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When it comes to finding cheap car insurance, things are difficult for drivers under 21. Young drivers are more likely to file a claim, which means they pose a higher risk for insurance companies. As such, auto insurance companies across the country charge higher rates to drivers under 21 years old. But there are still ways to find affordable rates.
Because insurance companies change their rates often, drivers under 21 should make time to regularly compare car insurance rates.
Using car insurance discounts, driving an older vehicle, and staying on your parents’ insurance plan are generally the best ways to get cheap car insurance when you’re under 21.
Usage-based insurance—whether through a telematics program or through a usage-based insurer—will earn drivers under 21 discounts of up to 50%.
Rates go down as you age, so long as you maintain a good driving record. Be sure to compare your rates often to ensure you’re always getting the best deal.
Table of contents
- Cheapest Car Insurance Companies for Drivers Under 21
- Average Car Insurance Rates by Age and Gender
- How much does car insurance cost for drivers under 25?
- Best Car Insurance Companies for Drivers Under 21
- Cheapest Auto Insurance Discounts for Drivers Under 25
- Tips for Cheaper Car Insurance
- Cheapest States for Car Insurance for Drivers Under 21
- The Best Way to Compare and Get Cheaper Car Insurance
- Frequently Asked Questions
Cheapest Car Insurance Companies for Drivers Under 21
We analyzed tens of thousands of real car insurance quotes to understand which companies consistently offer the lowest rates to drivers under 21. Remember that the company offering the cheapest car insurance on average won’t always offer the best rate for you. Always compare rates before you buy and every six months to ensure you’re getting the best deal.
|Insurance Company||Cheapest Monthly Quote|
See More: Cheap Car Insurance
Average Car Insurance Rates by Age and Gender
In most states, your gender and age affect your car insurance rate. Most insurance companies regard older and female drivers to be at lower risk of incidents than younger and male drivers. This isn’t without evidence: years of data collection by the IIHS show male drivers are more than twice as likely to die in a car accident, and young drivers are more likely to file a claim.
Car insurance companies always charge higher rates for drivers considered high-risk. It makes fiscal sense—insurers need to remain solvent after payouts. So young drivers, who are considered high-risk, will pay more than most older drivers, even when they live in the same area and have similar driving records.
How much does car insurance cost for drivers under 25?
Is there such a thing as cheap car insurance for drivers under 21 years old?
Though sometimes hard to find, cheap car insurance for young drivers under 21 years old does exist if you know where to look.
As you get older, your car insurance rates will decline until age 65, when they’ll start to creep up again. Drivers between the ages of 21 and 25 should still expect high prices, but not as high as when they were an 18-year-old driver and much less than when they were a 16-year-old driver. On average, they should expect to pay between $160 and $240 a month.
Keep in mind that you can get cheaper car insurance using a number of tactics. Driving an older car, buying liability coverage (no collision or comprehensive coverage), and using discounts can save you a lot on annual premiums. You can also save by being added to your parents’ policy as opposed to buying your own.
Best Car Insurance Companies for Drivers Under 21
Farmers is a well-regarded, large insurance company. It offers a huge set of discounts, but rates are cheap to begin with. The average under-21 driver spends $105 a month on car insurance with Farmers. The company also has high marks for customer satisfaction and many other insurance products, such as renters insurance.
A few of the discounts that Farmers offers to drivers 21 years old and younger include:
Electronic payment discount
Good student discount
Affinity group discount
Travelers offers fairly low-cost car insurance to young drivers. Monthly premiums are $198 on average. The company also has a huge range of coverage options, insurance, and financial products and has received fewer complaints than other insurers of the same size. Be sure to speak with your insurance agent about any discounts you may have missed.
A few of the discounts that Travelers offers to drivers 21 years old and younger include:
Good student discount
Student away at school discount
Defensive driver discount
Electronic payment discount
Early quote discount
The average driver under 21 pays $247 a month for car insurance with MetLife. While that’s certainly not the cheapest, drivers do get a lot for their money with this company. MetLife gets great reviews from its customers and offers great technology and a large number of discounts that can help you significantly lower the cost of car insurance.
A few of the discounts that MetLife offers to drivers 21 years old and younger include:
Safe driver discount
Driver training discount
Car safety feature discounts
Good student discount
Mile Auto is a usage-based car insurance company that prices policies based on the number of miles driven. Drivers under the age of 21 pay $256 a month on average with Mile Auto. But they can pay much less by simply driving less. And the company is well-rated by its customers, who give it 4.2 stars on Trustpilot.
However, Mile Auto is only available in Arizona, California, Georgia, Illinois, Ohio, Oregon, and Texas. And the company does not offer any additional discounts.
While Progressive charges the average driver under 21 around $272 a month for car insurance, there is still a lot to love about this provider. The Snapshot program is one highlight. This simple telematics program saves you $146 a year on average, according to the company.
A few of the discounts that Progressive offers to drivers 21 years old and younger include:
Good student discount
Teen driver discount
See More: Best Car Insurance Companies
Cheapest Auto Insurance Discounts for Drivers Under 25
Taking advantage of discounts is a no-brainer. Below are the best discounts for drivers under 25 years of age.
|Discount for Drivers Under 25||How to Get It||Companies That Offer It|
|Good Student Discount||Maintain good grades. How good depends on the company, but it’s usually a B average or better. High school and college students can qualify.||Allstate, American Family, Farmers, GEICO, Liberty Mutual, MetLife, Nationwide, Progressive, Travelers, USAA|
|Distant Student Discount||Spend part of the year away at school without access to your car.||Allstate, American Family, Farmers, Liberty Mutual, Progressive, Travelers|
|Telematics Programs||Install an app on your phone or a device in your vehicle that tracks your driving habits. You receive a discount when you show good habits. The better your driving, the better the discount.||Allstate, American Family, Esurance, Farmers, GEICO, Liberty Mutual, Metromile, Nationwide, Noblr, Progressive, Root, State Farm, Travelers, USAA|
|Defensive Driver||Complete a defensive driver course that is approved by your car insurance company. Online courses typically cost between $20 and $50.||AAA, Allstate, Liberty Mutual, MetLife, State Farm, Travelers, USAA|
|Car Safety Equipment||Get discounts for having airbags, passive restraints, antilock brakes, and other safety features.||Allstate, American Family, Erie, Farmers, GEICO, Liberty Mutual, MetLife, State Farm|
Tips for Cheaper Car Insurance
Most new drivers don’t understand how to save money on car insurance. Savvy young drivers take the time to research how car insurance works and the many ways they can reduce their costs. Below are our best tips for saving on car insurance, even when you’re under 21.
Compare Car Insurance Rates Often
Car insurance companies are constantly changing the way they assess risk and, therefore, costs for insurance. When you compare quotes often, you’re more likely to take advantage of lower rates sooner than people who don’t check rates.
See More: Best and Worst Sites to Compare Car Insurance
Discounts, Discounts, Discounts
Discounts are a policyholder’s best friend, but this is especially true for young adults. Most drivers can easily get a small discount for setting up autopay and choosing to get all documents electronically. Defensive driving course discounts and telematics programs are two great ways to become a better driver and save up to 50% on your auto insurance policy.
Cash in on all the car insurance discounts you might be eligible for. Some might include:
Join a Parent, Guardian, or Older Sibling’s Existing Policy
Of course, there are some discounts that are hard or impossible to get when you’re a young driver. That’s why getting added to someone else’s policy is so powerful. You can simply pay the difference of the cost of adding yourself to the policy. Be sure to only be added to the vehicle you plan to drive. And you should still take advantage of other discounts.
Set Up Your Policy for Savings
Choosing a liability-only car insurance policy is the cheapest way to insure yourself. But this only works if you drive a car that’s inexpensive and paid off. Your policy will cover bodily injury and property damage liability. You can also set a high deductible to lower your rate. The higher the deductible, the less you pay.
Maintain a Clean Driving Record (and Good Credit)
Driving safely significantly lowers your chances of getting into an accident. Following the law reduces the chances of getting a ticket. Responsible driving leads to valuable discounts (e.g., a good driver discount). It also means insurance providers will offer you lower rates sooner. Drivers with good credit scores also pay less for car insurance.
See More: Car Insurance Quotes
Cheapest States for Car Insurance for Drivers Under 21
Where you live has a big impact on the price you pay for car insurance. Differences in state laws mean that some states, like Michigan, have higher rates on average. But even within states, there are big differences between costs. Claim rates, traffic patterns, and other location-specific factors make some ZIP codes more expensive than others.
|State||Average Monthly Quote for Drivers Under 21|
The Best Way to Compare and Get Cheaper Car Insurance
It may seem a little complicated, but understanding how insurance works is the best way to get the cheapest car insurance. Once you know how insurance companies assess risk and rates, you know how to put yourself in the best position to save money. When you compare car insurance rates, you can see your full range of options, from national brands to regional insurers.
Frequently Asked Questions
The average cost of car insurance for drivers under the age of 21 is $367 a month. However, those rates can vary greatly depending on your state, location, driving history, driving habits, discounts, and vehicle. Savvy young drivers can pay as little as $110 or less per month. But drivers with expensive cars or a history of claims could pay more than $400 a month.
The first step to getting affordable car insurance is to practice safe driving. Your driving record is one of the biggest factors that determine your cost. You should also consider driving a car that only needs liability insurance. If you can, stay on a parent’s or guardian’s insurance. Finally, compare your rates before you buy to ensure you’ve got the best rate in your area.
When you practice safe driving habits, you greatly reduce your chances of causing an accident or another rate-increasing claim. Plus, if you participate in a safe driving telematics program or complete a safe driving course, you can save up to 25% on your car insurance premiums, all while keeping you and your passengers safe.
Compare Car Insurance Quotes Instantly
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.