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Cheap car insurance for 21-year-olds

  • Average car insurance cost for 21-year-olds: $4,250
  • Cheapest car insurance companies: Nationwide, Auto-Owners, Geico
  • Comparing quotes is the best way to find the cheapest insurance

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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. 

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. 

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Written by Alyssa DiCrasto
Picture of Edited by <a href="https://rateretriever.com/about/rob-deming/"><span style="text-decoration: underline;">Rob Deming</span></a>
Edited by Rob Deming

Last updated: July 18th, 2024

Picture of Written by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Written by Alyssa DiCrasto
Picture of Edited by <a href="https://rateretriever.com/about/rob-deming/"><span style="text-decoration: underline;">Rob Deming</span></a>
Edited by Rob Deming

Last updated: July 18th, 2024

What's on this page?

Understanding 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.

The cost of car insurance for 21-year-olds:

$4,250

Average annual premium

107% more

Than a 35-year-old

90% more

Than a 25-year-old

$$$$

When added to a parent’s policy

Why does this matter?
  • Knowing the average cost of car insurance for your age group gives you a benchmark to compare your own rate. If you’re paying a lot more, it might be time to shop around or ask your insurer why.

Best car insurance for 21-year-olds

At age 21, many young adults face new challenges when it comes to securing the right car insurance. Some may be purchasing their own car for the first time, others may be moving into their own apartment, and others may be purchasing their own insurance policy for the first time. 

Finding the best car insurance for 21-year-olds can be a complex task, but opting for a full coverage policy is often the best choice.

Full coverage usually includes liability, collision, and comprehensive insurance, ensuring that you are protected in various scenarios, from accidents to theft and natural disasters. This type of policy provides the most extensive coverage, which is particularly beneficial for young drivers who may not have the financial means to cover significant repair costs or medical bills out-of-pocket. 

Cheapest companies for full coverage for 21-year-olds

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. 

We use these limits for a full coverage policy: 

  • $100k/$300k/100k for liability insurance 
  • $500k deductible for comprehensive and collision insurance 

Benefits of full coverage

  • More Protection: Covers a wide range of incidents, from accidents to theft. 
  • Peace of Mind: You’ll feel more secure knowing you’re covered in many situations. 
  • Financial Security: Helps you avoid big out-of-pocket expenses for repairs or replacement. 
  • Required for Loans/Leases: Often needed if you finance or lease your car.

Cheap car insurance for 21-year-olds

Average cost of 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.  

Average annual cost:  $4,250/yr

The price you pay for car insurance will be different depending on where you live. Below are the average cost of car insurance for a 21-year-old by state. 

Average cost of car insurance by state (21-year-olds)

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. 

Why is car insurance so high for 21 year olds?

Car insurance is expensive for 21-year-olds because insurance companies see 21-year-olds as riskier to insure. Statistically, younger drivers are more likely to be involved in accidents compared to older, more experienced drivers. This higher risk is reflected in the premiums insurance companies charge. 

At 21, drivers are still in the early stages of their driving careers, often with only a few years of experience behind the wheel. This lack of experience can lead to higher instances of traffic violations and accidents. Additionally, young adults may be more likely to engage in risky behaviors such as speeding, distracted driving, or driving under the influence – which all make it more likely they’ll file an insurance claim. 

The good news is, insurance rates tend to decrease with age if you maintain a clean driving record. 

Average car insurance rates for young adults
Why does this matter?
  • The role your age plays in the price you pay for car insurance will decrease over time. When you are between the ages of about 25-70, your age will not play as big of a factor in your car insurance rates.

Cheapest car insurance for 21-year-olds

On average, these national companies offer the cheapest rates for 21-year-olds on their own policy:

  • Nationwide 
  • Auto-Owners 
  • Geico 
  • USAA (lowest on average for 21-year-olds in the military)

Because car insurance rates are highly personalized, though, you might find another company will be cheaper for you. For example, there may be local or regional insurance companies that would offer lower rates. 

If you still live at home and are able, staying on your parent’s car insurance policy will save you money rather than purchasing a policy on your own. Be sure to check with your insurance agent to be sure you’re still covered properly under your parent’s insurance. 

To get the cheapest car insurance:

  • 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.  

Factors that impact car insurance cost for 21-year-olds

There are many factors that will impact the price you’ll pay for car insurance beyond your age or location. Here are some of the most common: 

Gender

Car insurance for a 21-year-old male is typically more expensive than car insurance for a 21-year-old female. The impact that your gender will play in your car insurance rates is generally minimal, especially as you get older. 

Credit

In most states (not California, Hawaii, or Massachusetts), your credit score can be used as a rating factor. People with poor credit generally pay more for car insurance than people with good credit and those with excellent credit pay the least of all.  

Vehicle

The vehicle you drive will also impact the price you pay for car insurance, especially for young drivers. Basically, the more valuable your vehicle, the more you can expect to pay for car insurance. This is because the more expensive your vehicle is to repair or replace, the more your insurance will have to pay out if you make a claim.  

If you’re driving a newer vehicle, a luxury vehicle, or one with additional features or enhancements, you can expect your insurance to be more expensive than if you’re driving an older model. Additionally, fast cars or ones with higher rates of accidents will usually have higher insurance premiums. 

When deciding what car to buy for a 21-year-old, consider shopping for an older vehicle with excellent safety ratings and features, since this will bring your insurance down. 

See how much car insurance costs for your vehicle:
Make & Model Rate Calculator

Your driving record

Your driving history is one of the most critical factors insurance companies consider when deciding how much you’ll pay for car insurance. Especially if you haven’t been driving long, any incidents on your record will have a big impact on the price you pay for car insurance. Incidents can include:

  • Traffic violations 
  • Accidents 
  • Claims history 
  • License suspensions or revocations
  • Time since last incident

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

Additional factors contribute to the higher cost of car insurance for 21-year-old drivers. 

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. 

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.   

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:

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.

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

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 parent’s 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.

Related content

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. 

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