are generally gathered through a plug-in device or a smartphone app. Root specializes in usage-based insurance, while some traditional insurers like Progressive also offer this option.

Pay-per-mile insurance. Unlike traditional insurance, premiums for this type of policy depend on how many miles you drive each month. This is also usually calculated by a plug-in device or smartphone app. If you have a remote job or don’t drive a lot, this could cost less than traditional insurance. Some companies, like Metromile, specialize in this type of insurance, while a few large insurers, such as Nationwide, also offer a per-mile option.

Methodology

NerdWallet averaged insurance estimates from the largest insurers in all 50 states and Washington, D.C., for single male and female drivers with good credit and no tickets or violations. For full coverage policies, we used the following coverage limits:

  • $100,000 bodily injury liability per person.

  • $300,000 bodily injury liability per accident.

  • $50,000 property damage liability per accident.

  • $100,000 uninsured motorist coverage per person.

  • $300,000 uninsured motorist coverage per accident.

  • Collision coverage with a $1,000 deductible.

  • Comprehensive coverage with a $1,000 deductible.

In states where required, minimum additional coverages were added. Some policies include additional coverages at the insurer’s discretion.

  • For drivers with minimum coverage, we adjusted the numbers above to reflect minimum required coverage by law in the state.

  • We used a 2017 Toyota Camry LE for all drivers and assumed 12,000 annual miles driven.

  • We analyzed rates for drivers of the following ages: 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, 75 and 80.

These are rates generated through Quadrant Information Services. Your own rates will be different.

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