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Finding cheap car insurance at 21 can be difficult. Monthly and annual insurance premiums tend to be expensive because young drivers pose a greater risk to insurance companies. In this article, we, the Home Media review team, rank the best car insurance for 21 year olds and show you how to get affordable rates.
Who Is The Best Car Insurance
We estimated that 21-year-olds pay an average of about $2,786 per year, or $232 per month, for comprehensive auto insurance. That’s about 56% more expensive than the average for 35-year-old drivers, which is $1,785 a year, or about $149 a month.
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The cheapest car insurance for 21-year-olds is USAA, which averages $134 per month. However, USAA is only available to members of the military, veterans and their immediate families. Geico is the cheapest company available to any 21-year-old driver, with an average cost of $154 per month. Other companies available include Auto-Owners Insurance, Erie Insurance and Nationwide.
The best car insurance for a 21-year-old isn’t necessarily the cheapest, but low rates definitely help. Below you can see how the top 11 providers rank in terms of car insurance costs for 21-year-olds.
* Auto insurance estimates are based on full coverage policies with $50,000 for personal injury, $100,000 for personal injury per accident, $50,000 for property damage per accident, and a $500 deductible for collision and full coverage.
When comparing car insurance companies, our team considers cost, reputation, coverage, availability and customer experience. Our top five auto insurance for 21-year-olds are Geico, USAA, State Farm, Nationwide, and Auto-Owners Insurance. We found these companies to be moderately affordable for young adult drivers.
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Geico is our top pick for the best car insurance for 21 year olds. Car insurance rates for 21-year-olds are about 34% lower than the market average for that age group. Geico also offers a 15% discount for good students and a discount of up to 22% for those with five years of accident-free driving.
The company has been around since 1936 and is rated A+ by the Better Business Bureau (BBB).
USAA offers the cheapest car insurance on average for 21-year-olds, with rates about 42% lower than the market average. However, we didn’t call it the best car insurance for a 21-year-old because it’s not affordable for everyone. You can only qualify if you are in the military, are a veteran, or have a parent who is a USAA member.
Not only does USAA have low rates for 21-year-olds, but it’s also known for reliable customer service. The company has an A+ rating from the BBB and has received the highest score in nearly every region of the country in J.D. Power 2022 US Auto Insurance Study SM.
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State Farm is another national insurance company offering affordable premiums for 21-year-old drivers. Our estimates show that state farm average rates are about 17% lower than the national average for this age group.
State Farm also offers discounts for young drivers, including a generous student discount of up to 25% to maintain a B average. Younger drivers can also save money with State Farm’s Steer Clear® program, an app-based course on driving for drivers under 25 years of age.
On average, 21-year-old drivers save about 23% with Nationwide compared to the national average. One thing that makes Nationwide unique is that it offers two usage-based telematics insurance options. SmartRide® can provide discounts of up to 40% based on a person’s driving style, tracking acceleration, braking, night driving and more. Another option, SmartMiles®, is a pay-per-mile insurance program that can help people who rarely drive save money.
Nationwide has a strong reputation in the industry, earning an A+ financial stability rating from AM Best and an A+ rating from the BBB.
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Another affordable car insurance company for 21 year olds is Auto Owners. We estimate that 21-year-olds pay car owners around 26% less than the national average. The company offers a good student discount of up to 20% and a discount for students who are absent from school and leave their cars at home. However, Car Owners is only available in 26 states.
Compared to older drivers, 21-year-olds have less driving experience and are more likely to be involved in accidents. Auto insurance companies compensate for these risk factors by charging higher rates for this age group.
According to the AAA Highway Safety Foundation, in 2015, drivers ages 20 to 24 were 74 percent more likely to be involved in an accident than drivers ages 30 to 39. Below you can see the crash rates for each age. Group.
Auto insurance companies compensate car accident victims for their customers’ insurance premiums, so it makes sense that they charge more for high-risk drivers. Below you can see how the average cost by age correlates with the crash data above.
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Fortunately, age isn’t the only thing that determines car insurance rates. There are a few things you can do to find cheap rates on the best car insurance for 21 year olds. We recommend thinking about the level of insurance coverage and deductible, comparing providers, keeping a driving record and finding discounts.
To save money, you can reduce the amounts covered by options such as comprehensive and accident insurance. You can also opt out of full coverage and just get the minimum levels of bodily injury liability and property damage coverage. However, make sure you can handle any costs that your minimum insurance coverage won’t cover if you’re at fault in an accident.
You can lower your payments by increasing your deductible, which is the amount you pay out of pocket if you file a claim. However, make sure you can afford the franchise.
One of the easiest ways to get the best price is to compare companies. We recommend comparing rates each time your car insurance policy is due for renewal. The cheapest companies for teenagers aren’t necessarily the cheapest for drivers in their 20s, so it’s worth checking rates as you get older.
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Getting a speeding ticket or an accident is a surefire way to get higher rates, and 21-year-old drivers are already paying more than average. A clean driving history allows you to lower your rates as much as possible.
Not all companies offer the same discounts or the same savings on similar discounts. In our picks for the best car insurance for 21-year-olds above, you can see that State Farm, Geico, and Auto-Owners offer different discount amounts for good students.
Compare offers online to find the right discount for your situation. You can also work with an insurance agent to make sure you find all applicable discounts.
Another money-saving way for 21-year-old drivers is to stay on their parents’ policy. This is usually only possible if the young driver has the same permanent address as his parents.
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Location is one of the most important factors in what you pay for car insurance, and companies can set rates differently by state. Below are the cheapest auto insurance companies in each state for full coverage for 21 year olds. In our estimates, USAA and Geico are the cheapest providers in many states.
While 21-year-olds pay a national average of $232 a month, drivers in some states pay far less. For example, insurance in North Carolina averages $129 per month for the age group.
Whether due to population density or insurance regulations, housing costs for 21-year-olds are much higher in some states than others. Michigan, Connecticut and Massachusetts top the list.
You can find cheap rates from leading providers, although most 21-year-olds pay more for insurance than older drivers. Compare car insurance quotes from companies to find the best deal.
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Yes, the cost of car insurance usually decreases at age 21. Between the ages of 19 and 21, rates are reduced by around 25%. The average cost of car insurance coverage drops every year between the ages of 16 and 30, with the steepest drop occurring during adolescence. Middle-aged drivers tend to find the best rates.
The cost of car insurance is high for 21-year-old drivers because service providers consider them to be riskier drivers. 21-year-olds have less experience than older drivers and are statistically more likely to be involved in accidents.
Our ratings show that Geico, USAA, State Farm, Erie Insurance, Auto-Owners Insurance and Nationwide are affordable for drivers over 20 years old. We recommend comparing the rates of several leading companies to find the cheapest option. The types and amounts of insurance a 22-year-old needs depends on his state’s minimum requirements, his financial situation and whether his car is financed.
Full coverage auto insurance costs about $4,088 per year or $341 per month for the average 21-year-old in New York state. That’s more than double the national average for all drivers, which is $1,730 a year or $144 a month. Drivers in New York and Long Island generally pay more than drivers in upstate New York.
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Because consumers expect us to provide unbiased and accurate information, we’ve created a comprehensive rating system to compile our rankings of the best car insurance companies. We collected data on dozens
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