Car insurance rates can be expensive for 21-year-olds. This is because new drivers are considered high risk and are more likely to have accidents. Based on Quadrant Information Services rate data, the average cost of auto insurance for 21-year-olds is $3,005 per year for full coverage and $913 for minimum coverage. however, premiums depend on a variety of factors in addition to your age, such as gender (in most states), location, and the insurance company that issues your policy.
how much does car insurance cost for a 21 year old?
According to a review of the Quadrant’s quoted annual premiums, 21-year-old drivers pay an average of $3,005 per year for full coverage auto insurance, which is more than $1,200 more than the national average rate of $1,771 per year. . the average minimum coverage policy for 21-year-olds costs $913 per year, also higher than the national average of $545 per year.
Reading: How much is car insurance for a 21-year-old
The reason auto insurance rates are higher for young adults is that prices are based on risk. if you are 21 years old, you have less driving experience than an older driver. To compensate for the increased risk of causing an accident, car insurance companies often charge a higher rate if you have a recent license. statistically, your premiums should start to decline when you turn 25.
average cost of car insurance for 21-year-old men vs. women
In most states, your gender affects your auto insurance rate. Regardless of age, men tend to engage in riskier driving behaviors than women and are more likely to cause serious accidents. If you’re a 21-year-old male, both his age and gender can increase your auto insurance premiums.
According to Quadrant Rate data, the average 21-year-old male driver pays $3,188 for full coverage auto insurance and the average 21-year-old female driver pays $2,822 per year. however, there are several states that do not allow insurance companies to price policies based on gender, including:
- california
- hawaii
- massachusetts
- michigan
- north carolina
- pennsylvania
- Compare Quotes: Auto insurance companies use unique scoring algorithms, which means they evaluate their individual rating factors differently. Getting quotes from multiple companies allows you to compare the price of the same type and amount of coverage.
- Take advantage of good student discounts: If you are under 25 and a full-time student, many insurance companies offer a good student discount. Grades will vary by company, but most insurers require you to maintain a ‘b’ average or a 3.0 gpa or higher.
- Ask about a distant student discount: If you’re a college student who doesn’t bring a vehicle to campus, you may qualify for a distant student discount. Generally, you must be at least 100 miles from home to qualify, but this will vary by insurance company.
- Drive an affordable vehicle: The type of car you drive has a big impact on how much you pay for car insurance. Sports cars, luxury vehicles, and vehicles that may be more expensive to repair or replace will generally command higher premiums. There are some cars that are generally cheaper to insure than others, like the Honda Cr-V, Hyundai Tucson, and Ford F-150.
- Improve your driving skills: Many insurers offer a discount to drivers who agree to install a telematics device in their car or use a mobile app to track their driving habits. These programs record information about your driving skills, such as speed, braking, and the time of day you drive. If you demonstrate safe driving habits, you may be able to get a discount on your premium.
- Do you want a business that has a strong mobile app?
- Are you looking for certain coverages, like accident forgiveness?
- What discounts can you qualify for?
- how strict is your budget?
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why is insurance more expensive for 21 year olds?
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is it cheaper to stay on my parent’s insurance policy?
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will my premium go down as I get older?
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will my credit score affect my insurance?
methodology
bankrate uses quadrant information services to analyze 2022 rates for all zip codes and carriers in all 50 states and washington, d.c. rates are weighted based on the population density of each geographic region. Rates quoted are based on a 40-year-old male and female driver with a clean driving record, good credit, and the following total 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
- full $500 deductible
To determine the minimum coverage limits, Bankrate used a minimum coverage that meets each state’s requirements. our base drivers own a 2020 toyota camry, commute five days a week and drive 12,000 miles a year.
These are sample rates and should only be used for comparison purposes.
age: rates were calculated by evaluating our base profile with ages 18-60 (base: 40 years) applied. Depending on age, drivers may be renters or owners. The law does not allow age to be considered when calculating insurance premiums in Hawaii or Massachusetts.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
See also: Car Insurance Costs for 25-Year-Old Drivers – ValuePenguin
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If you live in one of these states, it doesn’t mean all 21-year-olds pay the same auto insurance rate. There are many other factors that determine how much your car insurance costs. but in these states, gender is not used as a qualifying factor, so your gender will have no impact on how much you pay.
In the table below, you can see the average cost of full coverage and minimum coverage auto insurance for male and female drivers age 21+:
21-year-old car insurance rates by state
Another factor that can significantly affect auto insurance premiums is where you live. For example, in states with a high risk of severe weather or a high number of uninsured drivers, the average cost of auto insurance is likely to be higher. Rate data shows that Louisiana has the highest auto insurance rates for 21-year-olds ($4,916) and Hawaii has the lowest rates ($1,265). However, if you live in Hawaii or Massachusetts, auto insurance companies cannot use age as a qualifying factor for premiums.
The table below highlights the average cost of auto insurance for 21-year-olds in each state. You can also view the state breakdown of rates for male and female drivers:
cheapest car insurance companies for 21 year olds
See also: How Much Does a Brain Scan Cost? Average Out-of-Pocket Costs
Because auto insurance rates tend to be relatively expensive for 21-year-olds, most drivers will want to get a policy from the cheapest auto insurance company. Based on our analysis of the average premiums of the largest auto insurance companies by market share, several stand out for offering low average rates to 21-year-olds. usaa has the cheapest average rates, with an average annual full coverage premium of $1,977 for male and female drivers 21 and older. however, usaa is not available to everyone; is available exclusively to eligible active duty military, veterans and immediate family members. if you don’t qualify for usaa, geico offers the next cheapest average rates on our list.
If you’re looking for affordable car insurance for 21 year old drivers, consider getting quotes from the following companies:
united states
usaa offers the cheapest comprehensive coverage and minimum coverage premiums on our list, based on average rate data. however, the company only sells insurance to current and former military members and their immediate families. If you qualify for coverage, you can access affordable rates, excellent claims handling, and many discounts. In addition to low average premiums, USAA has discounts for insuring a new car, storing your vehicle on a military base, storing your vehicle while deployed, and many others.
more information: us insurance review. uu.
geiko
geico is known for offering low average rates and a wide range of discounts, and this is true for 21-year-old drivers. You can save to have certain safety features in your vehicle, be a good student, or take a driver’s education course. The company also offers a robust mobile app, which allows you to file claims, pay your bills, call roadside assistance, view ID cards, and make policy changes. However, Geico doesn’t offer as many coverage options as some of the other companies on our list, scoring only one point above the industry average for claims satisfaction, according to a survey by J.D. power.
more information: geico insurance review
series
If you’re looking for affordable auto insurance and a variety of coverage options, erie might be a good fit. however, erie is not a national airline. You will only be able to purchase Erie car insurance if you live in one of the 12 states in which the company operates. If you’re eligible for coverage, Erie offers unique coverages on your standard auto insurance policy, like pet coverage and locksmith coverage. You may also be interested in Erie’s rate lock feature, which prevents your premium from going up unless you make certain changes to your policy, like adding a driver or vehicle, or changing your coverage.
more information: erie insurance review
travellers
travelers may be a good option if you’re looking for a highly customizable car insurance policy. In addition to standard auto insurance coverages such as liability, collision, and comprehensive coverage, Travelers offers a long list of unique optional coverages to complete your policy. you may want to add roadside assistance coverage, gap coverage, car rental reimbursement, accident forgiveness, or rideshare coverage. If you’re looking to save money, Travelers offers numerous discounts that can lower your premium.
more information: travel insurance review
progressive
See also: Dos and Dont’s following an Accident
progressive stands out for its impressive digital tools. company name your pricing tool allows you to enter your monthly budget and shows you various coverage options within your designated price range. You can also compare quotes from multiple companies directly from the Progressive website. Although the average rates for full coverage and progressive minimum coverage for 21-year-olds are the highest on our list, the company also offers numerous discounts that can help you save. You may be able to get a lower premium by getting a quote and buying a policy online, paying in full, being a good student, or participating in the Safe Driving Instant Program.
more information: progressive review of insurance
how to save on car insurance for 21 year olds
Although auto insurance is, on average, more expensive for 21-year-olds than for older drivers, there are ways you can save.
how to get the best car insurance for 21 year olds
The cheapest car insurance is not necessarily the best car insurance, because every 21-year-old driver has different insurance needs. To find the best coverage for his personal needs, it’s important to determine what he wants from a policy. ask yourself questions like:
Once you’ve decided what’s most important, you can get quotes from multiple companies to see which companies are best suited for your needs. If you’re not sure where to start, speaking with a licensed agent may help you decide which coverages and options are right for you.
