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The Second Section For: "the highest auto insurance rates":
Teen drivers pay some of the highest auto insurance rates imaginable. As your driving career progresses into young adulthood, factors other than driving inexperience and good grades are used to set your premiums. Your driving record, experience, and credit score also influence the price you pay for your auto insurance policy.
New drivers who escaped their teens and early 20s with a clean driving record and good credit history can expect their auto insurance rates to drop significantly. They may not be as low as your parents', but they will be lower than those of teen drivers. If, on the other hand, your driving record shows multiple speeding tickets or a DUI, you can expect to continue to see sky-high rates. The same is true if your credit score is in the dumper. In most states, auto insurers can charge higher insurance premiums to drivers with poor credit scores. In short, being responsible behind the wheel—and with your credit—will reward you with more affordable auto insurance.
While paying for auto insurance is far from the most enjoyable part of driving, it's a necessary part of getting behind the wheel. It is also required in almost all states and required by most finance companies if you have an auto loan. Additionally, most rental agreements require renters to have certain types and levels of auto insurance coverage. Many factors play a role in setting your insurance rates, so it's critical that you share your unique information with insurers so you can find auto insurance rates that meet your specific circumstances and needs.
Who has the best rates for young adults?
Based on our auto insurance rate study, USAA offers the best rates for young adults. On average, our study data for a young adult insured through USAA has a study rate of $1,060 per year to insure their vehicle. Although individual rates will vary, USAA offers our young adult customer profile a representative premium that is approximately $146 less expensive per year than the next least expensive insurer on our list. USAA's study rates for young men and women average about $460 less than the average representative rate for our young adult driver profiles offered by the nine insurance companies in our study.
However, it's important to remember that USAA (short for United Services Automobile Association) is only available to members of the military, veterans, and their eligible family members. For those who aren't members of one of those groups, Geico is the cheapest option based on our survey of insurance company rates. The average annual tuition fee for this insurer for a young adult is $1,206.
- USAA: $1,060
- Progressive: $1,620
- State Farm: $1,329
- Nationwide: $1,552
- Travelers: $1,373
- American Family: $1,709
- Farmers: $1,881
- Geico: $1,207
- Allstate: $1,957
Learn about the cheapest auto insurance companies for young adults:
While the price of auto insurance is an important factor, young drivers should look for more from an insurance company than just an affordable price. Different insurance companies provide customers with different levels of service and satisfaction. Some insurance companies offer extras to young drivers, such as accident forgiveness or roadside assistance. Here's a look at the five least expensive car insurance companies for young adults.
USAA:
In our ranking of the best auto insurance companies in the country, USAA ranks number one. In addition to affordable young adult auto insurance rates, USAA has an excellent reputation among its member-customers for claims handling, with more than 85% of USAA customers saying they are likely or very likely to renew their policies. when they expire
For young adult drivers, USAA offers the best rates in our analysis. A young adult driver could expect to pay $1,086 per year for his auto insurance policy through USAA. Our data shows that a woman at this age has an average rate of $1,033 per year. Both represent a savings of more than $400 compared to representative average prices for this age group in our rate study of the nation's largest insurance companies.
This auto insurance company serves current military members, retired veterans, former military members who were honorably discharged, and qualified members of their families, so many consumers will not qualify for membership.
Geico:
In our ranking of the best auto insurance companies, Geico ranks in the top half of the list. Geico's customers are generally satisfied with the way the company handles auto insurance claims. Most would recommend the company to others looking for auto insurance. According to our study, Geico's commissions are among the lowest in the industry.
Geico is one of the cheapest insurers for our young adult driver profiles. While individual rates can vary based on many factors, our study shows that a young adult male driver can expect to pay $1,185 annually and a young female driver would pay $1,228. The male survey fee is nearly $400 below the national average for our young adult driver profile, while the female representative fee is over $250 below the national average.
Travelers:
Our ranking of the best auto insurance companies shows travelers at the bottom of the list. This company lags behind its rivals in terms of customer loyalty and satisfaction, although many of its rates are competitive.
The company's representative rates for young adult driver profiles in our survey aren't the lowest in our analysis, but are still relatively affordable. The young adult female driver in our study earns a representative rate of $1,348 per year, while our sample male customer earns a study premium of $1,398. Representative rates are $140 and $156 less annually, respectively, than the average among the nine companies for young adult drivers.
Auto insurance discounts for young adults:
As you transition out of adolescence and into adulthood, several potential auto insurance discounts will fall by the wayside. That student discount for new drivers and the money saved by getting good grades will no longer be available to you. Not even the discounts for those who will qualify as covered drivers on your parents' multi-car policy. While some companies offer good student discounts to college students, once you graduate, the discount you get for being a good student will end.
However, there are many auto insurance discounts that young drivers can qualify for. One of the biggest you could potentially be eligible for is a multi-policy discount. Most insurers will offer a substantial discount when your car is insured with the same company you use for renters or homeowners coverage. Combining your policies with those of a spouse or domestic partner may qualify you for a multi-vehicle or multi-line discount. However, you should consider whether your driving history, credit score or vehicle characteristics will have a negative effect on your rates.
Graduates should check with their school's alumni department to see if they have any dealings with insurance companies. Many alumni associations offer affinity discounts as a benefit of membership.
An affinity discount occurs when an auto insurance company offers driver discounts to members, employees, or customers of an organization. Some examples young drivers may qualify for include discounts offered to individuals associated with automobile clubs (such as AAA), credit unions, employers, or the military. Some insurance companies offer special discounts to clients with certain types of jobs, such as first responders, teachers, and nurses.
nationwide:
Nationwide, it ranks in the top half of our ranking of the best auto insurance companies, thanks in large part to customers who have reported that the company is good at handling claims and customer service.
When it comes to rates for young adult drivers, Nationwide's prices are slightly above the national averages determined by our study, although they are still among the cheapest. Young adult female drivers have a study fee of $1,497, about $10 more than the average of companies we analyzed. The average fare for young adult men is $1,608, or about $54 more than the average.
When it comes to rates for adult drivers.
How young drivers can save on auto insurance?
Qualifying for discounts isn't the only way young drivers can lower the amount they pay for auto insurance. Buying the right car, choosing the right coverages, and setting proper deductibles are key things to do beforehand. Maintaining a no-complaint history with no faulty accidents, watching your credit score, and being a good driver by avoiding moving violations (like speeding) will help keep your cheap auto insurance affordable.
Choose the right covers:
Different young drivers need different levels of insurance coverage. Our guide to how much auto insurance you need walks you through the various coverages available and how to assess the level of coverage you need. It's important to note that different states require different levels and types of auto insurance coverage. Most lenders and leasing companies do this too, so you can be sure that the collateral (your car) backing the loan is well secured. Remember, state and lender requirements are the minimum coverages you must have. In some cases, you'll want more than the minimum coverage, even if it comes at a price.
Choosing the right car:
Different vehicles lead to various auto insurance rates. High-performance vehicles, expensive-to-repair luxury cars, and vehicles with high theft rates will cost more to insure than other models. Contacting an insurance agent or getting a quote online before you buy can prevent you from committing to buying a car that will cost too much to insure.
Choose the correct deductible:
Having a super low deductible that you have to pay in the event of an accident may seem like a great idea, but you have to balance the cost of the policy against the price you have to pay to get a low deductible. In many cases, you'll want to choose the highest deductible you can reasonably afford and that your lender and state allow.
Your deductible should not be more than the amount you saved for free to cover an emergency. Saving some money for a $1,000 deductible won't do you any good if you only have $500 in the bank.
Pay your bills on time:
When you leave school and start your own family, it's easy to stop paying a bill or two. However, if you want to have affordable car insurance, you can't miss any payments, especially credit card or loan payments. In most states, auto insurance companies can use your credit score when setting premiums. The lower your score, the more they can ask you to pay in premium time.
Maintain a complaint-free driving record:
One of the biggest drivers of high auto insurance rates for new drivers is a high failure rate. If you've made it through your years as a new driver and then as a teen driver with a clean driving record, your rates should drop dramatically as you become a young adult. By keeping your driving record clean, you can keep the lowest prices you've earned. Some insurance companies offer accident forgiveness for your first at-fault accident, but not all do. It is essential to read the fine print of any policy you are considering to see exactly what the accident forgiveness clause means for that insurer.
How we found the cheapest insurance companies for young adults?
At US News & World Report, we are dedicated to helping people make the important decisions in life. Our university rankings, launched in 1983, set the standard in educational rankings. Our rankings in other fields, such as healthcare, government, and automotive, help people and opinion leaders make decisions that improve their lives. Now, we continue to give you the information you need to make the right decisions for your life with our cheapest auto insurance rankings.
don't get fines:
It may seem obvious, but avoiding penalties is important if you want to keep your auto insurance costs down. Remember that violations you commit in a rental car, in friends' vehicles, out of state, or even on your bike can count against your driving record. Teen drivers who received citations during their first years of driving will see their poor record keep their rates high during their first years as young adults.
