Best Car Insurance In California For Young Adults

Anyone can find automobile insurance to be pricey. But if you're a young adult under 25, it is especially true. This is due to the fact that many auto insurance companies base your premium—also known as your cost of insurance—on your age and the length of time you've been driving. 

However, there are other factors at play in addition to your age. For instance, will you receive your own coverage or will you be added to your parents' policy? Your premium may also be influenced by elements including the brand and type of your automobile, how many miles you drive, your gender identity, credit score, and ZIP code. Shopping around and comparing quotes is crucial if you want to save money on vehicle insurance because each company has its own method for weighting this information to determine your price.

According to your demands, CNBC Select has ranked the best car insurance providers for young adults to aid in your quest.

Best car insurance companies for young adults

• Best overall: State Farm 
• Best for discounts: Geico
• Best for personalization: Nationwide 
• Best for customer satisfaction: Auto-Owners
• Best for military members and veterans: USAA 

State Farm is a popular option for most customers because it provides some of the most competitive full-coverage premiums for young people and has a high J.D. Power customer satisfaction rating. State Farm also provides student discounts and the Steer Clear programme, which enables new drivers to save money by enrolling in a safety course.

According to the National Association of Insurance Commissioners (NAIC), State Farm is one of the biggest insurance providers in the country and is available in all 50 states. State Farm is renowned for giving its policyholders a rock-solid sense of security; AM Best, which assesses insurance firms' financial stability and capacity to pay claims, earned it a superior rating of A++. Additionally, State Farm provides a wide range of insurance coverage options, such as renter's and homeowner's insurance, which may enable you to combine policies and save money. 

A 20-year-old driver's average yearly premium is $2,735.

Geico distinguishes out for how many young driver discounts it offers. There are 16 discounts available, which result in lower rates for a variety of activities and behaviours, such as safe driving, completing a defensive driving course, insuring multiple vehicles, and earning high marks in school. Even participation in a fraternity, sorority, or honour society may entitle you to a discount from Geico.

In terms of JD Power's national customer satisfaction ratings, Geico trails State Farm by only a few points and received a higher A++ rating from AM Best. 

A 20-year-old driver's average yearly premium is $2,686.

Nationwide typically charges younger drivers greater prices than some of its rivals. However, it offers a variety of choices for customers to customise their policies. Roadside assistance, accident forgiveness, and a disappearing deductible are available extras. The company provides a variety of discounts, including those through the usage-based programme SmartRide, which encourages safe driving. Bundling insurance products with others of the same kind can also result in savings.

Except for Alaska, Louisiana, and Massachusetts, all 50 states and the District of Columbia have coverage available. Nationwide received a good customer satisfaction rating from JD Power and an A+ from AM Best.

A 20-year-old driver's average yearly premium is $3,493.

Auto Owners Young drivers looking for auto insurance can choose from reasonable prices from Auto-Owners, which has a high rating for customer satisfaction. Auto-Owners obtained a superior A++ rating from AM Best in addition to having a higher customer satisfaction score than rival Geico, according to JD Power ratings. 

This firm offers more than just auto insurance, allowing you to combine plans, but you won't be able to get a quotation without working with an agent. Additionally, the business provides 12 discounts, including three just for students. 

A 20-year-old driver's average yearly premium is $2,679.

USSA It can be a good idea to start your search for auto insurance with USAA if you are one of the many Americans who are eligible for it. The business claims to have some of the best ratings for both client happiness and financial stability, offering some of the lowest rates accessible.

Members of the armed forces, whether they are currently serving or have retired, as well as their wives, children, and family members, are eligible to join USAA. Members may also be passed down through the generations.

A 20-year-old driver's average yearly premium is $2,426.

Which auto insurance provider offers the best rates for young drivers?

There isn't a single auto insurance provider that will offer the best rates for all teen drivers. You'll need to compare prices if you want to get the greatest offer. Obtain estimates from various insurance providers and evaluate them. Remember that not always the lowest premium is the best. Instead, search for the lowest premium first, then the maximum coverage limits. 

Does credit score impact the cost of auto insurance?

The cost of your auto insurance is frequently influenced by your credit score. However, as a young adult, it can be challenging because you haven't had the opportunity to establish a lengthy credit history and achieve the higher scores of more seasoned credit users. 

You may improve your credit for the future in a number of ways. By reporting monthly payments for things like phone, internet, and streaming service bills to your credit report, a service like *Experian BoostTM can help you improve your credit score.  

Only four states prohibit auto insurance providers from factoring credit scores into price calculations: California, Hawaii, Massachusetts, and Michigan. 

Is auto insurance less expensive once you turn 25? 

Age generally results in lower auto insurance premiums. Along with your driving history, other factors that affect the cost of auto insurance include your marital status and property ownership. Additionally, it can be more expensive because many younger drivers might not have yet attained such milestones.

Keep in mind that vehicle insurance companies cannot consider your age in the calculation at all in several states, such as Massachusetts and Hawaii.

Best Car Insurance In California For Young Adults