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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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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 driving a 2022 RAV4.

Cheap car insurance for 21-year-olds

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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.

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 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. 

How much is car insurance for a 21-year-old?

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.

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. 

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

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.  

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

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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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. 

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