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Cheap car insurance for 21-year-olds can be found at USAA for $134 a month or $1,609 a year for a full coverage policy.
Good Car Insurance Companies For Young Drivers
Written by: Daniel Robinson Written by: Daniel Robinson Author Daniel is a guide team writer and writer for several automotive news sites and marketing firms in the US, UK and Australia specializing in auto finance and car care topics. Danielle is a Guide Team authority on auto insurance, loans, warranty options, auto service and more.
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Edited by: Rashawn Michner Editing by: Rashawn Michner Managing Editor Rashawn Michner is a guide team editor with over 10 years of experience covering personal guide and insurance topics.
Finding cheap car insurance as a 21-year-old can be difficult Monthly and annual premiums tend to be more expensive because younger drivers pose a greater risk to insurance companies. In this article, we at the guide team have rated the best car insurance for 21 year olds and show you how to find the best deal.
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The Guide team is committed to providing reliable information to help you make the best decision about insuring your vehicle Because consumers rely on us to provide objective and accurate information, we’ve created a comprehensive rating system to form our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a variety of ranking factors. After 800 hours of research, the end result was an overall rating for each provider, with insurers scoring the most points.
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According to our rate estimates, 21-year-olds pay an average of $2,786 annually, or $232 per month, for full coverage car insurance. That’s about 56% more expensive than the average for a 35-year-old driver, which is $1,785 a year, or about $149 a month. In general, auto insurance rates are more expensive for 21-year-olds than for older drivers.
Car insurance prices for 21-year-old drivers depend on many factors, including driving history, location and credit score. Gender also plays a role in calculating your premium, especially as a teenager or young adult For example, young men have disproportionately higher accident rates, which makes them pay more for coverage than young women. However, some states do not allow insurance companies to use gender in calculating insurance premiums
Compared to older drivers, 21-year-olds have less driving experience and are more likely to be involved in an accident. Car insurance companies compensate for these risk factors by charging higher rates for this age group
According to the AAA Foundation for Traffic Safety, drivers between the ages of 20 and 24 were involved in 74% more crashes than drivers in their 30s in 2015. Below, you can see the crash rates for each age group.
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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 above crash data
The cheapest car insurance for 21-year-olds is USAA, which pays an average of $134 per month. However, USAA is only available to military members, veterans and their immediate families Geoco is the cheapest company for 21-year-old drivers, with an average rate of $154. Other affordable companies include Auto-Owners Insurance, Erie Insurance and Nationwide.
The best car insurance for 21 year olds isn’t necessarily cheap, but cheap rates certainly help Below, you can see how 11 popular providers rank on car insurance prices for 21-year-olds.
*Car insurance rates are based on full-coverage policies, $50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage per accident and collision coverage, and a $500 deductible for comprehensive coverage.
Average Car Insurance Rates By Age
Location is one of the factors that affects what you pay for car insurance, and rates can vary significantly by state. Below are the cheapest car insurance companies in each state for 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 a month nationwide, drivers in some states pay much less. Insurance in North Carolina averages $129 a month for that age group
Whether due to population density or insurance regulations, some states are more expensive for 21-year-olds than others. Michigan, Connecticut and Massachusetts topped the list
Our top five picks for the best car insurance for 21 year olds are Gioco, USA, State Farm, Nationwide and Auto-Owners Insurance. When comparing car insurance companies, our team considers price, reputation, coverage, availability and customer experience. We found these companies to be affordable for the average young adult driver
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Geoco is our top pick for the best car 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. Geoco also offers a good student discount of 15% and up to 22% for those who have had no accidents for five years.
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 21-year-old, with prices 42% lower than the market average. However, we have not named it the best car insurance for 21 year olds because it is not available to everyone You can only qualify if you are enlisted in the military, a veteran or have a parent who is a USAA member.
USAA is known not only for its low rates for 21-year-olds but also for its reliable customer service The company holds an A+ rating from BBB and J.D. Power’s 2022 U.S. Auto insurance scored the highest in nearly every region of the country in the study
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State Farm is another national provider of affordable car insurance premiums for drivers 21 and older. Our estimates show that State Farm’s average rate is about 17% cheaper than the national average for this age group.
State Farm offers great student discounts of up to 25% to keep the average even for younger drivers. 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% more nationwide than the national average. One thing Nationwide does is that it offers two usage-based telematics 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 mile-per-mile insurance program that saves money for people who don’t drive often.
It has a good reputation in the industry nationwide, having achieved 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 with auto-owners pay about 26% less than the national average. The company offers good student discounts of up to 20% and discounts for students who are away at school and leave their cars at home. However, Auto-Owners is only available in 26 states
Thankfully, the car isn’t the only thing that determines car insurance rates There are a few things to look for cheap rates on the best car insurance for 21 year olds We recommend thinking about your coverage level and deductible amount, comparing providers, keeping a clean driving record and looking for discounts.
To save money, you can reduce the amount covered by options like comprehensive and collision insurance You can also forgo full coverage and get only the minimum coverage level of bodily injury liability and property damage liability. However, make sure you can handle any costs that your minimum coverage won’t pay if you’re at fault for an accident.
You can lower your payment by increasing your deductible, which is the amount you pay out of pocket if you file a claim. Be sure, though, that you can get a discounted price
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The easiest way to get a good rate is to compare companies We recommend comparing rates each time you renew your car insurance policy Cheaper companies for teenage drivers are not cheaper for drivers in their early 20s, so it pays to check rates as you get older.
Getting a speeding ticket or causing an accident are sure 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 the same discount In our picks for the best car insurance for 21-year-olds above, you can see that State Farm, Geoco and Auto-Owners offer a variety of discounts for good students.
Compare quotes online to find the right discount for your situation You can also work with an insurance agent to make sure you get all applicable discounts
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Another way for drivers over 21 to save money
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