Best Cheap Car Insurance for 21-Year-Olds
Best insurance rates for 21-year-olds
Cheapest car insurance for 21-year-olds: State Farm
USAA has cheaper rates, but it’s only available to the military community.
Car insurance rates for 21-year-olds
| Company | Monthly liability only | Monthly full coverage | LendingTree score | |
|---|---|---|---|---|
 | State Farm | $98 | $220 |  |
 | Travelers | $107 | $312 | |
 | Geico | $108 | $287 |  |
 | American Family | $113 | $296 |  |
 | Progressive | $127 | $264 | |
 | AAA | $134 | $326 |  |
 | Nationwide | $160 | $332 |  |
 | Allstate | $232 | $471 | |
 | Farmers | $275 | $573 | |
 | USAA* | $78 | $202 | |
*USAA is only available to current and former members of the military and their families.
Your actual rate depends on factors like your driving history, your location and the type of car you drive. In most states, your credit, too. Each company’s rates vary by customer. This makes it good to compare car insurance quotes from a few different companies.
It’s also good to get quotes from regional companies that serve your area. Depending on where you live, a company like the Farm Bureau or Erie may be cheaper than the “big boys.”
Cheapest regional car insurance for 21-year-olds
Erie Erie Insurance is available in the District of Columbia and 12 states in the Eastern and Central U.S. and Auto-Owners Auto-Owners offers car insurance in 26 states. are the next-cheapest regional companies for 21-year-olds.
Regional car insurance rates for 21-year-olds
| Company | Monthly liability only | Monthly full coverage | LendingTree score | |
|---|---|---|---|---|
 | Farm Bureau | $63 | $200 | |
 | Erie | $87 | $233 | |
 | Auto-Owners | $90 | $218 |  |
 | Country Financial | $113 | $243 | |
Best car insurance companies for 21-year-old drivers
Erie is the best regional company for 21-year-olds. Progressive has the best coverage options.
Best for 21-year-olds
| Company | Satisfaction score** | Complaint rating*** | LendingTree score |
|---|---|---|---|
| State Farm | 657 | 0.8 | |
| Erie | 700 | 0.9 | |
| Progressive | 622 | 0.7 | |
Sources: **J.D. Power 2024 U.S. Auto Insurance Study (higher scores are better, 644 is average); ***NAIC complaint index (lower scores are better, 1.0 is average)
Best large company: State Farm
State Farm’s widespread agent network makes it easy to get personalized service in most areas. If you prefer self-service, it offers online quotes and a smartphone app to manage your policy.
State Farm has many discounts that can bring your rate down more. These include a generous discount for bundling your car insurance with renters or homeowners policy. Its
Steer Clear
Steer Clear provides driving tips through a smartphone app that also guides you through 10 hours of practice driving.
program can get a discount while helping you improve your driving.
Signing up for State Farm’s Drive Safe & Save can get you another big discount. The program uses an app to track your driving. You get a discount just for signing up, and you can save up to 30% on renewals if you drive safely enough. The app doesn’t raise your rate for bad driving.
Pros
Cheapest large company for 21-year-olds
Good customer service ratings
Safe driving app doesn’t raise rates for bad driving
Cons
Does not offer gap insurance
Some regional companies are cheaper
Best regional company: Erie
Erie’s high satisfaction rating shows that its customers love its prices and service. Erie is available through independent insurance agents. An independent agent can usually get you car insurance quotes from a few different companies, which helps you comparison shop.
Erie’s accident forgiveness coverage is a particularly good feature for 21-year-olds. After you’re with Erie for at least three years, your first at-fault accident won’t make your rates go up. Restrictions apply. Erie also offers
pet injury
If your pet is injured in an accident while riding in your car, Erie covers up to $500 in veterinary treatment.
coverage, but not
gap insurance
Gap insurance covers the shortfall between your car’s value and your loan balance. Lenders may require it for a low-down payment loan.
. Erie’s safe driving app rewards good drivers with gift cards from participating vendors, but not insurance discounts.
Pros
Cheaper than many larger companies
Excellent customer satisfaction rating
Offers accident forgiveness and pet injury coverage
Safe driving app offers gift cards for good driving
Cons
Only available in 12 states and the District of Columbia
No gap insurance
Safe driving app does not offer insurance discounts
Best coverage options: Progressive
Progressive offers a wide range of options to customize your insurance. These include loan/lease payoff, which is similar to gap insurance. It also offers up to $5,000 in optional protection for custom parts and equipment you may have on your vehicle. This is more coverage than standard car insurance usually provides.
If you add comprehensive to your policy, Progressive includes up to $1,000 in pet injury coverage. Progressive also has multiple options for accident forgiveness. If you avoid incidents for at least five years with Progressive, your first accident won’t make your rate go up. You can also pay to add accident forgiveness to your policy sooner. Progressive gives you a potential discount for using its safe driving app, but your rates can go up if you drive poorly.
Pros
Offers loan/lease payoff and custom parts coverage
Multiple options for accident forgiveness
Comprehensive coverage covers pet injuries
Cons
Rates are just average for 21-year-olds
Satisfaction score is worse than average
Safe driving app can raise your rate
How much is car insurance for 21-year-olds
The average cost of liability car insurance for a 21-year-old is $128 a month. Full coverage costs an average of $300 a month. This is less than the rates available to teens. However, you usually don’t qualify for the cheapest car insurance rates until you reach your 30s.
Car insurance rates by age
State Farm’s widespread agent network makes it easy to get personalized service in most areas. If you prefer self-service, it offers online quotes and a smartphone app to manage your policy.
State Farm has many discounts that can bring your rate down more. These include a generous discount for bundling your car insurance with renters or homeowners policy. Its Steer Clear Steer Clear provides driving tips through a smartphone app that also guides you through 10 hours of practice driving. program can get a discount while helping you improve your driving.
Signing up for State Farm’s Drive Safe & Save can get you another big discount. The program uses an app to track your driving. You get a discount just for signing up, and you can save up to 30% on renewals if you drive safely enough. The app doesn’t raise your rate for bad driving.
Pros
Cheapest large company for 21-year-olds
Good customer service ratings
Safe driving app doesn’t raise rates for bad driving
Cons
Does not offer gap insurance
Some regional companies are cheaper
Erie’s high satisfaction rating shows that its customers love its prices and service. Erie is available through independent insurance agents. An independent agent can usually get you car insurance quotes from a few different companies, which helps you comparison shop.
Erie’s accident forgiveness coverage is a particularly good feature for 21-year-olds. After you’re with Erie for at least three years, your first at-fault accident won’t make your rates go up. Restrictions apply. Erie also offers pet injury If your pet is injured in an accident while riding in your car, Erie covers up to $500 in veterinary treatment. coverage, but not gap insurance Gap insurance covers the shortfall between your car’s value and your loan balance. Lenders may require it for a low-down payment loan. . Erie’s safe driving app rewards good drivers with gift cards from participating vendors, but not insurance discounts.
Pros
Cheaper than many larger companies
Excellent customer satisfaction rating
Offers accident forgiveness and pet injury coverage
Safe driving app offers gift cards for good driving
Cons
Only available in 12 states and the District of Columbia
No gap insurance
Safe driving app does not offer insurance discounts
Best coverage options: Progressive
Progressive offers a wide range of options to customize your insurance. These include loan/lease payoff, which is similar to gap insurance. It also offers up to $5,000 in optional protection for custom parts and equipment you may have on your vehicle. This is more coverage than standard car insurance usually provides.
If you add comprehensive to your policy, Progressive includes up to $1,000 in pet injury coverage. Progressive also has multiple options for accident forgiveness. If you avoid incidents for at least five years with Progressive, your first accident won’t make your rate go up. You can also pay to add accident forgiveness to your policy sooner. Progressive gives you a potential discount for using its safe driving app, but your rates can go up if you drive poorly.
Pros
Offers loan/lease payoff and custom parts coverage
Multiple options for accident forgiveness
Comprehensive coverage covers pet injuries
Cons
Rates are just average for 21-year-olds
Satisfaction score is worse than average
Safe driving app can raise your rate
How much is car insurance for 21-year-olds
The average cost of liability car insurance for a 21-year-old is $128 a month. Full coverage costs an average of $300 a month. This is less than the rates available to teens. However, you usually don’t qualify for the cheapest car insurance rates until you reach your 30s.
Car insurance rates by age
Progressive offers a wide range of options to customize your insurance. These include loan/lease payoff, which is similar to gap insurance. It also offers up to $5,000 in optional protection for custom parts and equipment you may have on your vehicle. This is more coverage than standard car insurance usually provides.
If you add comprehensive to your policy, Progressive includes up to $1,000 in pet injury coverage. Progressive also has multiple options for accident forgiveness. If you avoid incidents for at least five years with Progressive, your first accident won’t make your rate go up. You can also pay to add accident forgiveness to your policy sooner. Progressive gives you a potential discount for using its safe driving app, but your rates can go up if you drive poorly.
Pros
Offers loan/lease payoff and custom parts coverage
Multiple options for accident forgiveness
Comprehensive coverage covers pet injuries
Cons
Rates are just average for 21-year-olds
Satisfaction score is worse than average
Safe driving app can raise your rate
| Age | Monthly liability only | Monthly full coverage |
|---|---|---|
| 18 | $234 | $531 |
| 21 | $128 | $300 |
| 25 | $92 | $221 |
| 30 | $83 | $200 |
| 35 | $81 | $193 |
Drivers aged 20 to 24 have the second-highest crash rates among all age groups. This is the main reason why 21-year-olds pay more for car insurance than older drivers. Car insurance usually becomes more affordable when you reach your mid-20s if you avoid tickets and accidents.
Insurance rates for 21-year-olds by gender
The average cost of liability car insurance for a 21-year-old female is $125 a month. That’s 6% less than the average rate for a 21-year-old male. Women tend to pay less for car insurance in their early 20s than men do, because women have lower crash rates.
Full-coverage rates for 21-year-old women are 9% less than they are for 21-year-old men.
| Policy type | Monthly rate women | Monthly rate men | Savings for women |
|---|---|---|---|
| Liability | $125 | $132 | 6% |
| Full coverage | $285 | $314 | 9% |
How much is car insurance for a 21-year-old on a parent’s policy?
It costs an average of $281 a month to add a 21-year-old to a parent’s full-coverage policy. This is 9% less than the cost of full coverage for a 21-year-old on their own.
It only costs $129 to add a 21-year-old to a parent’s liability-only policy. This is actually $1 more than the average liability rate for 21-year-olds on their own ($128 a month).
21-year-old on their own vs. on a parent’s policy
| Policy type | Own policy monthly rate | Monthly rate with a parent**** |
|---|---|---|
| Liability | $128 | $129 |
| Full coverage | $300 | $281 |
****Does not include a parent’s portion of policy premium.
A 21-year-old can usually stay on a parent’s car insurance if they live at home. In fact, insurance companies often insist on keeping family members who live together on the same policy.
A 21-year-old off at college can usually also stay on a parent’s car insurance. However, the rules for this and for 21-year-olds on their own vary by company and state. It’s good to discuss your options with your insurance agent, or the ones you contact for car insurance quotes.
Car insurance discounts for 21-year-olds
Bundling
Most companies offer a generous discount for bundling your car insurance with your home or renters policy. It’s good to get quotes for the entire bundle when you shop. Even though this takes time, it also lets you see which company has the cheapest combined rate. Sometimes, a company with cheap car insurance may be expensive for renters or home insurance.
Safe driving apps
You can often score a big discount by signing up for an insurance company’s safe driver program. These programs typically monitor your driving with a smartphone app. You usually get a discount just for signing up. If you drive safely enough, you get future discounts when you renew.
It may feel weird to be monitored while you drive, but the savings can be significant. It’s good to read the insurance company’s privacy statement before you sign up. This can help you weigh your data privacy concerns against the potential savings.
Good grades
Most companies offer a good-student discount to 21-year-olds with good grades. You usually need the equivalent of a B average in college or another institute of higher learning to qualify.
The amount you save will depend on the company. For example, Geico offers a discount of up to 15% for good students. The savings from Progressive’s discounts average 10%.
How much car insurance does a 21-year-old need?
- If you’re just starting out with a low wage and an inexpensive car, you may only need minimum coverage. The minimum coverages required to drive legally vary by state.
- If you have a car loan or lease, you have to add collision and comprehensive to your policy. These are usually also worth it for any car worth more than $5,000, regardless of loan status.
- If you own your home or make a lot of money, it’s worth getting high liability limits. You can be held personally responsible for the shortfall if you don’t have enough liability insurance to cover an accident victim’s expenses. High liability limits can protect your savings, property and future earnings in situations like these.
Frequently asked questions
It depends. A 21-year-old can usually stay on their parents car insurance if they live at home or are away at school. A 21-year-old on their own usually needs their own car insurance, unless a parent is on their vehicle’s title. Some companies handle these situations differently, so it’s good to ask your insurance agent about your options.
Yes, but only by a little. Most 21-year-olds pay less for car insurance than teens. However, 21-year-olds still pay more for car insurance than 25-year-olds with comparable driving records and vehicles.
Most people see their car insurance rates go down a lot in their mid-20s. If you avoid tickets and accidents, you’ll continue to qualify for more affordable rates as you age. However, getting more coverage and/or a fancier car may make your rates go back up.