How Much Is Car Insurance for 24-Year-Olds?
Last Updated on September 22, 2023
As a 24-year-old driver, you pay higher car insurance premiums than most adults. The average 24-year-old driver, according to our research, pays around $2,238 per year for car insurance.
Some 24-year-old drivers have a clean driving record and eight years of safe driving experience. Others have multiple at-fault accidents, speeding tickets, and other incidents. Because of these factors, you could pay significantly more or less for car insurance as a 24-year-old.
Keep reading to find out everything you need about the cost of car insurance for a 24-year-old driver in the United States.
Table of Contents:
- The Average Auto Insurance Cost for a 24-Year-Old
- Factors Impacting the Price of Car Insurance for 24-Year-Old Drivers
- Best Car Insurance Companies for 24-Year-Olds
- How to Save Money on Car Insurance as a 24-Year-Old Driver
The Average Auto Insurance Cost for a 24-Year-Old
The average American adult pays around $1,450 per year for full coverage car insurance. Full coverage car insurance includes liability coverage, collision coverage, and comprehensive coverage. Depending on your state, it could also include uninsured motorist coverage, medical payments coverage, and other required coverages.
In comparison, the average 24-year-old driver pays $2,238 per year for that same full coverage car insurance.
As a 24-year-old, you’re still considered a higher-risk driver to insure than an average adult. You may have eight years of driving experience (assuming you got your license at 16). Statistically, however, you’re still more likely to cause an accident than the average adult.
To calculate the average car insurance premiums for a 24-year-old, we created multiple driver profiles with different accident records and years of driving experience. Then, we contacted dozens of insurers in all 50 states. After crunching the numbers, we determined the average 24-year-old driver pays $2,238 per year for full coverage car insurance.
Factors Impacting the Price of Car Insurance for 24-Year-Old Drivers
As a 24-year-old, you could pay as much as $3,500 per year for full coverage car insurance in certain states. Or, you could pay less than $1,700 per year in other states. 24-year-olds with a clean driving record may find even cheaper rates, while 24-year-olds with multiple incidents could struggle to find any affordable options.
Here are some of the most important factors impacting the cost of car insurance for a 24-year-old driver:
Driving History: At 24, you may have eight years of clean driving experience with zero accidents, speeding tickets, citations, or other incidents. Insurers love to see a clean driving record. You could save hundreds of dollars per year – or even more than $1,000 per year – as a 24-year-old with a clean driving record compared to a driver with one or more incidents. In fact, 24-year-olds with just a single DUI or at-fault accident may need to work with specialty, high-risk insurers to get coverage.
Years of Driving Experience: Did you get your license the day you turned 16? You have more years of driving experience than someone who got their license at 21 or 22. Insurers consider the number of years you’ve been driving when calculating rates. When you’re 24, this difference can significantly impact risk. As you get older, this difference has less impact on car insurance.
Annual Mileage: Do you drive to work every day? Do you work from home? Do you regularly take long road trips? Insurers consider your annual mileage when calculating insurance premiums. The average American drives 14,500 miles per year. If you drive significantly less, you could save hundreds per year on car insurance as a 24-year-old driver. In fact, if you drive fewer than 6,000 miles per year, it may be worth checking pay-per-use car insurance or other low-mileage insurance options.
Coverage Options: Some 24-year-old drivers save money by buying a minimum liability insurance policy. This policy lets them drive legally but provides limited protection for themselves or other vehicles. Other drivers splurge on policies with high limits and maximum protection. A minimum liability policy could cost under $1,200 per year for a 24-year-old driver, while a standard full coverage car insurance policy costs over $2,238 per year.
State Insurance Laws: Different states have different insurance premiums. Some states use a no-fault insurance system, which tends to cause higher insurance premiums. Other states have lower liability limits and looser insurance requirements, leading to cheaper premiums. State insurance laws are why a 24-year-old driver in Michigan pays over $3,200 per year for full coverage car insurance while a 24-year-old driver in Idaho may pay under $1,600 per year.
ZIP Code: Insurers consider your ZIP code when calculating premiums. Where is your car parked most nights of the week? Does your ZIP code have high rates of theft or accidents? Do you live in an area with high traffic density or population density? Someone living in a high-crime area who parks their car on the street may pay more than someone who lives in a safer area and keeps their car in a locked garage.
Vehicle Make & Model: 24-year-old drivers are relatively risky to insure. 24-year-old drivers behind the wheel of a sportscar are particularly risky to insure. If you drive a minivan, you’ll generally pay cheaper insurance premiums than someone who drives a Corvette. Different vehicles also have different safety ratings, crash ratings, blind spots, and accident rates, all of which contribute to risk. Insurers consider your make and model when calculating insurance premiums for all ages.
Actual Cash Value of Vehicle: When you buy car insurance as a 24-year-old driver, your insurer is agreeing to cover the full value of your vehicle up to its actual cash value. This is the maximum amount the insurer can give you for your vehicle after an accident. If your vehicle is worth $5,000, you’ll pay cheaper insurance premiums than someone with a vehicle worth $25,000.
Best Car Insurance Companies for 24-Year-Olds
Some car insurance companies consistently rose to the top of our rankings as being the best insurers for 24-year-old drivers.
As mentioned above, some insurance companies welcome younger drivers to their insurance pool, while others charge relatively high premiums.
According to our research, some of the best insurance companies for 24-year-old drivers include:
How to Save Money on Car Insurance as a 24-Year-Old Driver
24-year-old drivers pay relatively high rates for car insurance. However, there are proven ways to save money as a 24-year-old driver.
Some of the best ways to save money on car insurance as a 24-year-old driver include:
Bundle insurance policies. Bundling multiple car insurance policies together can save money. If you live at the same address as someone, you could bundle multiple insurance policies together – regardless of whether they’re a roommate, partner, or family member.
Take advantage of professional group or alumni discounts. If you are a member of an alumni organization or a professional group, you could save money on car insurance. Many groups partner with major insurers in the United States to save members money.
Shop around every 12 months. As a 24-year-old, your insurance needs and risk factors are regularly changing. Shop around every 12 months to ensure you choose the best car insurance policy for your unique needs and budget.
Improve your credit score. Insurers consider credit scores when calculating premiums—as a 24-year-old, improving your credit today can help you in many ways in the future. 24-year-old drivers with a low credit score could pay particularly high rates for car insurance.
Look for good student or full-time student discounts. You could qualify for additional car insurance discounts if you’re a full-time student. For example, many insurers offer good grade discounts to full-time students who meet specific grade point average requirements.
Drop full coverage on older vehicles. If you drive an older vehicle, full coverage car insurance may not be worth it. Consider dropping to a liability-only policy to save money.
Be patient. Most insurers start to lower rates sharply after age 25. Statistically, drivers under 25 are much more likely to cause an accident. After your 25th birthday and beyond, you should notice increasingly cheaper insurance premiums.
Final Word – Car Insurance for 24-Year-Olds
24-year-old drivers in the United States pay $2,238 annually for full coverage car insurance.
As you get older, car insurance premiums continue to drop – especially if you maintain a clean driving record.
Compare car insurance quotes regularly to ensure you’re getting the best car insurance at the cheapest rates as a 24-year-old driver.
