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.

Updated | 4 min read

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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.

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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.

RankCompanyMonthly cost
1USAA$130
2GEICO$149
3Erie$163
4COUNTRY Financial$165
5State Farm$168
6American Family$179
7Auto-Owners Insurance$180
8Travelers$191
9Farm Bureau$197
10National General$199
11Nationwide$202
12Average cost$226
13Kemper$231
14Farmers$232
15Progressive$240
16Allstate$245
17Amica$262
18Shelter Insurance$266
19MAPFRE$267
20The Hartford$283
21CSAA$326
22Auto Club Group$354
23Mercury Insurance$373
24Sentry Insurance$431
25Hanover$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.

AgeMonthly 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.

GenderMonthly costAnnual 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.

CompanyDifferenceMale driversFemale 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.

StateMonthly costAnnual 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.

StateCheapest companyMonthly cost
AlabamaGEICO$120
AlaskaGEICO$97
ArizonaRoot$95
ArkansasUSAA$109
CaliforniaWawanesa$120
ColoradoAmerican National$111
ConnecticutGEICO$122
DelawareUSAA$152
District of ColumbiaUSAA$138
FloridaGEICO$207
GeorgiaUSAA$133
HawaiiGEICO$65
IdahoAmerican National$74
IllinoisGEICO$101
IndianaUSAA$89
IowaState Farm$101
KansasUSAA$113
KentuckyGEICO$145
LouisianaUSAA$185
MaineGEICO$77
MarylandUSAA$95
MassachusettsUSAA$129
MichiganGEICO$125
MinnesotaFarm Bureau$124
MississippiUSAA$102
MissouriUSAA$87
MontanaUSAA$108
NebraskaUSAA$141
NevadaGEICO$118
New HampshireUSAA$97
New JerseyGEICO$146
New MexicoUSAA$105
New YorkProgressive$136
North CarolinaGEICO$56
North DakotaUSAA$100
OhioUSAA$97
OklahomaUSAA$115
OregonCOUNTRY Financial$115
PennsylvaniaGEICO$136
Rhode IslandState Farm$150
South CarolinaAmerican National$89
South DakotaState Farm$153
TennesseeUSAA$105
TexasFarm Bureau$122
UtahGEICO$100
VermontUSAA$102
VirginiaUSAA$98
WashingtonUSAA$125
West VirginiaUSAA$120
WisconsinUSAA$84
WyomingUSAA$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.

Compare rates and shop affordable car insurance today

We don't sell your information to third parties.

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.