If you’re looking for cheap car insurance for 21-year-old drivers, you’re in the right place. Discover how to find an affordable policy that doesn’t break the bank.
Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy.
Once you turn 21, it’s easier to find affordable auto insurance than it was in your younger years. That’s because the older you get, generally the less expensive your auto policy becomes. This is good news for those looking for cheap car insurance for 21-year-old drivers.
To get the best price, shop around, compare rates from different insurers, and take advantage of discounts. Many insurers offer discounts for good students or for drivers who have successfully completed a defensive driving course.
While you’ll still pay more for car insurance than you will when you’re older than 21, you can find an auto insurance policy that meets your needs and budget as a 21-year-old.
Below are the average annual premiums at some popular carriers in the United States for a single 21-year-old male policyholder.
| Company | Average Annual Premium |
|---|---|
| USAA | 2,642 |
| Nationwide | 3,139 |
| Auto-Owners Insurance | 3,383 |
| Geico | 3,816 |
| State Farm | 4,057 |
| Travelers | 4,058 |
| Progressive | 4,078 |
| Farmers | 5,813 |
| Allstate | 5,977 |
Annual rates for a male driving a 2023 RAV4, estimated using public rate filings sourced from First Interpreter. Rates do not represent actual quotes. Accurate as of January 2024.
At 21-years-old, you will typically pay less for insurance than when you were a teenager. In fact, your insurance premium will steadily decrease until age 25 when you’ll see the most significant drop in rates. This is why it’s easier to find cheap car insurance for new drivers over 21. Other factors that impact insurance rates include where you live and what car you drive.
Below are the average annual rates for a 21-year-old driver on their own policy in each state.
Annual rates for a male driving a 2023 RAV4, estimated using public rate filings sourced from First Interpreter. Rates do not represent actual quotes. Accurate as of January 2024.
Car insurance costs vary for people of all ages, depending on where they live, their gender, and their car make, model, and age. However, additional factors contribute to the higher cost of car insurance for 21-year-old drivers.
Car insurance is necessary for all drivers but can be especially expensive for new drivers. Fortunately, getting cheap car insurance for 21-year-olds is possible when you follow these three steps.
To find cheap car insurance for 21-year-old drivers, shop around and compare rates from top auto insurance companies. Each company uses different criteria to determine rates, so you could pay more or less depending on who you choose.
Start today by finding the car insurance providers who are the best fit for you with Rate Retriever.
Some auto insurance companies offer discounts to help lower the cost of car insurance for 21-year-old drivers, such as:
Suppose you drive an older car and plan on purchasing your own insurance policy. In that case, you might consider getting a state-minimum policy if your vehicle’s value is less or comparable to your deductible. If you want greater financial protection on the road, ask about additional coverage types to ensure you have the protection you need.
It depends. If your permanent address is not your parents’ address, then yes, you need your own insurance policy in your 20s. If you don’t drive regularly, or if you live with your parents and drive their vehicle, then no, you don’t need your own insurance policy in your 20s.
Car insurance for 21-year-old drivers varies depending on where you live, the type of car you drive, and the type and amount of coverage you select.
Many insurers offer discounts for good students, safe drivers, and those who have taken a defensive driving course. You may also be able to get a lower rate by choosing a vehicle with safety features like antilock brakes. Ultimately, the best way to keep your rates down is to avoid accidents and traffic violations and maintain a good credit score.
Finding the best car insurance deals for 21-year-old drivers starts by comparing rates from multiple providers. You can also take advantage of available discounts or increase your deductible to lower your monthly payment, although this is not recommended unless you can afford the higher deductible out-of-pocket in case of an accident.
Getting car insurance for new drivers over 21 starts with knowing your state’s minimum auto insurance requirements and the additional coverage you need. Then you can compare quotes from top providers and select a policy that fits your needs and budget. Some providers also offer discounts for new drivers to lower the cost of car insurance.
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