Although turning 21 is a great time in your life, it can also be a difficult time when it comes car insurance. Although you may have been driving for several years, your car insurance rates are likely still higher than average.
If you are searching for the best car insurance for 21-year-olds, Bankrate’s research may help you. The average premium information for 21-year old drivers who have their own policies was obtained by our insurance editorial team from Quadrant Information Services. We looked at the data by gender, company and will offer some suggestions on how you can save your premium.
What is the cost of car insurance for a 21 year old?
On average, 21-year-old drivers pay $2,967 per year for full coverage car insurance, almost $1,300 more than the national average full coverage premium of $1,674. The minimum coverage required for 21-year olds is $874 annually. This cost is also higher than the $565 annual national average.
Car insurance prices depend on the risk. Even if you’re 21 years old, you have less experience driving than older drivers. Car insurance companies charge higher rates for younger drivers to compensate for the increased chance of you injuring someone else. Statistically, your premiums should begin to decrease when you turn 25.
Car insurance costs for men and women are comparable in terms of average cost
Car insurance rates are not determined solely by age. Gender is a major rating factor in most states. Regardless of age, men tend to have riskier driving behaviors than women, and that can lead to more accidents and more serious accidents. Your auto insurance premiums may rise if you’re a male aged 21 years old.
Insurance companies cannot rate policies based upon gender in several states. These states are California, Hawaii Massachusetts, Michigan North Carolina, North Carolina, Pennsylvania, Massachusetts and Michigan. However, this does not mean all 21-year olds in these states pay the same amount. There are many other factors that affect how much car insurance costs. These states do not consider gender as a rating factor. Your gender will not impact how much you pay.
Car insurance for 21-year olds at the lowest prices
Because car insurance tends to be relatively expensive for 21-year-olds, you may be searching for the cheapest car insurance company. Although age plays a major role in determining premiums, other factors include your driving record, car type, coverages, discounts you are eligible for, and the vehicle you drive.
Based on our analysis of the average premiums for the largest car insurance companies by market share, several stand out as offering low average rates to 21-year-olds. These companies may offer cheap insurance for 21-year old drivers.
USAA
USAA has the lowest full coverage and minimum coverage premiums. However, the company sells only insurance to military personnel and their immediate families. If you qualify for coverage, you may have access to cheap average premium, excellent claims service and plenty of discounts. You may be able to save money by insuring a new vehicle, storing your vehicle at a military base, or separating your policy from your parents’ USAA policy.
Erie
Erie may be an option if you’re looking for low-cost coverage, a variety of coverage options, and discounts. Erie is not a nationwide carrier. You will only be able to purchase Erie’s auto insurance if you live in one of the 12 states that the carrier operates in. Erie offers unique options to their standard auto policy that include pet coverage and locksmith coverage if you are eligible. Erie Rate Lock is another option that might interest you. This prevents your premium from rising if you make changes to your policy such as adding a driver, vehicle, or changing your coverage.
Geico
Geico is well-known for its low rates and wide variety of discounts. This applies to 21-year-old drivers. Some discounts may be available for being a good student, having safety features installed on your vehicle, or enrolling in a driver’s education program. You can also file claims, make payments, view ID cards, and make changes via the company’s mobile app. Geico doesn’t offer as many options as other companies, but it received a lower score from J.D. for claims service. Power
Travelers
If you’re looking for a flexible policy, Travelers might be the right choice. In addition to the standard car insurance coverages, like liability, uninsured and underinsured motorist coverage, collision and comprehensive coverage, Travelers offers a long list of optional coverages to round out your policy. You might want to add roadside help, gap coverage or rental car reimbursement. Travelers has many discounts that could lower your premium if you’re looking for savings.
Progressive
If you’re looking for digital tools, Progressive may be a good option. Name Your Price allows you to input your monthly budget. The tool then displays a range of coverage options within that price range. Progressive’s website allows you to compare multiple companies, which can make it easier to find car insurance. Progressive has the best average coverage for 21-year olds and the lowest minimum coverage rates. However, there are many discounts available that could help you save. There are many ways to save money: online shopping, getting a quote, and purchasing a policy, whether you’re a student or taking part in the Snapshot safe-driving program.
How to get car insurance at a discount for 21-year olds
Car insurance can be more expensive for 21-year olds than for older drivers. However, there are still ways to save.
Compare quotes
Different rating algorithms are used by different car insurance companies. This means that each company will weigh your individual rating factors differently. Comparing quotes from different companies will allow you to compare prices for the same coverage limits. It is possible to find out that certain companies offer features or tools you like, or that they offer discounts you are eligible for.
Get great student discounts
Many insurance companies offer great student discounts to students who are less than 25 years old and full-time students. While the qualifications of each company will differ, most require that you maintain a minimum B-or better letter-grade average and a minimum 3.0 GPA. To be eligible, you may need to submit a copy your most recent grade card. For full coverage, the average premium for 21-year olds is $2967 annually without any good student discounts. It can be reduced to $2,893 per year by taking advantage of a student discount.
Get distant student discounts
A distant student discount may be available to college students who do not bring a car with them to campus. You must be located at least 100 miles from your home to qualify. However, this can vary depending on the insurance company. To qualify for the discount, you must also be listed on your parent’s policy as a driver. This discount will not apply to you if you already have a policy. Full coverage car insurance costs 21-year old drivers $2,967 annually on their own policy. Your full coverage premium may drop to $909 if you are on your parent’s policy and qualify for a distance student discount.
Get a vehicle that is affordable
How much car insurance you purchase will depend on the type of vehicle you drive. Premiums will be higher for luxury cars, sports cars and other vehicles that are more costly to replace or repair. There are some cars that are generally cheaper to insure than others.
Learn to drive better
Drivers who agree to have a telematics device installed in their vehicle or to use an app to track their driving will receive a discount from many insurers. These programs track information about your driving habits, including your speed, brake patterns, and time of day. Based on the personal data the company has about your driving habits, you could be eligible for a discount
How to get the best insurance policy for 21-year-olds
You may not find the best car insurance, but the cheapest insurance is not necessarily the best.
Before you start shopping for insurance, determine what you want and need from it. Are you looking for a company with a strong mobile application? Do you want to receive certain discounts or coverage? What is your budget limit? Insurance is a personal decision.
Once you’ve decided what is important, you can request quotes from multiple companies to find the best match for your needs. Talking to a licensed agent can help you determine the right coverages and options for you.
Questions frequently asked
Why is insurance more expensive when 21-year-olds are insured?
Even though you may have been driving for many years, most insurance companies still consider you inexperienced. Your individual rating factors will determine your premium. These include the type of car that you drive, your driving record, your driving record, and the discounts you are eligible for. You will not be charged for tickets or accidents if you are under 21. Drivers with such incidents on their driving records will likely pay more than drivers with clean records. Inexperienced drivers, however, will pay more for car insurance.
Is it more cost-effective to remain on my parents’ insurance plan?
This could be possible. If they are open to it, it may be worth checking with them to find out what their rate would be if your policy was canceled. It is worth getting a quote from your parents’ insurer even if you do not get your own policy. There may be a family loyalty discount that you are eligible for. If you live with your parents or are away from school, you will not be allowed to keep the parent’s insurance policy. You will need to purchase your own policy if you move into your own apartment, condo, or home.
What happens to my premium as I age?
If you have a clean driving record, your rates should drop over the next few years. There are many factors that influence auto insurance premiums. While your age is a factor, your premium will be based on your rating factors and not your actual age.