USAA
$36/mo
Farm Bureau
$39/mo
Auto-Owners
$40/mo
Erie
$42/mo
State Farm
$44/mo
USAA
Farm Bureau
Auto-Owners
Erie
State Farm
The insurance costs for new drivers are among the highest of all age groups. Because they have only recently obtained their driver's licenses and don't have a lot of driving experience, insurance companies tend to view members of this demographic as high-risk drivers.
In contrast to a newly licensed teen driver, you have the advantage of being a little older as a 21-year-old and may begin to see a decrease in your car insurance premiums.
Average insurance premiums for 21-year-old drivers are $4,650 per year for full coverage and $1,000 for minimum coverage. Here is a list of companies with their average insurance premium rates for 21-year-olds present in most states.
| Company | Minimum Coverage Rate | Full Coverage Rate |
|---|---|---|
| Erie | $654 | $2,096 |
| Travelers | $822 | $2,424 |
| Progressive | $845 | $2,666 |
A driver's location can have a significant impact on the premiums they pay for car insurance, in addition to their age and type of vehicle. The city's population density and the state's regulations have a significant impact on insurance rates. The following is a state-by-state average for full and minimum coverage insurance rates.
| State | Annual Minimum Coverage Rate | Annual Full Coverage Rate |
|---|---|---|
| Alabama | $2,298 | $4,056 |
| Alaska | $1,224 | $3,376 |
| Arizona | $1,080 | $3,199 |
| Arkansas | $2,280 | $4,186 |
| California | $2,200 | $3,800 |
| Colorado | $1,840 | $4,210 |
| Connecticut | $1,798 | $4,230 |
| Delaware | $2,203 | $4,178 |
| Florida | $2,797 | $5,536 |
| Georgia | $1,004 | $4,567 |
| Hawaii | $358 | $1,100 |
| Idaho | $1,100 | $2,459 |
| Illinois | $860 | $3,460 |
| Indiana | $1,360 | $2,765 |
| Iowa | $1,039 | $2,460 |
| Kansas | $1,655 | $3,638 |
| Kentucky | $3,100 | $5,250 |
| Louisiana | $3,568 | $5,750 |
| Maine | $1,336 | $2,186 |
| Maryland | $1,825 | $4,299 |
| Massachusetts | $1,590 | $2,835 |
| Michigan | $1,896 | $5,590 |
| Minnesota | $1,453 | $3,158 |
| Mississippi | $1,450 | $3,648 |
| Missouri | $1,145 | $3,756 |
| Montana | $1,565 | $4,060 |
| Nebraska | $856 | $3,220 |
| Nevada | $1,668 | $4,468 |
| New Hampshire | $1,683 | $2,620 |
| New Jersey | $821 | $4,030 |
| New Mexico | $1,457 | $2,860 |
| New York | $1,690 | $4,468 |
| North Carolina | $668 | $1,468 |
| North Dakota | $1,127 | $2,448 |
| Ohio | $1,252 | $2,298 |
| Oklahoma | $1,716 | $3,600 |
| Oregon | $800 | $2,755 |
| Pennsylvania | $1,559 | $3,625 |
| Rhode Island | $1,866 | $4,065 |
| South Carolina | $1,219 | $3,545 |
| South Dakota | $857 | $3,056 |
| Tennessee | $1,486 | $3,065 |
| Texas | $1,854 | $4,065 |
| Utah | $1,257 | $3,045 |
| Vermont | $1,025 | $3,365 |
| Virginia | $842 | $3,056 |
| Washington, D.C. | $1,583 | $3,556 |
| West Virginia | $1,711 | $3,265 |
| Wisconsin | $1,256 | $2,418 |
| Wyoming | $850 | $2,858 |
A 21-year-old male driver pays an average of $80 and $400 more than a female driver of the same age group for limited and full coverage, respectively.
| Gender | Average annual full coverage premium | Average annual minimum coverage premium |
|---|---|---|
| Male | $3,180 | $922 |
| Female | $2,786 | $844 |
Because of their inexperience behind the wheel and increased likelihood of being involved in an accident, 21-year-old drivers typically face higher average car insurance rates.
Even if you have never had an accident on your driving record, this is usually the case. Your premium should decrease as you age, assuming you keep a clean driving record.
As a 21-year-old with a clean driving record, you may be able to save money on your car insurance premiums.
Many insurance companies will give you a discount if you are under the age of 25 and a full-time student. While each company has its own requirements, you can generally expect to need at least a 3.0 GPA in order to be considered for a position. If you're a college student who doesn't drive to campus, you might be eligible for a discount because of your distance from campus.
You can compare the cost of the same level of coverage provided by various companies by requesting quotes from each of them. This is particularly useful for determining which companies are more competitive in price for young drivers.
Some companies might have features or tools that you like, especially if you value mobile app convenience and accessibility or if you want to use telematics to improve your driving habits. As a bonus, find out if the business offers any special discounts to alumni or professionals, and if so, find out if you qualify.
Drivers who agree to have their driving habits monitored by an insurance company's mobile app or a telematics device can receive a discount. Your speed, braking, and the time of day you're driving can all be tracked by these programs. According to your driving habits, you may qualify for discounts from the company.
How much you pay for car insurance depends heavily on the type of vehicle you drive. Some automobiles have lower insurance costs than others. The Honda CR-V, Hyundai Tucson, and Ford F-150 have the lowest full-coverage insurance rates.
Despite the fact that a 21-year-old is considered as a more "mature" driver because of their age, they are still viewed as a danger to other road users.
The higher the MSRP, the higher your insurance premiums will be if you insure a vehicle that is capable of high performance or off-road driving. Picking a moderately priced pre-owned sedan or van is an excellent option for those looking to save money on gas and insurance premium.
There is no such thing as a car insurance company that caters to everyone's unique requirements. The best car insurance company will provide you with the coverage you require, maintain a high level of customer satisfaction, and offer discounts to keep your premiums affordable. Seeking quotes from various insurers can help you narrow down your search for the best auto insurance company to match your home and auto insurance needs.
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
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