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The cheapest car insurance for 21 year olds can be found in USAA at $134 per month or $1,609 per year for full coverage policies
Cheap Car Insurance For Young Drivers
Writer: Daniel Robinson Writer: Daniel Robinson Writer Daniel is a team writer for Guides and has written for numerous automotive news sites and marketing companies in the US, UK and Australia specializing in car finance and car care topics. Daniel is the authority on guides on auto insurance, loans, warranty options, auto repair and more.
How To Save Money On Teen Car Insurance
By: Rashawn Mitchner, By: Rashawn Mitchner Managing Editor Rashawn Mitchner is the Group Editor of Guides with over 10 years of experience in the personal finance and insurance industry.
Finding cheap car insurance as a 21-year-old can be difficult. Monthly and annual premiums tend to be expensive because young drivers pose a greater risk to insurance companies. In this article, we’ve ranked the best car insurance for 21-year-olds in Guides and show you how to get cheap rates.
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Our team of drivers is committed to providing reliable information to help you make the best possible decision about your vehicle insurance. Because consumers trust us to provide objective and accurate information, we’ve created a comprehensive rating system to rank the best auto insurance policies. We’ve collected data on dozens of auto insurance providers to rank companies based on a number of evaluation factors. After 800 hours of research, the final result was an overall rating for each provider, with the insurers with the highest scores topping the list.
Why Is Car Insurance So Expensive For Young Drivers
According to our rate estimates, 21-year-olds pay an average of $2,786 per year, or $232 per month, for comprehensive auto insurance. That’s 56% more expensive than the average 35-year-old driver, which is $1,785 a year, or about $149 a month. Car insurance rates for 21-year-olds tend to be much more expensive than for older drivers.
Car insurance costs for 21-year-old drivers are determined by a number of factors, including driving history, location and credit score. Gender also affects your premium calculation, especially as a teenager or young adult. For example, young men have a disproportionately higher accident rate, and as a result, pay more for insurance than young women. However, some states do not allow insurance companies to use gender when calculating coverage.
Compared to older drivers, 21-year-olds have less driving experience and are more likely to be involved in accidents. Car insurance companies compensate for these risk factors by charging higher rates for this age group.
According to the AAA Foundation for Traffic Safety, drivers between the ages of 20 and 24 were more likely to be involved in a crash in 2015 than drivers in their 30s. Below you can see the accident rate for each age group.
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High-risk drivers pay higher rates on average, and young drivers typically fall into that category. Below you can see how the average cost by age relates to the bankruptcy data above.
The cheapest car insurance for 21-year-olds is USAA, which offers average rates of $134 per month. However, USAA is only available to members of the military, veterans and their immediate families. Geico is the cheapest company available for any 21-year-old driver, with an average rate of $154 per month. Other affordable companies include Auto-Owners Insurance, Erie Insurance and Nationwide.
The best car insurance for 21-year-olds isn’t necessarily the cheapest, but cheap rates certainly help. Below you can see how 11 popular providers ranked on car insurance rates for 21 year olds.
*Vehicle insurance estimates are based on full coverage policies: $50,000 per person, $100,000 per accident, $50,000 property damage per accident, and $500 for collision coverage and comprehensive coverage.
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Location is one factor that affects the amount of car insurance, and rates can vary greatly from state to state. Below are the cheapest auto insurance companies in each state for full coverage for 21 year olds. USAA and Geico are the cheapest providers in many states by our estimates.
While 21-year-olds pay an average of $232 nationally, drivers in some states pay much less. Insurance in North Carolina, for example, is $129 a month for this age group.
Because of population density or insurance regulations, some states are much more expensive than others for 21-year-olds. Michigan, Connecticut and Massachusetts top the list.
Geico, USAA, State Farm, Nationwide, and Auto-Owners Insurance are our top five picks for the best car insurance for 21-year-olds. When comparing insurance companies, our team considers cost, reputation, coverage, availability and customer experience. We found that these companies are, on average, affordable for young drivers.
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Geico is our top choice for the best car insurance for 21 year olds. Its car insurance rates for 21-year-olds are around 34% cheaper than the market average for that age group. Geico also offers a 15% student discount and up to a 22% discount for five years of accident-free driving.
The company has been around since 1936 and has an A+ rating from the Better Business Bureau (BBB).
USAA offers the cheapest car insurance for 21-year-olds on average, with rates around 42% of the market average. However, we haven’t named it as the best car insurance for 21-year-olds because it’s not affordable for everyone. You can only qualify if you have joined the military, are a veteran, or have a parent who is a USAA member.
USAA is known not only for its low rates for 21-year-olds, but also for its reliable customer service. The company has an A+ rating from the BBB and a J.D. in the study it scored the highest in almost all regions of the country. Power 2022 USA Auto Insurance Review ℠ .
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State Farm is another national provider that offers affordable auto insurance premiums for 21-year-old drivers. According to our estimates, State Farm’s average rates are about 17% cheaper than the national average for this age group.
State Farm also offers discounts to young drivers, including a generous discount of up to 25% for maintaining a B average. Even young drivers can save money with State Farm’s Steer Clear® program, an app-based driving course for drivers under 25.
On average, 21-year-old drivers save about 23% with Nationwide, compared to the national average. One thing that makes Nationwide unique is that it offers two usage-based telematics insurance options. SmartRide® can provide discounts of up to 40% based on a person’s driving habits, tracking acceleration, braking, night driving and more. The second option, SmartMiles®, is a per-mile insurance program that can help people who don’t drive often save money.
Nationwide has a solid reputation in the industry, earning an A+ financial strength rating from AM Best and an A+ rating from the BBB.
The Best Cheap Car Insurance For New Drivers
Another affordable car insurance company for 21 year olds is Auto Owners. According to our estimates, 21-year-old car owners pay 26% less than the national average. The company offers a huge discount of up to 20% to students and students who are out of school and leave their car at home. However, Auto-Owners is only available in 26 states.
Fortunately, age is not the only thing that determines car insurance rates. There are a few things you can do to find cheap rates on the best car insurance for 21 year olds. We recommend thinking about your level of coverage and deductible, comparing providers, maintaining a clean driving record and finding discounts.
To save money, options such as comprehensive insurance and collision insurance can reduce the amounts covered. You can also opt out of full coverage and get only the minimum levels of bodily injury liability and property damage liability coverage. But make sure you can handle the costs that your minimum coverage won’t cover if you’re at fault in an accident.
You can lower your payments by raising your deductible, which is the amount you pay out of pocket if you file a claim. Make sure you can afford the deductible.
Cheap Car Insurance For Teens And Young Drivers
One of the easiest ways to get a better rate is to compare companies. We recommend comparing rates whenever your car insurance is about to be renewed. The cheapest companies for teenage drivers are not necessarily the cheapest for drivers in their 20s, so it’s worth checking prices as you get older.
Getting a speeding ticket or causing an accident are surefire ways to get higher rates, and 21-year-old drivers already pay more than average. A clean driving history keeps your rates as low as possible.
Not all companies offer the same discounts or the same savings on similar discounts. In our selection of the best auto insurance for 21-year-olds above, you can see that State Farm, Geico, and Auto-Owners offer different discounts for good students.
Compare deals online and find the right discounts for your situation. You can also work with an insurance agent to make sure you find all the discounts that apply.
