4.8out of 3,000+ reviews
Cheapest Car Insurance for 21-Year-Olds (2023)
Secure. Free. Easy-to-use.
Why you can trust Insurify: As an independent agent and insurance comparison website, Insurify makes money through commissions from insurance companies. However, our expert insurance writers and editors operate independently of our insurance partners. Learn more.
When it comes to buying a car insurance policy, young drivers are still considered new drivers, even people who have had a clean driving history since they were 16-year-old teen drivers. You’re probably used to paying higher rates than older drivers, but there are still ways to save money on your car insurance premiums.
Use our guide to finding affordable car insurance to understand how your auto insurance rates are calculated and how you can lower the cost of car insurance, even for young adults. Shopping for a new auto insurance policy? Check out Insurify’s car insurance comparison tool. This simple tool helps you find the best policies from all the best car insurance companies.
Quick Facts
The average cost of car insurance for 21-year-olds is about $280 per month.
21-year-olds see the lowest rates in North Carolina, Ohio, and Illinois.
The best way to find cheap car insurance is to compare quotes and apply any available discounts to your policy.
Table of contents
- Cheapest Car Insurance Companies for 21-Year-Olds
- Average Car Insurance Rates by Age and Gender
- How much does car insurance cost for 21-year-olds?
- Best Auto Insurance Discounts for 21-Year-Olds
- Tips for Cheaper Car Insurance
- Cheapest States for Car Insurance for 21-Year-Olds
- The Best Way to Compare and Get Cheaper Car Insurance
- Frequently Asked Questions
Cheapest Car Insurance Companies for 21-Year-Olds
There are lots of coverage options out there that you may have heard of, from GEICO and Progressive to State Farm, USAA, Nationwide, and Allstate. However, the big names aren’t always the providers with the best driver discounts. Here are some of the top companies we found that offer a low average monthly cost to younger drivers.
| Insurance Company | Cheapest Monthly Quote |
|---|---|
| SafeAuto | $54 |
| Liberty Mutual | $55 |
| The General | $55 |
| Travelers | $65 |
| Kemper | $67 |
| National General | $92 |
| Kemper | $96 |
| Travelers | $99 |
| Elephant | $110 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
See More: Cheap Car Insurance
Average Car Insurance Rates by Age and Gender
Nearly all auto insurance companies consider age and gender when they’re determining annual premiums. Age corresponds directly to driving experience, while gender can sometimes be a predictor of risk. Statistics indicate that younger male drivers are more likely to get in car accidents, so they pay more.
For 21-year-old female drivers, the average monthly cost of car insurance is $268 a month. By comparison, a male driver of the same age would pay $295 monthly. Some states prohibit companies from taking gender into account when setting rates. Regardless of gender, when analyzing car insurance rates by age young drivers will always pay way more on average.
How much does car insurance cost for 21-year-olds?
How much do 21-year-olds pay for car insurance?
The average cost of a car insurance policy for a 21-year-old is lower than the average policy for teen drivers, but drivers in their early 20s still see some of the highest monthly rates. However, many auto insurance companies offer discounts to offset the cost of expensive policies.
The good news is that 21-year-olds can expect to pay much lower rates for car insurance coverage than teenage drivers. Every year you drive, the cost of your policy gets cheaper, especially if you’re a safe driver who qualifies for policy discounts. 21-year-olds should expect to pay around $280 every month for car insurance coverage on average.
21-year-olds can find low car insurance quotes by shopping around between multiple insurance companies and looking for car insurance discounts that help lower premiums. Be sure to explore different discounts car insurance companies offer. Being eligible for a good student, bundling, or clean driving record discount could cut your monthly rates in half.
See More: Car Insurance Quotes
Direct Auto
Direct Auto prides itself on providing affordable car insurance to everyone, regardless of their insurance history. The company promises to assist policyholders to find the best rate possible for the type of coverage they need, even if you’re considered high-risk or need SR-22 certification.
A few of the discounts that Direct Auto offers to 21-year-old drivers include:
Safe driver discount
Good student discount
Car safety feature discount
Prior insurance coverage savings
Kemper
Kemper specializes in auto insurance for people who have had trouble getting or keeping insurance coverage in the past. Its flexible policies and coverage options range from the very basic to full coverage, so you can choose what works best for you. Its standard policies include the ability to lock in a low rate for an entire year, as well as a roadside assistance offering.
A few of the discounts that Kemper offers to 21-year-old drivers include:
Car safety feature discount
Good student discount
Defensive driving course
Electronic signature discount
Good driver discount
Multi-car discount
Multi-policy discount
Occasional operator discount
Travelers
Travelers is a leader in the car insurance space and is one of the largest insurers nationwide, meaning you’ll almost certainly find a quote for your area. It offers many policy options for people with all different driving habits, so you can always find something that works for you and your budget.
A few of the discounts that Travelers offers to 21-year-old drivers include:
Early quote discount
EFT, pay in full, good payer discounts
Multi-policy discount
Continuous insurance discount
Good student discount
IntelliDrive® program
Driver training discount
National General
National General specializes in insuring high-risk drivers who have had trouble finding coverage elsewhere. It also delivers some of the most affordable coverage on the market and lets you secure coverage online quickly. You can also get an SR-22 form from National General if you need one.
A few of the discounts that National General offers to 21-year-old drivers include:
Defensive driving course discount
Low-mileage discount
Electronic billing discount
Auto-pay discount
Anti-theft device discount
Elephant
Elephant is a car insurance company that’s committed to simplifying the insurance shopping process. It lays out your options free of industry jargon so you can make sense of your different insurance options, and it has a robust website and app that you can use to manage your account from wherever you go.
A few of the discounts that Elephant offers to 21-year-old drivers include:
Electronic signature discount
Online quoting discount
Referal discount
Good student discount
Non-commuter discount
Safe driver discount
Paperless billing discount
See More: Best Car Insurance Companies
Best Auto Insurance Discounts for 21-Year-Olds
Discounts are a great way to lower the cost of your car insurance. 21-year-old drivers may qualify for several discounts, including:
| Discounts for 21-Year-Olds | How to Get It | Companies That Offer It |
|---|---|---|
| Good Student Discount | Usually, a GPA of 3.0 higher qualifies you for good student discounts. | GEICO, Allstate, Progressive, State Farm, USAA |
| Distant Student Discount | If you’re starting college and leaving the car behind, you don’t have to pay for insurance that covers you as if you’re driving every day. | State Farm, Progressive, Allstate |
| Bundling with Home Insurance | If your parents own a home, ask them to make sure they’re getting auto insurance and home insurance from the same place. | GEICO, Allstate, Progressive, State Farm, USAA |
| Driver Training | Ask your auto insurance company for qualifying classes in your area. | GEICO, Allstate, Progressive, State Farm, USAA |
Tips for Cheaper Car Insurance
Aside from discounts, there are other things you can do to lower the cost of your car insurance coverage. Try these cost-cutting tips to lower the amount you’re paying every month.
Shop Around for Car Insurance
Regardless of age, shopping around for car insurance is one of the most effective ways to save money. Each auto insurance company offers different discounts and weighs certain factors differently, making it important to compare auto insurance quotes from multiple providers before making a decision. Free online quote-comparison tools like Insurify can make it easy.
See More: Best and Worst Sites to Compare Car Insurance
Remain on Your Parents’ Policy
Young adults who have the option to remain on their parents’ insurance policy should take full advantage. Often, staying on a plan with your parents will be your cheapest option, and can even give them a discount on their rates.
Drive an Older, Safer Car
Newer cars cost more to insure because they’ll cost more to replace. You can help keep your costs low by choosing an older car that has certain safety features, like anti-lock brakes and airbags.
Select a High-Deductible Plan
The higher the deductible you choose, the lower your premiums will be. Insurance companies charge more if they’ll have to pay out more after an accident. With a higher deductible, you’re shifting some of the risk to yourself.
Keep a Clean Driving Record
Nothing lowers car insurance rates more than being a good driver. Keep clear of at-fault accidents and speeding tickets to lower your risk in the eyes of your insurer.
Maintain a Good Credit Score
Statistically, people with lower credit scores tend to be riskier drivers. Keep your credit score high to prove that you can be trusted with lower car insurance rates.
Take Advantage of Discounts
Cash in on all the car insurance discounts you might be eligible for. Some might include:
Cheapest States for Car Insurance for 21-Year-Olds
21-year-old drivers who live in the following states can enjoy the low car insurance rates that come with their locations:
| State | Insurance Company | Cheapest Monthly Premium |
|---|---|---|
| North Carolina | Direct Auto | $58 |
| Ohio | National General | $92 |
| Illinois | Kemper | $96 |
| Massachusetts | Travelers | $99 |
| Indiana | Elephant | $110 |
| Tennessee | National General | $114 |
| Mississippi | National General | $121 |
| Oregon | National General | $125 |
| Utah | Clearcover | $126 |
| Iowa | Travelers | $127 |
| Alabama | National General | $131 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
The Best Way to Compare and Get Cheaper Car Insurance
Shopping for car insurance as a 21-year-old can sometimes be stressful, but it doesn’t have to be. Your driving history, grades, and other factors can help you qualify for discounts that will keep your costs, and stress levels, low.
There’s no better way to get real quotes from the insurance providers that matter than with Insurify. Instead of contacting a dozen car insurance companies to get quotes, let our quote auto insurance comparison tool do the hard work for you. You’ll have the best data to identify which auto insurance companies are the best match for you so you can make the right decision.
Frequently Asked Questions
The rate you’ll pay varies a lot depending on your driving history, location, and other risk factors. The cheapest rate we found for a 21-year-old was $58 a month, while the most expensive was $507.
Rates vary so much that the smartest thing to do is to compare car insurance rates. Get all the quotes you need from Insurify and see what rates and discounts the different insurers will offer you. This will help you find a policy that covers everything you need while keeping rates reasonable.
Being a safe driver proves you’re less of a risk to insure. Drivers with DUIs, moving violations, and speeding tickets are more likely to get into accidents, which means insurance companies are more likely to have to pay out claims. If you can prove you’re a low-risk driver, your rates will reflect that.
Compare Car Insurance Quotes Instantly
Secure. Free. Easy-to-use.
Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
Insurance Writer
