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Purchasing car insurance is an important step whether you’re a young adult or a seasoned driver – and you’re probably aware that every state requires that you purchase at least the minimum amount of coverage (liability).
This ensures that, if you happen to damage someone else’s car, your policy covers you for some of it.
Not a day goes by that I don’t get asked about best car insurance for young adults – so, I’ve decided, it’s time to cover it in more detail.
Buying Car Insurance as a Young Adult
If you’re buying auto insurance for the first time, the whole experience can be really daunting.
Firstly, adults aged up to 26 years old typically pay a lot more for auto insurance, so just seeing these rates could send you into despair.
Secondly, the best car insurance companies are vying for your attention – so it can also be quite an overwhelming experience.
But don’t worry – I’m here to help. When looking for the best car insurance for young adults, the first thing you’ll want to look for is affordable policy rates – or the biggest discounts. But you’ll want to make sure that the car insurance provider you choose doesn’t just offer cheap policy rates.
It also needs to do well in other areas, like customer service, additional services and perks, and anything else that might be important to you as a customer.
So, what is the best car insurance for young adults right now? Read on to find out.
6 Best Car Insurance Companies for Young Adults
Allstate is one of the best car insurance companies for 2020 – and solid option if you’re after a wide range of insurance policies, and want your insurance to provide good value for money.
Young adults who choose Allstate have many ways to reduce the cost of their car insurance.
You can get discounts for good grades, being a safe driver, or adding multiple vehicles to your policy. Also, you can save if you choose Allstate for multiple policies (like home and auto, or auto and life).
The insurer has a top-rated mobile app, and offers additional perks like accident forgiveness (your rate won’t increase if you have one accident – even if you’re at fault) and new car replacement (you can get a check for a new car if you total a new car within the first two model years).
- Top-rated mobile app. Manage your policy on-the-go with a top-rated mobile app.
- Plenty of discounts. From a good student discount to a safe driver discount – Allstate offers many ways to save if you are a young driver.
- Additional resources. Allstate has a page dedicated to young adults, which has some really useful insurance resources.
- Customer satisfaction rankings. According to the D. Power 2019 U.S. Auto Insurance Study, Allstate ranks highest in the Florida region – but across other regions, it drops down in the list and only gets average reviews.
Allstate Car Insurance Allstate offers a Smart Student Discount to drivers under the age of 25 if you meet their requirements. You can also get a multiple policy discount if you bundle in your renters insurance with Allstate.
Liberty Mutual is another good option for young adults. The company offers tons of discounts for young drivers – as well as plenty of exciting features (like better car replacement and accident forgiveness).
Liberty Mutual has been around for over a century, and it has an A+ (superior) rating from A.M. Best.
With Liberty Mutual, young drivers can save in several ways – from being members of 14,000+ alumni or professional associations to adding more than one car to the policy.
There are also discounts for vehicles that are equipped with safety features (like anti-lock brakes, anti-theft devices, lane departure warning, etc.) and for students that live at least 100 miles away from parents’ home and only drive their vehicle occasionally.
- Lots of ways to save. Liberty Mutual offers plenty of discounts.
- Accident forgiveness. With Liberty Mutual, your rates won’t go up after one claim.
- Better car replacement. If your car is deemed a total loss, Liberty Mutual will give you the money for a replacement car that is better (one model newer) than your car.
- Customer complaints. We’ve come across quite a few customer complaints to Liberty Mutual about the claims procedures.
- No good grades discount. There doesn’t seem to be a discount for getting good grades, which is offered by many other competitors.
Metromile is a pay-per-mile auto insurer that’ll charge you a base rate as well as a set pay-per-mile rate. I’m a big fan of Metromile – and is definitely one of the best car insurance providers if you’re a young adult.
The only caveat is that you need not drive very much (not more than 10,000 miles per year) for it to be a money-saving option.
According to the company’s estimates, people who drive under 10,000 miles a year can save hundreds of dollars by switching.
- Excellent rates if you’re a low mileage driver. Drivers who drive fewer than 10,000 miles per year can save a lot of money!
- Easy-to-use app. You can buy and manage your insurance via an app – which is great if you prefer a smooth digital experience.
- Offers multi-car discounts. You can pay less if you add more cars to your Metromile insurance.
- Limited availability. Metromile is only available in Washington, Oregon, California, Arizona, Illinois, New Jersey, Pennsylvania, and Virginia.
- Online only. You won’t be able to talk to an agent, so if you’re after personalized service – Metromile may not be the best.
If you want to find out more about the company, check out my Metromile review.
Esurance is an excellent option for those looking to purchase and manage their car insurance policy online.
The company is known for its user-friendly website and some slick online tools that anyone who loves tech will appreciate. There’s also a top-rated, cutting-edge mobile app – so you can easily manage your insurance on-the-go.
With Esurance, you can save on car insurance as a young driver in many ways, such as driving a safe car, getting good grades, opting for a multi-car policy, being a good driver, or signing up for DriveSense (an app that’ll track your driving habits).
Several other discounts are based on the type of policy you go for, like bundling your policies (e.g., auto and home).
- Countless ways to save. Esurance offers a ton of ways to save as a young driver – which is awesome.
- Top-rated app. Esurance mobile app is easy to use and gets great reviews and ratings from customers.
- User-friendly website. Esurance wins the game when it comes to user experience. Both its app and website are pretty awesome.
- Great availability. Esurance is available in 43 states, which means greater availability compared to a few of its competitors.
- Cheaper rates are available. Esurance rates are pretty competitive – but you can find cheaper rates.
Known for top-notch customer service, USAA is also one of the best car insurance companies for young adults. It continues to be among the best across the U.S., according to the J.D. Power 2019 Auto Insurance Study.
USAA offers competitive rates for young adults and a range of discounts. For example, you can cut your costs by completing a driver training course, getting good grades, having more than one vehicle added to your policy, or maintaining a good driving record for more than five years.
The only issue is its availability – USAA is only open only to U.S. military personnel and their families.
Ultimately, USAA is a great choice if you have joined the military right after school or college – or if your parents have a USAA insurance product.
- Competitive rates. Young drivers get competitive rates with USAA.
- A range of discounts. There are multiple ways to save with USAA – from getting good grades and being a good driver, to completing a driver training course.
- Excellent customer experience. USAA is known for providing a positive customer experience and continues to be among the best insurance providers in the U.S.
- Limited availability. USAA is only accessible to those affiliated with the armed forces.
GEICO is one of the largest insurance providers in the U.S. – and is a fantastic company to go with if you appreciate tech, and want things to run smoothly.
You’ll be managing your insurance through a top-rated, award-winning mobile app – but you’ll also have the opportunity to speak to an agent in person if you need to.
In recent years, GEICO has added licensed local agents to their offering. These agents can be visited in person or can help you on the phone – which is pretty great.
GEICO also has some excellent discounts for young adults, teens, and new drivers. You can get discounts based on your driving habits (for example, if you’ve been accident-free for the past five years), having good grades, getting certain safety features (like anti-lock brakes, anti-theft system, etc.) multiple policies, vehicles, and more!
- Award-winning mobile app. GEICO has a top-rated mobile app, which offers a refreshingly smooth and user-friendly experience.
- Affordable rates. GEICO is known for typically offering very affordable rates – and that includes young drivers.
- A wide range of discounts available. There are many ways to save as a young driver with GEICO.
- In-person agents available. You can get personalized customer experience by meeting a local agent in person or speaking to them on the phone if you need to.
- Limited availability. Geico discounts and policies aren’t available in all the states.
Which Car Insurance Is Best For Young Adults?
So, there you have it. Car insurance for young adults may be pricey – but you can definitely find companies that offer pretty good deals.
Now that you know which insurance companies have the best car insurance rates for young adults, you may wonder which is right for you.
Which of these companies you go with will depend on what’s important to you. If you’re after a friendlier rate and you don’t mind that the company doesn’t shine in customer service, then that shouldn’t stop you from opting for the cheapest rate there is.
However, I think it’s important to look not only at the affordability but the whole picture. If customer service is poor, that means you’re stuck with a company that doesn’t do it that well – and are probably in for a very frustrating ride.
Similarly, you may want to look at other features, like user-friendliness of a website, app reviews, ratings of claims service, and availability across the U.S. Some car insurance providers have limited availability across the states, so no matter how great they are – you’ll need to choose a company that’s available in your area.