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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.
Who Has The Best Rates For Car Insurance
Author: Daniel Robinson Written by: Daniel Robinson Author Daniel is a team mentoring writer and has contributed to numerous automotive news sites and the US, UK. and has written for marketing firms in Australia, specializing in car finance and car care topics. Danielle is a leading team authority on auto insurance, loans, warranty options, auto services and more.
Best Car Insurance Rates For Young Drivers: Tips And Recommendations
Edited by: Rashawn Mitchner, Edited by: Rashawn Mitchner Managing Editor Rashawn Mitchner is a mentoring team editor with over 10 years of experience covering personal finance and insurance topics.
Finding cheap car insurance at the age of 21 can be difficult. Monthly and annual premiums are expensive because younger drivers pose more risk to insurance companies. In this article, our guide team ranks the best car insurance for 21 year olds and shows you how to get affordable rates.
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The Guide team is committed to providing reliable information to help you make the best possible decision about your vehicle insurance. Because consumers rely on us to provide objective and accurate information, we’ve created a comprehensive rating system to compile our rankings of the best car insurance companies. We collected data from dozens of auto insurance providers to rank companies on a wide range of rating factors. After 800 hours of research, the final result was an overall ranking for each provider, with the insurance companies with the highest points at the top of the list.
Best Car Insurance Companies Of October 2023
According to our rate estimates, 21-year-olds pay an average of $2,786 a year, or $232 a month, for full coverage car insurance. This is about 56% more expensive than the average for 35-year-old drivers, at $1,785 per year, or about $149 per month. In general, 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 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 high accident rate, which causes 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 higher rates for this age group.
According to the AAA Foundation for Traffic Safety, in 2015 drivers aged between 20 and 24 were 74% more likely to be involved in a crash than drivers aged 30. Below, you can see the crash rates for each age group.
How To Get The Cheapest Car Insurance Quotes
High-risk drivers pay higher rates on average, and young drivers typically fall into this category. You can see below how the average cost by age relates to the crash data above.
The cheapest car insurance for 21-year-olds is USAA, which offers an average rate 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, at an average 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 car insurance costs for 21-year-olds.
*Car insurance estimates are based on a full coverage policy with a deductible of $50,000 per person bodily injury, $100,000 per accident bodily injury, $50,000 per property damage accident and collision coverage, and a $500 deductible for comprehensive coverage.
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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. In our estimation, 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. For example, insurance in North Carolina is $129 per month for that age group.
Due to population density or insurance regulations, some states are more expensive than others for 21 year olds. Michigan, Connecticut and Massachusetts topped 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 price, reputation, coverage, availability and customer experience. We found these companies to be affordable for the average young adult driver.
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Geico is our top pick for the best car insurance for 21 year olds. Its 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 driven 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 around 42% below 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 active in the military, a veteran, or have a parent who is a USAA member.
USAA not only has low rates for under 21s but is also known for reliable customer service. The company has an A+ rating from the BBB and J.D. Power 2022 U.S. The Auto Insurance Study ℠ scored the highest in nearly every area of the country.
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State Farm is another national provider that offers affordable car insurance premiums for 21 year old drivers. Our estimates show that State Farm’s average rates are about 17% lower 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. Young drivers can also save money with State Farm’s Steer Clear® program, a course of -app-based driving for drivers under 25 years old.
On average, 21-year-old drivers save around 23% across the country 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 by tracking acceleration, braking, night driving and more. Another option, SmartMiles®, is a pay-per-mile insurance program that can help people who don’t drive save money.
A+ financial strength rating from AM Best and A+ rating from BBB has a good reputation in the industry nationwide.
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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 with car owners. The company offers good student discounts of up to 20% and discounts for students who don’t go to school and leave their cars at home. However, car owners are only available in 26 states.
Fortunately, age is not 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 deductibles, compare providers, keep a clean driving record and look for discounts.
To save money, you can reduce the amount covered by options such as comprehensive and collision insurance. You can also drop full coverage and get only the minimum levels of coverage for bodily injury liability and property damage liability. However, make sure you can handle any costs that your minimum coverage does not cover if you are at fault for the accident.
You can lower your payment by increasing your deductible, 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 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 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 sure ways to get higher rates, and 21-year-old drivers already pay more than average. A clean driving history will keep your rates as low as possible.
Not all companies offer the same discount 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, Geico, and Auto-Owners offer different discount amounts 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 the applicable discounts.
Best Car Insurance Companies Of October 2023
Another way for 21 year old drivers to save money