Cheapest Car Insurance for Young Drivers Under 25

Last reviewed: October 2026 · By the SmartCoverage Editorial Team · How we research

Young drivers pay the most for car insurance of any age group, but the price falls fast. A 16-year-old on their own full coverage policy pays about $10,387 a year on average, an 18-year-old about $7,498, and a 25-year-old about $3,044, according to CarInsurance.com’s 2026 data. The cheapest options for most young drivers are staying on a parent’s policy, GEICO for teens, Travelers from age 20, and USAA for military families.

What young drivers pay at each age

How the price falls with every birthday

Move the slider to the driver’s age. The chart shows the average full coverage price at each age, and how much it typically drops by 25.

Driver’s age: 18

a year

Average annual full coverage premiums for a driver on their own policy with a clean record and good credit (100/300/100 limits, $500 deductibles, 2025 Honda Accord LX). Source: CarInsurance.com, Quadrant Information Services data, September 2026. Your price depends on your state, car, record and insurer.

The biggest single drop comes at 19, when the average falls by almost $1,800, and prices keep falling every year to 25. After that the decline slows: a 30-year-old pays $2,731 and a 40-year-old $2,578, the national average for this profile. Insurers charge young drivers more because, as a group, they have more crashes, and the gap narrows as drivers build experience.

The cheapest companies for young drivers

Military families

USAA

Teens 16 to 19: $5,528
Ages 20 to 24: $2,611

Cheapest for teens

GEICO

Teens 16 to 19: $6,507
Ages 20 to 24: $3,240

Cheapest from 20

Travelers

Teens 16 to 19: $6,597
Ages 20 to 24: $3,057

Average annual full coverage, own policy. Source: CarInsurance.com, September 2026.

These are averages across the country. In your state, a regional insurer could be cheaper, so use our best car insurance companies shortlist to see which ones sell where you live, and compare at least three quotes.

Own policy or a parent’s policy?

For most teens, joining a parent’s policy is much cheaper than buying their own. The household gets multi-car and bundling discounts, and the parents’ longer driving history helps the price. The trade-off is that any accident the teen causes goes on the family policy and can raise the price for everyone.

A separate policy can make sense when the young driver owns their own car and lives away from home, or once they are in their early twenties and the gap has narrowed. Either way, make sure every regular driver in the household is listed: leaving a teen off a policy to save money can lead to a refused claim.

Six ways to cut the bill

Stay on a parent’s policy

Usually the biggest saving. Bankrate puts the average for a 16-year-old on a parent’s full coverage policy at $5,740 a year, against over $10,000 on their own.

Claim the good student discount

Most insurers want a B average or a 3.0 GPA, full-time study and an age under 25. Published discounts include up to 25% at State Farm and 15% at GEICO.

Choose a sensible car

A modest, safe sedan or small SUV costs far less to insure than a sports car or a new luxury model. Get quotes before you buy.

Ask about student-away discounts

If the student is at college more than about 100 miles away without a car, many insurers cut the price.

Try a telematics program

Young drivers who drive safely can prove it with an app or plug-in device, instead of being priced only on age.

Keep the record clean

A single ticket or accident at 18 can add years of higher prices. Our high-risk driver guide shows how long each one lasts.

Each discount is applied differently by each insurer, so ask for all of them by name when you get quotes. Our guide to finding cheap car insurance quotes has a worksheet to compare offers fairly. If the young driver is also brand new behind the wheel, see our guide to car insurance for new drivers.

Quick answers

At what age does car insurance go down?

It falls every year from 16, with the biggest drops at 17 and 19 in the 2026 data, each close to $1,800. The steep part of the decline ends around 25.

Do young men pay more than young women?

Usually, where insurers are allowed to use gender. At 20, the 2026 averages were $5,454 for men and $4,893 for women, and the gap shrinks to under $200 by 24. Some states do not allow gender to be used in car insurance pricing at all.

Does an 18-year-old have to get their own policy?

No. Turning 18 does not force a driver off the family policy. As long as they live at home, or are away at school, most insurers let them stay on a parent’s policy, which is usually the cheaper choice.

Is it cheaper to insure a young driver on minimum coverage?

Yes, but it leaves the driver’s own car uninsured and can expose the family to large bills after a serious crash. If the car is old and cheap, read full coverage vs liability before deciding.

Sources

CarInsurance.com: Average car insurance rates by age and gender in 2026 (updated September 4, 2026)
InvestigateTV/KKCO: Adding a teen driver comes with a major price jump (Bankrate data, April 2026)
Insurify: Good student discount requirements by insurer (March 2026)

This guide is for informational purposes only and is not insurance advice. Prices are national averages and your quote will depend on your state, car, driving record and insurer. Confirm discounts and eligibility with each insurer.