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The cheapest car insurance for 21 year olds can be found at USAA for $134 per month or $1,609 per year for full coverage policies
Lowest Car Insurance Rates For Young Drivers
Written by: Daniel Robinson, Written by: Daniel Robinson Writer Daniel is a Guides team editor and has written for numerous automotive news sites and marketing companies in the US, UK and Australia, specializing in topics relating to automobile financing and maintenance. Daniel is a Guides team authority on auto insurance, loans, warranty options, auto services and more.
Cheap Car Insurance For Young Drivers
Edited by: Rashawn Mitchner, Edited by: Rashawn Mitchner Editor-in-Chief Rashawn Mitchner is a Guides staff editor with over 10 years of experience in the personal finance and insurance fields.
Finding cheap car insurance at 21 can be difficult. Monthly and annual premiums tend to be expensive because younger drivers pose more risk to insurance companies. In this article, the Guides team ranks the best car insurance for 21 year olds and shows 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 Guides team is committed to providing reliable information to help you make the best possible decision regarding 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 collected data on dozens of car insurance providers to score companies on a wide range of ranking factors. After 800 hours of research, the end result was an overall score for each provider, with insurers with the most points at the top of the list.
Auto Insurance For Young Adults (2023)
According to our rate estimates, 21-year-olds pay an average of $2,786 per year or $232 per month for comprehensive auto insurance. That’s about 56% more expensive than the average for 35-year-old drivers, which is $1,785 per year, or about $149 per 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, leading them to 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 accidents. Car insurance companies compensate for these risk factors by charging this age group higher rates.
According to the AAA Foundation for Highway Safety, drivers ages 20 to 24 were 74 percent more likely to crash than drivers in their 30s in 2015. Below, you can see the crash rates for each age group.
How Much Is Car Insurance For Teens?
High-risk drivers pay higher rates on average, and young drivers generally fall into this category. You can see below how average costs by age correlate with the accident data above.
The cheapest car insurance for 21-year-olds is USAA, which has 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 21-year-old driver, with average rates of $154 per month. Other affordable 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 certainly help. Below you can see 11 popular providers ranked by the cost of car insurance for 21 year olds.
*Auto insurance estimates are based on comprehensive insurance policies with $50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage per accident and a $500 deductible for collision coverage and comprehensive coverage.
How To Save Money On Teen Car Insurance
Location is one of the factors that affects the price of your car insurance, and rates can vary greatly by state. Below you’ll find the cheapest car insurance companies in each state offering comprehensive coverage for 21-year-olds. By our estimates, USAA and Geico are the least expensive providers in many states.
While 21-year-olds pay an average of $232 per month nationwide, drivers in some states pay much less. Insurance in North Carolina costs an average of $129 per month for the age group, for example.
Whether due to population density or insurance regulations, some states are much more expensive than others for 21-year-olds. Michigan, Connecticut and Massachusetts top 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, availability and customer experience. We found that these companies were, on average, affordable for young adult drivers.
Best Car Insurance For Teens
Geico is our top overall 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 this age group. Geico also offers a 15% student voucher discount and up to 22% off for those who have driven for five years without an accident.
The company has been in business since 1936 and is rated A+ by 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 haven’t named it the best car insurance for 21 year olds because it’s not available to everyone. You may only qualify if you are enlisted in the military, are a veteran, or have a parent who is a USAA member.
USAA not only offers low fares for 21-year-olds, but is also known for its reliable customer service. The company holds an A+ rating from the BBB and earned the highest score in nearly every region nationwide in the J.D. Power 2022 U.S. Auto Insurance Study℠.
Best Car Insurance By Age
State Farm is another national provider that offers affordable car insurance premiums for drivers 21 years old. 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 young drivers, including a generous good student discount of up to 25% for maintaining a B average. Young drivers can also save money through the Steer Clear program ® from State Farm, 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 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. The other option, SmartMiles®, is a per-mile insurance program that can help people who don’t drive very often save money.
Nationwide has a good reputation in the industry, earning an A+ financial strength rating from AM Best and an A+ rating from the BBB.
Cheapest Car Insurance For New Drivers
Another affordable car insurance company for 21 year olds is Auto Owners. Our estimates show that 21-year-olds pay about 26% less than the national average to car owners. The company offers a student discount of up to 20% and a discount for students who are absent from school and leave their car at home. However, Auto-Owners is only available in 26 states.
Fortunately, age isn’t the only factor that determines car insurance rates. There are several things you can do to find great rates on the best car insurance for 21 year olds. We recommend that you consider your level of cover and excess amount, compare providers, maintain a clean driving record and find discounts.
To save money, you may want to lower the amounts covered by options like comprehensive and collision insurance. You can also forgo comprehensive coverage and simply get minimum coverage levels for bodily injury and property damage liability. However, make sure you can afford any costs that your minimum coverage won’t cover if you are at fault in an accident.
You can reduce your payments by increasing your deductible, which is the amount you pay out of pocket if you file a claim. However, make sure you can afford the excess.
Cheap Car Insurance For 19 Year Olds
One of the easiest ways to get a better rate is to compare companies. We recommend that you compare rates each time you renew your car insurance. The cheapest companies for teen drivers aren’t necessarily the cheapest for drivers in their early 20s, so it’s worth checking 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 already pay more than average. A clean driving history keeps your rates as low as possible.
Not all companies offer the same discounts or savings on similar discounts. In our selection above of the best car insurance for 21 year olds, you can see that State Farm, Geico, and Auto-Owners offer different discount amounts for good students.
Compare quotes online to find the discounts that suit your situation. You can also work with an insurance agent to make sure you find all applicable discounts.
What Are The Cheapest Cars To Insure? (2023)
Another way for 21-year-old drivers to save money
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