Average Car Insurance Costs for 21-Year Old Drivers
The average cost of car insurance for a 21-year-old is $274 per month for a full coverage policy.
Find Cheap 21-Year-Old Auto Insurance Quotes
Erie, Farm Bureau and USAA have the cheapest insurance rates for 21-year-old drivers, starting at $167 per month. To get the cheapest rate, 21-year-old drivers should compare car insurance quotes and take advantage of young driver discounts.
How much is car insurance for a 21-year-old?
Full coverage car insurance for a 21-year-old driver costs $274 per month, on average.
Erie and Farm Bureau have the cheapest full coverage car insurance for 21-year-olds, at $179 per month.
However, rates vary considerably between insurance companies. There's a difference of $225 per month between the cheapest companies and the most expensive option, Allstate.
Find Cheap 21-Year-Old Auto Insurance Quotes
Some young drivers can find even cheaper rates with USAA. A full coverage policy from the company costs $167 per month for a 21-year-old. But you can only get USAA insurance as a 21-year-old if you're in the military or have a family member who serves or is a veteran.
Travelers has the most affordable widely available car insurance for 21-year-olds, at $219 per month.
Cheap full coverage insurance for 21-year-olds
Company | Monthly rate | ||
|---|---|---|---|
| Erie | $179 | |
| Farm Bureau | $179 | |
| Travelers | $219 | |
| Auto-Owners | $230 | |
| Geico | $232 | |
USAA is only available to military members, veterans and their families.
Cheapest car insurance for 21-year-olds by state
Car insurance quotes for 21-year-old drivers vary by up to $285 per month depending on where you live.
The cheapest company in North Carolina, Erie, offers full coverage insurance to 21-year-olds for just $81 per month. But the most affordable option in Florida, State Farm, charges $244 per month for the same coverage. That's a difference of $163 per month.
State | State average | Cheapest rate | |
|---|---|---|---|
| California | $224 | Geico | $137 |
| Florida | $424 | State Farm | $244 |
| Georgia | $278 | Farm Bureau | $188 |
| Illinois | $250 | Country Financial | $139 |
| Michigan | $314 | Geico | $135 |
Find the Cheapest Insurers for Young Drivers in Your State
Best cheap insurance for 21-year-olds: Erie
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Editor rating
- Monthly rate: $179/mo
Pros and cons
Erie is an excellent choice for 21-year-old drivers. A full coverage policy from Erie costs $179 per month, which is 35% cheaper than average.
You can get even cheaper rates from Erie if you live at home with your parents and get good grades at school. It also offers discounts to safe drivers and people who don't drive often, like those who live on campus or have a short commute.
Erie offers all of the basic protection you expect from a car insurance company, along with lots of ways to upgrade your coverage.
For example, 21-year-olds who have a loan or lease on their car can get gap insurance or new car replacement. Gap insurance helps pay the difference between the amount you owe on your car and its current value if it's totaled in a bad wreck. So this coverage can be helpful if you don't have enough money in savings to pay the difference.
Erie also offers rental car or transportation expense reimbursement so you can pay for a rental car or Uber to work or school if your car is damaged in an accident.
However, Erie is only available in 13 states and Washington, D.C. If you don't live in one of these states, you should look at Farm Bureau or Travelers.
Best major car insurance company for 21-year-olds: Travelers
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Editor rating
- Monthly rate: $219/mo
Pros and cons
Travelers is a great option if you're a 21-year-old driver looking for cheap rates from a bigger company. A full coverage policy from Travelers costs $219 per month for a 21-year-old. That's 20% cheaper than average.
Travelers offers a handful of ways for 21-year-olds to lower their insurance bill.
You can save money if you have a "B" average or higher in school, or take a driver training course. Travelers also has lots of standard discounts that are easy to get. You can save money by paying on time, getting a quote before your current policy expires or making electronic payments.
But Travelers' affordable rates come at a price. Customers aren't always happy with its customer service after an accident, according to J.D. Power. For that reason, Travelers customers should consider adding rental car reimbursement to their policy. That way you won't have to worry about how you'll commute to work or school while your car is being repaired.
Best for 21-year-olds with military ties: USAA
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Editor rating
- Monthly rate: $167/mo
Pros and cons
USAA is the best option for 21-year-old military members and those with family members in the military. At $167 per month, a full coverage policy from USAA costs 40% less than average.
USAA only offers one discount tailored to young drivers — a good student discount. But there are lots of other ways to save with USAA, especially if you are 21 and currently serving in the military. For example, you can save up to 15% if you keep your car on a military base and up to 60% if you're deployed for more than 30 days.
It also has great customer service. So you can count on USAA to help get your car fixed quickly after an accident.
However, only military members, veterans and their families can buy USAA car insurance.
How to get cheap car insurance as a 21-year-old
There are four main ways to save money on car insurance as a 21-year-old driver.
- Share a policy with your parents
- Compare quotes from multiple companies
- Take advantage of discounts
- Get less coverage
Share a policy with your parents
The best way to find cheap car insurance as a 21-year-old driver is to share a car insurance policy with your parents. The cost of your parents insurance will likely go up when they add you to their policy. But it will still be much cheaper than paying for two individual policies.
Shop around for multiple quotes
As a 21-year-old driver, you should always shop around for rates at multiple insurance companies. Companies determine your rate based on lots of factors, like where you live, the car you drive and your driving history. That's why the company that offers you the best rate may be different from your friends or family members.
Qualify for discounts
It's important for 21-year-old drivers to take advantage of all available discounts. That could mean taking a driver training class to earn extra savings, or keeping your grades up in school.
Young drivers who practice good habits, like staying off their phone in the car and avoiding late-night driving, can save money with usage-based programs. These programs use a mobile app or a device that plugs into your car to share your driving habits with your insurance company. Then, the company uses that information to calculate your discount.
Consider less coverage
It's important to have enough car insurance coverage to protect you if you're in a major accident. But you may be paying for coverage you don't need.
For example, if your car is worth less than a few thousand dollars or is more than 10 years old, you should consider canceling your comprehensive and collision coverage. That's because the amount you spend to have your insurance company pay for repairs could be more than your car is worth.
Another way to lower your car insurance rates is to raise your deductible. A higher deductible means you'll pay more if you're in an accident, which is why your insurance policy will cost less.
But it's important to choose a deductible based on how much you can afford to pay after a crash.
Car insurance rates for 21-year-old men vs. women
On average, 21-year-old male drivers pay $22 more per month for full coverage insurance than female drivers.
A full coverage policy costs $285 per month for a 21-year-old man. In comparison, a 21-year-old woman pays $263 per month for the same coverage. That's because young men tend to get in more accidents than young women, which makes them riskier to insure.
Company | Male | Female |
|---|---|---|
| Erie | $192 | $166 |
| Farm Bureau | $192 | $166 |
| Travelers | $227 | $210 |
| Auto-Owners | $241 | $218 |
| Geico | $242 | $222 |
However, some states don't allow insurance companies to use gender to determine car insurance rates. Men and women should pay the same price for auto insurance coverage in these states, all else being equal.
- California
- Hawaii
- Massachusetts
- Michigan
- Montana
- North Carolina
- Pennsylvania
Cost of car insurance for 21-year-olds vs. other age groups
Car insurance rates usually go down as you get older, and just a few years can result in big savings for young drivers.
As a 21-year-old driver, you can expect your car insurance rates to decrease by 8% when you turn 22.
By the time you're 25 years old, you'll pay 27% less for a full coverage policy.
Young drivers typically pay more for car insurance compared to older drivers because companies consider them to be higher risk. This is because younger drivers have less experience behind the wheel, which means they tend to get into more accidents and file more claims.
Frequently asked questions
Who has the cheapest car insurance for a 21-year-old?
Farm Bureau and Erie have the cheapest rates for 21-year-olds. Both companies charge around $179 per month for full coverage insurance.
Is car insurance cheaper when you're 21?
Yes, car insurance rates generally go down after you turn 21. The average rate for a 21-year-old is about 17% cheaper than the price a 20-year-old pays. Car insurance rates continue to go down throughout your 20s. A 21-year-old driver can expect to pay 27% less for car insurance by the time you turn 25.
What is the average cost of car insurance for a 21-year-old male in Florida?
A 21-year-old man pays an average of $438 per month for full coverage car insurance in Florida. State Farm offers 21-year-old men in Florida the cheapest rates, at $267 per month.
Methodology
To find the cost of car insurance for 21 year olds, ValuePenguin pulled quotes from thousands of ZIP codes across 10 of the most populous states in the U.S. Rates are for 21-year-old men and women with clean driving records and good credit scores who own a 2015 Honda Civic EX.
Full coverage quotes include higher liability limits than the state requirements, along with collision and comprehensive coverage.
- Bodily injury liability: $50,000 per person; $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person; $100,000 per accident
- Personal injury protection (PIP): Minimum, when required by state
- Medical payments: $5,000
- Comprehensive and collision deductible: $500 deductible
Our analysis included 13 insurance companies. Insurance companies were only added to our list of average prices and recommendations if their policies were available in at least four of the 10 states.
ValuePenguin's analysis collected insurance rate data from Quadrant Information Services. The rates used to calculate the averages were sourced publicly from insurer filings. These averages should only be used for comparative purposes — your own quotes may be different.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.