Best Car Insurance for 21-Year-Old Drivers in 2024 (Top 10 Companies Ranked)
State Farm, Progressive, and Allstate offer the best car insurance for 21-year-old drivers, with rates starting as low as $105/month. Catering to young drivers, these companies offer affordable coverage, discounts up to 20%, and top-notch service for superior protection and value.
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Angie Watts is a licensed real estate agent with Florida Executive Realty. Specializing in residential properties since 2015, Angie is a real estate writer who published a book educating homeowners on how to make the most money when they sell their homes. Her goal is to educate and empower both home buyers and sellers so they can have a stress-free shopping and/or selling process. She has studi...
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UPDATED: Apr 21, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Apr 21, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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These companies excel by combining affordability with excellent customer service and customizable policy options, ensuring that young drivers receive the protection they need without breaking the bank.
Our Top 10 Company Picks: Best Car Insurance for 21-Year-Old Drivers
| Company | Rank | Multi-Policy Discount | Safe Driver Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 25% | 30% | Coverage Options | State Farm |
 | #2 | 15% | 30% | Competitive Rates | Progressive |
 | #3 | 25% | 30% | Big Discounts | Allstate |
 | #4 | 25% | 30% | Safe-Driving Discounts | Nationwide |
 | #5 | 15% | 20% | Student Savings | Travelers |
 | #6 | 20% | 25% | Customizable Policies | Farmers |
 | #7 | 25% | 30% | Flexible Options | Liberty Mutual |
 | #8 | 20% | 25% | Unique Benefits | Hartford |
 | #9 | 20% | 25% | Customer Service | Chubb |
 | #10 | 20% | 25% | Various Discounts | American Family |
State Farm leads with the most attractive rates for 21-year-old drivers, considering various factors such as driving history, vehicle type, and coverage preferences.
With these providers, finding affordable and extensive car insurance is streamlined, making them the go-to choices for young drivers looking to secure their vehicles and their futures on the road.
To find the perfect insurance plan for your car and budget, simply enter your ZIP code and compare rates from the industry’s leading insurance providers. Don’t miss out on the opportunity to find the best car insurance deal for 21-year-old drivers.
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#1 – State Farm: Top Overall Pick
Pros
- Coverage Options: State Farm offers a comprehensive range of coverage options, making it suitable for those seeking varied and customizable policies.
- Low Rates: With an average monthly rate of $284 for 21-year-old drivers, State Farm stands out for providing competitive rates compared to other providers.
- Discount Opportunities: State Farm insurance review & ratings highlight substantial savings opportunities, such as multi-policy discounts reaching 25% and safe driver incentives reaching 30%.
Cons
- Limited Availability of Some Discounts: While offering good discounts, the availability and qualification criteria for these discounts might vary, potentially limiting some customers.
- Possible Regional Rate Differences: Rates can vary based on location, potentially affecting the competitiveness of the pricing in certain areas.
#2 – Progressive: Best for Competitive Rates
Pros
- Competitive Rates: Provides competitive pricing, rendering it a desirable option for individuals in pursuit of affordability in their Progressive insurance review & ratings.
- Safe Driver Discount: Provides a substantial safe driver discount of up to 30%, encouraging and rewarding safe driving behavior.
- Various discounts: Offers multi-policy discounts of up to 15% and has a wide range of discounts available for customers.
Cons
- Higher Average Monthly Rates: Progressive’s average monthly rate for 21-year-old drivers is $662, which might be relatively higher compared to other providers.
- Discount Structure: While offering multiple discounts, the eligibility criteria and how they apply might be complex or restrictive for some customers.
#3 – Allstate: Best for Big Discounts
Pros
- Big Discounts: Offers a considerable multi-policy discount of up to 25% and a safe driver discount of up to 30%, making it appealing for those looking for substantial savings.
- Monthly Rates: Allstate’s average monthly rate for 21-year-old drivers is relatively lower compared to other providers at $519.
- Variety of Discounts: Allstate insurance review & ratings offers a range of discounts tailored to suit the diverse requirements and preferences of its customers.
Cons
- Possibility of Rate Fluctuations: While offering competitive rates, there might be instances of rate fluctuations or changes based on individual profiles.
- Discount Dependency: Achieving the maximum discount might depend heavily on meeting specific criteria, potentially limiting some customers from accessing the full discounts.
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#4 – Nationwide: Best for Safe-driving Discount
Pros
- Safe-Driving Discounts: Offers substantial discounts for safe driving habits, up to 25%, encouraging and rewarding responsible driving.
- Multi-Policy Discount: Provides a significant multi-policy discount of up to 30% for customers bundling policies.
- Reputation: Nationwide insurance review & ratings highlight the company’s reputation for dependability and extensive history within the insurance industry.
Cons
- Possibly Higher Rates: While offering good discounts, the average monthly rate might still be relatively higher compared to some competitors.
- Discount Limitations: Eligibility criteria for discounts might be stringent, limiting access to some potential customers.
#5 – Travelers: Best for Student Savings
Pros
- Student Savings: Offers specific discounts tailored for students, catering to the unique needs and financial constraints of young drivers in education.
- Multi-Policy Discount: Provides a multi-policy discount of up to 15%, allowing customers to save when bundling policies.
- Coverage Options: Travelers insurance review & ratings are distinguished for their assortment of coverage choices, enabling clients to tailor policies according to their needs.
Cons
- Comparatively Lower Discounts: Offers slightly lower discount rates compared to some other providers in the market.
- Average Monthly Rate: The average monthly rate for Travelers might be relatively higher for 21-year-old drivers compared to other providers.
#6 – Farmers: Best for Customizable Policies
Pros
- Customizable Policies: Farmers insurance stands out for providing highly customizable policies, catering to individual needs and preferences.
- Discount Opportunities: Farmers insurance review & ratings show that they provide discounts of up to 20% for customers with multiple policies and up to 25% for drivers with safe records.
- Customer Service: Known for good customer service and efficient claim handling.
Cons
- Potential Complexity: The level of customization might result in a more complex policy structure, which may not suit all customers.
- Varied Rates: Rates can vary significantly based on individual profiles, potentially affecting competitiveness.
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#7 – Liberty Mutual: Best for Flexibility
Pros
- Flexible Options: Liberty Mutual offers a wide range of coverage options and flexible policies to suit different customer needs.
- Multi-Policy Discounts: Provides a significant multi-policy discount of up to 25%, encouraging bundling policies for savings.
- Reputation: Renowned for its esteemed standing and extensive range of insurance services, Liberty Mutual review & ratings are well-regarded.
Cons
- Possibly Higher Rates: While offering flexibility, the average monthly rates might be relatively higher for 21-year-old drivers.
- Complexity in Options: The vast array of options might be overwhelming or complex for some customers.
#8 – The Hartford: Best for Unique Benefits
Pros
- Unique Benefits: The Hartford insurance review & ratings suggest that Hartford insurance offers distinctive advantages, possibly distinguishing it in specific areas of coverage.
- Discount Rates: Offers up to 20% off for multi-policy holders and up to 25% for safe drivers, making it attractive for those seeking savings.
- Extensive Coverage Options: Known for providing a wide range of coverage options, catering to diverse needs.
Cons
- Limited Availability: Hartford insurance might not be available or as widely accessible in all regions.
- Policy Complexity: The uniqueness in benefits might result in complex policy structures or limited options for certain customers.
#9 – Chubb: Best for Customer Service
Pros
- Customer Service: Chubb is reputed for its exceptional customer service and claim handling, prioritizing customer satisfaction.
- Discount Opportunities: Provides up to 20% off for multi-policy holders and up to 25% for safe drivers.
- Tailored Policies: Known for tailoring policies to individual needs, providing more personalized coverage.
Cons
- Possibly Higher Rates: While offering personalized policies, the rates might be higher compared to some competitors.
- Limited Accessibility: The Chubb insurance review & ratings indicate that Chubb’s availability may be restricted, and there could be exclusions for specific geographic areas or demographics.
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#10 – American Family: Best for Diverse Discounts
Pros
- Various Discounts: Offers a range of discounts catering to different needs, providing flexibility for customers.
- Multi-Policy Discounts: Provides up to 20% discounts for multi-policy holders and up to 25% for safe drivers.
- Customer Support: American Family insurance review & ratings are renowned for their robust customer service, providing dependable support and advice.
Cons
- Possibly Moderate Rates: While offering discounts, the rates might still be moderate compared to some other providers.
- Coverage Limitations: Coverage options might not be as extensive or customizable compared to certain competitors.
Car Insurance Costs for 21-Year-Old Drivers
Average Monthly Car Insurance Rates for 21-Year-Old Drivers
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $223 | $519 |
| American Family | $178 | $414 |
| Chubb | $213 | $533 |
| Farmers | $271 | $629 |
| Hartford | $201 | $469 |
| Liberty Mutual | $279 | $626 |
| Nationwide | $167 | $387 |
| Progressive | $281 | $662 |
| State Farm | $125 | $284 |
| Travelers | $310 | $740 |
- Car Insurance Discounts by Age
- Florida Car Insurance Discounts
- Michigan Car Insurance Discounts
- American National Car Insurance Discounts
The table below shows the average costs of insurance for 17-year-old, 25-year-old, and 35-year-old males and females from the best insurance companies.
Average Monthly Auto Insurance Rates by Age and Gender
| Age | 17-Year-Old Female | 17-Year-Old Male | 25-Year-Old Female | 25-Year-Old Male | 35-Year-Old Female | 35-Year-Old Male |
|---|---|---|---|---|---|---|
| Allstate | $774 | $887 | $285 | $298 | $263 | $260 |
| American Family | $500 | $678 | $191 | $225 | $184 | $185 |
| Farmers | $710 | $762 | $246 | $253 | $213 | $213 |
| Geico | $471 | $523 | $198 | $189 | $192 | $193 |
| Liberty Mutual | $968 | $1,143 | $330 | $375 | $317 | $321 |
| Nationwide | $480 | $598 | $224 | $241 | $197 | $199 |
| Progressive | $724 | $802 | $225 | $230 | $191 | $181 |
| State Farm | $496 | $610 | $195 | $213 | $173 | $173 |
| Travelers | $776 | $1,071 | $194 | $208 | $182 | $183 |
The cost of the best car insurance for 21-year-old female and males will vary based on many factors, such as location. In Florida, the average annual cost of car insurance for 21-year-olds is $5,500 and in Georgia, about $4,314.
There are more expensive places, too. How much is car insurance for a 21-year-old in Michigan? Annually, $12,875. Talk to a Michigan insurance agent or broker for more information.
See what is available in your area by entering your ZIP code.
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Cheapest Car Insurance Solutions for 21-Year-Old Drivers
If you still live at home, you can be covered under the insurance of your mom or dad. To do this, you must live at home or be enrolled in college and the vehicle has to be registered in the name of the parents whose insurance you will be listed on.
If the car is registered in your name, you are responsible for purchasing insurance. Similarly, if you do not live in the same home or attend college, you are considered emancipated and responsible for your own insurance.
With the cost of education rising, a college student car insurance discount can provide substantial savings and help students manage their budget more effectively while they focus on their studies.
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Car-Related Savings for 21-Year-Old Drivers
A four-door sedan is less expensive to insure than a two-door version of the same car. This is because two-door vehicles are considered sports cars, and sports cars are statistically more likely to be involved in serious accidents.
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Other car-related discounts include air bags, anti-lock brakes, and electronic stability control. In addition, you may be eligible for many car insurance discounts (e.g. student discounts or a distant student car insurance discount).
Furthermore, if you buy a cheap older car, you can avoid having collision car insurance coverage, and that will knock a large portion of your premiums.
Taking a Driver Improvement Course as a 21-Year-Old Driver
Another way to save money on car insurance is to take a voluntary driver improvement course. Because taking an interest in being a better driver translates into being less of a risk for the car insurance company, you can get an insurance discount for doing so.
For more information, explore our Defensive Driving Course Car Insurance Discount. Keep in mind that the course cannot have been ordered by a judge or the Department of Motor Vehicles.
Good Grades Lead to Savings for 21-Year-Old Drivers
If you are still in college, your grades can save you money on car insurance. Most insurance companies offer affordable car insurance for students who maintain a 3.0 or higher GPA, in recognition of taking on more responsibility for themselves, another statistical indication of reduced risk to the insurer.
Keep your grades up, and they will help make your car insurance premiums more affordable. For additional information, consider our Best Car Insurance for College Students.
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Liability Car Insurance Rates for 21-Year-Old Drivers
Auto insurance policies typically include liability for bodily injury, personal injury protection, property damage liability, collision, comprehensive, and uninsured/underinsured motorist coverage.
Obtaining the best insurance for 21-year-old drivers and choosing the best insurance companies for 21-year-old drivers are essential for comprehensive protection. Explore our comprehensive resource, the Car Driving Safety Guide for Teens and Parents, to gain further insights.
Securing Trade Insurance as a 21-Year-Old
Car trade insurance for a 21-year-old business owner is possible to obtain, though you may need to do a little research.
Companies such as Tradex for U.K. readers offer insurance to anyone who is buying and selling or mending or cleaning cars for trade. These can be car sales lots, mechanics, body shops, car jockeys. Etc.
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When speaking with a possible insurance provider about their traders insurance requirements, remember that you will need to provide proof of your business. Other insurance requirements may include disclosure of drivers, among other things. Read our Traders car insurance review & ratings for more information.
Trade Insurance Availability for 21-Year-Old Drivers
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Insurance Coverage Options for Drivers Under 25
Case Studies for Car Insurance for 21-Year-Old Drivers
Navigating car insurance options can be challenging for young drivers. Here, we explore five case studies of 21-year-olds who found insurance solutions tailored to their unique needs, demonstrating the importance of selecting the right provider and policy.
- Case Study #1 – Creditworthy Young Adult: Emily, 21, with excellent credit, secured affordable, comprehensive car coverage from State Farm, leveraging her credit for better rates. Check out our State Farm Car Insurance Review & Ratings for further details.
- Case Study #2 – High-Mileage Drivers: David, a high-mileage driver at 21, found flexible, cost-effective insurance with State Farm, fitting his extensive driving needs.
- Case Study #3 – Less-Than-Perfect Record: Sophia, 21, with a spotty record, was attracted to Progressive’s safe driving incentives, gradually lowering her premiums.
- Case Study #4 – Tailored Service and Extensive Coverage: Jake, 21, valued Allstate’s personalized service and comprehensive coverage, ensuring his peace of mind.
- Case Study #5 – Budget-Conscious Drivers: Aiden, 21, utilized State Farm’s discounts for multiple policies and safe driving, achieving significant savings.
The Bottom Line for 21-Year-Old Drivers
Those who are under the age of 25 and looking for either their personal car insurance or trade insurance are high risk, but keep yourself organized and drive safely and there are surely some discounts in your future. (Learn More: Cheap Car Insurance for 25-Year-Old Drivers)
Ready to buy car insurance for 21-year-old drivers? Enter your ZIP code to find car insurance quotes for 21-year-old drivers.
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Frequently Asked Questions
What factors contribute to the high insurance rates for 21-year-old drivers?
Insurance rates for younger drivers are often higher due to factors like limited driving experience, increased risk of accidents, and statistical data indicating higher accident rates among this age group.
How can 21-year-old drivers reduce their insurance premiums?
Several methods can help lower insurance costs, such as maintaining a good driving record, taking advantage of available discounts for safe driving or good grades, and bundling policies for additional savings.
What kind of coverage should 21-year-old drivers prioritize when choosing car insurance?
Comprehensive coverage is advisable, including liability, collision, and comprehensive coverage to ensure protection against various risks, especially considering the vulnerability of younger drivers.
Are there specific discounts tailored for young drivers?
Yes, insurers often offer discounts such as good student discounts, safe driver incentives, or discounts for completing driver improvement courses to encourage responsible driving habits among younger policyholders. Discover further information about the good student car insurance discount by reading our details.
What’s the significance of multi-policy discounts for 21-year-old drivers?
Multi-policy discounts allow 21-year-old drivers to combine multiple insurance policies (e.g., car and renters insurance) with the same company, often resulting in reduced premiums as a reward for loyalty and bundling services.
What is the best way to find cheap car insurance for a 21-year-old female?
To find affordable car insurance for a 21-year-old female, it’s important to compare quotes from multiple insurers, take advantage of any available discounts (such as good student discounts), and consider a policy with higher deductibles to lower premium costs.
Which company offers the best car insurance for a 21-year-old male?
The best car insurance for a 21-year-old male can vary based on driving history and location. Companies like State Farm, Progressive, and Allstate are known for competitive rates for young drivers.
However, obtaining quotes from several companies is advisable to find the best deal. Check out our guide on how to get free insurance quotes online for additional information.
How can I get good car insurance for a 21-year-old without breaking the bank?
To get good car insurance at an affordable rate, 21-year-olds should maintain a clean driving record, enroll in defensive driving courses, choose a car that’s cheap to insure, and continuously shop around for the best rates while taking advantage of all possible discounts.
What factors affect auto insurance for 21-year-old rates?
Auto insurance rates for 21-year-olds are influenced by several factors, including driving experience, the make and model of the vehicle, geographical location, the driver’s credit history, and the chosen coverage options.
Use our free quote comparison tool below to find affordable commercial insurance options that meet your needs.
Why is car insurance for a 21-year-old new driver often more expensive?
Insurance for a 21-year-old new driver is typically more expensive due to their lack of driving experience and higher risk profile, which statistics show are more likely to be involved in accidents compared to more experienced drivers.
Refer to our resource on “Car Accidents: What to do in Worst Case Scenarios” for additional information.
What is the cheapest car insurance for a 21-year-old?
The cheapest car insurance for a 21-year-old can vary depending on location, driving record, and the car being insured. Generally, companies like State Farm, Progressive, and Allstate offer competitive rates for young drivers, with discounts that can make policies more affordable.
How much is car insurance for a 21-year-old male in Texas?
The cost of car insurance for a 21-year-old male in Texas depends on several factors including the type of coverage, driving history, and specific insurer. On average, rates can be higher due to the age and perceived risk associated with younger drivers.
What is the best insurance for a 21-year-old?
The best insurance for a 21-year-old balances affordability with comprehensive coverage. Companies such as State Farm, Progressive, and Allstate are known for offering tailored policies that cater to the needs and budgets of younger drivers.What age is car insurance most expensive?
What age is car insurance most expensive?
Car insurance is typically most expensive for drivers under the age of 25, with premiums generally higher for male drivers compared to female drivers due to statistical differences in driving risk. Check out our best car insurance for high-risk drivers guide for further details
What is the best age to get car insurance?
While you can get insured at any legal driving age, car insurance rates tend to decrease with age, especially after 25, as drivers are considered less risky with more experience on the road.
What is the youngest age to get insurance?
The youngest age to get car insurance is typically 16 when a driver can legally obtain a driver’s license in most states. However, these drivers are usually added to a parent’s policy until they can afford their own.
What is age nearest insurance?
“Age nearest insurance” is a term used in life and health insurance policies that determine your age based on the nearest birthday. It can affect premium rates, with costs typically increasing as you age.
What age group has the cheapest car insurance?
Generally, drivers aged 25 and older enjoy cheaper car insurance rates, with the lowest premiums often found among drivers aged 50 to 65, assuming they have good driving records and no recent claims. Read to our guide on the best car insurance discounts for seniors for further insights.
What is the best insurance for first-time car owners?
First-time car owners should look for insurance policies that offer comprehensive coverage at affordable rates. Companies offering various discounts, online resources, and strong customer service are often considered the best for new drivers.
Ready to find the best fleet insurance? Enter your ZIP code in our comparison tool below to see affordable commercial insurance rates in your area.
What’s the cheapest insurance for new drivers?
The cheapest insurance for new drivers can be found by comparing quotes from multiple insurers and taking advantage of discounts for good grades, safe driving courses, and bundling policies. Insurers like State Farm, Progressive, and Allstate often provide competitive options for new drivers.
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Angie Watts
Licensed Real Estate Agent
Angie Watts is a licensed real estate agent with Florida Executive Realty. Specializing in residential properties since 2015, Angie is a real estate writer who published a book educating homeowners on how to make the most money when they sell their homes. Her goal is to educate and empower both home buyers and sellers so they can have a stress-free shopping and/or selling process. She has studi...
Licensed Real Estate Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
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