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The cheapest car insurance for 21 year olds can be found with USAA for $134 per month or $1,609 per year for full coverage policies.
Affordable Car Insurance Rates
Written by: Daniel Robinson, Written by: Daniel Robinson Writer Daniel is a team writer for Guides and has written for many automotive news sites and trade companies in the US, UK and Australia, specializing in car finance and car maintenance topics. Daniel is the authority of the Executive team on car insurance, loans, warranty options, car services and more.
Best Car Insurance Rates For Young Drivers: Tips And Recommendations
Edited by: Rashawn Mitchner, Edited by: Rashawn Mitchner Managing Editor Rashawn Mitchner is a Guides team editor with over 10 years of experience in personal finance and insurance.
Finding cheap car insurance as a 21-year-old can be difficult. Monthly and annual premiums are expensive because young drivers pose a risk to insurance companies. In this article, we from the Guidei team rank the best car insurance for 21 year olds and show you how to find affordable rates.
Cheap Car Insurance For Young Adults Car Insurance Best Rates For Car Insurance Companies Average Cost Of Car Insurance.
The Guides team strives to provide reliable information to help you make the best decision about your car insurance. Because customers trust us to provide objective and accurate information, we have developed a comprehensive rating system to create our ranking of the best car insurance policies. We have collected data on many car insurance companies to rate the companies on a variety of positions. After 800 hours of research, the result was an overall rating for each provider, with insurers with the most points at the top of the list.
Cheapest Car Insurance For New Drivers
According to our estimates, 21-year-olds pay an average of $2,786 a year or $232 a month for comprehensive car insurance. About 56% more expensive than the average 35-year-old driver, which is $1,785 a year or about $149 a month. Auto insurance rates tend to be more expensive for 21-year-olds than older drivers.
The cost of car insurance for 21 year old drivers is determined based on several factors, including driving history, location and credit. Gender also plays a role in calculating your premiums, especially as a teenager or teenager. For example, young men have a disproportionately high accident rate, meaning they have to pay more than young women. However, some states do not allow insurance companies to use gender when calculating insurance premiums.
Compared to older drivers, 21-year-olds have less driving experience and are more likely to be involved in an accident. Car insurance policies compensate for these risk factors by charging this age group higher rates.
According to the AAA Foundation for Traffic Safety, drivers between the ages of 20 and 24 were 74% more likely to be involved in a crash in 2015 than drivers in their 30s. Below you can see the risk rates for each age group.
Best 15 Cheapest Cars To Insure 2023
High-risk drivers pay higher rates on average, and younger drivers tend to fall into this category. Below you can see how the average rates by age relate to the risk data above.
The cheapest car insurance for 21-year-olds is USAA, which offers an average of $134 per month. However, USAA is only available to military personnel, veterans and their immediate families. Geico is the cheapest company available for any driver over the age of 21, with an average of $154 per month. Other affordable companies include Auto-Owners Insurance, Erie Insurance and Nationwide.
The best car insurance for 21-year-olds isn’t the cheapest, but cheap rates help. Below you can see how 12 popular car insurance quotes for 21 year olds.
* Auto insurance estimates are based on comprehensive coverage policies with $50,000 bodily injury per person, $100,000 bodily injury per risk, $50,000 property damage per risk and $500 deductible for collision and comprehensive coverage.
Who Has The Cheapest Auto Insurance Quotes In California?
Location is one of the factors that affects what you pay for car insurance, and prices can vary greatly by country. Below are the cheapest auto insurance companies in the state to get full coverage for 21 year olds. According to our estimates, USAA and Geico are the cheapest providers in most states.
While 21-year-olds pay an average of $232 a month, drivers in other states pay less. For example, insurance in North Carolina costs an average of $129 per month for that age group.
Whether it’s due to demographics or insurance regulations, some states are more expensive for 21-year-olds than others. Michigan, Connecticut and Massachusetts are at the top of the list.
Our top five best car insurance picks for 21 year olds are Geico, USAA, State Farm, Nationwide and Auto-Owners Insurance. When comparing car insurance companies, our team considers prices, reputation, coverage, availability and customer experience. We have found that these companies, on average, are affordable for young adult drivers.
Car Insurance Policy Offering The Best Coverage Plans
Geico is our top pick for the best car insurance for 21 year olds. Car insurance rates for 21-year-olds are about 34% cheaper than the market average for the age group. Geico also offers a good student discount of 15 percent and a discount of up to 25 percent for those who have driven without an accident for five years.
The company has been around since 1936 and has an A+ rating from the Better Business Bureau (BBB).
On average, USAA offers the cheapest car insurance for 21-year-olds, with rates about 42% below the market average. However, we did not call it the best car insurance for 21 year olds because it is not available to everyone. To qualify, you must be in the military, a veteran, or have a parent who is a USAA member.
USAA not only has the lowest rates for 21 year olds but is also known for its reliable customer service. The company has an A+ rating from the BBB and received the highest score in every region of the country in JD. Power 2022 US Auto Insurance Study℠.
Who Has The Cheapest New York Car Insurance Quotes? (2023)
State Farm is one of the nation’s leading providers of affordable auto insurance for drivers 21 and older. Our estimates show that State Farm’s average rates are 17% lower than the national average for this age group.
State Farm also offers discounts to young drivers, including a generous student discount of up to 25% to maintain a B average. Young drivers can also save money with State Farm’s Steer Clear® program, an app-based driving course for drivers under 25 years old.
On average, 21-year-old drivers save about 23% more than the national average. One thing that makes Universal different is that it offers two application-based telematics insurance options. SmartRide® can offer discounts of up to 40% based on driving behavior by tracking speed, braking, night driving and more. Another option, SmartMiles®, is a pay-per-mile insurance program that can help people who drive infrequently save money.
The country has a good reputation in the industry and has an A+ financial strength rating from AM Best and an A+ rating from BBB.
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Another affordable car insurance company for 21 year olds is Car Owners. Our estimates show that 21-year-olds pay about 26% less than the national average among car owners. The company offers a good student discount of up to 20% and tax for students who are not in school and leave their car at home. However, Auto-Owners are only available in 26 states.
Unfortunately, age is not the only factor that determines car insurance rates. There are a few things you can do to get the cheapest rates on the best car insurance for 21 year olds. We recommend that you check your coverage level and deductible, compare providers, maintain a clean driving record and look for discounts.
To save money, you can reduce the amount covered by options such as comprehensive insurance and collision insurance. You can also opt out of full coverage and only get limited coverage for bodily injury liability and property damage liability. However, make sure you can cover any costs that are not covered by your minimum cover if you are at fault due to an accident.
You can lower your premiums by increasing your deductible. This is the amount you pay out of pocket when you make a claim. Make sure you can afford the deductible.
Steps To Cheaper Car Insurance Rates
One of the easiest ways to get a better rate is to compare companies. We recommend that you compare prices every time you renew your car insurance. The cheapest companies for young drivers aren’t the cheapest for drivers in their early 20s, so it pays to check rates as you get older.
Getting a speeding ticket or causing an accident are sure ways to get higher rates, and 21-year-old drivers even pay more than average. A clean driving record will keep your rates as low as possible.
Not all companies offer the same discounts or the same savings on the same discounts. In our roundup of the best car insurance for 21-year-olds above, you’ll find that State Farm, Geico and Auto-Owners offer a variety of discounts for good students.
Compare quotes online to find the right discounts for your situation. You can also work with an insurance agent to make sure you get all the applicable discounts.
Compare Cheap Car Insurance Quotes
Another way for 21-year-old drivers to save money
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