If you drive a car, you need auto insurance. Every state requires that you purchase at least a minimal amount of liability coverage, in order to ensure that, if you damage someone else’s property while operating your car, some of that is at least taken care of.
Unfortunately, young drivers pay more for car insurance because you have limited driving experience. Although car insurance rates are highest for teenagers, young adult drivers often pay more for insurance until they are 25 or 26. The only way to know which insurance companies are best for young adults is to get competing quotes from a handful of auto insurance companies — every car insurance company prices their policies differently.
Also, right auto insurance policy for you depends on a number of factors other than price — from how much coverage you want/need to what’s available in your state. As you shop around for auto insurance, here we look at the best car insurance for young adults:
Liberty Mutual has some of the best agents and customer service in the industry and was voted 2nd for customer satisfaction in a 2012 study by J.D. Powers. Although agents typically parter with community organizations and employers to sell policies, anybody can get a quote and a policy from Liberty Mutual. Two features in particular make them a company to put at the top of your list for consideration:
- Accident forgiveness, which means your rates won’t go up after one claim.
- New car replacement: If you purchase a brand new car and are in a crash within the first year, most insurance policies will only pay out the depreciated value of the car which can be thousands less than you just paid for the car. New car replacement with Liberty Mutual ensures that you’ll get enough money to buy the same new car again.
USAA has long been known for its outstanding customer service and its association with the US military. You need to either be in the military or have a parent or spouse who is already a USAA member in order to join. But once you’re in, you can access USAA’s auto insurance policies, which offer a number of discounts that can bring your premiums down, including:
- Safe driver discount, which results in savings after maintaining a good driving record for five years.
- Take an approved defensive driving course to receive a discount, and an approved driver training course for another discount.
- Good students can get a discount when they maintain a high GPA.
- Receive discounts for customer loyalty, purchasing multiple USAA products, and by encouraging family members to sign up.
- Vehicle discounts include those for multiple vehicles, new vehicles, and for driving your vehicles fewer miles.
USAA also offers a special discount for those who garage their cars on military and choose comprehensive insurance coverage.
It’s easy to purchase coverage; you can get a quote online or call a toll-free number to reach a representative.
StateFarm is one of the most recognizable brands in insurance. It’s fairly easy to get a quote from the web site, or by calling an agent. I don’t have State Farm insurance, by I was recently hit by a driver who was covered by the company. After some initial hiccups, State Farm took care of everything, from the repairs on my car to the rental car. The company was even responsive when the initial time period for the rental car ended before repairs were completed and I requested more time.
State Farm’s discounts include those for good students, multiple automobiles, other products, and good driving habits (go at least three years without moving violations and no at-fault accidents). You can also take the Steer Clear course offered by State Farm to receive an even bigger discount. Defensive driving and less driving can also reduce your auto insurance premiums with State Farm.
State Farm’s web site also has a handy tool you can use to determine how your rate might rise or fall, depending on different circumstances, whether it’s adding a teen driver or getting a speeding ticket.
Not too long ago, Esurance was bought by Allstate. The insurance company, long known for offering low quotes online is now backed by one of the most-known players in the insurance business. It’s easy to get a quote online, or reach the 24/7 toll-free customer service line. Esurance also makes it easy to manage your auto insurance policy and your claims online.
Discounts available through Esurance include its Fast 5, where you can save just for getting an online quote, as well as a multi-policy discount, multi-vehicle policy discount, and the Switch & Save, which gives you a premium reduction for moving from another insurance company. Esurance also offers discounts for being an alumni of a Pac-12 school, purchasing emergency road assistance from a third party, good driving, good grades, anti-theft devices, and more. Esurance’s focus on online servicing reduces rates, making it an especially good good car insurance pick for young adults.
The Allstate web site includes a number of features that make it easy to get a quote on your car insurance, as well as manage your policy. There are also a number of resources available on the site, Allstate offers a wide range of roadside services that can be of help when you travel.
As you probably expect, Allstate offers discounts that are considered fairly standard: good student, safe driver, multi-policy, and multi-vehicle. Allstate also offers discounts when you set up an automatic withdrawal to pay your premiums, as well as savings for paying your policy in full. There are also a number of discounts for the type of vehicle you own, from a new car to an economy car to a farm vehicle.
Depending on your specialized needs, an Allstate policy can be a good choice for your auto insurance.
You’ve probably seen the commercials featuring the Geico Gecko. The company created on the online insurance quote model, and markets its ability to save you 15 percent or more on your car insurance. However, not only can you get a quote online, but in recent years Geico has added “real world” agents that you can visit offline, and you can also call or email. Geico also touts its ability to provide customer service via Twitter.
Geico includes discounts for the vehicle equipment you have (air bags, anti-lock brakes, anti-theft, and daytime running lights) as well as for your driving history and habits. You receive a discount for five years being accident-free, as well as for taking driver’s education and defensive driving courses. Teen drivers, college students and young adults can receive a discount for good grades as well, and Geico offers discounts for military service and for federal employees, on top of the standard coverage discounts for multiple policies and vehicles. You can also check Geico’s list of more than 500 membership and employee groups that can result in discounts.
This is another online-based insurance company that promises steep discounts and quality coverage. Progressive touts its standing as the number one auto insurance site, and promises to help you find the best rates — even if the best rate is with a company other than Progressive. It’s not a bad place to start your search, since you can see multiple quotes from multiple companies. You can also get help from a local agent or via phone.
One of the features Progressive offers is the Name Your Price tool, which attempts to fit an insurance policy to your financial situation. You can also enter your current auto insurance package and see what it would cost at other companies.
Discounts from Progressive include those for safe driving, multi-vehicle and multi-policy, paying in full, online policy purchase, good grades (teen drivers), and more.
This is the auto insurance company I use, but it’s not available in all states. American National allows you to get a quote online, in person, or over the phone. I’ve had a good experience with this company, and the standard discounts are offered, from multi-car to good student to multi-policy. I also have a discount for maintaining a good credit score and signing up for automatic withdrawal.
One of the cooler features of my policy is that I receive a 25 percent premium refund for being claim-free for three years. I’ve received a premium refund each year that I’ve had the policy (starting after having the policy for three years).
Before you choose an auto insurance company, consider your options, and your needs. Choose a company that is likely to help you best protect your assets at a price you can afford.