- Cheap car insurance companies for 21-year-olds: Nationwide
- Cheapest car insurance for 21-year-old: male vs. female
- Cheapest car insurance for 21-year-old drivers by state: Hawaii
- How much is car insurance for 21-year-olds?
- Why do 21-year-olds pay so much for car insurance?
- How to save money on car insurance as a 21-year-old?
- Final thoughts
- Methodology
- Related articles
Cheap car insurance companies for 21-year-olds: Nationwide
Nationwide offers the cheapest car insurance rate for 21-year-olds at $2,551 per year, according to Insurance.com’s research. USAA offers the cheapest premium for 21-year-old drivers at about $2,179 a year, but only to military members, veterans, and their family members.
Below is a list of insurance companies that offer cheap car insurance for 21-year-old drivers.
| Company | Average annual premium |
|---|---|
| USAA* | $2,179 |
| Nationwide | $2,551 |
| Travelers | $2,562 |
| Auto-Owners | $2,667 |
| Geico | $2,764 |
| State Farm | $3,367 |
| Progressive | $3,401 |
| Farmers | $3,728 |
| Allstate | $3,896 |
*USAA auto insurance is available only to military members, veterans, and family members.
Cheapest car insurance for 21-year-old: male vs. female
Some states forbid car insurance companies to use gender to calculate insurance rates. However, young male drivers across the country still end up paying slightly higher insurance premiums than females.
For example, Insurance.com found that Travelers offers the cheapest car insurance to 21-year-old female drivers at $2,432 per year, whereas Nationwide offers the cheapest insurance rates for 21-year-old male drivers at $2,666 per year for the same coverage.
The table below can be used to compare car insurance rates for 21-year-old males and females.
| Company | 21-year-old female | 21-year-old male |
|---|---|---|
| USAA* | $2,132 | $2,225 |
| Travelers | $2,432 | $2,692 |
| Nationwide | $2,435 | $2,666 |
| Auto-Owners | $2,484 | $2,851 |
| Geico | $2,696 | $2,833 |
| State Farm | $3,116 | $3,620 |
| Progressive | $3,235 | $3,567 |
| Farmers | $3,608 | $3,852 |
| Allstate | $3,729 | $4,064 |
*USAA auto insurance is available only to military members, veterans, and family members.
Cheapest car insurance for 21-year-old drivers by state: Hawaii
Hawaii is the cheapest state for 21-year-old drivers to get car insurance at about $1,517 per year. Moreover, North Carolina is the second cheapest state for 21-year-old drivers with an average annual rate of $2,021.
The below table shows the cheapest to most expensive states for car insurance rates for 21-year-old drivers.
| State | Avg annual premium |
|---|---|
| Hawaii | $1,517 |
| North Carolina | $2,021 |
| Maine | $2,182 |
| New Hampshire | $2,239 |
| Vermont | $2,343 |
| Ohio | $2,417 |
| Idaho | $2,428 |
| Virginia | $2,429 |
| Indiana | $2,540 |
| Washington | $2,562 |
| Illinois | $2,584 |
| Iowa | $2,682 |
| Oregon | $2,718 |
| North Dakota | $2,758 |
| Wisconsin | $2,769 |
| Alaska | $2,813 |
| Tennessee | $2,835 |
| Alabama | $2,885 |
| Utah | $2,934 |
| Wyoming | $2,942 |
| New York | $2,949 |
| Arizona | $2,994 |
| Nebraska | $3,028 |
| Kansas | $3,032 |
| Minnesota | $3,123 |
| Connecticut | $3,151 |
| Arkansas | $3,161 |
| Maryland | $3,170 |
| New Jersey | $3,219 |
| New Mexico | $3,222 |
| Pennsylvania | $3,228 |
| Massachusetts | $3,234 |
| South Carolina | $3,252 |
| Missouri | $3,257 |
| West Virginia | $3,261 |
| Texas | $3,274 |
| Mississippi | $3,374 |
| Nevada | $3,456 |
| Georgia | $3,481 |
| South Dakota | $3,483 |
| Rhode Island | $3,499 |
| Washington, D.C. | $3,511 |
| Oklahoma | $3,521 |
| Delaware | $3,542 |
| Colorado | $3,590 |
| Montana | $3,649 |
| Kentucky | $3,723 |
| California | $3,730 |
| Michigan | $3,912 |
| Florida | $4,283 |
| Louisiana | $4,770 |
How much is car insurance for 21-year-olds?
The average cost of car insurance for a 21-year-old driver, as mentioned above, is $3,094 a year. That’s $1,199 more than the auto insurance national average of $1,895 for a 40-year-old driver. But rates may vary based on young drivers’ personal profiles, such as their credit score, high school or college class, driving history and location.
To get the best possible car insurance rates, 21-year-olds should shop around and compare car insurance quotes from multiple insurers.
Why do 21-year-olds pay so much for car insurance?
Despite being legal adults, many 21-year-old individuals are still relatively new drivers with limited experience on the road. Additionally, they may be transitioning from the higher-risk category of teenagers, but insurance companies still perceive them as having elevated risk due to their age group's historical accident rates. Also, factors like the type of vehicle they drive, their location, and their driving record can also influence insurance rates. As they accumulate more driving experience and demonstrate responsible behavior, their premiums may decrease over time.
How to save money on car insurance as a 21-year-old?
There are many ways for young drivers to get a better price on their auto insurance:
- Compare quotes: You will be surprised to see how much rates can differ from company to company for the same coverage. Always compare quotes before buying a policy.
- Maintain a clean driving record: A clean driving record is one of the most important factors insurance companies consider when calculating insurance rates. If you want to get cheaper car insurance premiums, strive to avoid accidents and traffic violations.
- Look for a good student discount: Many insurance companies offer a discount to students who maintain a GPA of 3.0 or higher.
- Ask about student-away discount: Insurance companies offer discounts for 21-year-olds who are still on their parent's car insurance and attend school or college more than 100 miles away.
- Bundle with renters insurance: 21-year-olds can bundle their renters insurance with auto policy to get a bundling discount from their insurers.
- Ask insurers about enrolling in their telematics program: Many insurance companies offer telematics programs as a way to track and assess the risk of young drivers. By understanding how young drivers interact with their vehicles, insurers can better tailor coverage and rates to each individual.
- Low-mileage discount: Young drivers often face sky-high insurance rates, as they are considered to be high-risk. One way to help offset the insurance cost for young drivers is to take advantage of a low-mileage discount. Many insurance companies offer these discounts to drivers who drive less than 7,500 miles per year.
- New car discount: This discount is available on a new car purchase, and it can help 21-year-olds save big on their new set of wheels.
- Electronic payment discount: Young drivers can get an electronic payment discount from their insurance provider if they pay their insurance premiums digitally.
- Pay in advance: If you make your insurance payment 7 to 10 days before your due date you can take advantage of pay in advance discount.
- High-tech safety feature installation: Installing safety features such as anti-lock brakes, airbags, daytime running lights, electronic stability control and automatic seat belts can help young drivers score discounts on their insurance policy.
- Anti-theft devices on the vehicle: By Installing anti-theft devices like GPS trackers, audible alarms, etc, young drivers can make their vehicle less attractive to thieves and save money on coverage costs.
- Become a better driver: Most companies offer discounts to young drivers for completing a defensive driving program.
Final thoughts
Insurance companies consider 21-year-old drivers risky to insure, but insurers like Nationwide, Travelers and Auto-Owners offer cheap insurance rates to young drivers.
A 21-year-old pays more for car insurance than older drivers. But as they get older and gain more driving experience, their rates should start to drop. Rates are cheapest for drivers in their 40s, 50s and 60s, and then increase again at age 70.
Methodology
Insurance.com commissioned Quadrant Information Services to gather rates from multiple insurance companies across the U.S. We used full coverage rates based on the sample profile of a 21-year-old driver driving a 2023 Honda Accord LX with a good insurance score, and a clean driving record for the coverage limit 100/300/100, which represents $100,000 for bodily injury per person, $300,000 for bodily injury per accident and $100,000 for personal property damage.
We analyzed insurance quotes from 170 insurance companies. You can use these averages to compare companies based on price, but your own insurance premiums may be different.
Related articles
Insurance.com has prepared in-depth car insurance guides for drivers of different ages. You will learn how much you expect to pay for insurance based on your age and how you can save on premiums each year. Check out the guides below:
- Car insurance rates for 16-year-old drivers
- Car insurance rates for 18-year-old drivers
- Car insurance rates for 20-year-old drivers
- Car insurance rates for 22-year-old drivers
- Car insurance rates for 23-year-old drivers
- Car insurance rates for 24-year-old drivers
- Car insurance rates for 25-year-old drivers
