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The cheapest car insurance for 21 year olds can be found at USAA for $134 per year. per month or $1,609 per year for full coverage
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Finding cheap car insurance as a 21-year-old can be difficult. Monthly and annual premiums tend to be expensive because younger drivers are a greater risk to insurance companies. In this article, we at Auto Guides Team have the best car insurance for 21 year olds and show you how to get affordable rates.
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Why Trust Our Team The Auto Guides Team is dedicated to providing reliable information to help you make the best possible decision about insuring your vehicle. Our researchers, writers and editors are dedicated to researching suppliers and analyzing customer feedback and insights so you can choose with confidence.
According to our rate estimate, the average 21-year-old pays $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 hour. month. Generally, car insurance rates are much more expensive for 21-year-olds than they are 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 when you are 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 to calculate insurance premiums.
Compared to older drivers, 21-year-olds have less driving experience and are more likely to be involved in accidents. Auto insurance companies compensate for these risk factors by charging higher rates for this age group.
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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 are crash rates for each age group.
High-risk drivers pay higher rates on average, and young drivers tend to fall into this category. Below you can see how average costs by age stack up against the breakdown data above.
The cheapest car insurance for 21-year-olds is USAA, which offers average rates of $134 per year. 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 how 11 popular providers rank car insurance costs for 21-year-olds.
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*Auto insurance estimate is based on comprehensive policies with $50,000 per person personal injury, $100,000 personal injury per accident, $50,000 property damage per accident and $500 deductible for collision coverage and comprehensive coverage.
Location is one of the factors that affect how much you pay for car insurance, and prices can vary greatly from state to state. Below are the cheapest full coverage car insurance companies for 21 year olds. In our estimation, USAA and Geico are the cheapest carriers in many states.
While 21-year-olds pay an average of $232 per month nationwide, drivers in some states pay significantly less. The average insurance in North Carolina is $129 per month for the 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.
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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, availability and customer experience. We found these companies to be affordable on average for young adult drivers.
Geico is our overall top pick for the best auto insurance for 21 year olds. Their car insurance rates for 21 year olds are around 34% cheaper than the market average for the age group. Geico also offers a good 15% discount for students and a discount of up to 22% for those who have been driving for 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 the average 21-year-old, with rates about 42% below 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 can only qualify if you are in the military, a veteran, or have a parent who is a USAA member.
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Not only does USAA have low fares for 21-year-olds, but it’s also known for reliable customer service. The company has an A+ rating from the BBB and earned the highest score in nearly every region of the country in J.D. Power 2022 U.S. Auto Insurance Study ℠ .
State Farm is another national provider that offers affordable auto insurance premiums for 21-year-old drivers. Our estimates show that average State Farm prices are about 17% cheaper than the national average for this age group.
State Farm also offers discounts for young drivers, including a generous 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% with Nationwide compared to the national average. One thing that makes Nationwide unique is that it offers two telematics insurance options based on usage. 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 pay-per-mile insurance program that helps infrequent drivers save money.
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Nationwide has a solid reputation in the industry, earning an A+ financial strength rating from AM Best and an A+ rating from the BBB.
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 for car owners. The company offers a good student discount of up to 20% and discounts for students who are away and leave their car at home. However, Car Owners is only available in 26 states.
Fortunately, age is not the only factor that determines car insurance rates. There are a few things you can do to get cheap rates on the best car insurance for 21 year olds. We recommend that you consider your level of cover and excess, compare providers, maintain 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 waive full coverage and just get minimum levels of coverage for personal injury and property damage liability. However, make sure you can handle any costs that your minimum cover won’t cover if you’re at fault in an accident.
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You can lower your payments by increasing your deductible, which is how much you pay out of pocket if you make a claim. However, be sure you can afford the deductible.
One of the easiest ways to get a better price is to compare companies. We recommend comparing prices every time you need to renew your car insurance. The cheapest companies for teenage drivers are not necessarily the cheapest 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 surefire ways to rack up higher rates, and 21-year-old drivers are already paying 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 picks for the best auto insurance for 21-year-olds above, you’ll see that State Farm, Geico, and Auto owners offer different discount amounts for good students.
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Compare offers online to find the right discounts for your situation. You can also work with an insurance agent to make sure you get all applicable discounts.
Another way for 21-year-old drivers to save money is to stay on their parents’ policy. This is usually only possible if the young driver has the same fixed address as his parents.
In this article, we’ve outlined the cheapest car insurance rates for 21-year-olds and break down the costs by state. Our top five recommendations for the best auto insurance for 21-year-old drivers are Geico, USAA, State Farm, Nationwide and Auto-Owners Insurance. Even with our top picks, we recommend that you compare car insurance quotes from multiple companies to get the best deal.
Yes, car insurance generally drops at age 21. Between the ages of 19 and 21, prices drop by around 25%. The average cost of car insurance coverage falls every year between the ages of 16 and 30, with the biggest drop being in the teens. Middle-aged drivers tend to get the best rates.
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The cost of car insurance for 21-year-old drivers is high because providers consider them to be the riskiest drivers.
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