The cheapest car insurance for new drivers under 21 years old is from Travelers, USAA and Progressive, according to WalletHub’s quote analysis. Car insurance for new drivers under the age of 21 is expensive since they are considered high risk. This is because young drivers are more likely to cause accidents and commit other violations than older, more experienced drivers.
Cheap Car Insurance for New Drivers Under 21 Years Old
Adding a young driver to an existing policy is much less expensive than getting an individual policy, so young drivers living at home or at college should join their parents’ insurance if possible. Young drivers should also take advantage of the discounts that insurance companies offer to those who can show they’re responsible on and off the road.
Discounts to Make Car Insurance Cheaper for New Drivers Under 21
The average cost of car insurance for a 21-year-old is $1,250 per year, or about $104 per month. Twenty-one-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim
Because the cost of coverage for 21-year-olds is so high, it’s important to shop around for multiple quotes before buying a policy. Some of the best car insurance companies for 21-year-old drivers are … read full answerUSAA, Travelers and Geico.
Cost of Car Insurance for a 21-Year-Old by Company
The exact cost of car insurance for a 21-year-old depends on a few factors, including their driving record, gender, and vehicle type. Additionally, whether a 21-year-old is buying their own policy or being added to their parents’ policy makes a difference.
Adding a 21-year-old to an existing policy will raise the premium by an average of 140% to 160%. But even with the added cost, it’s still a more cost-effective option than having the driver purchase their own policy.
The best car insurance for new drivers under 25 years old is from companies like Allstate, Geico, Progressive, and Safeco. They are among the cheapest car insurance companies for drivers of all ages, both under 25 and older, according to WalletHub’s Cheap Car Insurance Report. These companies provide a variety of coverage choices at affordable prices, along with numerous discounts applicable to drivers under 25.… read full answer
Drivers under 25 typically pay higher insurance premiums than older drivers, so options for reducing those high costs are especially important. When shopping for auto insurance, new drivers under 25 should consider their state’s car insurance requirements, as well as what coverage they will need to be fully protected on the road. Then, they should look into opportunities for discounts.
Many major insurance providers offer discounts that can help reduce the cost of premiums for young drivers. Companies like Geico and Allstate provide good student discounts for drivers under 25 years old who maintain at least a B grade-point average. Young drivers who take a driver’s education course or a defensive driving course are eligible for savings, too.
Finally, some companies, like Metromile and Esurance, offer usage-based auto insurance policies that calculate premiums based on how much you drive. These policies can offer an affordable alternative for young drivers who don’t drive frequently.
Once a driver turns 25, they are considered to be more experienced and less likely to be involved in an accident, thus their insurance premiums are likely to decrease. Estimates show that premiums decrease by approximately 10% for people with a good driving history once they turn 25.
The best way to get cheap car insurance as an 18-year-old is to get added to a parent’s car insurance policy. It costs about half as much to add an 18-year-old to a parent’s policy than it does to open a new policy for the teen, on average. Young drivers in this situation benefit from insurance premiums calculated based on their parents’ age and driving history, in addition to their own.… read full answer
The best way to get cheap car insurance on your own at age 18 is to compare quotes from multiple insurance companies and research potential discounts you might be eligible for with each. Young drivers are normally viewed by insurance companies as potentially high risk, and are quoted higher premiums as a result. Savings options do exist for those who qualify, however.
Young drivers who maintain a B grade-point average at school qualify for good student discounts with many insurance companies.
Taking driver’s education courses or defensive driving courses can provide additional discounts with some companies.
Insurance companies provide discounts for vehicles equipped with safety features, such as air bags or anti-lock braking systems. Young drivers who operate one of these cars are eligible for savings, as this potentially reduces risk of getting into an accident.
Getting cheap car insurance at 18 is only half the battle, though. Young people must also drive responsibly in order to avoid accidents and moving violations that could turn cheap rates at 18 into pricey premiums that last into their 20s.
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