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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
What Is The Cheapest Car Insurance Company
Written by: Daniel Robinson Written by: Daniel Robinson Writer Daniel is a writer for the Guides team and has written for many automotive news sites and marketing firms in the US, UK and Australia specializing in car finance and car care topics . Daniel is the Ghizi team’s authority on auto insurance, loans, warranty options, auto repairs and more.
Auto Insurance Guide
Edited by Rashawn Mitchner Edited by Rashawn Mitchner Executive Editor Rashawn Mitchner is an editor on the Guides team with over 10 years of personal finance and insurance experience.
Finding cheap car insurance at age 21 can be difficult. Monthly and annual insurance premiums tend to be expensive because younger drivers pose a greater risk to insurance companies. In this guide team article, we review 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 are committed to providing reliable information to help you make the best possible decision about insuring your vehicle. Because consumers rely on us to provide them with objective and accurate information, we have created a comprehensive rating system to formulate the ranking of the best insurance companies. We collected data on dozens of auto insurance providers to rank companies on a wide range of evaluation factors. After 800 hours of research, the final result was an overall rating for each provider, with the insurance companies that received the most points at the top of the list.
Best Cheap Car Insurance For Teens In 2023
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 percent more expensive than the average 35-year-old driver, which is $1,785 a year, or about $149 a month. Car insurance rates are usually 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 premium, especially as a teenager or young adult. For example, young men have a disproportionately higher accident rate, causing them to pay more for coverage than young women. However, some states do not allow insurance companies to use gender when calculating premiums.
Compared to older drivers, 21-year-old drivers 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.
According to the AAA Foundation for Traffic Safety, drivers between the ages of 20 and 24 were 74 percent more likely to be involved in a crash in 2015 than drivers in their 30s. Below you can see the accident rate for each age group.
Best & Cheapest Car Insurance Quotes In Louisiana (2023)
Risky drivers pay higher rates on average, and young drivers usually fall into this category. Below you can see how the average cost by age correlates with the failure 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 members of the military, 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 on the price of car insurance for 21 year olds.
*Auto insurance estimates are based on full coverage policies with $50,000 per person, $100,000 per accident, $50,000 property damage per accident and $500 deductibles for collision coverage and comprehensive coverage.
How Much Is Car Insurance?
Location is a factor that affects how much you pay for car insurance, and rates can vary greatly from state to state. Below are the cheapest auto insurance companies in each state for comprehensive coverage for 21 year olds. By our estimates, USAA and Geico are the cheapest providers in many states.
While 21-year-olds pay a national average of $232 a month, drivers in some states pay much less. For example, insurance in North Carolina averages $129 per month for the age group.
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 auto insurance for 21-year-olds are Geico, USAA, State Farm, Nationwide Insurance, and Auto Owners Insurance. When comparing insurance companies, our team considers cost, reputation, coverage, availability and customer experience. We found these companies to be affordable on average for young drivers.
Which Company Has Cheap Car Insurance?
Geico is our top pick for the best car insurance for 21-year-olds. Its car insurance rates for 21-year-olds are 34% cheaper than the market average for that age group. Geico also offers a 15% discount for students and up to 22% discount for those with five years of accident-free driving.
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 didn’t call 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.
Not only does USAA have low fares for 21-year-olds, but it’s also known for its reliable customer service. The company holds an A+ rating from the BBB and received the highest score in nearly every region of the country in the J.D. study. Power 2022 USA Car Insurance Study ℠ .
Cheapest Auto Insurance In Los Angeles
State Farm is another national provider that offers affordable auto insurance premiums to 21-year-old drivers. Our estimates show that State Farm’s average rates are about 17 percent cheaper than the national average for this age group.
State Farm also offers discounts for younger 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, a app-based driving course for under 25 drivers. .
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 offer discounts of up to 40% based on a person’s driving habits, tracking acceleration, braking, night driving and more. The second option, SmartMiles®, is a pay-per-mile insurance program that can help people who don’t drive very often save money.
Nationwide has a strong reputation in the industry and has received an A+ financial strength rating from AM Best and an A+ rating from the BBB.
Shopping For Auto Insurance
Another affordable insurance company for 21 year olds is Auto Owners. Our estimates show that 21-year-olds pay around 26% less than the national average with car owners. The company offers a good student discount of up to 20% and a discount for students who don’t have 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, 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 coverage for personal injury liability and property damage liability. But make sure you can handle any costs that the minimum coverage won’t pay if you’re at fault in an accident.
You can lower your payments by increasing your deductible, which is the amount you pay out of pocket if you file a claim. But make sure you can afford the deductible.
Down Payment Car Insurance
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 renewed. The cheapest companies for teenage drivers aren’t necessarily the cheapest for drivers in their 20s, so it’s worth checking 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 record 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 car insurance for 21-year-olds above, you can see that State Farm, Geico, and Auto-Owners offer different discounts for good students.
Compare quotes online and find the right discounts for your situation. You can also work with an insurance agent to make sure you find all the discounts that apply.
New Car Insurance
Another way to save money for 21 year old drivers