Car insurance for 21-year-olds

On average, car insurance costs 21-year-old drivers $226 per month — though many companies have cheaper coverage.

Andrew Hurst

By

Andrew Hurst

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

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Maria Filindras

Maria Filindras

Financial Advisor

Maria Filindras is a financial advisor, a licensed Life & Health insurance agent in California, and a member of the Financial Review Council at Policygenius.

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According to our analysis, the average cost of car insurance for 21-year-olds is $226 per month, or $2,708 per year. Auto insurance for a 21-year-old is more expensive than average for most older drivers, but it’s also much cheaper than car insurance for a teen driver.

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USAA has the cheapest car insurance for 21-year-olds, though it’s only available to drivers who are in the armed forces or a part of a military family. GEICO is available to everyone and also has cheap auto coverage for 21-year-olds — though it’s slightly more expensive than USAA.

How much is car insurance for 21-year-olds?

The average car insurance cost for 21-year-olds is $266 each month, but rates are different with each company. Our analysis shows car insurance for 21-year-olds is cheapest with USAA. With USAA, ​​insurance for 21-year-old drivers is $130 per month — 42% less than average.

GEICO is another company that has affordable full-coverage insurance for 21-year-olds. On average, GEICO has car insurance for 21-year-old drivers that costs $149 per month. While this is $19 more expensive each month than USAA, GEICO is still 34% cheaper than average.

Cost of insurance for 21-year-olds - IG

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The difference between the most expensive and cheapest car insurance companies for 21-year-olds is $460 per month. This means drivers could save $5,517 each year by comparing quotes from different companies before buying coverage.

Rank

Company

Monthly cost

1

USAA

$130

2

GEICO

$149

3

Erie

$163

4

COUNTRY Financial

$165

5

State Farm

$168

6

American Family

$179

7

Auto-Owners Insurance

$180

8

Travelers

$191

9

Farm Bureau

$197

10

National General

$199

11

Nationwide

$202

12

Average cost

$226

13

Kemper

$231

14

Farmers

$232

15

Progressive

$240

16

Allstate

$245

17

Amica

$262

18

Shelter Insurance

$266

19

MAPFRE

$267

20

The Hartford

$283

21

CSAA

$326

22

Auto Club Group

$354

23

Mercury Insurance

$373

24

Sentry Insurance

$431

25

Hanover

$590

Monthly cost of car insurance for 21-year-olds.

How the cost of insurance for 21-year-olds compare to other ages

The average car insurance premium for a 21-year-old driver is cheaper than for most younger drivers, but it’s more expensive than what older drivers pay. We found that car insurance for a 21-year-old is 60% cheaper than for a 16-year-old and 45% cheaper than for an 18-year-old.

Despite their years of experience driving, 21-year-olds still pay 64% more for coverage than those who are 30, 35, and 45 years old.

Age

Monthly cost

16

$565

18

$411

21

$226

25

$161

30

$142

35

$138

45

$132

55

$122

60

$121

65

$125

70

$132

The cost of car insurance is more affordable for 21-year-olds than it is for drivers who are in their teens because of the years of driving that a typical 21-year-old has done. However, car insurance for new drivers who are 21 years old will be more expensive despite their age, due to a lack of time spent behind the wheel.

How much is insurance for 21-year-old male and female drivers?

Car insurance is more expensive for male drivers than it is for female drivers. On average, we found that car insurance for a 21-year-old male is $27 more expensive per month ($319 per year) than it is for female drivers.

Gender

Monthly cost

Annual cost

Male driver

$239

$2,867

Female driver

$212

$2,548

Difference

$27

$319

While rates for male drivers are more expensive at each of the 10 cheapest companies for 21-year-olds, the difference is smallest at GEICO. Male drivers pay only $3 more per month at GEICO than their female counterparts. At Erie and State Farm, the gap is the largest.

Company

Difference

Male drivers

Female drivers

GEICO

$3

$144

$141

USAA

$8

$135

$127

American Family

$10

$201

$191

COUNTRY Financial

$10

$185

$174

Auto-Owners Insurance

$19

$159

$140

Travelers

$20

$198

$178

Farm Bureau

$25

$208

$182

National General

$32

$279

$247

Erie

$39

$184

$146

State Farm

$39

$219

$179

Monthly costs of car insurance at the 10 cheapest companies for 21-year-olds.

→ Read more about how gender affects the cost of car insurance

How much is car insurance for a 21-year-old in each state?

While the average insurance cost for 21-year-old drivers is $226 per month, the cost you pay depends on where you live, among other factors. We found that rates for a 21-year-old can vary by as much as $322 per month depending on their state.

North Carolina is the cheapest state for 21-year-olds. On average, drivers pay $96 per month for coverage in the state. Conversely, Louisiana is the most expensive state at $418 per month.

State

Monthly cost

Annual cost

Alabama

$236

$2,830

Alaska

$185

$2,215

Arizona

$224

$2,689

Arkansas

$237

$2,840

California

$233

$2,791

Colorado

$229

$2,752

Connecticut

$267

$3,202

Delaware

$275

$3,301

District of Columbia

$247

$2,969

Florida

$351

$4,211

Georgia

$242

$2,902

Hawaii

$100

$1,200

Idaho

$162

$1,939

Illinois

$205

$2,457

Indiana

$163

$1,955

Iowa

$149

$1,782

Kansas

$208

$2,492

Kentucky

$302

$3,627

Louisiana

$418

$5,021

Maine

$171

$2,056

Maryland

$275

$3,303

Massachusetts

$263

$3,160

Michigan

$329

$3,943

Minnesota

$188

$2,250

Mississippi

$227

$2,725

Missouri

$224

$2,689

Montana

$263

$3,158

Nebraska

$216

$2,594

Nevada

$288

$3,457

New Hampshire

$195

$2,341

New Jersey

$315

$3,781

New Mexico

$198

$2,372

New York

$276

$3,316

North Carolina

$96

$1,157

North Dakota

$183

$2,200

Ohio

$146

$1,748

Oklahoma

$256

$3,074

Oregon

$196

$2,347

Pennsylvania

$236

$2,833

Rhode Island

$280

$3,361

South Carolina

$245

$2,937

South Dakota

$201

$2,409

Tennessee

$188

$2,261

Texas

$257

$3,085

Utah

$214

$2,565

Vermont

$161

$1,935

Virginia

$189

$2,267

Washington

$225

$2,703

West Virginia

$241

$2,897

Wisconsin

$141

$1,695

Wyoming

$201

$2,409

Cost of full-coverage car insurance for 21-year-olds.

→ Read more about how the cost of coverage changes by location and driver

Best cheap car insurance for 21-year-olds: GEICO

GEICO

4.6

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

GEICO logo

Best for 21-year-old drivers

GEICO’s low rates and national availability make it our top choice for car insurance for 21-year-olds.

GEICO is the best car insurance company for 21-year-olds. The average cost of auto insurance from GEICO is $149 per month, which makes it the second-most affordable option for 21-year-olds behind USAA. Unlike USAA, GEICO offers cheap coverage to the general public in all 50 states and the District of Columbia.

GEICO’s discounts also make it good car insurance for 21-year-olds. While rates are already cheap, GEICO allows them to save by owning a vehicle with safety features, completing a safety course, being affiliated with a partner group or employer, and more.

Cheapest car insurance for 21-year-olds in every state

USAA is also the cheapest car insurance company for 21-year-olds in 25 states. Keep in mind, though, that it’s only available to active and retired members of the military and their families.

GEICO is the cheapest auto insurance for 21-year-olds in 14 states — the most behind USAA. State Farm, Farm Bureau, and a few other companies are the most affordable option in the remaining 12 states.

State

Cheapest company

Monthly cost

Alabama

GEICO

$120

Alaska

GEICO

$97

Arizona

Root

$95

Arkansas

USAA

$109

California

Wawanesa

$120

Colorado

American National

$111

Connecticut

GEICO

$122

Delaware

USAA

$152

District of Columbia

USAA

$138

Florida

GEICO

$207

Georgia

USAA

$133

Hawaii

GEICO

$65

Idaho

American National

$74

Illinois

GEICO

$101

Indiana

USAA

$89

Iowa

State Farm

$101

Kansas

USAA

$113

Kentucky

GEICO

$145

Louisiana

USAA

$185

Maine

GEICO

$77

Maryland

USAA

$95

Massachusetts

USAA

$129

Michigan

GEICO

$125

Minnesota

Farm Bureau

$124

Mississippi

USAA

$102

Missouri

USAA

$87

Montana

USAA

$108

Nebraska

USAA

$141

Nevada

GEICO

$118

New Hampshire

USAA

$97

New Jersey

GEICO

$146

New Mexico

USAA

$105

New York

Progressive

$136

North Carolina

GEICO

$56

North Dakota

USAA

$100

Ohio

USAA

$97

Oklahoma

USAA

$115

Oregon

COUNTRY Financial

$115

Pennsylvania

GEICO

$136

Rhode Island

State Farm

$150

South Carolina

American National

$89

South Dakota

State Farm

$153

Tennessee

USAA

$105

Texas

Farm Bureau

$122

Utah

GEICO

$100

Vermont

USAA

$102

Virginia

USAA

$98

Washington

USAA

$125

West Virginia

USAA

$120

Wisconsin

USAA

$84

Wyoming

USAA

$116

Cost of full-coverage car insurance for 21-year-olds.

How to save money on car insurance as a 21-year-old

Although car insurance is more expensive for 21-year-olds than older drivers, it’s still possible to get affordable coverage. The most reliable way you can be sure to get the lowest rate is by comparing quotes from your area. You can also take the following steps to save money: 

  • Don’t get a separate policy: As long as you live at home or are away at school (and your parents allow it) it’s cheaper to join your parents’ car insurance policy than it is to get a separate policy. 

  • Check for discounts you could be eligible for: Most companies offer at least a handful of discounts to drivers. Some even have special discounts that could apply specifically to 21-year-olds drivers. These include discounts for being away at college, maintaining a high grade point average, and for completing a special driving course for young people.

  • Reconsider the amount of coverage you need: You may not need full coverage if your car is more than a decade old. If your vehicle is worth less than your deductible, you wouldn’t be able to make a claim after a total loss. 

  • Sign up for a usage-based driving program: Most companies — and all major insurance providers — allow drivers to sign up for a few days of monitored driving in exchange for the chance at lower rates. If you’re a safe driver with good habits, you could significantly reduce your rates with one of these programs.

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Frequently Asked Questions

What is the cost of an insurance policy for a 21-year-old?

On average, the cost of car insurance for a 21-year-old driver is $266 per month, or $2,708 per year. However, you could get lower rates depending on the company. We found that USAA or GEICO tends to have cheap quotes for 21-year-olds.

How much is insurance for new drivers under 21?

While most drivers pay $266 per month for car insurance, the cost for new drivers who are the same age will be more expensive. Despite their age, 21-year-olds who are newly licensed have the same inexperience behind the wheel as someone years younger than them. For this reason, their rates will be higher.

Does the cost of insurance go lower at 21?

Yes, compared to the cost of coverage for 16- and 18-year-olds, 21-year-old drivers pay hundreds of dollars less for insurance each year. However, the cost of insurance for older drivers is also hundreds of dollars cheaper than it is for 21-year-olds.

Methodology

Policygenius found the cost of car insurance for 21-year-olds by analyzing rates from every ZIP code in all 50 states and the District of Columbia. These rates were provided by Quadrant Information Services for a full coverage policy with the following coverage limits:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year. Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Author

Senior Editor & Licensed Auto Insurance Expert

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

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Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Expert reviewer

Financial Advisor

Maria Filindras

Financial Advisor

gray linkedin icon link

Maria Filindras is a financial advisor, a licensed Life & Health insurance agent in California, and a member of the Financial Review Council at Policygenius.

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