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.
Best Cheap Car Insurance Companies for 21-Year-Olds
For 21-year-olds looking for car insurance, GEICO stands out as the overall best company. GEICO also offers the cheapest rates, with full coverage policies at just $152 per month.
Updated: May 20, 2024
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Key Takeaways
GEICO offers both low prices at $1,824 yearly and high quality for 21-year-olds.
Young drivers at 21 have less experience, causing higher accident risks and pricey premiums.
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.
These rates reflect the average cost of car insurance for 21-year-olds as of 2024.
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.
- 100/300/100 w/ $1000 Deductible
- State Minimum Liability Only
GEICO | $1,824 | $152 |
State Farm | $1,986 | $165 |
Allstate | $2,067 | $172 |
Travelers | $2,072 | $173 |
Nationwide | $2,154 | $179 |
Progressive | $2,476 | $206 |
Farmers | $2,532 | $211 |
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Drivers in their early 20s pay more for car insurance
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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.
Alabama | GEICO | $1,176 | $98 |
Alaska | GEICO | $888 | $74 |
Arizona | Travelers | $1,093 | $91 |
Arkansas | Farmers | $1,022 | $85 |
California | GEICO | $989 | $82 |
Colorado | GEICO | $929 | $77 |
Connecticut | GEICO | $1,052 | $88 |
Delaware | Travelers | $1,268 | $106 |
District of Columbia | GEICO | $1,158 | $97 |
Florida | State Farm | $1,185 | $99 |
Georgia | Allstate | $1,247 | $104 |
Hawaii | GEICO | $569 | $47 |
Idaho | State Farm | $619 | $52 |
Illinois | GEICO | $926 | $77 |
Indiana | State Farm | $977 | $81 |
Iowa | State Farm | $835 | $70 |
Kansas | Nationwide | $896 | $75 |
Kentucky | State Farm | $1,069 | $89 |
Louisiana | GEICO | $1,346 | $112 |
Maine | Concord Group | $846 | $71 |
Maryland | Progressive | $1,364 | $114 |
Massachusetts | State Farm | $621 | $52 |
Michigan | GEICO | $840 | $70 |
Minnesota | State Farm | $1,047 | $87 |
Mississippi | Progressive | $1,207 | $101 |
Missouri | State Farm | $1,268 | $106 |
Montana | Progressive | $981 | $82 |
Nebraska | GEICO | $1,148 | $96 |
Nevada | State Farm | $867 | $72 |
New Hampshire | Concord Group | $805 | $67 |
New Jersey | GEICO | $1,091 | $91 |
New Mexico | State Farm | $957 | $80 |
New York | Progressive | $819 | $68 |
North Carolina | GEICO | $745 | $62 |
North Dakota | Farmers | $957 | $80 |
Ohio | Nationwide | $701 | $58 |
Oklahoma | State Farm | $1,077 | $90 |
Oregon | State Farm | $722 | $60 |
Pennsylvania | Travelers | $809 | $67 |
Rhode Island | State Farm | $973 | $81 |
South Carolina | Auto-Owners Insurance Co | $1,260 | $105 |
South Dakota | Allstate | $957 | $80 |
Tennessee | Farmers | $875 | $73 |
Texas | State Farm | $984 | $82 |
Utah | GEICO | $1,141 | $95 |
Vermont | State Farm | $729 | $61 |
Virginia | Nationwide | $942 | $79 |
Washington | Farmers | $1,016 | $85 |
West Virginia | State Farm | $1,170 | $98 |
Wisconsin | GEICO | $750 | $62 |
Wyoming | Farmers | $1,008 | $84 |
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
Annual Premium
$1,732Annual Premium
$1,861This is 7% more expensive.
- Female
- Male
GEICO | $1,861 | $155 |
State Farm | $2,122 | $177 |
Allstate | $2,142 | $179 |
Travelers | $2,171 | $181 |
Nationwide | $2,246 | $187 |
Progressive | $2,564 | $214 |
Farmers | $2,617 | $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 Forester | Compact SUV | GEICO | $1,626 |
Subaru Outback | Sedan | Nationwide | $1,685 |
Acura MDX | Luxury SUV | Travelers | $1,771 |
Toyota Tacoma | Pickup Truck | GEICO | $1,790 |
Ford Expedition | SUV | Nationwide | $1,885 |
MINI Electric | Compact | Nationwide | $1,893 |
Nissan LEAF | Electric | Travelers | $1,935 |
Ford Mustang Mach E | Sports Car | GEICO | $1,961 |
Tesla Model Y | Luxury Electric | GEICO | $1,995 |
Honda Odyssey | Minivan | GEICO | $1,998 |
BMW 1 Series | Luxury Compact | GEICO | $2,056 |
Porsche Taycan | Luxury Sports Car | GEICO | $2,076 |
Mercedes GLA 250 | Luxury Compact SUV | GEICO | $2,192 |
BMW 3 Series | Luxury Sedan | State Farm | $2,506 |
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.
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.
Available in most states.
Offers a student discount for good academics.
Unique coverages: accident forgiveness, new car replacement, roadside assistance.
Bundling discounts are available.
Cheapest in age group.
Basic coverages may be similar to others.
The MoneyGeek score is based on the company's financial stability and customer satisfaction levels, which include claims satisfaction. It uses a 100-point scale to reflect these core metrics.
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.
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.
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.
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.
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.
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.
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.
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.
Compare Auto Insurance Rates
Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.
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.
The cheapest car insurance for a 21-year-old is GEICO, with an annual premium of $1,824 or a monthly cost of $152.
GEICO is the best insurance company for a 21-year-old, ranking first in affordability and high in customer satisfaction.
Car insurance is expensive for 21-year-old drivers because they are considered high-risk due to less driving experience and a higher likelihood of accidents.
Yes, car insurance is typically more expensive for 21-year-old males as they are statistically more likely to engage in risky driving behaviors and file claims.
About Rachael Brennan
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.
sources
- AAA Foundation for Traffic Safety. "Rates of Motor Vehicle Crashes, Injuries and Deaths in Relation to Driver Age, United States, 2014-2015." Accessed August 13, 2020.
- Insurance Institute for Highway Safety. "Fatality Facts 2018: Teenagers." Accessed August 14, 2020.
- U.S. Department of Transportation Federal Highway Administration. "Average Annual Miles per Driver by Age Group." Accessed August 14, 2020.