Best car insurance for 21-year olds

A car insurance policy for a 21-year-old will probably be cheaper than coverage for a teenager, but it may still be pretty pricey depending on the company. At 21, you’re still considered a young driver, which means higher rates.

Since rates vary from company to company, you can still find the coverage you need at an affordable price by shopping around and comparing quotes. Our analysis found that, of major car insurance companies, USAA had the cheapest average annual premium at $1,562, followed by GEICO at $1,783 a year.

10 cheapest car insurance companies for 21-year-old drivers

Full coverage car insurance for a 21-year-old can cost thousands of dollars a year. But shopping around for coverage and comparing quotes from multiple companies can help you find an affordable policy, even as a young driver.

Here are the average rates for full coverage car insurance for a 21-year-old at 10 of the biggest car insurance companies in the U.S.:

Young drivers can often find cheaper rates at smaller, regional companies that don’t operate nationwide, so make sure to compare plenty of options before you pick a policy.

Compare rates for 21-year-old drivers

The younger you are, the more you’ll pay for car insurance. Teenagers pay the most for a policy of their own, but car insurance gets cheaper the older you get, until it eventually levels out at age 25. 

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

If you want to save on car insurance for as a young adult, there are a few simple steps you can take that can help lower your costs:

1. Join your parent’s policy

If you live at home, you can save money on your car insurance by joining an existing policy rather than taking out your own. Your parent’s rates will go up with a young driver on their policy, but it will still be cheaper than buying separate coverage (however you’ll need to get a policy of your own once you move out and have your own car). 

2. Take advantage of discounts 

Discounts can help you lower your rates, and car insurance companies offer discounts for everything from being affiliated with a sorority or fraternity to completing a safe driving course. Full-time students can usually save on car insurance if they maintain above a certain GPA. 

3. Compare quotes from multiple companies

You can find the coverage you need at the cheapest price by getting quotes from multiple companies and comparing options before you buy. You may be able to spend a lot less money at one company than another for identical coverage. 

4. Drop comprehensive and collision

If the car you’re driving is an old clunker that isn’t worth repairing or replacing if it’s damaged, you can consider dropping comprehensive and collision coverage, as long as you’re not financing or leasing your vehicle. A good rule of thumb is that you can drop both coverages if your comprehensive and collision premiums equal 10% or more of your car’s actual cash value.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

• Bodily injury liability: 50/100

• Property damage liability: $50,000

• Uninsured/underinsured motorist: 50/100

• Comprehensive: $500 deductible

• Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer. 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.