Car Insurance Costs for 21-Year Old Males and Females
The estimated average cost of car insurance for 21-year-olds is $4,453, or $371 per month. That's nearly $900 less than the national average for 20-year-olds ($5,333), but $325 more than the national average for 22-year-olds ($4,128).
Because insurers consider young drivers to be a higher risk, they typically pay more for car insurance than older drivers. For most young or inexperienced drivers looking for low-cost coverage, Erie Insurance offers the cheapest car insurance for 21-year-olds. Current and former military personnel, as well as their families, may be able to find even lower rates with USAA.
How much is car insurance for a 21-year-old?
The average annual premium for full-coverage car insurance for a 21-year-old is $4,496 per year, or nearly $375 per month, but annual premiums vary by insurer.
- USAA, with an annual premium of $2,014, offered the cheapest rates among our qualifying insurers; however, the company only offers car insurance policies to current and former military members and their families.
- Erie Insurance, which had the second-lowest rates at $2,073, only provides car insurance in 13 states.
- Geico is the cheapest car insurance company for 21-year-olds, with an annual premium of $2,749 that is widely available across the country.
Insurer | Annual premium |
USAA | $2,014 |
Erie | $2,073 |
Geico | $2,749 |
Nationwide | $3,126 |
Progressive | $3,940 |
State Farm | $4,043 |
Allstate | $6,766 |
Large differences in rates highlight why young or inexperienced drivers should always compare car insurance quotes from multiple insurance companies. For example, the average cost of car insurance for a 21-year-old driver differs by $4,752 between the cheapest insurer, USAA, and the most expensive, Allstate.
How much is car insurance for 21-year-old men and women?
The average cost of car insurance for females is lower than that of males. Women pay $4,258 per year on average for 21-year-olds, while men pay $4,647.
This pattern holds true for drivers of similar ages, with men paying about $500 more, or nearly 10% more, than women for the same age.
Age | Annual premium - male | Annual premium - female | Percent difference |
20 | $5,590 | $5,076 | 10% |
21 | $4,647 | $4,258 | 9% |
22 | $4,274 | $3,983 | 7% |
However, some states prohibit insurers from using gender to determine car insurance rates, including California, Hawaii, Massachusetts, parts of Michigan, Montana, North Carolina, and Pennsylvania. As a result, all else being equal, men and women should pay the same price for auto insurance coverage.
The average cost of car insurance for 21-year-olds by age
Car insurance quotes for drivers under the age of 21 can be very expensive. The average 21-year-old pays $4,453 in insurance premiums per year, which is $2,747 less than the average 18-year-old, who pays nearly $7,200.
The cost of full-coverage car insurance typically decreases with age, and a few years can result in widely different annual premiums for young drivers.
Age | Average annual premium |
$7,179 | |
$6,021 | |
$5,333 | |
21 | $4,453 |
$4,128 | |
$3,840 | |
$3,597 | |
$3,207 |
Best cheap car insurance for 21-year-olds by state
We compared average car insurance premiums in the ten most populated states in the United States and recommend the cheapest insurers in each.
North Carolina has the lowest annual premium for 21-year-old car insurance, nearly three-fourths less than the national average.
Michigan is by far the most expensive state, with 21-year-olds paying nearly three times the national average for auto insurance.
State | Average 21-year-old annual premium |
North Carolina | $1,775 |
Ohio | $2,818 |
California | $2,910 |
Pennsylvania | $2,982 |
Illinois | $3,504 |
Texas | $3,658 |
New York | $3,965 |
Georgia | $4,314 |
Average cost of car insurance | $4,496 |
Florida | $5,508 |
Michigan | $12,875 |
In the table below, we recommend the cheapest auto insurance companies in the ten most populated states for a 21-year-old.
The cheapest auto insurance company for 21-year-olds in the 10 most-populous states
State | Insurer | Average annual premium |
California | Mercury | $2,535 |
Florida | Geico | $3,872 |
Georgia | Georgia Farm Bureau | $2,133 |
Illinois | State Farm | $2,242 |
Michigan | Progressive | $5,089 |
New York | Geico | $2,937 |
North Carolina | Geico | $600 |
Ohio | Geico | $1,947 |
Pennsylvania | Erie Insurance | $2,128 |
Texas | State Farm | $2,463 |
USAA was excluded, as policies are only available for current or former military members and their families. Without its exclusion, it offers the cheapest car insurance for 21-year-olds in Georgia, Illinois, Michigan, New York, Pennsylvania and Texas.
Shopping for cheap car insurance as a 21-year-old
The best way to find low-cost auto insurance as a 21-year-old driver—or as a driver of any age—is to shop around for quotes from various insurers. Insurance companies base premiums on a variety of factors, including the vehicle you drive and your driving history. The insurer who provides you with the best rate may be very different from those who are best suited for your peers, siblings, or someone who drives a van, pick-up truck, or high-performance sports car.
When comparing quotes, 21-year-olds and other young drivers, particularly teenagers, can save money by remaining on their parents' car insurance policies or taking advantage of all available discounts.
To find cheap car insurance rates, 21-year-olds can …
- Shop around. Insurance companies charge higher rates for younger or less experienced drivers, but costs vary greatly between insurers. When compared to their peers, some insurance companies charge lower premiums for younger drivers and teens. Where applicable, we recommend USAA, Erie, and Geico for 21-year-olds, but the company best-suited to your needs may vary.
- Remain on a parent's policy. If you're a young driver, staying on your parents' car insurance policy can help you avoid paying typically higher premiums. A combined policy or multi car insurance policy may cost your parents more than if you were not included, but the total cost will be less than that of two separate policies.
- Take advantage of car insurance discounts. Many discounts are available from insurers, and you may be eligible for some of them. These can help you save money on your car insurance. A 21-year-old driver, in particular, may be eligible for discounts if he or she is a good student, completes a defensive driving course, has a good credit score, or has a clean driving record.
Methodology
We gathered car insurance quotes for thousands of ZIP codes in the ten most populous states in the United States. The drivers in our sample were 21-year-old men and women who drove a 2015 Honda Civic EX. All other factors influencing car insurance rates were consistent; drivers were single with a clean driving record. The following are the coverage levels included in the full coverage policy, including liability insurance. These coverage levels are slightly higher than the minimum coverage requirements of any individual state:
Coverage type | Study limits |
Bodily injury liability | $50,000 per person/$100,000 per accident |
Property damage | $25,000 per accident |
Uninsured/underinsured motorist bodily injury | $50,000 per person/$100,000 per accident |
Comprehensive and collision | $500 deductible |
Personal injury protection (PIP) | Minimum when required by state |
The study included 23 insurance companies, but rates were only added to our list of average prices and recommendations if they were available in at least three of the ten states.
The insurance rate data used in LowCostInsurance analysis came from Quadrant Information Services. These rates were obtained publicly from insurer filings and should only be used for comparison purposes—your own quotes may differ.