120+ more*Quotes generated for Insurify users within the last 10 days. Last updated on June 25, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on June 25, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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Co-authored the book “Future Millionaires’ Guidebook”
13 years writing personal finance content
Featured in
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Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
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30+ years in financial services
Clinical Professor of Finance, University of San Diego
Updated
When drivers reach age 21, car insurance rates typically drop by around 16% compared to teen drivers.
The average cost of car insurance for a 21-year-old in the U.S. is $154 per month for liability-only insurance and $292 per month for full coverage, according to Insurify data.
By staying on a parent’s policy, a 21-year-old driver saves an average of $29 per month on liability-only car insurance and $55 monthly for full coverage.
On average, 21-year-old drivers in the U.S. pay $1,848 annually for liability-only car insurance and $3,504 per year for full coverage. But rates vary widely depending on factors like the driver’s location and gender.
Young men often pay higher rates than women because they drive more and tend to engage in riskier driving behaviors, leading to more accidents.[1]
Location affects factors like accident and vehicle crime rates. The cheapest state for a 21-year-old driver is Wyoming, where liability-only coverage costs $960 per year on average, according to Insurify data. Rhode Island is the most expensive state for 21-year-olds, at $3,540 annually.
Staying on a parent’s policy is one way 21-year-olds save money on car insurance. Drivers save $348 per year, on average, for minimum coverage and $660 per year on full coverage by using this strategy.
The following table compares average monthly minimum-coverage and full-coverage rates for 21-year-old drivers.
Coverage Level  | Average Monthly Quote: 21-Year-Old Driver |
|---|---|
| Liability-only | $154 |
| Full coverage | $292 |
Comparing rates through Insurify could cut your bill up to 50%
Gender is a significant rating factor insurers consider when setting premiums. Young men generally pay more than women for car insurance because they pose more risk to insurers.
The average monthly rate for 21-year-old male drivers is $156 for liability-only insurance and $297 for full coverage, according to Insurify data. Women in this age group pay an average of $151 and $288 per month, respectively.
That means male drivers pay $60 more per year for liability-only coverage and $108 more for full coverage, reflecting a 3% difference between genders in this age group.
California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania prohibit the use of gender as a factor in setting car insurance rates.[2] The following table illustrates the cost difference for 21-year-old drivers based on gender.
Coverage Type | Average Monthly Rate: Male | Average Monthly Rate: Female |
|---|---|---|
| Liability only | $156 | $151 |
| Full coverage | $297 | $288 |
In most cases, staying on your parent’s car insurance policy for as long as possible is the most affordable option. On a separate policy, the average cost of car insurance for 21-year-old drivers is $154 per month for liability coverage and $292 per month for full coverage.
Drivers in this age group save an average of 23% when they can stay on their parent’s policy.
If the car title contains your parent’s name or both of your names, then you can typically stay on the family car insurance policy. This may be true whether you’re living at home, you’re away at college with your car at home, or you take your car to college with you.
But you’ll usually need to buy your own policy if only your name is on the title. And if you no longer live with your parents, you’ll need your own policy. In any situation, it’s best to check the rules with your car insurance company.
Agent Tip: Should you stay under your parents‘s policy?
“Young drivers who stay on their parents’ policy get the benefit of some price breaks they might not qualify for on their own, like a bundling discount, homeowner discount, and lower rates for good credit and continuous coverage.”
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The best car insurance companies for young drivers offer more than just competitive rates. They also offer robust discounts, digital tools, and strong claims-handling service.
| User Reviews | 4.3 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.2 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $45/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $87/mo |
Auto-Owners's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 3.5 | 3.6 |
| Discounts | 3.6 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.5 | 2.9 |
Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.
Auto-Owners offers low-cost car insurance for 21-year-olds, along with several discounts to help further lower premiums. You can save by earning good grades and leaving your vehicle at home while away at school. You can also get a discount for enrolling in a driver monitoring program.
Discounts geared toward young drivers
Above-average score in J.D. Power’s 2025 claims satisfaction study[3]
Many coverage options
Available in only 26 states
Must work with an agent to get quote
Customers report issues with filing claims
| User Reviews | 4.0 |
|---|---|
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $42/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $89/mo |
Country Financial's score | Industry average | |
|---|---|---|
| Coverage options | 3.9 | 3.2 |
| Customer service | 3.4 | 3.6 |
| Discounts | 3.5 | 2.9 |
| Policy transparency | 3.8 | 3.1 |
| Value | 3.2 | 2.9 |
Customers appreciate the prompt claims service and personal touch but are frustrated by the constant rate increases and lack of discounts.
Country Financial has the cheapest average car insurance rates for 21-year-olds and offers several ways for students to save.
Students who earn good grades can get a discount of 35% off their premiums, and recent grads younger than 25 can also qualify for deals. And through the legacy discount, parents can pass multi-vehicle and multi-policy discounts to their children younger than 25, even if they live elsewhere.
Cheapest rates for 21-year-old drivers
Above-average ranking in third-party reviews
Good discounts for students
Available in only 19 states
Slightly more than expected number customer complaints for a company of its size
Must work with an agent to finalize quote and get coverage
| User Reviews | 4.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $53/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $106/mo |
State Farm's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.3 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.7 | 2.9 |
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
State Farm offers relatively cheap rates on car insurance for 21-year-olds, and its telematics program can help you save more. You get an initial 10% discount for enrolling in Drive Safe & Save. Then, avoiding quick accelerations, hard braking, fast cornering, and other dangerous driving behaviors can help you save up to 30% on your premium.
Excellent third-party reviews
Well-rated telematics app
Available in 48 states (unavailable in RI; temporarily unavailable in MA)
No accident forgiveness program
Must work with an agent to get quote
More expensive than some competitors
Auto insurance discounts allow policyholders to reduce their premiums. Having a clean driving record, earning good grades, enrolling in a telematics program, and insuring multiple vehicles on the same policy tend to help you save the most on your premium.
You can maximize those savings by asking the insurer whether you can stack eligible discounts, too.
Some discounts geared toward young drivers include:[4]
Good student discount: This discount is for students who maintain a certain grade point average or higher.
Away-at-school discount: If you attend college or live away from home for an extended period, you may be eligible for this discount.
Bundling discount: If you own or rent your own place, or if you’re on your parents’ policy and they own a home, ask about bundling your policies to save on your car insurance.
Safe driver discount: This discount is best if you have a clean driving record with no accidents or violations.
Multi-car discount: If you and your family have more than one car, you can save money on your insurance by getting a multi-car discount.
Pay-in-full discount: Some insurers offer savings if you pay your premium in full rather than paying in monthly installments.
Defensive driving course discount: Completing a certified defensive driving course can qualify you for a discount with some insurers.
Telematics discount: These programs offer young drivers an opportunity to save on car insurance premiums by monitoring their driving behavior through an app or device.
Low mileage discount: This discount rewards you for driving fewer miles annually.
The Dodge Caravan, Subaru Outlook, and Subaru Forester are the cheapest vehicles to insure for 21-year-old drivers, according to Insurify data. The car you drive can influence what you pay.[5]
For example, you’ll likely pay more to insure new cars, luxury vehicles, electric vehicles, or sports cars than you would for a used car, sedan, or compact car. And safety features like lane departure warning can help you score a lower rate.
The cheapest vehicles to insure for a 21-year-old tend to be practical, family-oriented models. The safety features on these cars help reduce the risk of accidents, and some cars are cheaper to repair after a crash.
The following table provides rates for 21-year-olds driving some top models.
Vehicle | Average Monthly Full-Coverage Rate |
|---|---|
| Dodge Caravan | $203 |
| Subaru Outback | $235 |
| Subaru Forester | $240 |
| Fiat 500 | $248 |
| Honda Odyssey | $256 |
| Ford Escape | $259 |
| Toyota 4Runner | $259 |
| Ford Edge | $261 |
| Subaru Crosstrek | $262 |
| Toyota Sienna | $269 |
Rates start as low as $58/mo. for young drivers
Car insurance tends to become more affordable as you gain driving experience, but 21-year-olds can still take steps to lower their premiums. Consider these ways to save:
Compare options. Get quotes from three to five insurers, especially if you’re transitioning off a parent’s policy.
Evaluate your coverage needs. For instance, you might want roadside assistance if you’re driving to and from school. On the other hand, collision and comprehensive coverage may not be worth the cost if you drive a paid-off, older car with a low value.
Raise your deductible. This can help lower your premium, but make sure you can comfortably cover the higher out-of-pocket cost after a claim.
Shop for coverage as your needs change. You may need different types of coverage after major life events like graduating from college, getting married, moving, and having kids.
Ask about discounts. One of the best ways to lower your premium is by qualifying for discounts, such as those for good students, safe drivers, and bundling multiple policies.
If you still have questions about car insurance for 21-year-olds, here’s some additional information that can help.
At age 21, drivers pay an average of $154 per month for liability-only car insurance and $292 per month for full coverage, according to Insurify data.
Yes. Nationally, teen drivers pay a monthly average of $348 for full coverage and $184 for liability-only insurance, according to Insurify data. In contrast, 21-year-olds pay $292 and $154 per month, respectively. Rates tend to drop again significantly around age 25, provided you’ve maintained a clean driving record.
Yes, it’s usually cheaper for 21-year-old drivers to stay on a parent’s policy if possible. Using this strategy lowers rates by an average of 23% for drivers in this age group.
Country Financial, Auto-Owners, and State Farm tend to offer the best car insurance for 21-year-olds. These companies offer cheap rates, discounts geared toward young drivers, and strong customer service ratings.
Young drivers are more likely to be involved in car accidents, which could result in expensive claims.[6] Insurers take that risk into account and price premiums accordingly.
Typically, car insurance rates noticeably decline when drivers reach age 25, but costs generally keep dropping with each decade. Rates are lowest for senior drivers.
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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)
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Co-authored the book “Future Millionaires’ Guidebook”
13 years writing personal finance content
Featured in
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
30+ years in financial services
Clinical Professor of Finance, University of San Diego
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
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