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The cheapest car insurance for twenty one year olds can be found at USAA for $134 per month or $1,609 per year for Full Rental Policies.
Lowest Car Insurance Rates For New Drivers
Written by: Daniel Robinson, Written by: Daniel Robinson Author Daniel is a columnist for the Lead Group and has written for numerous automotive news sites and advertising firms across the U.S. Daniel is the leading authority on auto insurance, loans, warranty options, auto services and more.
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Edited by: Rashawn Mitchner, edited by: Rashawn Mitchner Managing Editor Rashawn Mitchner is a team editor with over 10 years of experience covering finance 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 more risk to insurance companies. In this article, we at The Guides Group rank the best car insurance for 21-year-olds and show you how to find affordable rates.
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The Guide Group is committed to providing reliable information to help you make the best decision about your car insurance. Because customers depend on us to provide objective and accurate information, we have developed an extensive rating system to compile our ranking of car insurance companies. We collected data from many car insurance providers to rate the companies on a wide range of factors on the list. After 800 hours of research, the final result was the overall rating of each provider, with insurers scoring the highest in the list.
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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 35-year-old driver, which is $1,785 a year or about $149 a month. Generally, car insurance rates are more expensive for 21-year-olds than for older drivers.
Car insurance costs for 21-year-old drivers are determined based on many factors, including driving history, location and credit score. Gender also plays a role in calculating your monthly payments, especially as a teenager or young adult. For example, young men have higher accident rates, which causes them to pay more money compared to 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 accidents. Car insurance companies compensate for these risk factors by charging this age group higher rates.
According to the AAA Foundation for Motor Vehicle Safety, drivers between the ages of 20 and 24 were 74% more likely to be involved in an accident than drivers in their 30s in 2015. Below, you can see crash rates for each age group.
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High-risk drivers pay higher rates on average, and younger drivers fall into this category. You can see below how the average cost by age compares to the fall data above.
The most affordable 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 for any driver over the age of 21, with rates averaging $154 per month. Other affordable companies include Auto-Owners Insurance, Erie Insurance and Nationwide.
The best car insurance for 21 year olds is not necessary, but low rates help. Below, you can see how 11 popular providers look at car insurance costs for 21-year-olds.
*Auto insurance estimates are based on comprehensive policies with $50,000 bodily injury per accident, $100,000 bodily injury per accident, $50,000 property damage per accident and $500 deductible from collision insurance and general coverage.
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Location is one factor that affects what you pay for car insurance, and rates can vary greatly by state. Below are the cheapest car insurance companies in each state to fully cover 21 year olds. In our estimation, USAA and Geico are the lowest-cost carriers in most countries.
While 21-year-olds pay $232 a month on average nationwide, drivers in other states pay less. Insurance in North Carolina costs $129 per month for that age group, for example.
Whether it’s because of population density or insurance policies, some states are more expensive for 21-year-olds than others. Michigan, Connecticut and Massachusetts top the list.
Our top five choices for the best car insurance for people 21 years old are Geico, USAA, State Farm, Nationwide and Auto-Owners Insurance. When comparing car insurance companies, our team looks at cost, reputation, coverage, availability and customer experience. We’ve found that these companies are accessible to young, average-aged drivers.
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Geico is our top pick for the best car insurance for 21 year olds. Their car insurance rates for 21-year-olds are about 34% lower than the market average for the age group. Geico also offers a generous 15% discount for students and a discount of up to 22% for those who have driven five years without accidents.
The company has been around since 1936 and has an A+ rating from the Business Bureau (BBB).
USAA offers the cheapest car insurance for people who are 21 years old on average, with rates about 42% below 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 may only be eligible if you are enrolled in the military, are a veteran or have a parent who is a USAA member.
USAA not only has the lowest rates for 21-year-olds but is also known for its reliable customer service. The company has an A+ rating from the BBB and has received top scores in nearly every region of the country from J.D. Power 2022 U.S. Auto Insurance Study ℠ .
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State Farm is another national provider that offers affordable auto insurance rates for drivers 21 years of age. Our estimates show that the average State Farm rates are 17% lower than the national average for this age group.
State Farm also offers discounts for young drivers, including a good student discount of up to 25% for maintaining a B average. Young drivers can save money with the Steer Clear® Farm Program, an app-based driving program for drivers under the age of 25.
On average, 21-year-old drivers save about 23% more Statewide compared to the national average. Another thing that makes Nationwide unique is that it offers two ways to use telematics insurance. SmartRide® can offer discounts of up to 40% based on a person’s driving performance by tracking speed, 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.
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Another affordable car insurance company for 21 year olds is car owners. Our estimates show that 21-year-olds pay about 26% less than the national average for auto owners. The company offers a great student discount of up to 20% and a discount for students who are out of school and leave their cars at home. However, Auto Owners is only available in 26 countries.
Thankfully, age isn’t the only factor that determines car insurance rates. There are a few things you can do to get the best car insurance rates for 21 year olds. We recommend thinking about your level of coverage and deductible, comparing providers, keeping a clean driving record and getting discounts.
To save money, you can reduce premiums with options such as comprehensive and collision insurance. You may forego full coverage and only receive lesser levels of coverage for bodily injury and property damage liability. However, make sure you can handle any costs if your minimum insurance will not pay if you are at fault in an accident.
You can reduce your payments by increasing your premium, which is the amount you pay out of pocket if you file a claim. Make sure you can afford the deductible, though.
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One of the easiest ways to find the best rate is to compare companies. We recommend comparing rates each time your car insurance policy is up for renewal. The cheapest companies for teenage drivers are not the cheapest for drivers in their 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 discounts. In our selection of the best car insurance for 21-year-olds above, you can see State Farm, Geico and Auto Owners offer various discounts for good students.
Compare quotes online to find the best discounts for your situation. You can work with an insurance agent to make sure you get all the right discounts.
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Another way for 21-year-old drivers to save money