Turning 16 is often a big milestone in a young person’s life. Not only are they officially allowed to get a license, but the feeling of freedom and independence is ever-present.
However, for drivers under the age of 21, it can be difficult to find affordable car insurance. To help increase the likelihood of finding cheap auto insurance rates, shopping for quotes is a must.
Insurify makes locating cheap car insurance for drivers under 21 quick and easy. By simply answering a couple of questions, you can view a list of affordable car insurance quotes for drivers under 21 and access unique discounts and deals from top companies.
How much does car insurance cost for a 21-year-old?
There is no hiding the fact that drivers under the age of 21 often pay higher rates for car insurance. Most drivers under 21 will pay around $214 a month. However, depending on location and driving history, a motorist who is below 21 years old could pay substantially less than the average.
How does age affect car insurance rates?
Although drivers under 21 will pay more for coverage than older drivers, the younger you are, the more your monthly car insurance premiums will be. For instance, an 18-year-old driver will pay an average car insurance rate of $7,000 annually for coverage, while a 21-year-old driver only pays an average of $4,500 a year. As a driver gets more experience behind the wheel, rates tend to decrease.
How does gender affect car insurance rates?
In many states, the average cost of car insurance is lower for female drivers than for male drivers. On average, there is usually a $500 difference in the price of annual coverage. One of the biggest reasons for this gap is that male drivers are seen as riskier. This is especially true if the driver is younger.
How does location affect car insurance rates?
Location may be one of the biggest factors when it comes to the rate drivers under the age of 21 will pay. For example, young drivers who live in North Carolina enjoy some of the lowest rates, with annual premium averages of around $1,800. However, their counterparts that live in Michigan will pay an average rate of $13,000 a year for coverage.
Best Car Insurance Companies for Drivers Under 21
If you are a young driver or have a young driver in your household, one of the best ways to secure a lower rate is by shopping around. Several auto insurance companies offer lower rates and discounts aimed at those 21 and younger. Check out Insurify to compare car insurance and evaluate a comprehensive list of quotes from over 20 providers.
In the meanwhile, here are a few providers to consider when looking for the best rates:
If you are currently a member of the military or have a parent who is or was in the service, then you should make sure to consider USAA for auto insurance coverage. Not only does it offer one of the lowest annual auto insurance premium rates, but it also has several discounts available as well.
A few of the discounts that USAA offers to under 21-year-old drivers include:
- Good student discount
- Multi-vehicle discount
- Safe driving discount
Drivers in one of the 13 states where Erie Insurance offers auto insurance should make it a priority to obtain a quote from this insurer. On average, drivers under 21 drivers pay around $2,000 for an Erie car insurance policy. It also offers multiple ways to save money and achieve a lower rate.
A few of the discounts and programs that Erie Insurance offers to under 21-year-old drivers include:
- Multi-policy discount
- First accident forgiveness
- Erie rate lock
- Diminishing deductible
- Reduced usage discount
- Safety savings discount
- Youthful new driver discount
- College student discount
One of the most popular options among young drivers when it comes to insurance providers is GEICO. The company has a great reputation for providing competitive rates for teen drivers and offers tons of ways to save through discounts and programs.
A few of the discounts that GEICO offers to under 21-year-old drivers include:
- Good grades discount
- Driving course program discount
- Good driver discount
- Multi-car discount
- Membership and employee discount
Nationwide offers a wide range of coverage options, including less common policies such as uninsured motorist coverage and rental car reimbursement. Along with their auto insurance plans, it also provides several discounts to help lower the annual premium rate for young drivers.
A few of the discounts that Nationwide offers to under 21-year-old drivers include:
- Good student discount
- Accident forgiveness
- Defensive driving course discount
- Anti-theft device discount
- Multi-vehicle discount
Adding a driver under 21 to an auto insurance policy with Progressive is quick and easy. It offers competitive rates and a comprehensive full coverage package that will keep them safe on the road. Along with great coverage, there are multiple discounts available, including a discount for just having a teenage driver on your policy.
A few of the discounts that Progressive offers to under 21-year-old drivers include:
- Good student discount
- Multi-vehicle discount
- Teen driver discount
- Snapshot program
Cheapest Car Insurance Quotes for Under 21-Year-Olds
Many young drivers and their families settle for an auto insurance policy with their current insurance provider. While there is nothing wrong with that, it could mean higher average monthly premium payments. If you aren’t currently using one of the insurers below for auto insurance, it might be worth inquiring about free quotes from Insurify, which provides you a list of quotes from up to 20 insurance providers, customized to your profile.
|Carrier Name||Average Monthly Premium|
|Farmers 21st Century||$115|
|Assurance America Economy||$212|
It can be difficult to compare auto insurance quotes, especially when you have multiple providers you are working with. Insurify helps simplify the process by allowing you to compare more than 20 quotes all on one screen.
Best Auto Insurance Discounts for Under 21-Year-Olds
There are numerous discounts available to drivers under 21, and depending on which provider you decide on, you might be able to use multiple discounts. It is always a good idea to speak with your local insurance agent to see what discounts are available to you. Here are a few to consider when discussing your policy.
Good Student Discount
One of the most popular discounts available through many insurance providers is the good student discount. Available for young drivers who maintain a B average in school, there is the possibility to save as much as 25 percent on premium payments. To qualify for the discount, the full-time student would need to provide proof of scholastic records.
Distant Student Discount
Young drivers who are accepted into a college that is 100 miles or more away from their home may qualify for a distant student discount. Many insurance companies will discount rates if the student leaves their vehicle at home and only uses it during holiday breaks. It’s a great option for parents who still have students on their plans as well.
Other Discounts for Under 21-Year-Olds
Even though some discounts are common among auto insurance companies, such as good student and distant student discounts, others aren’t as common. For example, discounts for belonging to an organization or club can yield savings, too. Below is a list of some of the most common car insurance discounts available to drivers under 21-years-old.
|Common Car Insurance Discounts|
|Good Student Discount|
|Distant Student Discount|
|Defensive Driving Discount|
|Anti-Theft Device Discount|
|Membership and Employee Discount|
|Reduced Usage Discount|
|Youthful Driver Discount|
|Low Mileage Discount|
Car Insurance Tips for Under 21-Year-Olds
Learning to drive and gaining experience behind the wheel is stressful enough for young drivers without adding the pressure of paying high premiums. Here are some tips that drivers under the age of 21 can use to find affordable coverage and lower their annual auto insurance rates.
Shop Around for Car Insurance
With rates statistically higher for young drivers, it’s important to take advantage of every opportunity to find lower rates. One way to do this is by shopping around for car insurance quotes. Often, the first price that you find won’t be the most affordable, and you will need to compare rates between carriers to find the cheapest coverage.
Take Advantage of Discounts
Many drivers know about multi-vehicle discounts and discounts for good grades, but most insurance providers also offer other common discounts. This is one of the best ways to lower your rate when you have selected a provider. To ensure you are saving as much as possible on your policy, speak with your local agent about the discounts they offer.
Remain on Your Parents’ Policy
If possible, staying on your parents’ auto insurance policy is often a more affordable alternative to getting your own coverage. It can also provide advantages to your parents as well. Some insurance companies will offer lower rates for having multiple vehicles on one auto insurance policy.
Drive a Safer Car
Even though you may have your eye on a sports car, you might be able to save hundreds of dollars on auto insurance by choosing a safer car. Many insurance companies take into consideration how safe your car is to insure. Vehicles that have higher safety ratings, such as sedans, are easier to insure and can result in paying a lower premium for coverage.
Drive an Older Car
Sometimes with older cars, you can save money by reducing the coverage you carry on it. For instance, if you drive an older vehicle that isn’t worth much, it might make sense to speak with your agent about dropping collision coverage.
Select a High-Deductible Plan
For drivers who want an alternative to paying higher monthly premiums, you may be able to discuss a high-deductible plan with your insurance agent. These plans offer lower monthly payments in turn for the driver to pay more out of pocket for any car repairs that result from an accident.
Keep a Clean Driving Record
One of the biggest factors that goes into determining what you will pay in monthly premiums is your driving record. Young drivers who avoid any type of violation will notice that providers will label them as less risky and in turn offer lower rates. On the other hand, if you have multiple violations, it is safe to assume you will pay a much higher rate.
Maintain a Good Credit Score
Credit scores are another way that insurance providers decide where to set your auto insurance rates. Building credit that shows you pay your bills and debt on time is a great way to get lower rates. Statistics even show that the better your credit score is, the less likely you are to file insurance claims, meaning that you are less risky for providers to insure.
Most Expensive States for Car Insurance for Under 21-Year-Olds
On average, the following five states are the most expensive states for under 21-year-olds to obtain auto insurance:
Least Expensive States for Car Insurance for Under 21-Year-Olds
Drivers under 21 drivers who live in the following states will enjoy the low car insurance rates that come with their location:
FAQ: Car Insurance for Drivers Under 21
How much is car insurance for an under 21-year-old per month?
The average monthly premium for a driver under 21 is about $214. However, this can vary based on many factors, including age, location, and gender.
Where can I compare car insurance quotes online for free?
There are many platforms that will allow you to compare car insurance quotes online for free. However, most won’t allow you to easily compare multiple quotes. With Insurify, all you need to do is answer a few questions, and you will be presented with a list of policies that you qualify for, all on one screen. Comparing quotes has never been easier!
How does safe driving keep car insurance rates low for an under 21-year-old?
For new drivers without a driving record, insurance companies have to rely on statistics to calculate premium rates. By driving safely and avoiding violations or accidents, you are essentially proving to the provider that you are less risky to insure. Once the carrier sees this, you are more likely to receive lower car insurance rates on your next policy.
Does the car you drive make a difference on insurance rates?
The vehicle you drive can play a big factor in determining your insurance rates. For example, driving a vehicle that has added safety features can help lower insurance rates. Also, choosing safer cars like a sedan can give you a better chance at a lower premium compared to a sports car.
At what age do insurance companies stop using age as a factor for rates?
Generally, you will notice that between the ages of 16 and 30, your insurance rates will decrease as long as you maintain a clean driving record. Once you turn 30, age doesn’t play as much of a factor in determining auto insurance rates until your 60th birthday. After 65, the older you get, the more likely your premiums will begin to increase again.
The best way for drivers under 21 to compare and save on car insurance
Younger drivers have a lot to be excited about when it comes to being able to drive. Even though there is a new sense of freedom, it is important to keep in mind that every decision behind the wheel can have an impact on premium rates.
In order to find the best auto insurance coverage with an affordable rate, shopping around is a necessity. Not only does it give you a chance to compare prices, but you may find providers that offer discounts to make annual premiums cheaper.
To help you find affordable coverage, Insurify makes comparing quotes a quick and easy process. Within a matter of minutes, you can answer questions about the type of coverage you need and will be presented with a list of coverage options that you qualify for, making it possible to quickly choose the plan that works best for you.