Car Insurance Considerations for Young Drivers

By Caroline Ballard

Car insurance for young adults and teenagers is historically more expensive than it is for those over the age of 30, according to an article published on

There are a few car insurance companies that typically have the best rates for both teenage drivers and slightly older drivers in their early 20s, wrote Lena Borrelli in the article published February 17, 2020.

Borrelli emphasized that while there are insurance companies that typically have the best rates for these types of drivers, sometimes the insurance companies with the best rates for drivers in their early 20s and drivers in their teens differ.

Borrelli reported that Geico, State Farm, and Progressive typically have the best car insurance rates for teenage drivers, but Nationwide replaces Progressive on that list for the best car insurance rates for drivers who are in their early 20s.

According to the article, teenage boys’ and young men’s car insurance costs more than teenage girls and young women’s insurance. There is a 15% increase in the price of car insurance for 18-year-old boys than 18-year-old girls’ policies. There is still a 6% increase in the price of car insurance for 25-year-old men and 25-year-old women.

Borrelli concluded that while the price of car insurance for young people can be intimidating, there are effective policies and rates from insurances companies that have relatively low prices for young adults and teenagers.

Lisette Cushing, an economics student at the University of Georgia said, “The cost of my car insurance has most definitely gone up since I got my license at 16. I have been in multiple fender benders and received a super speeder. That made my car insurance go up drastically.”

Cushing acknowledged her parents were not happy with the cost of her car insurance going up, however they understood the circumstances that resulted in the price increase.

Given her personal experience, Cushing said the price of car insurance costing significantly more for teenagers makes a lot of sense.

Joan Koonce, a professor and personal finance planning specialist who works in UGA’s department of financial planning in the College of Family and Consumer Sciences said, “As you get older, you get more mature and wiser in the different types of decisions that you make. When you’re younger there are sometimes you don’t make decisions as well as you should… I think it does make sense that as you mature, you pay less.”

Koonce offered advice for how individuals should pick the best insurance plan for their needs. For example, she said having one insurance company for multiple policies allows for discounted rates within that company.

Koonce also advised, “each year to look back at those policies and see if those policies are still the best policies for you because circumstances change over time.”

Koonce, Cushing, and Borrelli all agreed, given their personal experiences and research, that it is especially important for drivers below the age of 30  to have a car insurance policy given this age group’s high risk for accidents.

Caroline Ballard is a journalism student at the University of Georgia.

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