Best Car Insurance For New Drivers Under 25 – Affiliate Content: This content was created by a Dow Jones business partner and independently researched and written. The links in this article may earn us a commission. Learn more
The cheapest car insurance for a 21-year-old can be found at USAA for $134 per month or $1,609 per year for full coverage policies
Best Car Insurance For New Drivers Under 25
By: Daniel Robinson By: Daniel Robinson Writer Daniel is a team writer for Guides and has written for numerous automotive news sites and marketing firms in the US, UK and Australia specializing in the auto finance and car care topics. Danielle is the Guides team’s authority on auto insurance, loans, warranty options, auto service and more.
Cheapest Car Insurance New Jersey: Rates And Coverage (2023)
Editor: Rashon Mitchner Editor: Rashon Mitchner Executive Editor Rashon Mitchner is an editor on the Guides team with over 10 years of personal finance and insurance experience.
Finding cheap car insurance as a 21-year-old can be difficult. Monthly and annual insurance premiums tend to be expensive because young drivers pose a greater risk to insurance companies. In this article, we at the Guides Team rank the best car insurance for 21 year olds and show you how to get affordable rates.
Cheapest car insurance for young people Car insurance discounts Best car insurance companies Average cost of car insurance
The Guides team is committed to providing reliable information to help you make the best decision about your car insurance. Because consumers rely on us to provide objective and accurate information, we’ve created a comprehensive rating system to formulate our ranking of the best car insurance companies. We collected data on dozens of auto insurance providers to rate the companies on a number of ranking factors. After 800 hours of research, the final result was an overall rating for each provider, with the top-scoring insurers at the top of the list.
Cheap Car Insurance And Average Costs For 16 Year Olds
According to our estimates, 21-year-olds pay an average of $2,786 per year, or $232 per month, for comprehensive car insurance. That’s about 56% more expensive than the average for 35-year-old drivers, which is $1,785 a year, or about $149 a month. Generally, auto insurance rates for 21-year-olds are much more expensive than for older drivers.
The cost of car insurance for a 21-year-old driver is determined based on several factors, including driving history, location and credit score. Gender also plays a role in calculating your premiums, especially if you are a teenager or young adult. For example, young men have a disproportionately higher accident rate, causing them to pay more for insurance than young women. However, some states do not allow insurance companies to use gender when calculating insurance premiums.
Compared to older drivers, 21-year-olds have less driving experience and are more likely to be involved in accidents. Auto insurance companies compensate for these risk factors by charging higher rates to this age group.
In 2015, drivers between the ages of 20 and 24 were 74% more likely to be involved in a crash than drivers in their 30s, according to the AAA Foundation for Traffic Safety. Below you can see the accident rate for each age group.
Best Car Insurance Plans For Young Adults Under 25 [[gfc_globals Field=
High-risk drivers pay higher rates on average, and younger drivers typically fall into this category. Below you can see how the average costs by age correlate with the crash data above.
The cheapest car insurance for a 21-year-old is USAA, which offers average rates of $134 per month. However, USAA is only available to members of the military, veterans and their immediate family members. Geico is the cheapest company available to any 21-year-old driver, with average rates of $154 per month. Other companies available include Homeowners Insurance, Erie Insurance, and Nationwide.
The best car insurance for a 21-year-old isn’t necessarily the cheapest, but cheap rates certainly help. Below you can see how 11 popular providers rate car insurance for 21-year-olds.
*Car insurance estimates are based on comprehensive coverage policies with $50,000 personal injury, $100,000 personal injury per accident, $50,000 property damage per accident and a $500 deductible for collision and comprehensive coverage .
The Best Cheap Car Insurance For Students On A Budget
Location is one factor that affects what you pay for car insurance, and rates can vary significantly by state. Below are the cheapest auto insurance companies in each state for comprehensive coverage for 21 year olds. In our estimates, USAA and Geico are the cheapest providers in many states.
While 21-year-olds pay a national average of $232 a month, drivers in some states pay significantly less. For example, insurance in North Carolina averages $129 per month for the age group.
Whether due to population density or insurance regulations, some states are much more expensive than others for 21-year-olds. Michigan, Connecticut and Massachusetts lead the list.
Our top five picks for the best car insurance for 21 year olds are: Geico, USAA, State Farm, Nationwide and Auto-Owners Insurance. When comparing car insurance companies, our team considers cost, reputation, coverage, affordability and customer experience. We found these companies to be on average affordable for young drivers.
Car Rental Under 21 Years Old? Here’s How!
Geico is our top pick overall for the best car insurance for 21 year olds. Car insurance rates for a 21-year-old are about 34% cheaper than the market average for that age group. Geico also offers a 15% discount for a good student and up to 22% discount for those with five years of accident-free driving.
The company has been around since 1936 and has an A+ rating from the Better Business Bureau (BBB).
USAA offers the cheapest car insurance for the average age of 21, with rates about 42% lower than the market average. However, we didn’t call it the best car insurance for 21 year olds because it’s not available to everyone. You can only qualify if you are in the military, are a veteran, or have a parent who is a USAA member.
Not only does USAA have low rates for under 21s, but it’s also known for solid customer service. The company has an A+ rating from the BBB and received the highest score in nearly every region of the country in J.D.’s study. Power 2022 U.S. Auto Insurance Study ℠.
Ranking The Cheapest Cars To Insure In 2023
State Farm is another national provider that offers affordable auto insurance premiums for 21-year-old drivers. Our estimates show that average State Farm rates are about 17% cheaper than the national average for this age group.
State Farm also offers discounts for young drivers, including a generous good student discount of up to 25% for maintaining a B average. Young drivers can also save money with the State Farm Steer Clear® program, an app-based driving course for drivers ages 25 years old.
On average, 21-year-old drivers save about 23% with Nationwide compared to the national average. One thing that makes Nationwide unique is that it offers two usage-based telematics insurance options. SmartRide® can provide discounts of up to 40% based on a person’s driving habits by tracking acceleration, braking, night driving and more. Another option, SmartMiles®, is a pay-per-mile insurance program that can help people who rarely drive save money.
Nationwide has a good reputation in the industry, having received an A+ financial strength rating from AM Best and an A+ rating from the BBB.
Cheap Classic Car Insurance For Drivers Under 25
Another affordable car insurance company for 21 year olds is Auto Owners. Our estimates show that 21-year-olds pay about 26% less with car owners than the national average. The company offers a good student discount of up to 20% and a discount for students who are at school and leave their cars at home. However, Auto-Owners is only available in 26 states.
Fortunately, age isn’t the only thing that determines the cost of car insurance. There are a few things you can do to find cheap quotes on the best car insurance for a 21 year old. We recommend thinking about your level of cover and deductible amount, comparing providers, keeping driving records and finding discounts.
To save money, you can reduce the amounts covered by options such as comprehensive and collision insurance. You can also opt out of full coverage and simply get a minimum level of liability coverage for bodily injury and property damage. However, make sure you can pay for any costs that your minimum insurance won’t cover if you’re at fault in an accident.
You can lower your payments by increasing your deductible, which is the amount you pay out of pocket when you file a claim. However, be sure that you can afford the deductible.
Adding Your Child To Your Car Insurance
One of the easiest ways to get the best rate is to compare companies. We recommend that you compare rates every time your car insurance policy is renewed. The cheapest companies for teenage drivers aren’t necessarily the cheapest for drivers under 20, so it’s best to check rates as you get older.
Getting a speeding ticket or causing an accident are surefire ways to get higher rates, and 21-year-old drivers are already paying more than average. A clean driving history keeps your rates as low as possible.
Not all companies offer the same discounts or the same savings on similar discounts. In our picks for the best car insurance for 21-year-olds above, you can see that State Farm, Geico, and Auto-Owners offer different discount amounts for good students.
Compare quotes online to find the right discount for your situation. You may also want to work with an insurance agent to make sure you find all the applicable discounts.
Best Car Insurance Companies Of 2023
Another way to save for 21-year-old drivers
Best insurance for under 25 drivers, cheap car insurance new drivers under 25, cheap insurance for new drivers under 25, car insurance for new drivers over 25, insurance for new drivers under 25, car insurance for drivers under 25, best car insurance for drivers under 25, cheap car insurance for drivers under 25, best car insurance for new drivers over 25, classic car insurance for drivers under 25, car insurance for new drivers under 25, insurance for drivers under 25