Best Car Insurance For 21-Year-Olds

Turning 21 is often seen as a milestone for adulthood, as society starts viewing you as an adult more than ever before.
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Best Car Insurance For 21-Year-Olds

Written by Brian Greenberg
CEO / Founder & Licensed Insurance Agent

Last updated: November 24th, 2022

Reviewed by Grant Desselle
Licensed Insurance Agent

For some, college graduation is right around the corner with a career following soon after. Part of this transition includes taking on the responsibility of bills such as car insurance, which is required in most states. Learn about what goes into car insurance pricing and how to pick the plan that matches your needs and lifestyle.

How Much is Car Insurance for 21-Year-Olds?

Car insurance plans for 21-year-olds can range from under $200 to over $600. The average cost is $4,611 annually — or $384 per month. Erie and USAA have some of the cheapest plans available while monthly premiums at Allstate average out to $628 for 21-year-old drivers.

What is the Cheapest Insurance for 21-Year-Olds?

Regardless of gender, 21-year-olds have multiple options for affordable car insurance. USAA, Erie, and GEICO all come in at under $200 for monthly premiums. USAA and Erie only offer coverage to specific populations, so always verify your eligibility. Those outside of Erie’s footprint or with no military affiliation that makes them eligible for USAA coverage can explore GEICO, Travelers, and Progressive for cost-effective options.

Average cost for full coverage auto insurance for 21-year-olds

Company Average annual premium Average monthly premium
GEICO 2,235 $190
Travelers $2,405 $200
Progressive $2,640 $220

What Goes Into the Cost of Car Insurance Premiums?

Multiple factors dictate the final premium you’ll pay for car insurance. One of the most impactful aspects is the car you’re looking to insure. Cars with higher cash values cost more to insure, as the insurer takes on more risk by offering coverage for vehicles with more value.
The cost to repair a vehicle is also taken into consideration. While an expensive car doesn’t guarantee high maintenance costs, most high-end makes and models use parts made of premium materials, inflating the cost. Lastly, the vehicle’s safety rating and features can provide owners with discounts on their insurance.

Car insurance premiums are influenced by personal information as well, including:

  • Age
  • Gender, in some states
  • Marital status
  • Type of coverage preferred
  • Driving record
  • Residential and work locations
  • Credit score
  • Insurance history

Drivers with consistent insurance coverage and no accidents often find that their monthly premiums are lower than their peers. Additionally, defensive driving courses can be taken and certified by your insurer for additional discounts. Here are the average monthly premiums offered by insurers for safe drivers.

Insurance company Average monthly premium for accident-free drivers
State Farm $117
GEICO $142
Progressive $147
Farmers $177
Allstate $211

How Do I Choose the Best Auto Insurance As a 21-Year Old?

The insurance that’s right for you will be one that works with your budget, meets any requirements of a lease or auto loan, and protects you from financial hardship in the event of an accident during normal vehicle operation. Customer service and self-service options are other features to consider, as making a claim with modern insurers can be as simple as opening an app and taking photos directly from your phone.

What to Take Away About Auto Insurance for 21-Year-Olds

No matter what your situation is, there’s a car insurance plan out there for you. Rates tend to get more affordable the older you get. If you aren’t sure where to start, ask your parents or someone you trust who they have coverage through, or consider joining a family plan with your parents if possible.

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