# Car insurance for young drivers: ages 18 to 25

> Car insurance for young drivers aged 18 to 25: why it costs more, staying on a parent's policy, student discounts and college students away from home.

Canonical page: https://statecover-guide.com/drivers/young-drivers/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Car insurance for young drivers stays expensive after the teen years because crash risk falls slowly: IIHS counts 5.1 fatal crash involvements per 100 million miles for drivers in their twenties, against 1.9 for drivers 30 to 59. Staying on a parent's policy is often the cheapest choice while you still live at home or are away at school, and good-student, away-at-school and telematics discounts can cut the price further. Rates usually drop gradually with each year of clean driving.

## Key facts

| Fact | Detail |
|---|---|
| Fatal crash involvements per 100 million miles, drivers 20–29 (2022) | 5.1 (males 7.0, females 3.2) |
| Same rate for drivers 30–59 | 1.9 |
| Age under which drivers tend to pay more (NAIC) | 25 |
| Fatally injured drivers aged 18–20 over the adult legal alcohol limit (2024) | 36% |
| Male drivers' crash death rate peaks at age | 19 (13.7 per 100,000 people in 2024) |
| Usually cheapest setup while at home or in college | Staying listed on a parent's household policy |

## Why car insurance for young drivers costs more

Insurers set prices from the claims they expect to pay. Young adults have more experience than teens, but their crash rates are still well above those of drivers in their thirties, forties and fifties. The pattern is clear in IIHS data on fatal crash involvements per mile driven:

| Driver age | Fatal crash involvements per 100 million miles (2022) |
|---|---|
| 16–19 | 7.5 |
| 20–29 | 5.1 |
| 30–59 | 1.9 |
| 60–69 | 1.6 |

Several risk factors peak in the late teens and twenties:

- **Alcohol.** Among drivers killed in crashes in 2024, 36% of those aged 18 to 20 and 47% of those aged 21 to 30 were at or above the alcohol limit that applies to adult drivers in most states, according to IIHS. A DUI conviction makes insurance far more expensive; see [car insurance after a DUI](https://statecover-guide.com/drivers/after-a-dui/).
- **Speed.** CDC found that 35% of male drivers and 18% of female drivers aged 15 to 20 in fatal crashes in 2020 were speeding.
- **Gender.** Young men crash more. The death rate for male drivers peaks at 19, IIHS reports, and among drivers in their twenties IIHS counts 7.0 fatal crash involvements per 100 million miles for men against 3.2 for women.

The NAIC's consumer guide lists people under 25, males and single people among the groups that tend to have more accidents and so tend to pay more. The NAIC notes that some states restrict or ban the use of credit in pricing. Young adults often have short credit histories, which can matter where insurers use [credit-based insurance scores](https://statecover-guide.com/costs/credit-score/). For the full picture, see [how age affects car insurance](https://statecover-guide.com/costs/age/).

## How prices change between 18 and 25

There is rarely a single birthday when prices drop sharply. Instead, three things tend to bring the price down over time:

1. **Years of licensed driving.** Insurers usually look at the last 3 to 5 years of your driving record. Each clean year helps.
2. **Age bands.** Insurers group drivers by age, and the bands change at different ages from one company to the next. Ask each insurer when your next age-based change applies.
3. **Life changes.** Moving to a lower-cost ZIP code, driving fewer miles or, where allowed, getting married can change your rating. See [how your ZIP code affects price](https://statecover-guide.com/costs/zip-code/) and [mileage and premiums](https://statecover-guide.com/costs/mileage/).

A ticket or at-fault crash works the other way and can wipe out years of gradual savings. Read [car insurance after an accident](https://statecover-guide.com/drivers/after-an-accident/) to see what usually happens at renewal.

## Staying on a parent's policy

Staying on a parent's policy is often the cheapest option for young adults who still live at home or are away at school. Eligibility usually turns on where you live and who owns the car rather than on a specific birthday, but each insurer sets its own rules.

| Your situation | Usual approach | Things to check |
|---|---|---|
| Living at home, driving a family car | Stay listed on the parent's policy | Insurers may require every licensed household member on the policy |
| Away at college, no car at school | Stay on the parent's policy, possibly with an away-at-school discount | Tell the insurer your school address |
| Away at college with a car | Stay on the parent's policy if the car is still titled to a parent | The car's garaging address and state rules may change the price |
| Moved out, car titled in your name | Usually need your own policy | Some insurers allow limited exceptions; ask |
| Moved out, no car, borrow cars sometimes | Consider a [non-owner policy](https://statecover-guide.com/drivers/non-owner/) | It covers liability only, not the borrowed car |

The Texas Department of Insurance notes that some companies require you to keep young drivers on the policy even while they are away at school. If you leave a young driver off when the insurer requires them to be listed, a claim can be denied.

Staying on a parent's policy has a downside: a young driver's crash or ticket affects the whole household's premium at renewal. Some families decide that a young adult with a car of their own should buy their own policy once they have built up a clean record.

## Student discounts

Insurers set their own discounts, so names and amounts vary. Common options for students and young adults:

- **Good student discount.** Many insurers offer a discount for good grades or test scores, and some insurers continue it for full-time college students. Ask what grade average and proof the insurer needs.
- **Away-at-school (resident student) discount.** If a student lives at school without a car, some insurers lower the price, since the student drives the family car only during visits. TDI notes that a child at school without a car may qualify for a discount.
- **Driver training or defensive driving.** Some insurers give a discount for an approved course. See [defensive driving courses](https://statecover-guide.com/saving/defensive-driving-courses/).
- **Telematics.** Usage-based programs that reward smooth, low-mileage driving can suit students who drive rarely. Read our [telematics guide](https://statecover-guide.com/costs/telematics/).
- **Bundling.** If you rent, buying renters insurance from the same company may earn a multi-policy discount. See [bundling](https://statecover-guide.com/saving/bundling/).

Our [discounts guide](https://statecover-guide.com/saving/discounts/) covers the full list.

## College students away from home

The NAIC suggests asking your agent directly: "If my child is away at school, is s/he covered?" The answer depends on the policy and on where the student and the car are.

**Without a car at school.** The student usually stays covered as a household driver when home on breaks. Tell the insurer the student's school address, because TDI notes that a child at school without a car may qualify for a discount.

**With a car at school.** Insurers price a car by where it is usually kept, so a car moved from a quiet suburb to a busy city campus can cost more to insure, or less in the opposite case. TDI says rates depend on where a car is usually kept and advises telling the insurer where the student lives for school. It also notes that taking a car to school in another state generally does not require a policy change unless the car is registered in that state.

**School in another state.** TDI suggests checking the other state's minimum liability requirements, because they may differ from your home state's. Compare them with our [state minimums tool](https://statecover-guide.com/tools/state-minimums/). If the student moves for good, registers the car or gets a license in the new state, they will usually need a policy that meets that state's rules; see [car insurance for new residents](https://statecover-guide.com/drivers/new-residents/).

## Buying your own policy for the first time

If you need your own policy, compare quotes from several insurers for the same coverage and deductibles. Have your license, the car's details and your driving history ready. Our guide to [car insurance for new drivers](https://statecover-guide.com/drivers/new-drivers/) walks through what insurers ask and how to buy a first policy step by step.

Example: if one insurer quotes a policy with a $500 deductible and another quotes a $1,000 deductible, the second price will look lower but you would pay $500 more out of pocket after a collision. Compare quotes only when the limits and deductibles match.

## Ways young drivers can lower the price

- Keep a clean record: avoiding tickets and at-fault crashes can matter more than any single discount.
- Choose a car that is cheap to repair and has good safety ratings.
- Raise collision and comprehensive [deductibles](https://statecover-guide.com/saving/deductible/) if you can cover the higher out-of-pocket cost.
- Drop collision and comprehensive on an older, low-value car once it is paid off, after weighing the risk.
- Pay the premium in full if your insurer charges installment fees; see [payment options](https://statecover-guide.com/saving/payment-options/).
- Shop again at every renewal, because prices for the same driver can differ between companies; see [shopping at renewal](https://statecover-guide.com/saving/shopping-at-renewal/).

## FAQ

### Does car insurance go down at 25?

Often it goes down gradually through the early twenties rather than all at once at 25. The NAIC lists drivers under 25 as a group that tends to pay more, but each insurer sets its own age bands. A clean driving record usually matters as much as age.

### How long can I stay on my parents' car insurance?

Insurers generally base this on where you live and who owns the car rather than on a set age. If you live at home or are away at school, you can usually stay on the policy. Once you move out and own your own car, insurers generally expect you to have your own policy. Ask your insurer for its rule.

### Does a college student need to be on their parents' car insurance?

If the student still lives at home during breaks and drives the family cars, insurers generally want them listed. Some companies require it even while the student is away at school, possibly with an away-at-school discount if they don't take a car.

### Is car insurance cheaper if I'm a full-time student?

It can be. Some insurers offer good-student discounts to full-time students with strong grades, and away-at-school discounts to students who leave the car at home. The amounts vary by insurer.

### Do I need my own policy if the car is in my name?

Usually, yes, if you also live away from your parents. Insurers often want the person who owns a car to be named on the policy that covers it. If you still live at home, some insurers allow the car on a parent's policy; ask before you title the car in your name.

### Why is my car insurance so high at 21?

Drivers in their early twenties still have higher crash rates than older drivers, short driving records and often short credit histories. All three push the price up. Gender, the car, the ZIP code and the coverage you pick matter too.

## Sources

- [NAIC, A Consumer's Guide to Auto Insurance](https://content.naic.org/sites/default/files/publication-aut-pp-consumer-auto.pdf) — groups that tend to pay more and the question about children away at school
- [Texas Department of Insurance, Auto insurance guide](https://www.tdi.texas.gov/pubs/consumer/cb020.html) — keeping young drivers on the policy, school address, other states' requirements
- [Texas Department of Insurance, Adding a teen driver to your insurance policy?](https://tdi.texas.gov/tips/adding-teen-driver-to-insurance-policy.html) — away-at-school discounts and cars at out-of-state schools
- [CDC, Risk Factors for Teen Drivers](https://www.cdc.gov/teen-drivers/risk-factors/index.html) — speeding among drivers aged 15 to 20
- [IIHS-HLDI, Fatality Facts 2024: Teenagers](https://www.iihs.org/research-areas/fatality-statistics/detail/teenagers), as of June 1, 2026