Best Cheap Car Insurance Companies for 21-Year-Olds


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Updated: May 20, 2024

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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.

Key Takeaways

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GEICO offers both low prices at $1,824 yearly and high quality for 21-year-olds.

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Young drivers at 21 have less experience, causing higher accident risks and pricey premiums.

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Compare multiple insurers and look for discounts like good student or defensive driving courses.

Why Trust MoneyGeek? MoneyGeek's auto insurance quotes are based on research conducted with information gathered from several sources, including state insurance authorities and Quadrant Information Services. The cost of insurance varies from person to person based on several criteria. One's age, gender, driving record, credit history and the kind of coverage required may all play a role in determining premiums.

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These rates reflect the average cost of car insurance for 21-year-olds as of 2024.

1,904Quotes Analyzed
 
6Companies Compared
 
100ZIP Codes

Cheapest Car Insurance Companies for 21-Year-Old Drivers

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
GEICOAnnual Premium$1,824Monthly Premium$152
State FarmAnnual Premium$1,986Monthly Premium$165
AllstateAnnual Premium$2,067Monthly Premium$172
TravelersAnnual Premium$2,072Monthly Premium$173
NationwideAnnual Premium$2,154Monthly Premium$179
ProgressiveAnnual Premium$2,476Monthly Premium$206
FarmersAnnual Premium$2,532Monthly Premium$211
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    Drivers in their early 20s pay more for car insurance

    But you can save by comparing multiple quotes.

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    Find a plan for you or your family

    Young drivers tend to pay less if they're added to their parents' plan, even in their 20s.

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Cheapest Car Insurance for 21-Year-Olds by State

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.

AlabamaCompanyGEICOAnnual Premium$1,176Monthly Premium$98
AlaskaCompanyGEICOAnnual Premium$888Monthly Premium$74
ArizonaCompanyTravelersAnnual Premium$1,093Monthly Premium$91
ArkansasCompanyFarmersAnnual Premium$1,022Monthly Premium$85
CaliforniaCompanyGEICOAnnual Premium$989Monthly Premium$82
ColoradoCompanyGEICOAnnual Premium$929Monthly Premium$77
ConnecticutCompanyGEICOAnnual Premium$1,052Monthly Premium$88
DelawareCompanyTravelersAnnual Premium$1,268Monthly Premium$106

Cheapest Car Insurance for 21-Year-Olds by Gender

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.

Annual Car Insurance Rates for Males and Females

female
21-Year-Old Female

Annual Premium

$1,732
male
21-Year-Old Male

Annual Premium

$1,861
Rates for males are:$129 more

This is 7% more expensive.

Data filtered by:Results filtered by:
Gender:
Gender:Male
GEICOAnnual Premium$1,861Monthly Premium$155
State FarmAnnual Premium$2,122Monthly Premium$177
AllstateAnnual Premium$2,142Monthly Premium$179
TravelersAnnual Premium$2,171Monthly Premium$181
NationwideAnnual Premium$2,246Monthly Premium$187
ProgressiveAnnual Premium$2,564Monthly Premium$214
FarmersAnnual Premium$2,617Monthly Premium$218

Cheapest Cars to Insure for 21-Year-Olds

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.

Subaru ForesterCategoryCompact SUVCompanyGEICOAnnual Premium$1,626
Subaru OutbackCategorySedanCompanyNationwideAnnual Premium$1,685
Acura MDXCategoryLuxury SUVCompanyTravelersAnnual Premium$1,771
Toyota TacomaCategoryPickup TruckCompanyGEICOAnnual Premium$1,790
Ford ExpeditionCategorySUVCompanyNationwideAnnual Premium$1,885
MINI ElectricCategoryCompactCompanyNationwideAnnual Premium$1,893
Nissan LEAFCategoryElectricCompanyTravelersAnnual Premium$1,935
Ford Mustang Mach ECategorySports CarCompanyGEICOAnnual Premium$1,961

Best Car Insurance for 21-Year-Old Drivers

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.

Company logo for GEICO
GEICO
MoneyGeek Score:
85/ of 100

Financial Stability5
Affordability3
Customer Satisfaction4
Claims Satisfaction2
Overview

The best car insurance company ranks high in customer satisfaction. This is critical for insuring a 21-year-old driver because they often need more support and guidance. It ensures they feel valued and can trust the company with their safety on the road.

  • Good student discounts for maintaining good grades.
  • Defensive driving course discounts after completion.
  • Vehicle equipment discounts for safety features like airbags and anti-theft systems.

For 21-year-old drivers, finding the best insurance means balancing cost and coverage. This company provides robust support and essential discounts that address young drivers' unique needs, like accident forgiveness, which can be particularly valuable for new, less experienced drivers on the road.

How Much Does Car Insurance Cost for a 21-Year-Old?

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.

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AVERAGE ANNUAL CAR INSURANCE PREMIUM FOR A 21-YEAR-OLD

The average annual full coverage premium cost for a 21-year-old is $3,839.

How to Save on Car Insurance for 21-Year-Olds

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.

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    Compare Quotes for the Best Policy

    Comparing auto quotes from multiple companies is the most effective way to save money on car insurance. Getting multiple quotes can help you find the lowest rates for young adults; our studies show price differences of roughly $636 on average between the cheapest and most expensive policies for 21-year-old drivers.

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    Ensure a Clean Driving Record

    A clean driving record is an absolute necessity to ensure that your insurance rates stay as low as possible. A single ticket or at-fault accident is all it takes to see a dramatic increase in your rate for a minimum of three years. This is especially true for young drivers, with at-fault accidents sometimes driving up the cost of your insurance by hundreds or thousands of dollars per year.

    Add accident forgiveness coverage to your policy to avoid a rate increase after your first at-fault accident. Many companies offer this add-on, and some award it for free after a specific time of maintaining a clean motor vehicle record. At 21, you may not qualify yet for this coverage but check with multiple insurance companies as each has different requirements.

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    Find Companies That Offer Young Driver Discounts

    There are some insurance discounts that only apply to teen drivers and young adults in college. For example, good student discounts are available from most insurance companies. GEICO offers a discount for students with a B average or higher, but each company has its own standards, so it is important to check with your insurer to find out exactly what the requirements are for this discount.

    Many insurance companies also offer an “away at school” discount. This discount could apply if you are going to college at least 100 miles away from home and leaving your car behind. If you take your car with you to school, the discount does not apply.

    Safe driving courses can earn young adults a discount on their insurance. There are even telematics-based programs, such as State Farm's Steer Clear, that you can complete to get a discount. It isn’t just good for a discount, though — taking a safe driving course can help reduce your chances of being in an accident, which saves you money over time. Check with your insurance company to see if they offer these discounts.

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    Lower the Coverage Amount

    Choosing an older, inexpensive vehicle is an excellent way to save money on auto insurance. If you can afford to replace your car without filing a claim, a liability-only policy can save you hundreds of dollars each year. If you finance or lease a vehicle, the lender may require that you carry comprehensive and collision coverage, while a vehicle with high replacement costs may need to carry full coverage even if you don’t have a lender. Choosing a cheap, older model can let you carry liability-only car insurance coverage as a way to help keep your insurance costs low.

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    Choose a Sedan Over a Sports Car

    You can save hundreds of dollars on insurance each year by choosing a sedan over a sports car. It might be fun to drive a sports car or a new luxury vehicle, but these cars are going to significantly raise your rates, especially for younger drivers. A basic sedan is often the cheapest vehicle to insure for a young adult.

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MONEYGEEK EXPERT TIP

Liability-only policies that only include the minimum coverage required can leave you vulnerable to a significant financial loss in case of an at-fault accident. To better protect yourself, choose bodily injury liability limits of at least $100,000 per person and $300,000 per accident and $100,000 of property damage liability per accident. And, to protect your vehicle, add comprehensive and collision coverage, giving you a full coverage policy, so if an at-fault accident or non-collision event, like a fire or flood, causes damage to your car, it will be covered by the insurance policy. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute.

Why Is Car Insurance So Expensive 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.

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FAQ: Best Cheap Car Insurance Companies for 21-Year-Olds

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.

What is the cheapest car insurance for a 21-year-old?
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Why is car insurance expensive for 21-year-old drivers?
Is car insurance more expensive for 21-year-old males?

About Rachael Brennan


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Rachael Brennan is a professional freelance writer. She has been published on a number of websites, including Adweek, Glamour and Cracked. She has also worked in the insurance industry for more than a decade, earning her P&C license in all 50 states and her Life, Health, and AD&D license in New York and the surrounding states.


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