How Much Is Car Insurance for a 21-Year-Old?

Young drivers are risky for insurance providers to insure, which is reflected in their high premiums. Keep reading to find out the average cost of car insurance for a 21-year-old and how to get the cheapest and best policy.

The average cost of full coverage car insurance for a 21-year-old on their own policy is $2,900 annually. By the time you turn 21, you have likely had several years of driving experience. Many 21-year-olds, if they’ve been driving accident-free since their teen years, will see a drop in their car insurance rates when they turn 21.

When determining your premium, car insurance providers consider your age, gender, the state in which you’re insured, the type of car you drive, and several other factors. While some states prohibit car insurance providers from using gender to determine premium rates, it’s a crucial determinant for car insurance premiums in states where it’s permitted.

The price you pay in premiums will also depend on the type of coverage you choose. If you choose to have liability coverage, which only covers the victim in an accident where you, the policyholder, are deemed at fault, then you will pay significantly less than a 21-year-old who has full coverage.

Full coverage covers both the victim and the at-fault policyholder in an accident. Since your coverage essentially doubles when you move from liability coverage to full coverage, the premiums are nearly double the premiums on a policy with only liability coverage.

On average, car insurance for a 21-year-old male on his own full coverage policy is about $3,100 annually. While this cost is still much higher than most adult men pay, it significantly decreases from what 16-year-old boys pay in premiums.

This cost reflects what 21-year-old males pay annually for their own full coverage policies. If you want to decrease this cost, you can in several ways.

First, you can opt for only liability coverage. Opting for only liability coverage will likely halve the cost of car insurance premiums on a plan with full coverage. In some cases, you may pay even less than half of what you would pay with full coverage.

Another way to decrease the cost of car insurance for a 21-year-old male is to add him to a parent’s existing insurance policy. If your situation allows for it, adding your 21-year-old child to your existing insurance policy may decrease his policy by about half.

On average, car insurance for a 21-year-old female on her own full coverage policy is about $2,700 annually. Though this cost may be much higher than most adult women pay, it dramatically decreases from what 16-year-old girls pay in premiums.

This cost reflects what 21-year-old females pay for their full coverage policies annually. If you want to decrease the cost, you can in a couple of ways.

First, you can lower your coverage option. By lowering your coverage from full coverage to liability coverage, you could save 50% of what you pay for full coverage. Liability coverage is essentially half the amount of coverage provided with full coverage, so by opting for half the coverage, you pay half the price.

You may also add your 21-year-old child to your insurance policy if your situation allows. When a 21-year-old child is added to a parent’s existing policy, their premium may be reduced by nearly 50%. 

The average monthly cost of a 21-year-old on their own full coverage policy is $241. However, it is often cheaper to pay your car insurance premiums in larger sums, whether annually or twice yearly. Car insurance providers usually give a small discount to policyholders who pay their premiums in these larger amounts. If that isn’t possible for you, don’t worry, the discount isn’t much. But a discount is a discount!

Often, the best car insurance for a 21-year-old is the cheapest option. In most cases, the cheapest car insurance for a 21-year-old will be a plan with limited coverage with several discounts applied to reduce the amount you pay in premiums. Some of the best car insurance providers for 21-year-olds are Progressive, Geico, and State Farm, because they offer several discounts and already have low rates.

While car insurance costs begin to significantly decrease once you turn 21, it doesn’t reach a plateau until about 25 years old. This is assuming you don’t have to file any claims with your insurance, which would increase the price you pay in premiums for a window of time before the cost goes back to normal. 

Car insurance for new drivers over 21 can be more expensive than car insurance for 21-year-olds who’ve been driving since they were 16. Car insurance premiums are determined based on various factors, one of which is your driving record. While 21 is the age car insurance rates typically begin to decrease, this decrease is partly because those who’ve been driving since they were 16 have proven their driving habits and ability.

In short, car insurance for new drivers over 21 may be a similar price to car insurance for new drivers under 21, at least until you build a driving record.

The best insurance for new drivers under 21 will be a policy with full coverage and low premiums. While a full coverage policy may not be the cheapest option, it is the safest. Young drivers are one of the most likely populations to be involved in car accidents, and it is best to have more coverage than you may need than less. As the saying goes, better safe than sorry.

The cheapest car insurance for new drivers under 21 will be a policy with liability coverage and several discounts applied to your premium. Some of the leading insurance providers for new drivers under 21 are Geico, Progressive, and State Farm. These providers are some of the best because they offer plenty of discounts specifically for this age group that, when stacked, can save you nearly 50% on your premiums.

Many insurance providers, including those listed above, offer good student discounts. To be eligible, you must earn at least a 3.0 GPA and be a full-time student. Some good student discounts can decrease your premiums by up to 25%.

Several insurance providers also offer non-merit-based discounts, such as a good driver discount or a multi-car discount. To be eligible for a good driver discount as a new driver under 21, most insurance providers will have you participate in their own safe driving training module and, upon completion, will reward you with a discount of up to 15% off your premiums. 

If you’re a parent adding your new driver under 21 onto your insurance policy, you may be eligible for a multi-car discount. Many insurance providers apply this discount automatically when you have more than one insured vehicle on your policy.

It is a good idea to shop around for car insurance quotes to get the best and cheapest car insurance for a 21-year-old. Coverage options and possible discounts vary by provider and by the policyholder, so get a free quote from Clovered by submitting your information through this form.

One of our agents will contact you directly to discuss the policy that may be best for you. You can also contact us by calling 833-255-4117 or email us at agent@clovered.com, and we would be happy to answer any questions you have about how to get the best car insurance for your 21-year-old.