Cheapest Car Insurance for 21-Year-Olds


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Key Takeaways

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Concord Group, Auto-Owners, GEICO, Travelers and Nationwide are the top five cheapest car insurance companies for 21-year-olds.

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The cheapest monthly car insurance costs for 21-year-old drivers start at $49 for minimum coverage and $140 for full coverage nationally, but rates in some states are as low as $38 per month.

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The average cost of auto insurance for 21-year-olds is $76 per month for minimum coverage and $163 for full coverage.

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Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Cheapest Minimum Liability Car Insurance for 21-Year-Olds

For 21-year-olds, GEICO provides the cheapest minimum liability car insurance among national providers, with an annual cost of approximately $792 — about 13% lower than the average for family policies. If available in your region, Concord Group or Auto-Owners may offer even lower rates.

Concord Group$49$25
Auto-Owners Insurance Co$58$15
GEICO$66$7
Travelers$69$4
Encompass$72$2
State Farm$72$1

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

Cheapest Full Coverage Car Insurance For 21-Year-Olds

The cheapest full coverage auto insurance for 21-year-old drivers on a family policy is offered by Concord Group, with an annual cost of $1,080, though it has limited availability. On a national scale, Nationwide, GEICO and Travelers are among the most budget-friendly providers.

Concord Group$90$64
Auto-Owners Insurance Co$134$20
Nationwide$140$14
GEICO$146$9
Travelers$148$6
Allstate$149$6
State Farm$149$6

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

Cheapest Car Insurance for 21-Year-Olds by State

Based on your state, car insurance rates for a 21-year-old on a family policy can range from $38 to $224 per month. Below, we provide a breakdown of the most affordable insurers for this age group by state.

MississippiProgressive$38
OhioNationwide$40
WisconsinNationwide$48
PennsylvaniaNationwide$49
DelawareTravelers$51
MassachusettsState Farm$51
VirginiaNationwide$52
KansasNationwide$52
North DakotaNationwide$54
HawaiiGEICO$54
Rhode IslandTravelers$57
IdahoAuto-Owners Insurance Co$58
New HampshireNationwide$58
MaineConcord Group$59
MissouriGEICO$59
OregonNationwide$60
South DakotaAllstate$62
VermontNationwide$63
IndianaNationwide$69
UtahNationwide$69
AlaskaGEICO$70
TennesseeFarmers$71
ArkansasNationwide$72
IowaAllstate$75
WashingtonNationwide$75
District of ColumbiaGEICO$75
North CarolinaNationwide$75
West VirginiaNationwide$76
ConnecticutGEICO$79
MontanaAllstate$79
MinnesotaNationwide$80
New YorkKemper$82
MichiganGEICO$84
AlabamaNationwide$85
WyomingAllstate$86
ColoradoKemper$86
KentuckyNationwide$89
New MexicoNationwide$90
ArizonaTravelers$90
NebraskaAllstate$92
GeorgiaAllstate$93
MarylandKemper$95
IllinoisTravelers$95
TexasNationwide$95
OklahomaAllstate$102
South CarolinaAuto-Owners Insurance Co$112
New JerseyTravelers$117
CaliforniaGEICO$119
NevadaNationwide$132
FloridaNationwide$157
LouisianaGEICO$224

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

Cheapest Car Insurance for 21-Year-Olds by Gender

Because of higher accident risk, 21-year-old male drivers usually face higher insurance premiums compared to their female counterparts. Below, we outline the most affordable national providers for both men and women in this age group.

Cheapest Car Insurance for 21-Year-Old Female Drivers

Travelers provides the cheapest national car insurance for 21-year-old women, offering an average annual savings of around 8% compared to average rates. Female drivers at this age generally enjoy lower insurance premiums than their male peers, as statistics indicate that young women are involved in fewer accidents.

Concord Group$46$24$86$60
Auto-Owners Insurance Co$57$13$128$18
Travelers$64$6$138$8
GEICO$65$5$142$4
State Farm$66$4$136$10

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

Cheapest Car Insurance for 21-Year-Old Male Drivers

GEICO provides the most affordable monthly rate for 21-year-old male drivers at $66 when included in a family policy. However, Concord Group and Auto-Owners may offer even lower rates for those who qualify. Men typically face higher premiums than women due to their statistically higher risk of being involved in accidents.

Concord Group$51$25$95$68
Auto-Owners Insurance Co$59$17$141$22
GEICO$66$10$150$13
Encompass$72$5$169$-7
Travelers$73$3$159$4
Allstate$76$1$156$6

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

Cheapest Cars to Insure for 21-Year-Olds

When purchasing a new car for a teen driver, think about adding them to your policy with the safest and most affordable car to insure. Below, we’ve listed the most budget-friendly models by vehicle type for 21-year-old drivers.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Subaru ForesterCompact SUVGEICO$1,626
Subaru OutbackSedanNationwide$1,685
Acura MDXLuxury SUVTravelers$1,771
Toyota TacomaPickup TruckGEICO$1,790
Ford ExpeditionSUVNationwide$1,885
MINI ElectricCompactNationwide$1,893
Nissan LEAFElectricTravelers$1,935
Ford Mustang Mach ESports CarGEICO$1,961
Tesla Model YLuxury ElectricGEICO$1,995
Honda OdysseyMinivanGEICO$1,998
BMW 1 SeriesLuxury CompactGEICO$2,056
Porsche TaycanLuxury Sports CarGEICO$2,076
Mercedes GLA 250Luxury Compact SUVGEICO$2,192
BMW 3 SeriesLuxury SedanState Farm$2,506

Rates are for drivers with clean driving records and good credit.

Average Cost of Car Insurance for 21-Year-Olds

On average, annual car insurance costs for 21-year-olds are approximately $912 for minimum coverage and $1,956 for full coverage. Keep in mind that these averages apply to drivers with clean records and good credit — your actual rate may differ based on your individual driver profile.

Car Insurance Cost for 21-Year-Olds by Coverage and Gender

Below, we’ve compiled the average costs for adding 21-year-old male and female drivers to a family policy, categorized by coverage level.

State Min - No comp_coll$76$70
State Min - 500 comp_coll$163$146
State Min - 1500 comp_coll$140$126
State Min - 1000 comp_coll$146$131
300/500/300,000 - No comp_coll$112$103
300/500/300,000 - 500 comp_coll$195$175
300/500/300,000 - 1500 comp_coll$172$156
300/500/300,000 - 1000 comp_coll$78$70
100/300/100,000 - No comp_coll$94$86
100/300/100,000 - 500 comp_coll$175$164
100/300/100,000 - 1500 comp_coll$172$156
100/300/100,000 - 1000 comp_coll$163$146

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.

Average Cost of Car Insurance for 21-Year-Olds by State

Average car insurance rates by state can vary widely, ranging from $31 to $418 per month for 21-year-old drivers. These variations are influenced by location-specific factors like crime rates, weather conditions and population density. To help you estimate costs in your area, we've included average state rates in the table below.

Oklahoma$31$145$37$171
North Carolina$26$101$25$98
Colorado$38$158$43$181
Mississippi$29$131$36$166
Florida$69$316$66$309
Vermont$19$95$25$119
Delaware$39$152$49$190
Nevada$58$228$64$249
Louisiana$74$418$68$385
New York$49$174$53$189
West Virginia$29$128$36$155
South Carolina$56$207$58$216
New Jersey$63$249$61$237
New Mexico$33$148$37$166
Hawaii$20$86$19$81
Arkansas$26$123$31$145
Missouri$39$190$46$221
Connecticut$41$153$52$196
South Dakota$21$128$26$155
District of Columbia$38$161$45$191
Iowa$20$104$23$117
Indiana$25$106$31$127
Massachusetts$33$134$45$187
Rhode Island$45$167$60$222
Ohio$48$172$51$183
Michigan$73$272$60$231
Minnesota$31$133$38$160
Pennsylvania$26$137$31$158
Washington$40$138$51$172
Wisconsin$25$117$29$134
Montana$26$146$29$166
Kentucky$38$157$41$168
Arizona$38$152$44$177
Illinois$26$115$30$130
Virginia$41$160$42$164
Maryland$42$151$56$199
Georgia$37$157$44$183
Wyoming$18$132$21$150
Utah$45$178$47$180
New Hampshire$27$99$33$120
North Dakota$20$102$24$119
Nebraska$28$149$30$161
Maine$28$110$33$127
California$44$201$43$200
Tennessee$25$115$31$144
Kansas$25$129$29$145
Texas$40$170$47$200
Oregon$31$117$41$155
Idaho$20$82$26$107
Alaska$34$154$34$153
Alabama$33$151$36$162

Why Car Insurance Is Expensive for 21-Year-Olds

Car insurance for 21-year-olds is expensive because they are considered high-risk drivers. While 21-year-olds still fall into the high-risk category, they typically pay cheaper premiums compared to younger drivers. Teens, particularly those aged 16 to 19, have higher rates of accidents and violations, with fatal crashes nearly three times more common than among older drivers. Risky behaviors such as nighttime driving, speeding, distractions and failing to wear seat belts contribute to these elevated rates, especially among male drivers.

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

Twenty-one-year-old drivers face some of the highest car insurance premiums compared to other older age groups. Luckily, there are ways for 21-year-olds and their families to reduce these expenses. Below are our recommended steps for securing the most affordable coverage:

  1. 1
    Stay on a parent's policy

    Remaining on a parent's policy can often lead to significantly lower premiums, thanks to the parent's established insurance history and potential multi-car discounts. If the 21-year-old still resides at home and drives a family vehicle instead of owning their own, most insurers will allow them to remain on the family policy.

  2. 2
    Shop around as much as possible

    Comparing quotes from various auto insurance providers is one of the best strategies for saving money on car insurance. According to MoneyGeek's research, there can be price differences of up to 30% between the least and most expensive policies for teens.

  3. 3
    Find discounts you qualify for

    Twenty-one-year-olds may be eligible for a variety of common car insurance discounts. Discounts for students, completion of young driver education courses and usage-based insurance programs can help lower premiums by as much as 40%.

  4. 4
    Choose a safe, older car

    Choosing a more affordable vehicle with a strong safety rating can greatly lower insurance costs, as these cars are typically less expensive to repair and viewed as lower risk by insurers.

  5. 5
    Adjust your coverage amount

    If you’re able to cover the cost of replacing your car out of pocket, opting for a liability-only car insurance policy can be a smart way to save money. If you prefer full coverage, raising your deductibles can help reduce your premium.

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KEY CONSIDERATIONS WHEN SHOPPING: EXPERT TIP

Obtaining quotes from multiple insurance companies is a good idea to see which comes out as the best and cheapest for your specific profile. You also want to ensure the company has optional coverages that are good for a teen driver or any driver to have on their policy. They include roadside assistance and rental car coverage.

Mark Friedlander, Director, Corporate Communications, Insurance Information Institute

Cheap Car Insurance for 21-Year-Olds: Bottom Line

Car insurance for 21-year-olds can be costly, but young drivers and their families can find more affordable coverage by comparing quotes, staying on a family policy and taking advantage of available discounts. GEICO and Nationwide are often the most affordable options among national providers for 21-year-old drivers, but shopping around is crucial for finding the best rate.

Car Insurance for 21-Year-Olds: FAQ

Finding affordable car insurance for 21-year-olds can be challenging due to the risk factors that contribute to higher premiums for this age group. To help, we've addressed some of the most frequently asked questions on this topic:

What is the cheapest car insurance for an 21-year-old?

How much is car insurance for an 21-year-old per month?

Why is car insurance expensive for 21-year-old drivers?

Is car insurance more expensive for 21-year-old males?

Auto Insurance for 21-Year-Olds: Our Methodology

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 six 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.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.


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