In this article, we will be looking into some of the best car insurance for new drivers under 25 years of age.
Given the depressing odds of younger drivers being in an accident, the more coverage the better, especially if your teen or college student is driving a fairly new car under a lease or loan.
However, most states only require limited coverages, so you can sometimes save money by only insuring a car and its driver for the mandated protection and amount.
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Best Car Insurance for New Drivers under 25
Keep reading this article to know more about the best car insurance for new drivers under 25;
Erie Insurance
Named after its Pennsylvania hometown, Erie Insurance has provided car insurance since 1925. It is the first on our list of the best car insurance for new drivers under 25 which we will be discussing below.
Erie Insurance has an extensive history and excellent reputation in the insurance industry.
Additionally, Erie offers some of the best premium rates for young drivers close to 60% cheaper than the national average.7
The biggest drawback to Erie Insurance is its limited availability. Additionally, Erie Insurance does not allow customers to file auto claims online: They must call their local agent or use the toll-free number to the corporate service center.
However, customers seem satisfied with the insurance claims process as a whole, even if it strikes some as a bit old-school.
Some college students may commute to campus daily from home, while others leave cars parked for weeks on end while they live on campus.
Regardless of what your college experience holds, though, Allstate will leave you in good hands while you work on earning that degree.
Among the wide array of discounts are some rate reductions that will specifically appeal to parents of teen drivers or young drivers paying for their insurance policy.
Erie maintains a complaint index of 1.10 from the National Association of Insurance Commissioners (NAIC), representing a slightly higher than average level of complaints relative to other companies in the market.
Allstate
The next on our list of the best car insurance for new drivers under 25 is the Allstate car insurance company.
Allstate is the fourth largest auto insurance company in the country and offers policies in all 50 states. With more than 15,000 Allstate agents across the country, you likely can find an Allstate agent close to your home.
Allstate requires that you enroll with one of its local agents, but if you would prefer a completely online experience, you can look into Insurance, a subsidiary of Allstate.
Allstate’s discounts and wide availability make it a great choice for many families. What’s more, the company offers a great mobile app and many online tools in addition to its extensive network of local agents.
With that being said, many sources note that Allstate has low customer satisfaction ratings in many parts of the country.
The company also has slightly higher average premiums than other competitors on this list and is known for rate hikes.
As one of the leading car insurance providers in the country, it’s no surprise that Allstate offers everything you could want and more when it comes to coverage.
In addition to all the traditional car insurance coverage types, Allstate also offers roadside assistance with towing coverage, sound system insurance for damaged or stolen after-market systems, and rental car reimbursement.
Additionally, Allstate offers rideshare insurance, a referral for classic car coverage, and an explanation of Mexican travel insurance if you plan to drive across the border.
Allstate offers a great list of discounts. However, we selected them as the “best for college students” because of the numerous ways that college students can save with Allstate.
A Smart Student Discount for drivers under 25 and who do at least one of the following: maintain a B- average or GPA of 2.7 or higher, attend college at least 100 miles from home and don’t have the car with them, or complete the teenSMART driver education program.
The Miles Program bases premiums on the number of miles you drive per month. While Allstate offers some great rates and discounts, the company doesn’t seem to shine as much as others in terms of customer satisfaction.
State Farm
State Farm has grown over the past century into one of the largest insurance companies in the nation, with 84 million policies across the U.S., it insures more cars and homes than any other carrier. State Farm has top ratings from AM Best.
State Farm requires agents to exclusively sell State Farm. This means that agents can’t offer you auto insurance from multiple companies, and instead will exclusively work with State Farm and tend to be familiar with State Farm’s offerings.
Its network of local agents prides itself on providing the best possible customer service.
State Farm is a venerable, trusted insurance company, one of the oldest in the U.S. It offers numerous discount options for young drivers, especially students, whether they live at home or are away at school.
Although State Farm does offer highly competitive rates for auto insurance, most reviews and ratings sites state that State Farm’s customer service is mediocre at best. State Farm is available nationwide in all 50 states and the District of Columbia.
Unlike some companies that work only out of a corporate headquarters increasingly common in this digital age, State Farm has a decentralized model, functioning more like a network of regional agents dedicated to their local communities.
State Farm offers all the needed and desired coverage for any driver nationwide. State Farm also seems to love young driver students in particular. Among the breaks it offers:
Good Student Discount of 25% for those in high school and college who maintain good grades. Student Away Discount for families with a college student who uses the car only when at home.
Defensive Driving Discount for anyone who completes an approved driver safety course.
Additionally, State Farm offers a Steer Clear discount of up to 15% for drivers younger than 25 who maintain a clean record with no traffic violations for three consecutive years.
Many car insurance customers love State Farm because it is one of the few national car insurance providers that still exclusively use local agents to provide outstanding customer service.
Progressive Insurance
Since 1937, Progressive Insurance has grown into a household name, especially in the last decade thanks in large part to its tongue-in-cheek ads featuring perky agent Flo and, of late, her nerdy sidekick Jamie.
Behind the jokes, though, lies a solid company that is especially sensitive to safe drivers.
Progressive provides insurance in all 50 states and the District of Columbia. However, it doesn’t work through a proprietary network of agents as State Farm does.
Although some local independent insurance agents sell Progressive, along with other carriers’ products, most Progressive customers manage their policies online.
Like most other car insurance companies, Progressive offers all of the basic liability and collision/comprehensive coverage, plus things like uninsured motorist coverage and personal injury protection.
While many companies reward safe drivers, Progressive offers one of the best discounts in the industry. Those who go three years without any accidents or violations can earn upwards of 30% off their annual premiums. Most other firms only offer 10%–20% off.
USAA Car Insurance
The USAA car insurance is the final we will be discussing in this article on the best car insurance for new drivers under 25.
For current or former military members and their families, USAA car insurance is hands down a top choice based on its low premiums and outstanding customer service. J.D. Power ranks USAA as their best carrier nationwide.
USAA offers amazing rates and outstanding customer service. The company also has a highly comprehensive website and mobile app for tech-savvy customers.
However, USAA has limited eligibility since it’s only available to military families. Also, the company does not have any local agents, so the only option is to use the website or call USAA’s toll-free number, which offers 24/7 service.
Although USAA is offered across the United States, enrollment is limited to military families.
Enrollment is limited to active, retired, and honorably separated members of the U.S. military, ROTC, and other commissioning program officer candidates, and adult children of USAA members.
In addition to the required minimum car insurance coverage, USAA offers rideshare coverage for Lyft and Uber drivers, 24/7 roadside assistance, and towing coverage. The latter two can be especially beneficial for accident-prone young drivers.
USAA offers significant discounts to all its customers. When it comes to perks that pertain to young drivers specifically, though, USAA offers the following:
- Family Discounts for people under 25
- A Driver Training Discount for people under 21 who complete a training course
- Good Student Discounts for high school and college students who maintain a B average
Even though USAA offers insurance only to a limited pool of drivers, the company consistently provides some of the best customer services in the industry.
USAA consistently receives high ratings from J.D. Power during their annual car insurance studies.4 What’s more, many USAA clients remain with USAA for life.
Types of Coverage Out There
Now that you know five of the best car insurance for new drivers under 25, let us take a look into the different types of car insurance coverage out there.
Bodily Injury and Property Damage Liability to cover the other party’s medical care and damages when you are the at-fault driver.
Collision Coverage to cover your own vehicle’s damage regardless of fault.
Comprehensive Coverage to pay for non-accident-related damages.
Personal Injury Protection/Medical Payments to cover your medical expenses in case of an accident.
Uninsured Motorist Coverage to cover your damages and medical expenses when the at-fault driver doesn’t have accurate coverage.
Guaranteed Asset Protection (GAP) Coverage to cover the gap between your car’s lease or loan and the determined value in the case of a total loss.
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CONCLUSION
To conclude, in this article we gave you a list of 5 of the best car insurance for new drivers under 25, feel free to pick what never one best suits your need and lifestyle.