Average Car Insurance For New Drivers Under 21 - Erie, USAA and Geico offer the cheapest insurance rates for 21-year-old drivers starting at $170 per month, based on an analysis of thousands of quotes. To get the cheapest rate, compare car insurance quotes and take advantage of the young driver discount, as rates can vary from $458 per month for children under 21.
However, rates differ between insurers. Erie Insurance, which is in 13 states, offers its lowest monthly rates for 21-year-olds at $170. USAA was the cheapest at $177 per month for military members and their families only.
Average Car Insurance For New Drivers Under 21
The large difference in rates shows why young drivers in particular should compare car insurance quotes from multiple insurers. For example, the difference between the cheapest and most expensive car insurance rates for a 21-year-old driver is $458.
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For 21-year-olds, female drivers pay an average of $370 per month, while male drivers pay $399 per month. This difference is due to the fact that young male drivers are involved in more accidents than female drivers.
However, some states -- California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania -- prohibit insurers from using gender to determine car insurance rates. Men and women pay the same price for auto insurance in these states, all else being equal.
The cost of car insurance generally goes down with age, and only a few years can result in different rates for younger drivers. For example, the average 21-year-old pays $384 per month, which is $232 less per month than the average 18-year-old.
Young drivers generally pay more for car insurance than older drivers because insurers consider them riskier. This is due to the fact that young drivers are involved in more accidents and have higher insurance claims.
Best Cheap Car Insurance For 21 Year Olds (2022 Guide)
Geico was consistently the least expensive insurer as they are the least expensive company in four out of nine states. Below, we offer the cheapest auto insurance companies for a 21-year-old in nine sample states.
North Carolina is the cheapest state to insure a 21-year-old driver, with a monthly rate $234 below the national average. Michigan is the most expensive state, as the monthly insurance cost for a 21-year-old is more than six times the cost in North Carolina.
The best strategy for finding cheap auto insurance as a 21-year-old driver - or any driver of any age - is to shop around for rates at various insurers. Insurance companies set premiums based on a number of factors, from the type of car you drive to your driving history. The insurer that offers you the best rate may be different from the best rate for your peers or family members.
When shopping for quotes, 21-year-old and other young drivers, especially teens, can save by staying on their parent's car insurance policy or taking advantage of all the discounts.
What Is The Best Car Insurance For New Drivers Under 25?
Yes, car insurance rates go down after age 21. The average rate for a 21-year-old is 16% cheaper than what a 20-year-old would pay. Car insurance rates typically decrease in the early 20s, with a slight decrease in the late 20s.
Our research obtained citations from thousands of zip codes in the nine most populous US states. The drivers were unmarried and had a clean driving record.
Our analysis included 29 insurance companies. However, if an insurer has policy prices in at least three of the nine states, they are added to our list of average prices and offers.
The analysis gathered insurance rate data from Quadrant Data Services. The rates used to calculate the average are publicly available from insurance claims. These averages should be used for comparison purposes only - your own quotes may differ.
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The cheapest car insurance for children under 21 can be found in USAA for $134 per month or $1,609 per year for a full coverage policy.
Getting cheap car insurance for a 21-year-old can be difficult. Monthly and annual premiums become more expensive as younger drivers pose a greater risk to insurance companies. In this article, the Guides Auto team find the best car insurance for 21-year-olds and show you how to get the best deals.
Why trust our team? Our researchers, writers and editors are dedicated to researching providers and analyzing customer reviews and opinions so you can choose with confidence.
Average Cost Of Car Insurance Uk 2023
According to our rates, 21-year-olds pay an average of $2,786 per year or $232 per month for full coverage car insurance. That's 56% more expensive than the average for 35-year-old drivers, at $1,785 per year, or about $149 per month. Generally, car insurance rates for 21-year-olds are more expensive than for older drivers.
The cost of car insurance for 21 year old drivers is determined based on a number of factors including driving history, location and credit score. Gender also plays a role in calculating your premium, especially if you are a teen or young adult. For example, young men have a disproportionately high accident rate, which causes them to pay more than young women. However, some states do not allow insurance companies to use gender when calculating insurance premiums.
Compared to older drivers, 21-year-olds have less driving experience and are more likely to be involved in accidents. Auto insurance companies compensate for these risk factors by paying higher rates to this age group.
According to the Foundation for Highway Safety, AAA, in 2015, drivers between the ages of 20 and 24 were involved in 74% more crashes than drivers over the age of 30. Below, you can see the crash rates for each age group.
How Age Affects Car Insurance Costs
High-risk drivers pay higher rates on average, and younger drivers typically fall into this category. You can see below how the average cost by age relates to the accident data above.
The cheapest car insurance for 21-year-olds is USAA, which offers an average monthly rate of $134. However, USAA is only available to military members, veterans, and their dependents. Geico is the cheapest company for a 21-year-old driver, with an average monthly rate of $154. Other affordable companies include Auto Owners Insurance, Erie Insurance and Nationwide.
The best car insurance for 21-year-olds isn't necessarily the cheapest, but affordable rates help. Below, you can see how 11 popular providers rank on car insurance rates for 21 year olds.
*Auto insurance estimates are based on a comprehensive coverage policy with $50,000,000 per person for bodily injury, $100,000 per accident for bodily injury, $50,000,000 for per accident damage, collision coverage and a $500 deductible for comprehensive coverage.
How Much Is Car Insurance Per Month?
Location is one factor that affects how much you pay for car insurance, and rates can vary by state. Below are the cheapest auto insurance companies in each state for comprehensive coverage for 21-year-olds. In our estimation, USAA and Geico are the cheapest providers in many states.
While 21-year-olds make an average of $232 per month nationally, drivers in some states pay less. Insurance in North Carolina averages $129 per month for that age group.
Whether it's because of population density or insurance regulations, some states are more expensive than others for 21-year-olds. Michigan, Connecticut and Massachusetts top the list.
Our top five picks for the best car insurance for 21 year olds are Geco, USAA, State Farm, Nationwide and Homeowners Insurance. When comparing car insurance companies, our team considers price, reputation, coverage, affordability and customer experience. We found these companies to be affordable for the average young driver.
Cheap Car Insurance For Women: A Guide
Geico is your best option for the best car insurance for children age 21 and under. Its car insurance rates for 21 year olds are 34% cheaper than the market average for the age group. Zico also offers a good 15% student discount and up to 22% off for accident-free driving for five years.
The company has been in business since 1936 and has an A+ rating from the Better Business Bureau (BBB).
USAA offers the cheapest auto insurance for children 21 and under with prices up to 42% off the average. However, we would not call it the best car insurance for 21 year olds as it is not affordable for everyone. You may qualify if you are in the military, a veteran, or have a parent who is a member of USAA.
USAA is known not only for its low rates for 21-year-olds, but also for its reliable customer service. The company holds an A+ rating from the BBB and has received top scores from J.D. in nearly every region of the country. Power 2022 US Auto Insurance Study.
Temporary Car Insurance
State Farm is another national provider that offers affordable auto insurance premiums for drivers over the age of 21. Our estimates suggest that the average state attrition rate is around 17%.
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