Even if you get your driver’s license on your 16th birthday, you’re still considered a new driver by the time you reach age 21. You may find that reaching this age brings some changes to your insurance coverage, so it’s important to understand exactly how auto insurance rates are calculated for young drivers.
If you’re spending your 21st birthday shopping for the best rates on car insurance, look no further than Insurify. You’ll be able to compare quotes from multiple insurers and find the right policy for you. Enrolling in cheap car insurance is easy with Insurify.
How does age affect car insurance rates for a 21-year-old?
Most auto insurance companies consider a number of factors when calculating your car insurance premiums, including your age. While some might say that age is just a number, it directly corresponds to your experience behind the wheel. Typically, younger drivers are charged the most for full coverage, and prices decrease as you get older. Some older drivers find that their rates do go up slightly; however, these prices are still lower than rates for 21-year-olds.
How does gender affect car insurance rates?
Based on statistical data, younger male drivers are much more likely to speed or become involved in an accident, so they pay higher insurance rates. Female drivers, on the other hand, pay lower premiums during their early 20s, tend to pay the same as men for much of their driving years, and then actually pay slightly more over the age of 75.
How does location affect car insurance rates?
As we’ve mentioned, the cost of car insurance is determined using a number of factors, including where you live. Insurance providers take into consideration the number of accidents in your area, the average cost of local auto repairs, and the weather patterns in your area. All of this data is used along with your driving history and vehicle information to determine your unique rate.
Best Car Insurance Companies for 21-year-olds
For most young adults, enrolling in auto coverage can be intimidating. It’s smart to work with an insurance carrier that’s well-known, as these companies not only offer an array of discounts but are used to working with drivers of all ages. Some 21-year-olds may prefer to work with an insurance agent to help them find the right policy for their needs.
Serving 50 states and offering a range of options, GEICO is a good choice for young motorists, as it offers online claims service and the ability to enroll in features beyond just minimum coverage.
A few of the discounts that GEICO offers to 21-year-old drivers include:
- Savings for maintaining good grades
- A lower premium after you’ve completed a driving course
- Multi-coverage savings if your family takes advantage of several types of insurance from GEICO
In business for over 70 years, Progressive offers safe drivers a wealth of discounts. 21-year-olds living on their own can save by bundling their auto policy with renters insurance or may find that car insurance alone is best for their needs.
A few of the discounts that Progressive offers to 21-year-old drivers include:
- A distant student discount if you live more than 100 miles away from home and are enrolled in school full-time
- Customized savings based on your driving habits through the Snapshot methodology
- Additional savings for receiving a free quote online, signing up for paperless billing, or paying your annual premium in full
Featuring a host of insurance products for military members and their families, USAA often offers insurance that is priced below the national average. The company website is easy to navigate, even for newer drivers.
A few of the discounts that USAA offers to 21-year-old drivers include:
- Policy savings after completing a defensive driving course
- Discounts based on how your vehicle is stored
- Safe driver discounts
Often ranking as one of the insurance companies with the lowest rates for younger drivers, Allstate is an ideal option for 21-year-olds. You’ll be rewarded with lower premiums for a variety of reasons, including certain aspects of your vehicle and your driving history.
A few of the discounts that Allstate offers to 21-year-old drivers include:
- A smart student program for those who maintain at least a B average and meet additional criteria
- Discounts for certain safety and theft-deterrent features on your vehicle
- Lower rates when you pay in full or sign your policy seven days before its effective date
While many car insurance carriers offer a good amount of discounts to younger drivers, State Farm dedicates quite a few programs to those with less experience behind the wheel. If you’re interested in a robust car insurance policy with affordable rates, it’s one of the better options.
A few of the discounts that State Farm offers to 21-year-old drivers include:
- Savings when enrolled in the Steer Clear and Drive Safe & Save programs
- A significant percentage off your premiums for maintaining good grades
- Discounts for completing a driver training program
Cheapest Car Insurance Quotes for 21-Year-Olds
Teen drivers might be inclined to enroll in the cheapest car insurance they can find, but it’s important to remember that with insurance, you do often get what you pay for. Some carriers might offer incredibly low rates, but it’s smart to make sure you’re getting enough liability coverage to avoid out-of-pocket costs associated with car accidents.
Here are some of the cheapest car insurance quotes available for 21-year-olds:
|Car Insurance Company||Avg. Monthly Cost for 21-year-olds|
Shopping for a low rate is easy when you visit Insurify. Simply answer a few easy questions about your driving habits and your vehicle, and you can compare auto insurance quotes in a matter of minutes.
Best Auto Insurance Discounts for 21-Year-Olds
Young drivers who want to avoid paying higher rates for their auto insurance are smart to take advantage of a range of discounts. While quotes for 21-year-olds tend to be higher than for older drivers, these discounts can offset your premium significantly and make room in your budget for additional policy features, like property damage coverage or collision coverage.
Good Student Discount
Each carrier will specify its own criteria when it comes to what makes a “good student,” but in most cases, drivers need to maintain at least a 2.7 GPA while enrolled in school full-time.
Distant Student Discount
To receive this type of discount, you typically need to be attending school more than 100 miles from home, be enrolled full-time, and leave your vehicle at home.
Other Discounts for 21-Year-Olds
Some insurance carriers will offer additional types of discounts to 21-year-old drivers, including savings for completing a driver’s training course, being affiliated with a particular honor society or university, or driving a vehicle with certain safety features.
|Common car insurance discounts||Potential savings|
|Safe driving, driving class, or good student savings||Up to 35%|
|Multi-car, multi-policy, or pay-in-full savings||Up to 25%|
|Vehicle safety feature, new car, or anti-theft feature savings||Up to 30%|
Car Insurance Tips for 21-Year-Olds
Even if you’ve been behind the wheel since age 16, enrolling in car insurance may still seem like a new task. Whether you have a policy now and want to make a change or you’re just now purchasing coverage for the first time, there are a few tips you can follow to make the process easier.
Shop Around for Car Insurance
You may be surprised to learn that average car insurance rates for 21-year-olds can be quite high, but that doesn’t mean you have to pay that cost. Shopping around for a policy can help you to find a low rate.
Take Advantage of Discounts
Nearly every car insurance carrier will offer some type of discount on your policy. It’s wise to enroll with a company that provides a lot of discounts that you’ll be eligible for now with others that you can work toward over time.
Remain on Your Parents’ Policy
Students can stay on their parents’ policy for quite some time as long as they’re living at home, helping you save significant amounts of money. Remember, car insurance rates are based largely on risk, and it’s likely that your parents will receive a lower rate than you will.
Drive a Safer Car
Vehicles that offer a range of safety features can help you avoid getting into an accident, thus lowering your car insurance rate. Options like anti-lock brakes, airbags, and automatic seat belts can all reduce your premium.
Drive an Older Car
If you total a brand-new car, your insurance company will have to pay significantly more than if your car is older, so it makes sense that driving an older vehicle can help you save on your policy. Make sure to perform maintenance on the car regularly to keep it in safe driving condition.
Select a High-Deductible Plan
The more your insurance company has to pay out of its pocket after a claim, the higher your rates will be. Should you choose a high-deductible plan, you essentially shift some of the costs of a potential claim to your own pocket, lowering your monthly premium.
Keep a Clean Driving Record
The more speeding tickets or moving violations you have on your record, the higher of a risk you are in the eyes of your insurance company. No matter what age you are, keeping a clean driving record is always a good idea.
Maintain a Good Credit Score
While not every state uses a credit score to determine your premium, many of them do. If you show your insurance company that you are trustworthy, it may be more inclined to offer you a lower rate on your policy.
Most Expensive States for Car Insurance for 21-Year-Olds
On average, the following five states are the most expensive states for 21-year-olds to obtain auto insurance in:
Least Expensive States for Car Insurance for 21-Year-Olds
Teenage drivers who live in the following states will enjoy the low car insurance rates that come with their location:
21-Year-Old Driver Car Insurance FAQ
How much is car insurance for a 21-year-old per month?
The rate you pay for car insurance can vary from state to state and takes into account a wide range of factors. Some 21-year-olds could pay as little as $150 per month, while others might pay close to $400 per month.
Where can I compare car insurance quotes online for free?
Instead of spending time visiting website after website, head over to Insurify. You can compare real-time quotes from multiple carriers and find the best policy for you in a matter of minutes.
How does safe driving keep car insurance rates low for a 21-year-old?
Rates for 21-year-olds are naturally higher than most, as insurance companies look at these drivers as less experienced. Showing that you’re a safe driver indicates that you are less of a risk to insure and allows you to enjoy lower rates.
Does the car you drive make a difference for insurance rates?
Yes, the type of car you drive as well as its age and safety features all factor into your premium. Vehicles like newer sports cars will naturally cost more to insure compared to an older minivan, for example.
At what age do insurance companies stop using age as a factor for rates?
Most insurance companies will always consider your age when calculating your rates. Much older drivers may not have quick reaction times on the road, while drivers in their 40s and 50s are experienced and agile. All of these factors will contribute to your insurance costs.
Conclusion: The best way to compare and save on car insurance
Shopping for car insurance as a 21-year-old doesn’t have to be time-consuming or stressful, as long as you know what options are available to you. Price shopping as well as looking for discounts will play a large role in finding a policy that’s affordable. Your vehicle, grades, and driving behavior are also important aspects to think about.
When it comes time to enroll in a new policy, visit Insurify to compare insurance quotes in real-time from a variety of insurance companies. With just a few clicks of your mouse, you can enroll in the coverage that’s right for you and hit the road with a little more peace of mind.