Cheapest Car Insurance for 21-Year-Olds

Progressive offers the cheapest insurance at $102 per month, followed by Nationwide at $127 per month. You can get other affordable car insurance through GEICO, State Farm and Allstate.

GEICO provides the cheapest minimum liability car insurance among national providers at $1,218 per year or $101 monthly. State Farm is second at $137 monthly, while Allstate, Progressive, and Nationwide charge $163 to $185 per month.

Rates are for a family policy for both male and female drivers with clean records and good credit insuring a 2012 Toyota Camry.

The cheapest full coverage auto insurance for 21-year-old drivers on a family policy is offered by GEICO with an annual cost of $2,692 or just $224 per month.

Rates are for a family policy for both male and female drivers with clean records and good credit insuring a 2012 Toyota Camry.

Car insurance for a 21-year-old on a family policy costs $51 to $302 monthly, depending on your state.

Rates are for male drivers with clean driving records and good credit insuring a 2012 Toyota Camry with minimum coverage.

For 21-year-old women, GEICO has the cheapest minimum liability at $102 a month, $27 below State Farm and $78 below Nationwide. GEICO is cheapest for 21-year-old men too, at $100 a month, with State Farm next at $146 and Nationwide at $189, an $89 monthly range from cheapest to priciest.

Annual car insurance costs for 21-year-olds are $150 per month for minimum coverage and $302 for full coverage. These averages apply to drivers with clean records and good credit

For minimum liability, female drivers pay $147 a month and male drivers $152. For full coverage, they pay $293 and $311. Across both, female drivers pay 3% to 6% less than male drivers. Male drivers at 21 file more claims and have more serious accidents than female drivers their age, so insurers charge them more through their early twenties.

Liability limits expressed above (e.g., 100/300/100) refer to bodily injury liability per person, bodily injury liability per accident and property damage liability per accident, respectively. Numbers expressed after these limits are deductible amounts for both collision and comprehensive coverage.

For 21-year-old drivers, monthly rates range from $31 to $418 depending on state. Crime rates, weather and population density all move the number. Check average state rates to estimate costs in your area.

The Subaru Forester is the cheapest car to insure for young adults at $1,626 a year for full coverage. Luxury models cost more, with the BMW 3 Series at $2,506, so choosing the Forester saves your family $4,400 over five years.

Car insurance for 21-year-olds costs $150 monthly for minimum coverage and $302 for full coverage on average, but you can reduce these expenses by comparing quotes, staying on family policies and using available discounts. GEICO and Progressive offer the most affordable rates among national providers for 21-year-old drivers, but shopping around helps you find the best rate.

21-year-olds pay more because insurers price age groups by accident risk. We answer common questions on cutting that cost.

MoneyGeek used a sample driver profile to determine national and state averages for vehicle insurance for 21-year-old drivers. Using this information, we assist readers in selecting the best policy at the lowest price possible.

Data Sources and Depth

We collected data from each state's insurance department and Quadrant Information Services. The data consists of 4,284 price estimates from 100 different ZIP codes and major auto insurance providers.

Sample Driver Profile

MoneyGeek calculates yearly car insurance policy estimates based on a policyholder with the following characteristics:

• Toyota Camry LE
• Clean driving record
• 12,000 miles driven every year

To determine which companies provide the most affordable policies, MoneyGeek compared rates for 21-year-old drivers across different states. We made adjustments to this profile to reflect the differences in age, location and driving behavior.

Coverage Levels and Deductibles Explained

A deductible is the money you have to pay out of your own pocket before your insurance company will pay for your claim. Most drivers would benefit from purchasing full coverage vehicle insurance, which covers both collision and comprehensive damage.

For minimum liability coverages, we used state-required limits to judge which provider was most affordable. For full coverage, we used 100/300/100 liability limits with a $1,000 deductible for comprehensive and collision coverage when researching the cheapest providers. Liability limits of 100/300/100 stand for:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability per accident

Learn more about MoneyGeek's car insurance methodology.