The Best Car Insurance for Young Adults: A Comprehensive Guide
When you’re young and new to the world of driving, budgeting can feel like an uphill battle. There are so many expenses involved when it comes to getting your license and owning a car that it can feel overwhelming. However, one expense that you need to plan for and allocate money for is car insurance. Until now, you may not have even considered how much car insurance costs as a youth, let alone what type is best suited to your needs as a young adult. Luckily, we’ve got all the answers right here. If you’re under 25 years old, buying car insurance will be an additional expense on top of the price of your car and its associated taxes and licensing fees. If you don’t own a car yet, factor in enough money for those expenses first. You can also read
What is the Best Car Insurance for Young Adults?
If you’re looking for car insurance for young adults, the best type available is likely to be either liability or comprehensive coverage. Liability Insurance – Liability coverage will protect you in the event that you cause damage to someone else’s vehicle. If you are found liable for the damage, this will cover the costs to repair the other car. Comprehensive Insurance – Comprehensive coverage is designed to protect you in the event that your car is stolen. If someone breaks into your car and steals it, comprehensive coverage will help to pay for the cost of repairing or replacing your car. If you live in a state where the weather is an issue, or if you drive a sports car, you may choose to get collision insurance as well, but this type of coverage is less necessary for those with a more modest vehicle.
How much does car insurance cost for young adults?
Car insurance rates are based on a number of factors, including your age, your car, and your driving record. If you’re a young adult, you can expect to pay a little more for car insurance than older people. However, trends show that the best car insurance companies for young adults will offer competitive rates. Depending on your location, your driving record and the type of car you own, expect your car insurance premiums to fall between $100 and $300 per month.
Why Is Car Insurance Important for Young Adults?
The National Highway Traffic Safety Administration’s (NHTSA) research tells us that young adults aged 18 to 24 are involved in a disproportionately high number of accidents. Young adults are also less likely to be carrying car insurance at the time of the accident, which means that the medical costs of any injured parties will fall on their parents. This means that even if you are not at fault, you could be held financially responsible. What’s more, if you have come of age, you are likely to be eligible for reduced car insurance rates through your parents’ existing insurance provider, which can save you money. If the worst happens and you are at fault, you may also face suspension of your license, fines, and higher car insurance rates in the future.
Types of Car Insurance for Young Adults
If you are under 25 years old, you likely qualify for what‘s known as “underage“ or “young adult“ car insurance. Young adult car insurance policies usually fall under one of two types of coverage: Liability insurance or contingent liability insurance. The difference between the two is that contingent liability insurance will only pay out if the policyholder is found at fault, while liability insurance can help cover the costs of any injuries and damages in the event of an accident.
Company and Reputation
You may notice that different car insurance companies will offer different discounts or premiums based on your age. However, while it is tempting to choose one company simply because they offer cheaper rates, you should always check out the company’s reputation. If they have a stellar reputation for being a trustworthy company, you’re more likely to have a good experience if something goes wrong with your policy.
Money-Back Guarantees
If you are looking for cheaper car insurance policies, you may come across companies that offer a money-back guarantee. While this may seem like a good idea, keep in mind that the money you put down is non-refundable. If you don’t manage to find cheaper insurance within the specified period, you won’t be able to get your money back. Some companies will offer you a “no-obligation“ quote where you won’t be charged anything to receive an estimate. If the company finds a cheaper car insurance policy for you, they will charge you the difference. If the company is charging you anything at all, you’re very likely dealing with a salesperson, so you should proceed with caution.
Co-Operative Insurance
Co-Operative car insurance works differently from other types of coverage. Instead of paying a monthly premium, you pay a single upfront fee that covers you for several years. This type of car insurance for young adults is most often used by those starting a business. Cooperative car insurance is not the same as other types of insurance because you are not underwriting the risk. Instead, you are paying a one-time fee to cover your insurance needs. In some states, this is referred to as a “surety bond“.
The best auto insurance for young adults overview
| Company | Best for | Discounts |
|---|---|---|
| Liberty Mutual | Customer service | Bundle discount, environment friendly car, good student, military, safe driver, safety features, and more |
| Progressive | Flexibility | Multi-policy, multi-car, safe driver, good student, and more |
| Allstate | Discounts | Safe driver, defensive driver, multi-car, switch & save, bundles, and more |
| Savvy | Easy application | Discounts vary by insurer and are factored into your quote |
| State Farm | Fast claims | Safe driver, multi-car, student, and more |
| Metromile | Pay-per-mile insurance | low mile, safe driver |
| USAA | Military members | Multi policy, military, safe driver |
| Geico | College students | Safety, defensive driver, military, accident free, good driver, and more |
Tips to Help You Find the Right Car Insurance
When you’re looking for the right car insurance policy for you, there are a few things that you need to keep in mind. First, you will want to make sure that you are insuring the right vehicle. You need to know the make and model, as well as any modifications that have been made. You’ll also want to make sure that you’re getting the right amount of coverage. The best way to do this is to consider your financial situation and create a budget that includes room for car insurance. Another way to make sure that you’re getting the best deal is to shop around. There are several online tools that can help you compare rates from several different insurance providers easily and quickly.
Conclusion
When you’re young, it can be easy to forget about things like car insurance. However, if you don’t have coverage, you could face serious financial repercussions in the event of an accident or theft. Keeping your car insurance needs at the forefront of your mind can help you to stay protected against the repercussions of accidents and thefts caused by others.
