We’ll look at some of the finest auto insurance for new drivers under the age of 25 in this post.
Given the dismal odds of young drivers being involved in an accident, the more coverage the better, even more so if your adolescent or college student is driving a relatively new automobile on a lease or loan.
However, because the majority of states need very limited coverages, you can occasionally save money by insuring a car and its driver for the minimum required protection and quantity.
The Best Car Insurance for Under-25 Drivers
Continue reading to learn more about the best auto insurance for new drivers under the age of 25;
Erie Insurance Company
Erie Insurance, named for its city in Pennsylvania, has been providing automobile insurance since 1925. It is the first on our list of the top auto insurance companies for new drivers under 25, which we will cover in further detail below.
Erie Insurance has a long history in the insurance sector and a good reputation.
Additionally, Erie offers some of the lowest premiums in the country for young drivers, about 60% less than the national average.
The primary disadvantage of Erie Insurance is its scarcity. Additionally, Erie Insurance does not enable clients to file vehicle claims online; instead, they must contact their local agent or call the corporate support center’s toll-free number.
Customers, on the other hand, appear to be content with the insurance claims procedure as a whole, even if it appears a little antiquated to some.
Some college students drive everyday from home, while others leave their automobiles parked on campus for weeks at a time.
Regardless of your college experience, Allstate will keep you safe while you pursue your degree.
Among the numerous savings available are several that will appeal primarily to parents of adolescent drivers or young drivers who are paying for their insurance coverage.
Erie has a complaint index of 1.10 from the National Association of Insurance Commissioners (NAIC), which indicates that it receives somewhat more complaints than the typical company in the market.
The Allstate car insurance business comes in second place on our list of the top car insurance companies for new drivers under the age of 25.
Allstate is the country’s fourth largest vehicle insurance provider, with plans available in all 50 states. With over 15,000 Allstate agents nationwide, you’re sure to locate an Allstate representative near your house.
Allstate requires enrollment via a local agent, but if you want an entirely online experience, you might look into Insurance, an Allstate subsidiary.
Allstate’s savings and widespread availability make it an attractive option for a large number of families. Additionally, the organization provides an excellent mobile application and a plethora of internet resources in addition to its wide network of local agents.
Having said that, several sources indicate that Allstate has low customer satisfaction scores in a number of regions across the country.
Additionally, the firm’s typical premiums are slightly higher than those of other rivals on this list, and the company is renowned for rate spikes.
As one of the nation’s leading vehicle insurance carriers, it’s unsurprising that Allstate offers all the coverage you could desire and more.
Along with the standard forms of auto insurance, Allstate also offers roadside assistance with towing, sound system insurance for damaged or stolen after-market systems, and rental vehicle reimbursement.
Additionally, Allstate provides ridesharing insurance, a reference for vintage automobile coverage, and information on Mexican travel insurance for anyone planning to drive across the border.
Allstate has a comprehensive range of discounts. However, we chose them as the “best for college students” since Allstate offers several methods for college students to save.
A Smart Student Discount is available to drivers under the age of 25 who maintain a B- average or GPA of 2.7 or better, attend college at least 100 miles from home without their car, or successfully complete the teenSMART driving education program.
Premiums for the Miles Program are calculated based on the number of miles driven each month. While Allstate offers some competitive pricing and incentives, the firm does not appear to shine as brightly in terms of customer satisfaction as its competitors.
State Farm Insurance
State Farm has evolved into one of the nation’s largest insurance firms over the last century, insuring more automobiles and houses than any other carrier with 84 million policies in the United States. State Farm has the highest ratings from AM Best.
State Farm requires agents to sell State Farm only. This implies that agents will not be able to sell you vehicle insurance from different providers, but will instead work only with State Farm and will be conversant with their products.
Its network of local agents takes pleasure in offering the highest level of customer service imaginable.
State Farm is an illustrious and reputable insurance firm, one of the oldest in the United States. It provides a variety of discounts to young drivers, particularly students, regardless of whether they live at home or are away at school.
While Indicate Farm does provide relatively affordable vehicle insurance prices, the majority of reviews and rating sites state that State Farm’s customer service is at best average. State Farm is a national insurance company with locations in all 50 states and the District of Columbia.
Unlike other businesses that operate only via a corporate headquarters, which is becoming more prevalent in this digital age, State Farm operates through a decentralized approach, more akin to a network of regional agents committed to their local communities.
State Farm provides all of the necessary and requested coverage for each motorist in the United States. State Farm also appears to have a soft spot for young driving pupils. Among the breaks it provides are the following:
A 25% discount is available to students in high school and college who maintain satisfactory grades. Student Away Discount is available to families with a college student who drives only while they are at home.
Anyone who successfully completes an authorized driver safety course qualifies for a defensive driving discount.
Additionally, State Farm provides a Steer Clear discount of up to 15% to drivers under the age of 25 who keep a clean driving record for three consecutive years with no traffic offenses.
Many car insurance customers adore State Farm because it is one of the few major auto insurance carriers that continues to deliver great customer care entirely via local agents.
Progressive Insurance has evolved into a household name since 1937, mostly due to its tongue-in-cheek advertisements starring cheery agent Flo and, more recently, her geeky sidekick Jamie.
Behind the humor, though, is a strong corporation that places a premium on safe driving.
Progressive Insurance Company is licensed to do business in all 50 states and the District of Columbia. However, unlike State Farm, it does not operate through a proprietary network of agents.
Although some independent insurance brokers in their communities provide Progressive products in addition to those of other carriers, the majority of Progressive clients handle their policy online.
Progressive, like the majority of other vehicle insurance providers, offers standard liability and collision/comprehensive coverage, as well as optional coverages such as uninsured motorist coverage and personal injury protection.
While several businesses give discounts to cautious drivers, Progressive offers one of the finest. Individuals who spend three years without an accident or a violation might save up to 30% on their annual rates. The majority of other businesses merely provide discounts of 10%–20%.
USAA Automobile Insurance
The USAA car insurance is the final option that we will explore in this post on the best car insurance for new drivers under the age of 25.
USAA automobile insurance is unquestionably the best option for current or former military personnel and their families, owing to its inexpensive costs and superior customer care. USAA is ranked as the top carrier in the country by J.D. Power.
USAA offers competitive rates and exceptional customer service. Additionally, the organization offers a complete website and smartphone application for tech-savvy clientele.
USAA, on the other hand, has a limited qualifying requirement due to the fact that it is only offered to military families. Additionally, the firm lacks local agents, leaving the sole choice to utilize the website or contact USAA’s toll-free line, which is available 24 hours a day.
Although USAA is available throughout the country, membership is restricted to military families.
Enrollment is restricted to active-duty, retired, and honorably separated military personnel, ROTC and other commissioning program officer candidates, and adult children of USAA members.
In addition to the statutory minimum auto insurance coverage, USAA provides ridesharing coverage for Lyft and Uber drivers, as well as 24-hour roadside assistance and towing. The last two might be especially advantageous for young drivers who are prone to accidents.
USAA provides substantial savings to all of its clients. However, when it comes to benefits tailored to young drivers, USAA offers the following:
• Discounts for families with children under the age of 25
• A Driver Training Discount for anyone under the age of 21 who successfully complete a training course
• Discounts for students in high school and college who maintain a B average
Even though USAA only insures a limited number of drivers, the firm routinely provides some of the industry’s top customer service.
USAA routinely earns top marks from J.D. Power’s annual auto insurance study.
4 Additionally, many USAA clients remain with the company for life.
There Are Numerous Types of Coverage Available
Now that you’ve learned about five of the finest car insurance policies for new drivers under 25, let’s examine the many forms of vehicle insurance coverage available.
Injuries to persons and damage to property When you are the at-fault driver, you are responsible for the other party’s medical treatment and damages.
Collision Coverage to cover damage to your own car regardless of who is at fault.
Comprehensive Coverage protects you against non-accident-related losses.
Personal Injury Protection/Medical Payments in the event of an accident to pay your medical expenditures.
Uninsured Motorist Coverage protects you and your family from financial hardship if the at-fault motorist lacks adequate coverage.
Guaranteed Asset Protection (GAP) Coverage to bridge the difference between the lease or loan balance on your vehicle and the calculated value in the event of a total loss.