Best Cheap Car Insurance Companies for 21-Year-Olds

GEICO offers the best rates with an average annual cost of $1,824 for 21-year-old drivers. While premiums for 21-year-old drivers are higher than those for more mature drivers, they are less expensive than those for teenagers because young adults have more driving experience and are seen as less risky. Insurers balance this risk with slightly lower rates, recognizing improved skills but still accounting for the age-related risk.

Discover the two most affordable car insurance providers for 21-year-olds:

• GEICO: $152 per month, $1,824 per year
• State Farm: $165 per month, $1,986 per year

These rates represent the cost for an individual policy. At 21, young drivers are considered high risk but have more driving experience, and many live independently, which may not qualify for a family policy. To help manage costs, they can explore student discounts on car insurance available to young adults.

Hawaii is the cheapest state for 21-year-old drivers, with an annual premium of $569 from GEICO. Idaho follows, costing $619 annually with State Farm.

Car insurance for a 21-year-old can be really different in price from one state to another. Some states have tough rules about what your insurance must cover. A lot of car crashes or stolen cars in a state can also make insurance cost more. So, a cheap plan in one place might not cover enough in another place. Parents should look around for the best insurance option for their young driver. They need to think about the risks and rules in their state when selecting a plan.

The cost of car insurance for a 21-year-old man is usually higher than for a woman driver. GEICO is the cheapest insurance provider for both male and female drivers in this age group.

• For men: GEICO, $155 per month, $1,861 per year
• For women: GEICO, $144 per month, $1,732 per year

Car insurance for a 21-year-old man typically costs more because males are often seen as higher-risk drivers. Insurers believe they might get into more accidents.

Explore the cheapest cars to insure for 21-year-old drivers looking to save money:

• Subaru Forester: $135 per month, $1,626 per year
• Subaru Outback: $140 per month, $1,685 per year

One of the most effective ways for young drivers to keep their insurance costs low is to choose their vehicle carefully. Sports cars and luxury vehicles will drive up rates significantly, and if you take out a loan or lease for that car, you will likely be required to carry comprehensive and collision coverage. Choosing a used sedan or a similar vehicle can save you money on insurance.

GEICO is the best car insurance company for 21-year-olds with a monthly premium of $152 and an annual cost of $1,824. Choosing the best car insurance can be more beneficial despite higher prices because it often means better customer service, quicker claims processing, and more comprehensive coverage that is worthwhile in the long term.

While someone in their early 20s has probably been driving for at least a few years, car insurance companies still charge them higher rates because they have less experience than older drivers, are more likely to make reckless decisions and statistically have higher accident rates than adult drivers in other age groups. While rates vary from state to state, the national average annual cost of car insurance for a 21-year-old is around $3,839.

There are many ways for a 21-year-old driver to save money on car insurance. For example, if you are still living at home and your parents own your vehicle, you may find that staying on your parent’s insurance policy will save you a significant amount. Consider some of the options below to find cheap car insurance for a 21-year-old.

Car insurance for 21-year-old drivers is expensive because insurance companies use your driving history to help determine your insurance rates. They also use analytical data, which shows that 21-year-old drivers file more claims on average than older drivers. Industry data shows that 21-year-old drivers have higher rates of at-fault accidents and moving violations than more experienced drivers.

In addition to your age and years of driving experience, the city where you live and even the ZIP code, your employment or student status, whether you live at home or rent, your credit history and more may determine how much you pay for car insurance at 21 or any age.

Finding affordable car insurance for 21-year-olds is often hindered by high premiums due to their age bracket's risk profile. Get the answers on securing cost-effective policies for young drivers.