How Much Is Car Insurance for Drivers Under 25?

Drivers under 25 pay some of the highest car insurance rates on the road — and the youngest pay the most.

Prices are different for every state and every carrier, but typical charges for a 25-year-old average around $2,636 and about $9,090 for a 16-year-old.

In this article, you'll learn what affects insurance pricing for young drivers, how to find discounts that can lower costs, and how to shop around multiple carriers so you can find the best car insurance value for your individual circumstances.

Car insurance for drivers under 25 costs more than for any other age group, but prices fall quickly as the driver gets older and gains experience. 

The table below shows how premiums for younger drivers changes as they get older.

All things being equal, a 16-year-old pays about three and a half times what a 25-year-old pays for the same coverage on the same car. But premiums fall steeply as teens grow to adulthood, and level off significantly after age 25.

Young drivers cost more because they have a higher risk profile. That's because mile for mile, teen drivers are involved in more serious and fatal crashes than any other age group.

Furthermore, teen drivers are far more likely per mile driven to commit traffic infractions.¹ Luva’s Research found that among those actively shopping for car insurance, about 36% of shoppers under 25 reported at least one violation, the highest of any age group.²

In 2023, 28 percent of drivers ages 21 to 24 involved in fatal crashes were legally drunk, the highest share of any age group and about three and a half times the 8 percent rate for drivers 75 and older.³

It's this difference in risk that drives premiums.

Ultimately, the car you choose can also affect your premium. Insurers don't just assign risk profiles to drivers. They assign them to cars, too. 

When evaluating a car, insurance carriers look at:

• Safety record

• Theft rate

• Cost to repair

• Claims history

A high-performance “muscle car” and a mid-size sedan have very different risk profiles by accident rates and in the severity of the claims.

For example, take a V8 Dodge Charger and a Toyota Camry of the same year and mileage. The Highway Loss Data Institute shows very high theft losses for the V8 Charger, while the Camry sits slightly below average.⁴ More significantly, The Insurance Institute for Highway Safety also ranks several Charger models among those with the highest driver fatality rates.⁵

This is partly due to the high performance of the car itself, as managing that level of horsepower can be challenging. And these types of vehicles also attract drivers who might push the car's limits, which contributes to a higher overall risk profile.⁵

Younger drivers might be attracted to muscle and performance cars, but choosing a more conservative car with a better claims history can meaningfully lower your rates.

It’s almost always cheaper to add a young driver on a parent's policy rather than taking out two separate policies. Keeping them on your policy allows the carrier to apply any applicable multi-car, bundling, and household discounts to their premium.

On a separate policy, those discounts vanish and the overall cost rises, even though the insurer still rates a young driver’s individual age and driving record.

Generally, you can keep a teen or young adult on your policy as long as they live at home or attend school away. Carrier rules and state laws vary.

Tip: Disclose all newly permitted or licensed household drivers to your insurer and confirm whether each must be listed or can be formally excluded under your state’s rules and policy terms.

Here are some of the best and most common discounts you may qualify for as an under-25 driver.

• Good student discount: Insurers know that good students tend to be more responsible drivers. This discount usually requires you to maintain a B average, or a 3.0 GPA. At State Farm, this discount can go as high as 25 percent and last until age 25.⁶ The amount varies by state.

• Driver-training discount: A discount for completing an approved driver's ed or defensive-driving course. Many insurers offer it, often to drivers under 21.

• Telematics, or usage-based insurance: A program that prices your policy on how you drive, tracked by an app or a plug-in device. Safe, low-mileage driving may result in a discount. Hard braking or lots of late-night driving can potentially cause your premium to go up.

• Student away at school discount: If a young driver goes away to school, don’t cancel their coverage or take their name off your policy. This could create a lapse in coverage. Instead, many insurers will provide a discount when a student goes to school away from home and leaves the car behind, often requiring the school to be at least 100 miles from home, with the car left at home; exact eligibility varies by insurer and state.

USAA is one of the cheapest insurers for drivers under 25, but membership is limited to military members, veterans, and certain family members. Progressive is the second cheapest nationwide for 21-year-olds, while Travelers and GEICO are almost tied for 25-year-olds.

Use Luva to get up-to-the-minute, personalized quotes from multiple insurance companies, so you can easily compare them side-by-side.

•  Try a telematics program. It can help a safe or low-mileage driver. But poor driving habits can backfire by increasing premiums when you renew.

• Maintain good grades and a good driving record. Both can earn discounts and keep new penalties off your policy.

• Buy an insurance-friendly car. Look for cars that are rarely stolen, have ample parts available, are easy and cheap to repair, and don't attract reckless drivers that will drive up premiums for everyone else driving that car.

• Increase your deductible. A higher deductible lowers the premium.⁷ But don't do it if it means you can't afford to replace or repair a car after a crash.

• Compare the same coverage across several companies. Companies vary widely. So shopping across multiple quality carriers often means significant savings.

TIP: If you're a parent adding a young driver to your policy, ask how your insurer assigns drivers to cars. Some carriers match a young driver to the least valuable car in the household and calculate premiums based on that. Other carriers match the riskiest driver with the most expensive car, increasing your overall premium.