Best Car Insurance Rates For Young Drivers

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You can find the Cheapest Auto Insurance for 21 Year Olds at USAA for $134 per month or $1,609 per year for Comprehensive Insurance Policies

Best Car Insurance Rates For Young Drivers

Written by: Daniel Robinson, Written by: Daniel Robinson Writer Daniel is a writer on the Guide team and has written for many automotive news sites and marketing companies across the US, UK and Australia, specializing in Auto finance and auto care topics. Daniel is the Guide team’s authority on auto insurance, loans, warranty options, auto service and more.

Best Car Insurance For New Drivers: Best Rates (october 2023)

Edited by: Rashawn Mitchner, Edited by: Rashawn Mitchner Managing Editor Rashawn Mitchner is an editor on the Guides team with more than 10 years of experience covering personal finance and insurance topics.

Finding cheap auto insurance as a 21-year-old can be difficult. Monthly and annual premiums tend to be expensive because younger drivers pose more risk to insurance companies. In this article, we at the Guide Team rank the best auto insurance for 21-year-olds and show you how to get an affordable price.

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The Guide team is committed to providing reliable information to help you make the best possible decisions about insuring your vehicle. Because consumers rely on us to provide objective and accurate information, we’ve created a comprehensive rating system to develop a ranking of the best auto insurance companies. We collected data on dozens of auto insurance providers to rank the companies based on a variety of rating factors. After 800 hours of research, the final result is an overall ranking for each provider, with the insurers scoring the most points at the top of the list.

Compare Car Insurance Quotes (october 2023 Rates)

According to our rate estimates, 21-year-olds pay an average of $2,786 per year or $232 per month for comprehensive auto insurance. This is about 56% more expensive than the average 35-year-old driver, which is $1,785 per year or about $149 per month. Typically, auto insurance prices for 21-year-olds are much more expensive than for older drivers.

The cost of auto 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 insurance premiums, especially as a teenager or young adult. For example, young men have disproportionately higher accident rates, causing them to pay more for insurance than young women. However, some states do not allow insurance companies to use gender in calculating premiums.

Compared with older drivers, 21-year-olds have less driving experience and are more likely to have accidents. Auto insurance companies compensate for these risk factors by charging higher rates for this age group.

According to the AAA Foundation for Traffic Safety, in 2015, drivers between the ages of 20 and 24 were 74% more likely to be in an accident than drivers in their 30s. Below, you can see collision rate in each age group.

Car Insurance Rates By Age And Gender

High-risk drivers pay higher rates on average, and younger drivers often fall into this category. You can see below how the average cost by age correlates with the crash data above.

The cheapest auto insurance for 21-year-olds is USAA, which offers an average price of $134 per month. However, USAA is only open to military personnel, veterans, and their immediate families. Geico is the cheapest company for any 21-year-old driver, with an average price of $154 per month. Other affordable companies include Auto Owners Insurance, Erie Insurance, and Nationwide.

The best auto insurance for 21-year-olds isn’t necessarily the cheapest, but the low price certainly helps. Below, you can see how 11 popular providers rank on the cost of auto insurance for 21-year-olds.

*Automobile insurance estimates are based on full coverage policies with $50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage per accident, and $500 deductible for collision and comprehensive insurance.

Cheapest Car Insurance Companies (october 2023)

Location is one of the factors that affects how much you pay for auto insurance, and rates can vary significantly by state. Here are the cheapest auto insurance companies in each state to provide full coverage for 21-year-olds. According to our estimates, USAA and Geico are the cheapest providers in many states.

While 21-year-olds pay an average of $232 per month nationwide, drivers in some states pay much less. For example, insurance in North Carolina averages $129 per month for this age group.

Whether due to population density or insurance regulations, some states are much more expensive to live for 21-year-olds than others. Michigan, Connecticut and Massachusetts top the list.

Our top five picks for the best auto insurance for 21-year-olds are Geico, USAA, State Farm, Nationwide, and Auto Owners Insurance. When comparing auto insurance companies, our team looks at cost, reputation, coverage, availability and customer experience. We found these companies to have affordable prices on average for young drivers.

Best Car Insurance Companies 2023

Geico is our top pick for the best auto insurance for 21-year-olds. Auto insurance prices for 21-year-olds are about 34% cheaper than the market average for this age group. Geico also offers a 15% discount for good students and up to a 22% discount for those who have been driving for five years without an accident.

The company has been in business since 1936 and has an A+ rating from the Better Business Bureau (BBB).

USAA offers the cheapest auto insurance for the average 21-year-old, with rates about 42% below the market average. However, we wouldn’t call it the best car insurance for 21-year-olds because it’s not for everyone. You may 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 prices for 21-year-olds, it’s also known for its reliable customer service. The company is rated A+ by the BBB and scored top marks in most regions of the country in the J.D. 2022 U.S. Auto Insurance Study. Power ℠ .

Best Car Insurance For Young Drivers In 2023

State Farm is another national provider that offers affordable auto insurance premiums for 21-year-old drivers. Our estimates show State Farm average prices are approximately 17% cheaper than the national average for this age group.

State Farm also offers discounts for younger drivers, including a generous student discount of up to 25% for maintaining a B average. Younger drivers can also save Save money with State Farm’s Steer Clear® program, an app-based driving course for drivers under 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 telecommunications insurance options. SmartRide® can offer 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 infrequent drivers save money.

Nationwide has a good reputation in the industry, receiving an A+ financial strength rating from AM Best and an A+ rating from the BBB.

How To Find Cheap Car Insurance For Teens

Another affordable auto insurance company for 21-year-olds is Auto Owners. Our estimates show 21-year-olds pay about 26% less than the national average with Car Owners. The company offers good student discounts of up to 20% and discounts for students who go away to school and leave their cars at home. However, Car Owner is only available in 26 states.

Luckily, age isn’t the only factor that determines car insurance rates. There are a few things you can do to find cheap rates on the best auto insurance for 21 year olds. We recommend you think about your insurance coverage and deductibles, compare providers, keep a clean driving record and look for discounts.

To save money, you can reduce the amount covered by options like comprehensive and collision insurance. You can also waive full coverage and receive only minimum coverage for bodily injury liability and property damage liability. However, make sure you can handle any costs that your minimum level of insurance won’t cover if you’re at fault in an accident.

You can reduce your payment by increasing your deductible, which is the amount you have to pay out of pocket if you file a claim. However, make sure you can afford the deductible.

Cheapest Car Insurance In Tennessee (october 2023)

One of the easiest ways to get a better price is to compare companies. We recommend comparing rates every time your auto insurance policy is up for renewal. The cheapest companies for teenage drivers aren’t necessarily the cheapest for drivers in their 20s, so it’s worth checking rates as you get older.

Getting pulled over for speeding or causing an accident are surefire ways to get higher rates, and 21-year-old drivers already pay more than the average. A clean driving history will help keep 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 auto insurance for 21-year-olds above, you can see State Farm, Geico and Auto-Owners offer different discounts for good students.

Compare quotes online to find the right discount for your situation. You can also work with your insurance agent to make sure you find all applicable discounts.

Best Car Insurance For High Risk Drivers In 2023

Another way for the 21-year-old driver to save money