Best Car Insurance for 21-Year-Old Drivers (2023)
Unlocking Savings: Tips, Discounts, and Coverage Options for Affordable Car Insurance for 21-Year-Old Drivers. Discover how to save on premiums while getting the right coverage for your vehicle. Compare rates, discounts, and policies from top insurance providers to find the best deal for your needs. Learn about defensive driving courses, good student discounts, and other strategies to lower your insurance costs.
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Laura Walker
Former Licensed Agent
Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...
Former Licensed Agent
UPDATED: May 29, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: May 29, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
The Rundown
- 21-year-olds pay almost $1,000 more than the national average for insurance.
- Trade insurance is different from car insurance, and is necessary when running a vehicle-related business.
- One way to save money on car insurance is to take a voluntary driver improvement course.
Are you a 21-year-old driver in search of the best car insurance options? Look no further! In this comprehensive guide, we explore the top-rated car insurance providers offering the best coverage for 21-year-old drivers. We delve into important factors like affordability, coverage options, discounts, and customer satisfaction.
Discover how to secure the best car insurance rates tailored to your unique needs as a young driver. From safe driving discounts to good student incentives, we cover all the strategies to help you save on premiums without compromising coverage.
To find the perfect insurance plan for your car and budget, simply enter your zip code and compare rates from the industry’s leading insurance providers. Don’t miss out on the opportunity to find the best car insurance deal for 21-year-old drivers.
How much is car insurance for a 21-year-old?
The average car insurance rate for a 21-year-old is roughly $1,500, which is nearly $1,000 more than the national average.
When you’re under the age of 25, your average cost is going to be expensive. In fact, 21-year-olds are paying more than almost anyone else in their early 20s. Those who are 20 though will see far higher insurance costs than those 21 and older.
The table below shows the average costs of insurance for 17-year-old, 25-year-old, and 35-year-old males and females from the best insurance companies.
| Group | Average Annual Auto Insurance Rates for a Single 17-year-old Female | Average Annual Auto Insurance Rates for a Single 17-year-old Male | Average Annual Auto Insurance Rates for a Single 25-year-old Female | Average Annual Auto Insurance Rates for a Single 25-year-old Male | Average Annual Auto Insurance Rates for a Married 35-year-old Female | Average Annual Auto Insurance Rates for a Married 35-year-old Male |
|---|---|---|---|---|---|---|
| Allstate | $9,282.19 | $10,642.53 | $3,424.87 | $3,570.93 | $3,156.09 | $3,123.01 |
| American Family | $5,996.50 | $8,130.50 | $2,288.65 | $2,694.72 | $2,202.70 | $2,224.31 |
| Farmers | $8,521.97 | $9,144.04 | $2,946.80 | $3,041.44 | $2,556.98 | $2,557.75 |
| Geico | $5,653.55 | $6,278.96 | $2,378.89 | $2,262.87 | $2,302.89 | $2,312.38 |
| Liberty Mutual | $11,621.01 | $13,718.69 | $3,959.67 | $4,503.13 | $3,802.77 | $3,856.84 |
| Nationwide | $5,756.37 | $7,175.31 | $2,686.48 | $2,889.04 | $2,360.49 | $2,387.43 |
| Progressive | $8,689.95 | $9,625.49 | $2,697.73 | $2,758.66 | $2,296.90 | $2,175.27 |
| State Farm | $5,953.88 | $7,324.34 | $2,335.96 | $2,554.56 | $2,081.72 | $2,081.72 |
| Travelers | $9,307.32 | $12,850.91 | $2,325.25 | $2,491.21 | $2,178.66 | $2,199.51 |
| USAA | $4,807.54 | $5,385.61 | $1,988.52 | $2,126.14 | $1,551.43 | $1,540.32 |
The average car insurance for 21-year-old females and males will vary based on many factors, such as location. In Florida, the average annual cost of car insurance for 21-year-olds is $5,500 and in Georgia, about $4,314.
There are more expensive places, too. How much is car insurance for a 21-year-old in Michigan? Annually, $12,875. Talk to a Michigan insurance agent or broker for more information.
See what is available in your area by entering your ZIP code.
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What’s the cheapest car insurance solution?
If you still live at home, you can be covered under the insurance of your mom or dad. To do this, you must live at home or be enrolled in college and the vehicle has to be registered in the name of the parents whose insurance you will be listed on.
If the car is registered in your name, you are responsible for purchasing insurance. Similarly, if you do not live in the same home or attend college, you are considered emancipated and responsible for your own insurance.
Your choice of vehicle can save you money on insurance.
What are some car-related savings?
A four-door sedan is less expensive to insure than a two-door version of the same car. This is because two-door vehicles are considered sports cars, and sports cars are statistically more likely to be involved in serious accidents.
Other car-related discounts include air bags, anti-lock brakes, and electronic stability control.
In addition, you may be eligible for many auto insurance discounts (e.g. student discounts or a distant student car insurance discount).
Furthermore, if you buy a cheap older car, you can avoid having collision car insurance coverage, and that will knock a large portion of your premiums.
How to take a driver improvement course
Another way to save money on car insurance is to take a voluntary driver improvement course. Because taking an interest in being a better driver translates into being less of a risk for the auto insurance company, you can get an insurance discount for doing so.
Keep in mind that the course cannot have been ordered by a judge or the Department of Motor Vehicles.
Can student grades save you money?
If you are still in college, your grades can save you money on car insurance.
Most insurance companies offer affordable car insurance for students who maintain a 3.0 or higher GPA, in recognition of taking on more responsibility for themselves, another statistical indication of reduced risk to the insurer.
Keep your grades up, and they will help make your car insurance premiums more affordable.
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How much is liability car insurance for 21-year-olds?
Most states require at least some liability car insurance for 21-year-olds (or anyone) to drive. That said, liability coverage is the same as other, more expansive policies: 21-year-olds will most likely pay more for their auto insurance coverage.
Basic auto policies include bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorists, according to the Insurance Information Institute.
How do I get trade insurance for a 21-year-old?
Auto trade insurance for a 21-year-old business owner is possible to obtain, though you may need to do a little research.
Companies such as Tradex for U.K. readers offer insurance to anyone who is buying and selling or mending or cleaning cars for trade. These can be car sales lots, mechanics, body shops, car jockeys. Etc.
When speaking with a possible insurance provider about their traders insurance requirements, remember that you will need to provide proof of your business. Other insurance requirements may include disclosure of drivers, among other things.
Can I get trade insurance at 21?
Yes. Although there may be increased auto insurance premiums as those under the age of 25 are classified as “high risk.” So for those of you who are younger, asking if you can get trade insurance at 20: Yes, but expect to pay more.
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What insurance coverage can you get if you’re under 25?
The most coverage available is always recommended. But at minimum, drivers need road risk insurance. This car insurance covers you and the vehicles you own or the vehicles you are in possession of concerning your business.
There may be more hoops to jump through for those who are under 23.
What’s the bottom line?
Those who are under the age of 25 and looking for either their personal car insurance or trade insurance are high risk, but keep yourself organized and drive safely and there are surely some discounts in your future.
Ready to buy car insurance for 21-year-old drivers? Enter your ZIP code to find car insurance quotes for 21-year-old drivers.
Frequently Asked Questions
How much is car insurance for a 21-year-old driver?
The average cost of car insurance for a 21-year-old driver is around $1,500, which is almost $1,000 higher than the national average.
What’s the cheapest car insurance solution for a 21-year-old?
If you still live at home, you can be covered under the insurance of your mom or dad. If the car is registered in your name or you do not live at home or attend college, you are considered emancipated and responsible for your own insurance.
Can taking a driver improvement course help me save money on car insurance?
Yes. Taking a voluntary driver improvement course can help you save money on car insurance, as insurance companies offer discounts for doing so.
Can my student grades save me money on car insurance?
Yes. If you are still in college, your grades can save you money on car insurance. Most insurance companies offer affordable car insurance for students who maintain a 3.0 or higher GPA.
What insurance coverage can I get if I’m under 25?
The most coverage available is always recommended, but at a minimum, drivers need road risk insurance, which covers you and the vehicles you own or possess concerning your business.
How do I get trade insurance for a 21-year-old?
Auto trade insurance for a 21-year-old business owner is possible to obtain, though you may need to do a little research. When speaking with a possible insurance provider about their traders insurance requirements, remember that you will need to provide proof of your business. Other insurance requirements may include disclosure of drivers, among other things.
Can I get trade insurance at 21?
Yes. Although there may be increased auto insurance premiums as those under the age of 25 are classified as “high risk.” So for those of you who are younger, asking if you can get trade insurance at 20: Yes, but expect to pay more.
How much is liability car insurance for 21-year-olds?
Most states require at least some liability car insurance for 21-year-olds (or anyone) to drive. That said, liability coverage is the same as other, more expansive policies: 21-year-olds will most likely pay more for their auto insurance coverage. Basic auto policies include bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorists, according to the Insurance Information Institute.
Compare The Best Insurance Quotes In The Country
Compare quotes from the top insurance companies and save!
Secured with SHA-256 Encryption
Laura Walker
Former Licensed Agent
Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...
Former Licensed Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.