Best Cheap Car Insurance for 21-Year-Old Drivers (2023)

Kemper Preferred, Auto-Owners, and Erie offer some of the most affordable rates for 21-year-old drivers.

Amy Beardsley
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Amy BeardsleyInsurance Writer
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  • 7+ years in personal finance and technology

Amy specializes in insurance and technology writing and has a talent for transforming complex topics into easy-to-understand stories.

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Ashley Cox
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Updated June 12, 2023

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Newly minted 21-year-olds may find it challenging to find affordable car insurance even with a clean driving record. Statistically speaking, drivers in their early 20s are more likely to be in accidents. Despite making up just over 1% of the driver population, 21-year-olds are responsible for 1.4% of fatal crashes, according to a report from the National Safety Council.[1]

However, it’s possible to find cheap car insurance when you’re 21. Comparing car insurance quotes from multiple companies is an important first step.

Quick Facts
  • The average cost of car insurance for a 21-year-old in the U.S. is $334 per month, according to Insurify data.

  • Young male drivers pay higher rates than females on average because they tend to engage in riskier driving behaviors, leading to more accidents.

  • The cost of car insurance for 21-year-olds varies significantly by state and region, with North Carolina, Indiana, and Ohio being among the cheapest states and Louisiana, Nevada, and New York being the most expensive.

How much is car insurance for a 21-year-old?

On average, 21-year-olds pay just under $100 per month for liability-only coverage, Insurify data shows. But their monthly rates can reach as high as $422. Full coverage is even pricier, with average premiums ranging from $162 to $495.

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Factors that affect car insurance rates for 21-year-olds

“Youthful drivers cost more on their insurance policy due to driving record history as a demographic. Even with a clean driving record, younger drivers historically have more accidents due to lack of driving experience,” says Dom Frey, a licensed insurance agent in Ohio with Hitchings Insurance Agency.

Insurers also consider the following factors when determining your car insurance rates:[2]

  • Driving record: Insurance companies see your driving record as an indicator of how likely you’ll have a future incident. A history of accidents, traffic violations, or DUIs can result in higher insurance rates.

  • Credit score: Drivers who keep their credit scores up are more likely to be responsible behind the wheel. Insurers use credit scores to set rates about 95% of the time.

  • Gender and marital status: Younger drivers — particularly male drivers — have more accidents, leading to higher premiums.

  • Vehicle type and how you use it: The make and model of your vehicle, as well as how often and how far you drive, affect your rates.

  • Location: Where you live and park your car plays a role. Drivers in urban areas may see higher rates because accidents and auto thefts are more frequent than in rural areas.

  • Insurance history: If you don’t have auto insurance when you apply for coverage, most insurers will charge you more. You might also face higher premiums if you carry only state-minimum coverage.

  • Liability limits: Your choice of coverage affects your cost. Higher policy limits come with better financial protection, but you’ll pay higher rates.

  • Policy deductible: Going with a higher deductible can get you lower premiums since you agree to pay more out of your pocket when you file a claim.

Cheapest car insurance companies for 21-year-old drivers

The insurance company you choose can influence the car insurance rates you’ll pay, so it’s important to compare car insurance rates. Plymouth Rock Assurance offers the most affordable liability-only policy, for $94, while Allstate charges 112% more for liability coverage, according to Insurify data.

You’ll notice a similar trend for full-coverage policies — Kemper Preferred has the cheapest full-coverage policy for 21-year-olds, at $148, and National General’s rate of $363 is 145% higher.

Insurance CompanyAverage Quote: Liability OnlyAverage Quote: Full Coverage
Plymouth Rock Assurance$94$162
Kemper Preferred$97$148
Auto-Owners$111$164
Erie$131$185
USAA$133$207
Safeauto$136$212
GEICO$138$214
State Farm$160$249
National General$190$363
Allstate$199$312
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Plymouth Rock Assurance

Plymouth Rock Assurance is a solid option for drivers in the northeastern United States. Annual policies are available, and paying in full can net you a 4% discount.

Other discounts you might be eligible for include:

  • Safe driver discount

  • Anti-theft device discount

  • eDocuments discount

You’ll find optional coverages to customize your policy, such as accident forgiveness, full glass coverage, new-car replacement, loan/lease gap coverage, towing and labor, and roadside assistance.

Kemper Preferred

Kemper is a great company if you’ve had trouble getting insurance coverage in the past. It has different coverage options to fit your policy to your needs and budget. Check out Kemper Preferred for even more options if you have a clean driving history.

To help you save money, look for these discounts:

  • Good student discount

  • Military discount

  • Advanced quote discount

  • Proof of prior insurance discount

  • Paid-in-full discount

  • Defensive driving course discount

If you don’t have a license or need SR-22 insurance, Kemper can help. You can add roadside assistance or choose an annual policy to lock in your rate for the entire year.

Auto-Owners

Auto-Owners Insurance is another good option for 21-year-olds who value personal relationships with insurance agents. Its independent agents give you a point of contact to take care of your insurance business.

Discounts to consider for 21-year-olds include:

  • Good student discount

  • Student away at school discount

  • Safety features discount

  • On-time payments discount

  • Paid-in-full discount

  • Advanced quote discount

  • Paperless billing discount

Auto-Owners has a wide range of coverages available in six-month terms. Besides the basic coverages you’d expect, you can get rental car coverages, gap insurance, accident forgiveness, and deductible waiver.

Erie

Erie might be your best bet if customer satisfaction is important to you. It’s one of the top choices in customer satisfaction in the 2022 J.D. Power U.S. Auto Insurance Study, with 893 out of 1,000 points. Paying in full for the year can qualify you for a discount.

Other discounts you might benefit from include:

  • College student discount

  • Vehicle storage discount (if you go away to college)

  • Rate lock discount

  • Accident forgiveness discount

  • Diminishing deductible discount

  • Safety features discount

Erie policies can cover your travel expenses if your car becomes disabled, as well as pets if they’re injured while you’re traveling. You can also get accident forgiveness after you’ve been claims-free for three years.

USAA

USAA is a popular car insurance company for military members and their families. The company has a strong reputation for customer service. It ranks in one of the top spots in the industry, according to the J.D. Power 2022 U.S. Auto Insurance Study.

If you get a quote from USAA, ask about discounts that can lower your premiums, such as:

  • Good student discount

  • Clean driving record discount

  • Military base or installation discount

  • Anti-theft devices discount

USAA’s coverage can help protect you and others on the road with liability, comprehensive, and collision options. You also have the option to customize your policy with roadside assistance and rental reimbursement.

Check Out: What is Roadside Assistance and How Does It Work?

Check Out: What is Roadside Assistance and How Does It Work?

Average car insurance rates by age and gender

Car insurance costs vary considerably by age and gender, with males paying more than females on average.

“The reason male drivers might pay more is because statistically they are involved in more accidents, especially under the age of 25,” says Ashley Jantovsky, licensed insurance agent for Perfect Price Insurance Agency in Livonia, Michigan.

Men tend to engage in riskier driving behaviors than women, including driving under the influence, driving without a seatbelt, and speeding, according to the Insurance Institute for Highway Safety (IIHS). From 1975 to 2020, men had a 136% higher chance of being involved in a fatal crash on average, according to IIHS data on motor vehicle crashes.[3]

The table below illustrates that male drivers pay higher monthly liability-only and full-coverage automobile insurance rates.

GenderAverage Quote: Liability OnlyAverage Quote: Full Coverage
Women$255$392
Men$263$440
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.

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Average car insurance rates by state for 21-year-olds

“Each state is governed by its own set of insurance laws. As a result, insurance coverage is different, and experiences with claims are different, so the overall rates end up being different, too,” says Jantovsky.

You’ll also find cost differences between urban, suburban, and rural areas. Urban and suburban areas tend to have higher rates due to increased traffic, more vehicles on the road, and higher crime rates.

The table below shows a significant variation in monthly state car insurance premiums for 21-year-olds. For instance, 21-year-old drivers in North Carolina pay the lowest car insurance premiums, while New York’s average rates are up to 900% higher.

StateAverage Quote: Liability OnlyAverage Quote: Full Coverage
North Carolina$67$198
Indiana$128$251
Ohio$139$254
Tennessee$145$295
Iowa$159$303
New Hampshire$160$275
Illinois$161$276
Kansas$162$311
Utah$162$286
Pennsylvania$181$295
California$182$444
Wisconsin$184$286
Mississippi$201$343
Alabama$205$337
Virginia$208$312
Colorado$209$382
Arkansas$209$388
Oklahoma$218$333
Washington$229$297
Missouri$236$378
Oregon$243$377
Arizona$251$382
Texas$252$464
Michigan$286$547
South Carolina$305$427
Kentucky$313$490
Georgia$328$516
New Jersey$338$498
Connecticut$356$449
Maryland$360$542
Florida$421$567
Louisiana$431$633
Nevada$544$657
New York$670$714
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.

Cheapest states for car insurance for 21-year-olds

Your state’s minimum liability insurance requirements and whether you live in a no-fault or at-fault state can significantly affect your car insurance costs. States with higher liability minimums tend to have higher insurance premiums.[4] Additionally, insurers in no-fault states take on more risk because they cover medical expenses and lost wages regardless of fault.

Some states allow insurers to use credit as a rating factor, which means your credit score can affect your insurance premiums.[5] Below are the cheapest states for car insurance for 21-year-olds. Young drivers in North Carolina pay nearly 58% less for a monthly liability-only policy than drivers in Iowa.

StateAverage Quote: Liability OnlyAverage Quote: Full Coverage
North Carolina$67$198
Indiana$128$251
Ohio$139$254
Tennessee$145$295
Iowa$159$303
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.

Most expensive states for car insurance for 21-year-olds

Teen drivers and drivers younger than 25 are statistically more likely to be in accidents, especially males.[6] Insurers charge higher premiums to offset the higher risk. However, different states can also have different rates because of weather-related hazards.

States with a higher likelihood of hailstorms, hurricanes, or tornadoes need to account for the potential damage to vehicles, resulting in higher insurance rates. 

Insurance is most expensive in the following five states for 21-year-olds:

StateAverage Quote: Liability OnlyAverage Quote: Full Coverage
Maryland$360$542
Florida$421$567
Louisiana$431$633
Nevada$544$657
New York$670$714
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.

Best auto insurance discounts for 21-year-olds

Auto insurance discounts allow policyholders to reduce their premiums. They’re like rewards for meeting specific criteria, such as being a safe driver or having a low-risk vehicle. Some discounts are specifically for young drivers, such as:

  • 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 parent’s 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 making monthly payments.

  • Defensive driving course discount: Completing a certified defensive driving course can qualify you for a discount with some insurers.

  • Telematics: These programs offer young drivers an opportunity to save on car insurance premiums by monitoring their driving behavior through an app or device.

    Learn More: Insurify’s Guide to Car Insurance Discounts

    Learn More: Insurify’s Guide to Car Insurance Discounts

How to get cheap car insurance for a 21-year-old

Generally, you’ll pay more for car insurance when you’re 21 than your older peers, but several options are available to reduce your overall costs.

Comparison shop

To ensure you’re getting the best deal on car insurance, shopping around to compare quotes from multiple insurers is essential. Different insurers will offer different rates based on various factors, such as the type of car you drive, your driving history, and where you live. By comparing quotes, you can find the best price for the coverage you’re looking for.

Choose the right car model

The type of car you drive can have a big effect on your insurance rates. Generally, newer or more expensive vehicles will be more expensive to insure. If you’re looking to save money on car insurance, consider choosing a car that’s less expensive or has a good safety rating. Vehicles with a high safety rating and lower cost of repairs can help you lower your rates.

Opt for a high deductible

A higher deductible can help you save money on your car insurance premiums. A deductible is the amount you pay out of pocket before your insurance kicks in to cover the rest of the costs.

By selecting a higher deductible, you’ll be responsible for paying more out of pocket if you get into an accident, but you’ll also pay lower premiums each month.

Maintain a clean driving record

A clean driving record is one of the best ways to keep your car insurance rates low. Avoiding accidents, traffic violations, and DUIs can help keep your insurance costs down.

If you get into an accident or receive a violation, your insurance rates will likely go up, so driving safely and responsibly is important.

Keep a good credit score

Your credit score can also affect your car insurance rates. Depending on your state, insurers may use your credit score as a factor when setting your premiums. To maintain a good credit score, it helps to pay your bills on time and keep your credit utilization low.

Go (or stay) on a parent’s policy

“If a 21-year-old lives at home, they can stay on their parent’s policy, and I’d recommend that,” says Frey. “They likely receive a multi-car discount and auto-home discount — two large discounts they likely miss if they are on their own policy. Now, if they do not live at home and are not a full-time student, then most carriers will require them to be on their own policy.”

However, there’s a catch. “Parents should be forewarned that having their name on their child’s vehicle title opens them up to liability, and, in the event that a young driver has a claim, it can have an adverse effect on their overall household insurance premiums going forward,” Jantovsky says.

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Car insurance for 21-year-olds FAQs

While you may pay more for car insurance if you’re 21, it’s still possible to find affordable options. Here’s some additional information that can help as you shop for a policy.

  • Why is insurance more expensive for 21-year-old drivers?

    A 21-year-old’s car insurance can cost more due to a lack of experience and higher accident risk. Young drivers are also more likely to take risks behind the wheel, such as driving without a seatbelt and speeding, which can lead to more accidents and higher insurance premiums. Additionally, insurers may charge higher rates due to their vehicle type, state, or driving history.

  • Is it cheaper to stay on a parent’s policy?

    Usually, yes. Staying on a parent’s policy can be cost-effective for 21-year-old drivers. If you live at home, staying on your parents’ policy can help you receive multi-car and auto-home discounts you’d otherwise miss. Keep in mind that most insurers require you to have your own policy if you live away from home and aren't a full-time student.

  • How does credit score affect car insurance?

    If your state allows insurers to use your credit score to determine car insurance rates, your credit score can influence your rates. Generally, drivers with good credit scores are less risky to insurers, while those with poor credit scores are at higher risk. So, having a good credit score may allow you to get a cheaper car insurance rate.

  • What company has the cheapest car insurance for a 21-year-old male?

    SafeAuto offers the cheapest car insurance rates for 21-year-old males, with an average monthly premium of $117. SafeAuto offers flexible payment plans and offers immediate coverage to get you on the road quickly.

  • Which company has the cheapest car insurance for a 21-year-old female?

    If you’re a 21-year-old female driver, you can get the most affordable car insurance coverage from SafeAuto, with rates as low as $120 per month. SafeAuto offers drivers immediate coverage, so you don’t have to worry about being uninsured if you’re in a hurry.

Methodology

Insurify data scientists analyzed more than 90 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 50+ 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:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

  1. National Safety Council. "Age of Driver." Accessed April 19, 2023
  2. National Association of Insurance Commissioners. "A Consumer's Guide to Auto Insurance." Accessed April 19, 2023
  3. Insurance Institute for Highway Safety. "Fatality Facts 2020: Males and Females." Accessed April 19, 2023
  4. Insurance Information Institute. "What determines the price of an auto insurance policy?." Accessed April 19, 2023
  5. National Association of Insurance Commissioners. "Credit-Based Insurance Scores." Accessed April 19, 2023
  6. Rocky Mountain Insurance Information Association. "Teens Shopping for Auto Insurance." Accessed April 19, 2023
Amy Beardsley
Amy BeardsleyInsurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.

Ashley Cox
Edited byAshley CoxManaging Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxManaging Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

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