Car Insurance For New Drivers Under 25

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The cheapest car insurance for 21-year-olds can be found in the US for $134 per month or $1,609 per year for full coverage policies

Car Insurance For New Drivers Under 25

Written by: Daniel Robinson, Written by: Daniel Robinson Writer Daniel is a guide team writer and has written for numerous automotive news sites and marketing firms across the US, UK and Australia, specializing in automotive finance and car care topics. Daniel is the team’s authority on auto insurance guides, loans, warranty options, auto services and more.

Best Way To Get Affordable Car Insurance For Drivers Under 25 (2023)

Edited by: Rashaun Michner, Edited by: Rashaun Michner Managing Editor Rashaun Michner is a guide team editor with over 10 years of experience covering personal finance and insurance topics.

Finding cheap car insurance as a 21-year-old can be difficult. Monthly and annual premiums tend to be expensive because younger drivers pose a greater risk to insurance companies. In this article, we at the guide team rank the best car insurance for 21 year olds and show you how to get affordable rates.

Cheapest Car Insurance for Young Adults Car Insurance Discounts Best Car Insurance Companies Average Cost of Car Insurance

The team of guides is dedicated to providing reliable information to help you make the best possible decision about your vehicle insurance. Because consumers rely on us to provide objective and accurate information, we have created a comprehensive rating system to formulate our ranking of the best car insurance companies. We’ve collected data on dozens of auto insurance providers to rate companies on a wide range of ranking factors. After 800 hours of research, the end result was an overall rating for each provider, with the insurers who scored the most points at the top of the list.

Best Car Insurance For 25 Year Olds

According to our rate estimates, 21-year-olds pay an average of $2,786 a year or $232 a 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. Typically, car insurance rates are much more expensive for 21-year-olds than for older drivers.

Car insurance costs for 21-year-old drivers are determined based on several factors, including driving history, location and credit score. Gender also plays a role in calculating your premiums, especially as a teenager or young adult. For example, young men have disproportionately higher accident rates, causing them to pay more for coverage 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 crashes. Auto insurance companies compensate for these risk factors by charging higher rates to this age group.

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

Car Insurance For Young Drivers Under 25 In Victoria

High-risk drivers pay higher rates on average, and young drivers typically fall into this category. Below you can see how the average cost by age correlates with the drop data above.

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

The best car insurance for 21 year olds isn’t necessarily the cheapest, but cheap rates definitely help. Below, you can see how 11 popular providers are ranked by the cost of car insurance for 21-year-olds.

*Car 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 coverage and comprehensive coverage.

Cheapest Car Insurance In Illinois: Costs And Companies (2023)

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 full coverage for 21 year olds. In our estimates, USAA and Geico are the cheapest providers in many states.

While 21-year-olds pay $232 a month on average nationally, drivers in some states pay far less. Insurance in North Carolina averages $129 per month for that age group, for example.

Whether due to population density or insurance regulations, some states are much more expensive 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 car insurance companies, our team considers cost, reputation, coverage, affordability and customer experience. We found that these companies are affordable on average for young adult drivers.

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Geico is our top pick overall for the best auto insurance for 21-year-olds. Its car insurance rates for 21-year-olds are about 34% cheaper than the market average for the age group. Geico also offers a 15% discount for a good student and a discount of up to 22% for those who have driven five years without an accident.

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 21-year-olds on average, with rates about 42% below the market average. However, we didn’t name it as the best car insurance for 21-year-olds because it’s not affordable for everyone. You can only qualify if you are enrolled in the military, are a veteran, or have a parent who is a USAA member.

Not only does USAA have low rates for 21-year-olds, it’s also known for its reliable customer service. The company has an A+ rating from the BBB and earned the highest rating in nearly every region of the country in the J.D. U.S. Auto Insurance Study ℠. Power 2022.

Average Cost Of Car Insurance For 18 Year Olds

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

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

On average, 21-year-old drivers save about 23% nationally compared to the national average. One thing that makes Nationwide unique is that it offers two usage-based telematics insurance options. SmartRide® can award discounts of up to 40% based on a person’s driving habits by tracking acceleration, braking, night driving and more. The other option, SmartMiles®, is a pay-per-mile insurance program that can help people who don’t drive very often save money.

It has a solid industry reputation nationally, receiving an A+ financial strength rating from AM Best and an A+ rating from BBB.

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Another affordable car insurance company for 21 year olds is Auto Owners. Our estimates show that 21-year-olds pay around 26% less than the national average at Car Owners. The company offers a good student discount of up to 20% and a discount for students who are not in 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 car insurance rates. There are a few things you can do to find cheap rates on the best car insurance for 21 year olds. We recommend that you think about your level of coverage and deductible amount, compare providers, keep a clean driving record and find discounts.

To save money, you can reduce the amounts covered by options such as comprehensive insurance and collision insurance. You can also opt out of full coverage and only get minimum levels of bodily injury liability and property damage liability coverage. However, make sure you handle any costs that your minimum coverage won’t pay if you are at fault for an accident.

You can lower your payments by raising your deductible, which is the amount you pay out of pocket if you file a claim. However, make sure you can afford the deductible.

Car Insurance For New Drivers: What You Need To Know

One of the easiest ways to get a better rate is to compare companies. We recommend that you compare rates each time your car insurance policy is up for renewal. The cheapest companies for teenage drivers are not necessarily the cheapest for drivers in their early 20s, so it pays to check prices as you get older.

Getting a speeding ticket or causing an accident are surefire ways to get higher rates, and 21-year-old drivers already pay 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 auto insurance for 21-year-olds above, you can see that State Farm, Geico, and Auto-Owners offer different discount amounts for good students.

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

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Another way for 21-year-old drivers to save money

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