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Car insurance for 21-year-olds

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.

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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. 

Written by Alyssa DiCrasto

Reviewed by Rob Deming

Last updated: February 26th, 2024

Best car insurance for 21-year-olds

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. 

Cheap car insurance for 21-year-olds

Average cost of car insurance for 21-year-olds

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. 

Unique factors that contribute to cost for 21-year-olds

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.

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21-year-olds can legally consume alcohol in the U.S., which means they’re more likely to frequent bars and nightclubs. This increases the risk of drinking and driving, leading to a greater chance of getting into an accident and needing to file a claim.

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Parents can choose to have their 21-year-old college students included on their auto insurance policy. However, if that’s not an option, college students may have discounts available through certain insurance companies to lower the cost of owning their own policy.

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If you live with roommates, some insurance companies may require you to list your roommates on your policy if you share your car often. This can increase the cost of car insurance for 21-year-old drivers.

How to get affordable car insurance for 21-year-olds

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.

1. Shop around and compare car insurance rates

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.

2. Ask about driver discounts

Some auto insurance companies offer discounts to help lower the cost of car insurance for 21-year-old drivers, such as:

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21-year-old drivers in college or a vocational program can typically qualify for discounts if they have at least a B average in their classes.

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21-year-olds attending college at least 100 miles away from their home may be able to receive a discount on car insurance.

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Some car insurance companies offer Safe Driver Discounts, also known as Good Driver Discounts. These discounts are based on a driver’s record and are typically granted when a driver doesn’t have significant at-fault accidents, claims, or points.

3. Make sure you have the coverage you need

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. 

Car insurance FAQs for 21-year-olds

Do you need your own car insurance policy in your 20s?

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.

Does car insurance go down in your 20s?

Car insurance can go down in your 20s as you get more experience driving. As you gain more years behind the wheel and have a clean driving record, insurance companies may lower your rates. However, factors like accident history, location, and the type of car you drive can also affect your premiums. It’s important to shop around and compare quotes to find the best rate for your age and circumstances.

How much does car insurance typically cost for a 21-year-old?

Car insurance for a 21-year-old can vary a lot depending on factors like driving history, location, and the type of coverage needed. On average, a 21-year-old might expect to pay around $1,500 to $2,000 per year for car insurance. Some young drivers could pay more if they have had accidents or tickets in the past, while others might pay less if they have a good record. It’s a good idea for 21-year-olds to shop around and compare quotes from different insurance companies to find the best rate for their situation.

Can a 21-year-old be added to their parents’ car insurance policy?

Yes, a 21-year-old can typically be added to their parents’ car insurance policy. Insurance companies have different rules and requirements for adding additional drivers, so it’s best to check directly with the insurance company. Adding a young driver to their parents’ policy may increase the overall cost, as young drivers are often considered higher risk. However, adding a 21-year-old may still be more affordable than getting their own separate policy.

What factors influence the cost of car insurance for 21-year-olds?

The cost of car insurance for 21-year-olds can be influenced by several factors. These may include their driving record, where they live, the type of car they drive, and their credit history. Insurance companies also consider the amount of coverage needed, any past claims, and how much driving experience the individual has. Additionally, some insurance companies offer discounts for things like good students, students away from home, and telematics.

Are there any discounts available for 21-year-old drivers?

Yes, some car insurance companies offer discounts for young drivers, including 21-year-olds. Factors like good grades, completion of a driver’s education course, and maintaining a clean driving record can often qualify you for discounted rates. Additionally, some insurance providers offer multi-policy discounts if you bundle with other types of insurance. It’s a good idea to shop around and compare quotes from different companies to find the best deal for your age and driving history.

How to get car insurance for a new driver over 21 years old?

To get car insurance for a new driver over 21 years old, you can start by comparing quotes from different insurance companies. You will need to provide personal information, like your age, driving history, and the type of car you drive. It’s important to shop around for the best coverage and rates that fit your needs and budget. Finally, choose a policy that meets your state’s requirements and offers adequate protection for you and your vehicle. You may find that your insurance premiums are higher, as insurance companies tend to charge more for people without a history of being insured. In this case, your rates should go down each year as you maintain a clean driving record and insurance history.

How to get cheap car insurance for a 21-year-old?

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.
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.

What are the best car insurance deals for a 21-year-old?

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.

Can a 21-year-old insure a car that’s in their parents’ name?

Yes, a 21-year-old can often insure a car that’s in their parents’ name as long as the insurance company allows it. Some providers may require the 21-year-old to be listed as a driver on the policy, while others may allow them to have their own policy. It’s important to check with the insurance company to make sure the coverage is appropriate and that all legal requirements are met.

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Methodology

Rate Retriever rates are based on public rate filings obtained by analytics company First Interpreter. This data comes from the rating plans insurance carriers submit to each state’s department of insurance. Rating plans detail how each carrier calculates premiums using factors such as location, age, gender, and driving record, and they ensure that insurance premiums are both fair and competitive.  

For the data on this page, we made the following assumptions: a single male with a clean driving record and Good credit score, driving a 2023 RAV4. We adjusted this profile by age to determine the rates you see on this page. 

These rates are not actual quotes and should be used only for comparative purposes. Your rates can vary significantly based on your unique driver profile. 

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results 

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide.