While it may be less expensive to insure a 22-year-old driver when compared to teenagers, drivers under the age of 25 often still pay more for their coverage. There are several factors considered when looking for cheap car insurance for a 22-year-old, including their driving history and the insurance company they choose. Luckily, there are a few ways you can save money when shopping for insurance policies for this age. Here, we discuss the average insurance rates for 22-year-olds, provide example insurance costs by company, gender, and credit score, and look at ways to save on a 22-year-old’s insurance premium.
What’s the Average Insurance Rate for a 22-Year-Old?
Finding an affordable insurance policy for a 22-year-old may prove challenging, as those in their 20s often pay more for car insurance premiums than older adults. The average cost of coverage for this age is an estimated $2,205 per year or $187.75 per month. This number is 42% higher than the national average for all drivers.
In many cases, the price of a 22-year-old’s insurance is higher based on their limited driving experience and minimal insurance coverage history. Insurance companies may view these factors as a higher risk and increase the driver’s rates to account for that. Other factors that may influence the insurance rate of a person of this age are driving history and the type of car they’re insuring.
Average Insurance Costs for 22-Year-Olds by Insurance Company
The choice of insurance provider can affect how much a 22-year-old pays for their insurance. Some insurance companies offer lower rates than others, so we recommend shopping around when searching for coverage. The following are rates by insurance company for this age:
- Allstate: $1,422 per year or $237 per month
- Farmers: $1,109 per year or $185 per month
- Geico: $812 per year or $135 per month
- USAA: $708 per year or $118 per month
- Liberty Mutual: $1,108 per year or $197 per month
- State Farm: $983 per year or $164 per month
- Nationwide: $1,060 per year or $177 per month
- Progressive: $1,203 per year or $201 per month
Average Insurance Costs for 22-Year-Olds by Credit Score
Another component of insurance rates for 22-year-olds is their credit score. Many people of this age pay less if their credit score is considered exceptional and pay more for very poor credit scores. Here are the average six-month insurance rates for 22-year-olds:
- Very Poor: $1,447 per year
- Fair: $1,159 per year
- Good: $966 per year
- Very Good: $812 per year
- Exceptional: $674 per year
As you can see, your credit score can greatly impact your rates, with a difference of $773 between very poor and exceptional scores. Working on your credit score before seeking insurance is something to consider to keep your insurance premium as low as possible.
Average Insurance Costs for 22-Year-Olds by State
Where a 22-year-old is located geographically can also have an effect on how much they’ll pay for car insurance. Some of the most expensive states for insurance for individuals of this age include:
- Michigan: $2,151 per year
- Louisiana: $1,795 per year
- Florida: $1,644 per year
- Rhode Island: $1,643 per year
- Kentucky: $1,642 per year
Average Insurance Costs for 22-Year-Olds by Vehicle
Another aspect taken into account when insuring a 22-year-old is the type of car they drive. In general, the safer or older the vehicle, the less expensive the premium. Here are the average prices of insurance for 22-year-olds based on their vehicle:
- Van: $844 per year
- Truck: $866 per year
- SUV: $967 per year
- Luxury: $1,045 per year
- Hybrid: $1,055 per year
- Sedan: $1,138 per year
Other Factors That Affect Insurance Rates for 22-Year-Old Drivers
There are a few other key factors that influence auto insurance premiums for people of this age. Some of these factors include:
- Driving history: A person’s driving history can have a significant impact on what they pay for car insurance. Those who have traffic citations or violations, DUIs, or several claims on their driving history often pay more than 22-year-olds who have a clean driving record.
- Driving experience: Your insurance premium may also consider how much driving experience you have. For example, if a 22-year-old began driving at the age of 16, they have six years of driving experience. On the other hand, if a 22-year-old only began driving at the age of 20, they only have two years of experience. Those with more experience may pay less than those with fewer years of experience.
- Gender: Gender can affect the insurance rates of younger drivers. In general, a younger male driver may pay up to $754 more for an annual auto insurance plan than female drivers.
- Coverage: There are several coverage options that come with car insurance plans. Examples of these coverage options include liability coverage, comprehensive coverage, medical payments coverage, and personal injury protection (PIP). The more coverage you opt for, the more you’ll pay for your premium.
How To Save Money When Shopping for Insurance for a 22-Year-Old Driver
There are a few ways that 22-year-olds can save money on their car insurance costs. One way is through college student discounts, which take into account a person’s GPA. Most student discounts require individuals to hold a GPA of 3.0 or higher. You’ll need to provide proof of your GPA to the insurance company to qualify for this discount.
Another way to save money on auto insurance is to maintain a clean driving record. This means not speeding or violating other traffic laws and avoiding car incidents or accidents. Additionally, having a DUI on your record can greatly increase your insurance, so that’s one more reason to avoid drinking and driving.
Additionally, bundling insurance plans can also help you save on your car insurance premium. If you own or rent a home, you can bundle your car insurance premium with your renters or homeowners insurance policy. When you do bundle, you’ll receive a multi-policy discount that can reduce your overall coverage costs.
While car insurance for a 22-year-old may cost more compared to older adults, there are still ways to save money when shopping for insurance at this age. You can inquire more about the average car insurance rates for 22-year-olds and options for saving by speaking with an insurance representative or a car dealership representative.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.