If you are 21, you have probably been driving for a few years, so you may find that your insurance premium rate has decreased from what it was when you were younger. But insurance rates for 21-year-olds are still high, and your best bet is to shop around to find the lowest rate possible from among a variety of insurers.
How much is car insurance for a 21 year old
The average car insurance for 21 year old is $2,968. This is $1,230 above the national average of $1,738. Why so high? Statistically, younger drivers are involved in more accidents than those who are older, and although your rates go down once you hit your mid-20s, they will still be higher than when you are in your 30s or 40s.
Average cost of car insurance for men vs women
With sex, the statistics are what matters in determining average car insurance for 21-year-olds. Those statistics show that young men have more accidents than women. The rates for minimum coverage differ by $83 a year, but if you have full coverage, as a male driver you will pay an average of $362 more than a woman of the same age.
There is a catch, however, that will benefit some young men. Seven states have legislated that gender cannot be considered in assigning premium rates for car insurance. These states are California, Hawaii, Massachusetts, Montana, Pennsylvania, North Carolina and parts of Michigan. In these states, rates for a 21-year old man and 21-year-old woman should be the same, if all other factors are comparable.
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Cheapest car insurance companies for 21-year-olds
Like for all other ages, 21 year old insurance rates vary greatly depending on a number of factors: your car’s age and value, your driving skills and whether you are married or not are a few of them. Because of this, the answer to “how much is insurance for a 21-year-old?” varies from person to person. Based on our research, however, these insurers consistently offer low rates to young drivers.
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USAA offers the cheapest annual rate for 21 year old drivers, averaging $643 for minimum coverage and $2,097 for full coverage. USAA is also known for great customer service and solid financial stability. The company only sells policies to members of the military or veterans and their families. If you fit this demographic, USAA should be your first stop for a quote.
Travelers has reasonable rates for young drivers, and it offers a handful of discounts that may benefit them, as well, including a good student discount, a student away at school discount and a discount of up to 8% for drivers who successfully complete a driver education course.
Erie’s rate for minimum coverage is a reasonable $714, or $2,172 for full coverage for 21 year old drivers. Erie offers some unusual coverage options, such as a rate lock that will keep your premiums from rising if you change any details of your policy. The company scores above average on J.D. Power’s U.S. Auto Claims Satisfaction Study, which rates customer service.
Geico is well-known for low rates, and the company’s large number of discounts can bring your rates down even more. Geico is the second largest insurance company in the U.S., and it gets high ratings from Standard and Poors and AM. Best, which rank companies based on their financial strength and claims-paying ability.
Progressive’s average premium was the highest of our preferred providers, but there is much about the company to like. Progressive makes your digital experience easy with a website that lets you “name your price” for auto insurance and compare car insurance rates from different companies. You can save an average of 12% if you bundle your car insurance with rental or homeowners insurance, and there are other discounts available as well.
How to save on car insurance for 21-year-olds
Even if you are a young driver, there are ways you can save on car insurance. Your first step should be to gather more than one quote. Do not assume that the first quote you get is all that is available. You may not find the lowest price until the third or fourth company that you quote with. Because most insurers will give you a free quote online with only a few minutes of your time, it is worth getting more than one.
Good student discounts
Good student discounts vary from provider to provider, but generally they require you to show evidence that you have maintained a B average or better. The grades may be either from high school or college courses, and the amount of the discount varies. Geico, for example, offers up to 15% off for full-time students with a B or above average. On average, your rate without a good student discount will be $2,968; with a discount, it drops to $2,725.
Distant student discounts
This discount generally refers to students who are in college and living more than 100 miles from home, though the distance varies depending on the provider. The discount would apply to the parent or guardian’s policy, on the assumption that the student would only be driving while on vacation, and not have access to the covered vehicle while at college. The average rate without a distant student discount is $2,968; with this discount it is $2,822.
Choosing your car wisely can result in lower insurance premiums. Older cars are generally cheaper to insure than newer ones, especially if you decide not to include collision and comprehensive coverage. Sports cars and high-end luxury cars are more pricey, and will leave you with higher insurance premiums. Some of the cheapest cars to insure include the Subaru Outback, the Honda CR-V and the Toyota RAV4.
Many insurers offer a generous discount to drivers who will agree to install a telematics device in their car. This small device records information about your driving skills, such as your speed, braking habits and the time of day you are driving. From this information, the insurer is able to determine if you are a safe driver or not.
How to get the best insurance for a 21-year-old
To get the best insurance for a 21 year old, a good place to start is with Bankrate’s Best Car Insurance Companies of 2021 listing. All the companies in that list are known for competitive pricing, excellent customer service and financial solidity.
Consider how much insurance you can afford, starting with the minimum coverage required in your state. If you can afford to purchase more than the minimum, it is a good idea to do so to be sure you are protected following an expensive accident.
We recommend that you get several quotes from a range of insurers. You may be surprised at how much the quotes differ, even if it is for exactly the same coverage options. Each insurer uses their own logarithms to determine premiums, so they will vary from company to company.
Make sure when you are getting quotes that you are taking advantage of all the possible discounts that you are eligible for. It is not a bad idea to make a follow-up call to an agent for any company that looks good to you, so you can ask questions and see if there are further savings available.
Frequently asked questions
How much is insurance for a 21-year-old?
The average is $2,968. Your own insurance rate will vary depending on multiple factors, such as what state you live in, what kind of car you drive, and whether you are male or female. Your credit rating also matters, as do your grades if you are still in school.
Is it cheaper to stay on my parents’ insurance policy?
It may be, and if they are willing, it is worth exploring this option by checking with their insurance agent to see what the rate would be if you were added to their policy. Even if you get your own policy, it is a good idea to get a quote with their insurer, since there may be a family loyalty discount you can take advantage of.
Is my premium rate going to go down?
Yes, if you keep a clean driving record, your rate should decrease over the next several years. You may also see a drop in your rate if you get married, since this is one of the factors that insurers take into account.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 21-year-old male and female driver with a cleaning driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.