Auto Insurance for Young Drivers in 2025: Best Companies and Discount Strategies

•  consistently offers the lowest rates but is only available to military families.

•  and State Farm are the best options for most young drivers, with the lowest average premiums for both teens on a parent’s policy and those with their own policy.

•  and Progressive are strong national options, especially for tech-savvy drivers or those with a few years of experience.

•  and Nationwide stand out for their discounts and telematics programs, which can be especially helpful for young drivers seeking savings.

• Adding a teen to a parent’s policy:

  • Average monthly cost: $416 (full coverage for parent and teen).

  • This is $352/month less than separate policies for each driver.

• • Average monthly cost: $578 (full coverage).

  • Liability-only coverage for a teen averages $253/month.

• • Annual full coverage: $3,301–$5,407.

  • Minimum coverage: $987–$1,658 per year.

•  Most insurers offer discounts for maintaining a B average or higher.

• Safe Driver/Telematics Programs: Usage-based insurance (like Nationwide’s SmartRide or Progressive’s Snapshot) can yield savings for safe driving habits.

•  If the student attends school far from home and doesn’t have regular access to the car.

•  Combine auto with home or renters insurance for additional savings.

• Driver Training/Defensive Driving: Completing an approved course can reduce premiums.

•  Ideal for young drivers who drive infrequently (e.g., Nationwide’s program).

•  Some companies offer discounts for college or alumni association memberships.

•  This is the most cost-effective option for teens and young adults living at home.

•  Always use the correct garaging address; using a parent’s address when you don’t live there is insurance fraud.

•  Rates and discounts change frequently; compare quotes from several insurers.

•  Dropping collision/comprehensive may make sense for older, low-value cars, but only if you can afford to replace the car out-of-pocket1.

Travelers, State Farm, Geico, Progressive, USAA (military), Auto-Owners, and Nationwide are the top auto insurance companies for young drivers in 2025, offering competitive rates and robust discount programs. The best way to save is to remain on a parent’s policy, leverage all applicable discounts (especially for good grades and safe driving), and compare quotes regularly