Consider shopping around for a lower car insurance rate to save money. While comparing auto insurance rates is simple, finding cheap car insurance for a young driver will require some effort. Except for teenagers, rates for young drivers are higher on average than for most other age groups.

Young drivers, or those aged 20 to 25, have less experience and are viewed as a risk by insurers. According to the National Highway Traffic Safety Administration, drivers in their early twenties are more likely to be involved in a crash than older adults.

Finding cheap car insurance for young drivers, however, is not impossible. Shopping around and comparing car insurance quotes from at least three different auto insurers is the best way to find lower rates.

What age is a young driver?

While some may define a "young driver" as anyone aged 16 to 25, or even under 30, this study focuses on those aged 20 to 25. Because car insurance rates for teenagers and young adults can vary greatly, this breakdown provides a more accurate representation of the average auto insurance rates for a young driver. Annual rates generally continue to fall after the age of 25, but not as dramatically. On average, rates begin to rise once you reach the age of 70.

Looking for a more in-depth look at teen car insurance rates? Check out our comprehensive guide to finding the cheapest car insurance for teenagers.

How much is car insurance for young drivers?

According to InsuredCircle analysis of the five largest auto insurers in the country, the average car insurance rate for a young driver is $2,241 per year for full coverage. In comparison, the average auto insurance rate for a 40-year-old driver is $1,523 per year — $718 less.

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. to find these rates. State Farm, Geico, Progressive, Allstate, and USAA* are the top five car insurers in the United States.

A combination of coverages is referred to as full coverage car insurance. This includes liability, comprehensive, collision, uninsured/underinsured motorist protection, and any other state-mandated coverage, according to our analysis. In this analysis, rates are for drivers with good credit and a clean driving record.

Although these averages can help you get a better idea of what to expect as you shop around, they aren't always a reliable predictor of what you'll end up paying. Your final price will be influenced by other factors such as your auto insurer, car make and model, gender, location, and driving record. We've cut the data in a variety of ways to help you find the best car insurance for young drivers.

Do you want a more accurate estimate of your car insurance rate? InsuredCircle car insurance comparison tool can be of assistance.

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

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

USAA has the lowest average annual insurance rates for young drivers among the nation's five largest insurers, for both full and minimum coverage. Geico has the lowest average auto insurance rates for those who do not have a military connection.

Rates can vary greatly from one insurer to the next because each uses its own unique formula based on factors such as demographics, driving record, and vehicle make and model. While one insurer may charge a 20% increase for living in a high-crime city, another may only charge a 10% increase. Furthermore, car insurance companies do not make these formulas available to the public. The only way to find the best car insurance for you is to shop around.

Auto insurance rates for young drivers

The following are the average annual rates for full and minimum coverage from the largest companies for drivers aged 20 to 25.

Car insurance rates by age for young drivers

In our young drivers 2020 rate analysis, Geico has the lowest average rates (aside from USAA) for all ages.

Although Geico has the lowest average rates, it is important to note that this analysis only includes the nation's top insurers, and a smaller local insurer may offer lower rates.

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

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

Cheap car insurance for young drivers by state

The most affordable car insurance company for young drivers differs by state. The cheapest average full coverage rate for a young driver in Idaho, for example, is $679, while the cheapest average rate in Kentucky is more than $2,000.

Rates are also influenced by state regulations. For example, in Hawaii, age is not a factor in determining car insurance rates.

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

Car insurance rates for young drivers by gender

Gender matters when it comes to car insurance rates for young drivers. According to our rate analysis of the top five largest insurers, young male drivers have higher car insurance rates than young female drivers of all ages.

The good news for men is that this rate disparity narrows with age. As shown below, the average annual cost of auto insurance for a 20-year-old male driver is $255 higher than that of a female driver. However, rates for 25-year-old males are only $40 higher per year on average than for females.

Average car insurance rates for young drivers by age and gender

Why are young men's rates higher than young women's rates? Men, according to insurers, are more likely to take risks while driving.

Male drivers were involved in more speeding-related fatal crashes than female drivers across all age groups, according to a 2017 NHTSA study. Among drivers aged 21 to 24, 15% of females were involved in a speeding-related crash, compared to 31% of males.

Young men should shop around for car insurance in order to get a better deal. For example, Geico's average rates for young men are only $63 higher than those for women. Not bad when you consider that rates for young men who use Allstate are $234 higher than rates for young women.

Best car insurance for young drivers by gender

By comparing rates, even 20-year-old male drivers, who have the largest rate difference when compared to women in the young driver demographic, can save.

Taking the time to compare prices can save young men hundreds of dollars per year. Car insurance rates for 20-year-old men with Allstate, for example, are $445 higher per year on average than for 20-year-old women. Meanwhile, Geico rates for the same male profile are $87 higher than for a female.

Cheap car insurance by gender for 20-year-olds

Average car insurance rates for young drivers by state

When it comes to auto insurance rates, where you live can make a big difference, owing to the fact that each state has its own set of rules and regulations.

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

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

On average, 20-year-old drivers have the highest annual car insurance rates among the young driver demographic.

Our analysis of 2020 car insurance rates by state reveals the following 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, with an average cost of $5,650 per year (Kentucky's average cost was only $1 less per year).
• Hawaii is the cheapest state for minimum-required car insurance with an average annual rate of $362. On average, North Carolina and Iowa have the next lowest yearly rates.
• Michigan has the highest average annual cost for minimum-required car insurance, at $2,605.

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

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

Auto insurance rates for 21-year-old drivers are typically $500 lower per year than for 20-year-olds for a full-coverage policy.

Our analysis of 2020 car insurance rates by state reveals the following 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 has the highest average cost for full coverage, at $4,646 per year.
• Hawaii is the cheapest state for minimum-required car insurance with an average rate of $358 per year. On average, South Dakota and Iowa have the next-lowest yearly rates.
• Michigan has the highest average annual cost for minimum-required car insurance, at $2,084.

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

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

According to InsuredCircle analysis, a 22-year-auto old's insurance rates are about 7.7 percent lower than a 21-year- old's.

Our analysis of 2020 car insurance rates by state reveals the following for 22-year-old drivers with good credit and no recent accidents:

• Hawaii is the least expensive 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 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. On average, Iowa and South Dakota have the next lowest yearly rates.
• Michigan has the most expensive minimum-required car insurance, with an average yearly rate of $1,991.

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

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

Although your car insurance rates are unlikely to drop dramatically when you turn 23, the average rate for a 23-year-old driver in our analysis was 29.4 percent lower than the average rate for a 20-year-old driver.

Our analysis of 2020 car insurance rates by state also reveals the following 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 has the highest average cost for full coverage, at $3,933 per year.
• Hawaii is the cheapest state for minimum-required car insurance with an average rate of $358 per year. On average, Iowa and South Dakota have the next lowest yearly rates.
• Michigan has the highest average annual cost for minimum-required car insurance, at $1,861.

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

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

As you reach your mid-20s, your auto insurance rates begin to fall gradually. According to InsuredCircle analysis, full coverage car insurance rates for a 24-year-old driver are 5.8 percent lower on average than rates for a 23-year-old driver.

Here's what else our 2020 car insurance rates by state analysis has to say about 24-year-old drivers with good credit and no recent accidents:

• Hawaii has the lowest average cost for full coverage insurance, at $1,092 per year, 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. On average, Iowa and South Dakota have the next lowest yearly rates.
• Michigan has the highest average annual cost for minimum-required car insurance, at $1,800.

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

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

Rates drop significantly between the ages of 20 and 25. Auto insurance rates for a 25-year-old driver are 41% lower on average than for a 20-year-old driver. These lower rates, of course, apply to young adults with a clean driving record. Any recent DUIs, speeding tickets, or other traffic violations will result in higher rates.

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

• Hawaii is the cheapest state for full coverage insurance with an average annual rate of $1,092, followed by Maine and Ohio.
• Louisiana has the highest average cost for full coverage, at $3,202 per year.
• Iowa has the lowest average cost for minimum-required car insurance, at $315 per year. On average, South Dakota and Hawaii have the next lowest yearly rates.
• Michigan has the highest average annual rate for minimum-required car insurance, at $1,504.

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

Should young drivers buy their own car insurance?

Staying on a parent's car insurance policy typically saves teenagers hundreds of dollars. Young drivers, on the other hand, may not benefit from such a significant price reduction.

Individual policies are likely to benefit young drivers who relocate to a state with lower car insurance rates and fewer minimum insurance requirements. However, some states may require you to purchase a separate policy. If you live on your own year-round (rather than just for college), you will need to purchase your own insurance.

The decision to remain on your family's policy is influenced by a variety of factors, including your driving record, gender, credit score, and location. For example, because rates for young men are generally higher than rates for young women, if you are a male, you may want to stay on your parent's insurance for a longer period of time.

How young drivers can save on car insurance

Rates for young drivers may be higher than for most other age groups, but there are still ways to save. Use the following suggestions to lower your rates:

Shop around. As previously stated, your rates can vary greatly depending on the insurer you use. Young drivers (like all drivers) should shop around for car insurance every year to ensure they have the best coverage. After all, just because you had the best rates a year ago doesn't mean you still have them today. Remember to compare rates for a standalone policy versus remaining on your family's insurance, if that is still an option.

Take advantage of discounts. Many auto insurers provide discounts to young drivers, such as:

• Excellent student discount.
• Young drivers who complete a defensive driving course receive a discount.
• Student away-from-home discount (if you are covered under a parent's policy).
• If you have renters or homeowners insurance, you can get a multi-policy discount.

Usage-based insurance. You may benefit from usage-based car insurance if you are a good driver. Usage-based policies still consider factors such as location and age, but they also consider your driving behavior when determining your car insurance rate. Driving habits such as speeding and hard braking are typically collected using a plug-in device or a smartphone app. Root specializes in usage-based insurance, which is also available from some traditional insurers such as Progressive.

Pay-per-mile insurance. Unlike traditional insurance, the premiums for this type of policy are determined by the number of miles driven each month. A plug-in device or smartphone app is usually used to calculate this. If you work from home or don't drive frequently, this may be less expensive than traditional insurance. Some companies specialize in this type of insurance, such as Metromile, while a few large insurers, such as Nationwide, also provide a per-mile option.