How Much is Auto Insurance for a 21-Year-Old?

How Much is Auto Insurance for a 21-Year-Old?

Age is one of the BIG factors that affect your auto insurance rates, and because generally, young drivers are inexperienced, the risk of crashing the car is higher with them, so insurance providers tend to charge young drivers with higher premiums.

How is car insurance calculated?

Besides your age, the following factors will be looked out at when pricing out your auto insurance policy:

• Vehicle:

Generally, your car model impacts your rate considerably, things like your vehicle’s age, size, and value of your car.

• Driving History:

Having a staller driving record with good driving behaviors not only lowers your rates but will get you discounts.

• Gender:

Statistically, women have fewer severe accidents than men, and insurers charge women more petite for car insurance than men.

• Location:

Your postal code impacts your insurance rates; for example, in an urban area risk of accident or theft is higher, so you have to pay a higher premium.

• Annual Mileage:

If you use your car often, the risk of getting in an accident increases, and as a result, you’ll have to pay more for insurance.

• Garaged vs. Parking in the street:

The risk of anything happening to your vehicle in a garage is low rather than parking in the street. If you garage your car, you can be qualified for a discount.

• Marital Status:

Statistics show married people tend to be safe drivers.

Notice: Your credit card history can and most probably will impact your insurance rates as well.

Best Auto Insurance for Young Adults

How much would car insurance cost for a 21-year-old?

Someone in their early twenties has probably been driving for a few years, and their rates are lower than an 18-year-old driver, but still high because they have less experience than older drivers and are more likely will make some reckless decisions behind the wheel unknowingly.

Car insurance rates are different in each state, but the national average annual cost of car insurance for a 21-year-old is approximately $1,957.

Why is insurance more expensive for 21-year-olds?

Just like any young adult, car insurance rates for 21-year-olds are higher due to the lack of driving experience that will cause a higher risk of accidents. This is typically the case everywhere, even if you have had no accidents on your driving record so far.

Cheap Auto Insurance for Teens

The average cost of car insurance for males vs. females

In most states, gender can impact your car insurance rates. Regardless of age, men tend to have riskier driving behaviors than women.

Now being a 21-year-old male, both your age and your gender will make your auto insurance premiums rise. But don’t worry about your gender because it will only affect your rates by a few dollars.

Although, several states do not allow insurance companies to base 21- year-olds policy rates on gender. These states include:

• California
• Hawaii
• Massachusetts
• Michigan
• Montana
• North Carolina
• Pennsylvania

Car choice matters for a young driver auto insurance

As we discussed, age is very important, and unfortunately, you cannot do anything about it but to wait and grow up but what you can do is choose an appropriate car because we dare say the importance of the car you drive is as much as your age.

One of the most effective ways for young drivers to keep their insurance costs low is to choose their vehicle carefully.

Sports cars and luxury vehicles for young drivers will result in sky-high rates; taking on a loan is not smart either because you will be required to carry comprehensive and collision coverages, which are expensive.

A used car is a smart choice like a sedan or a similar vehicle; you can save money on your auto insurance policy.

Cheapest car insurance companies for 21-year-old drivers

Some states don’t allow insurance companies to determine premiums based on gender, but most states do take gender into account when deciding your rate.

The rate difference is highest among 16-year-old drivers, getting more equitable with each additional year. At a national level, the company with the lowest average rates for 21-year-old drivers is GEICO at $1,695 per year, while Progressive comes in at $2,331 on average.

These rates are generalized averages, which means yours may not be the same as what we presented you here. The following companies can be a potential option for a 21-year-old driver.

1. GEICO
2. Allstate
3. State Farm
4. Nationwide
5. Progressive

Allstate Car Insurance Reviews

How to save on a 21-year-old auto insurance

Although insurance premiums are high for 21-year-old drivers, there are a number of ways to save on your monthly bill. Think about the following when getting your next insurance quote:

• Shopping around.
• Bundling policies.
• Good student discount.
• Defensive driver discount.
• Delaying a new car purchase.
• Staying on your parents’ policy.
• Reevaluating your coverage needs.

Is it cheaper to stay on my parents’ insurance policy?

If you are 21, staying on your parents’ insurance policy could be cheaper than getting your own policy. If your parents are willing to participate, you or your parents may speak with an agent to see how rates differ on your own policy versus a shared policy.

Please note that you can only stay on your parents’ insurance policy as long as you live with them or if you are away at school, like college or school campus, but your home address stays the same. If you have moved into your own home, apartment, or condo, you will have to get your own separate policy.

Is my premium going to go down as I get older?

Yes, if you keep a clean driving record, your rate will decrease over the next several years. If you don’t maintain a clean driving record, you’ll be considered a high-risk driver, and your rates will be higher than ever.