Whether you just got your license, are heading off to college or are setting out on your own in the world, you’ll need car insurance if your journey requires four wheels. Car insurance isn’t cheap for young adults, but there are discounts to help bring down your premium — and some companies offer more of them than others.
But you’ll also want good coverage, and discounts alone might not make one insurer cheaper than the next, since rates vary widely. It’s always wise to get at least three quotes when comparing car insurance.
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Major insurers’ car insurance policy discounts for young drivers
|Company||Good student discount||Student away at school||Young driver training|
|*USAA is only available to active military, veterans and their families.|
|Allstate||Up to 35%||Up to 35%||Up to 35%|
|American Family||Up to 25%||Yes, varies||Yes, varies|
|Erie||No||Yes, varies||Yes, varies|
|Farmers||Yes, varies||Yes, varies||Yes, varies|
|Geico||Up to 15%||No||Yes, varies|
|Liberty Mutual||Yes, varies||Yes, varies||No|
|Nationwide||Yes, varies||Yes, varies||No|
|Progressive||Yes, varies||Yes, varies||No|
|State Farm||Up to 25%||Yes, varies||Up to 15%|
|Travelers||Up to 8%||Up to 7%||Up to 8%|
|USAA*||Yes, varies||No||Yes, varies|
Discounts for good grades
You typically qualify with a GPA of 3.0 or higher.
All of the 10 largest auto insurance companies in the U.S. offer a “good student” discount for young drivers. You typically qualify if you can keep your GPA at 3.0 or higher. Discounts may not be available in every state, or age ranges may vary by state, so it’s always smart to check.
Smaller companies are hit-or-miss when it comes to discounts for good grades. Amica and Esurance both offer a good student discount, but Erie and National General, a leading nonstandard auto insurance carrier, don’t list any on their websites.
Discounts for leaving your car at home during school
The “student away at college” discount is available from several prominent insurance companies. If your school is at least 100 miles away from home, and you leave your car behind while you’re there, you can qualify for this discount if it’s available in your home state. Generally, you can only get this discount if you’re under 25, or under 23 if your policy is from Progressive.
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Discounts for young driver training
Your insurer can give you a list of approved courses.
Some insurance companies offer a discount for taking an approved driver training course if you’re under 25. Typically the courses are state-specific, and your insurer can give you a list of approved courses if you want to opt in.
Other insurers have their own driver training program or app, such as State Farm’s Steer Clear or American Family’s Teen Safe Driver program. In each case, you allow the insurer to track your driving behavior for a period of time and receive feedback. After 3,000 miles on American Family’s program or five hours and at least 10 trips in State Farm’s program, you complete the program and receive a discount.
Discounts for driving behavior tracking
Most of the largest insurers have an option.
Similar to those young driver training apps, there are programs with fewer educational components for more experienced drivers. If you don’t mind having your driving tracked, you can opt into usage-based discount programs — most of the largest insurers have an option. Often you receive a small discount for joining the program, then a larger discount once your driving has been analyzed by the company, such as with Progressive’s Snapshot.
Here are major insurers with usage-based discount programs, and the name of each.
- Allstate: Drivewise.
- American Family: KnowYourDrive.
- Esurance: DriveSense.
- Farmers: Signal.
- Liberty Mutual: RightTrack.
- Nationwide: SmartRide.
- Progressive: Snapshot.
- State Farm: Drive Safe & Save.
- Travelers: IntelliDrive.
Use your parents’ insurer
If you’re just starting out on your own auto insurance policy, you may be eligible for a discount for using the same company your parents have a policy with. Here are some legacy or family-related car insurance discounts from major insurers:
- American Family’s generational discount offers potential savings if one or both of your parents is a current customer.
- Amica offers a discount for drivers under 30 with their own policy whose parents have had an auto policy with Amica for five consecutive years.
- Erie’s Youthful Longevity discount passes on a loyalty discount for young drivers who have previously been on another Erie policy, typically a parent’s.
- USAA’s family discount is worth up to 10% off a policy if you were insured on your parents’ USAA policy for at least three years, have a clean record and are under 25 years old.