Best Car Insurance for 21-Year-Old Drivers in 2024 (Top 10 Companies)
Discover the best car insurance companies for 21-year-old drivers, highlighting State Farm, Progressive, and Allstate. Uncover competitive rates based on factors like credit scores and mileage preferences. Find the best policy for your budget.
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Angie Watts
Licensed Real Estate Agent
Angie Watts is a licensed real estate agent with Florida Executive Realty. Specializing in residential properties since 2015, Angie is a real estate writer who published a book educating homeowners on how to make the most money when they sell their homes. Her goal is to educate and empower both home buyers and sellers so they can have a stress-free shopping and/or selling process. She has studi...
Licensed Real Estate Agent
UPDATED: Mar 11, 2024
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Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Mar 11, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Are you a 21-year-old driver in search of the best car insurance options? Look no further! In this comprehensive guide, we explore the top-rated car insurance providers offering the best coverage for 21-year-old drivers. We delve into important factors like affordability, coverage options, discounts, and customer satisfaction.
Company Logo | Rank | See Pros/Cons | Multi-Policy Discount | Safe Driver Discount | Best For |
---|---|---|---|---|---|
#1 | State Farm | Up to 25% | Up to 30% | Coverage Options | |
#2 | Progressive | Up to 15% | Up to 30% | Competitive Rates | |
#3 | Allstate | Up to 25% | Up to 30% | Big Discounts | |
#4 | Nationwide | Up to 25% | Up to 30% | Safe-Driving Discounts | |
#5 | Travelers | Up to 15% | Up to 20% | Student Savings | |
#6 | Farmers | Up to 20% | Up to 25% | Customizable Policies | |
#7 | Liberty Mutual | Up to 25% | Up to 30% | Flexible Options | |
#8 | Hartford | Up to 20% | Up to 25% | Unique Benefits | |
#9 | Chubb | Up to 20% | Up to 25% | Customer Service | |
#10 | American Family | Up to 20% | Up to 25% | Various Discounts |
To find the perfect insurance plan for your car and budget, simply enter your ZIP code and compare rates from the industry’s leading insurance providers. Don’t miss out on the opportunity to find the best car insurance deal for 21-year-old drivers.
#1 – State Farm: Coverage Options Leader
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Pros
- Coverage options: State Farm offers a comprehensive range of coverage options, making it suitable for those seeking varied and customizable policies.
- Low rates: With an average monthly rate of $284 for 21-year-old drivers, State Farm stands out for providing competitive rates compared to other providers.
- Discount opportunities: Offers significant discounts, including multi-policy discounts of up to 25% and safe driver discounts of up to 30%.
Cons
- Limited availability of some discounts: While offering good discounts, the availability and qualification criteria for these discounts might vary, potentially limiting some customers.
- Possible regional rate differences: Rates can vary based on location, potentially affecting the competitiveness of the pricing in certain areas.
Read more: State Farm Insurance Review & Ratings
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#2 – Progressive: Competitive Rates Specialist
Pros
- Competitive rates: Offers competitive rates, making it an attractive choice for those seeking affordability.
- Safe driver discount: Provides a substantial safe driver discount of up to 30%, encouraging and rewarding safe driving behavior.
- Various discounts: Offers multi-policy discounts of up to 15% and has a wide range of discounts available for customers.
Cons
- Higher average monthly rates: Progressive’s average monthly rate for 21-year-old drivers is $662, which might be relatively higher compared to other providers.
- Discount structure: While offering multiple discounts, the eligibility criteria and how they apply might be complex or restrictive for some customers.
Read more: Progressive Insurance Review & Ratings
#3 – Allstate: Big Discounts Provider
Pros
- Big discounts: Offers a considerable multi-policy discount of up to 25% and a safe driver discount of up to 30%, making it appealing for those looking for substantial savings.
- Monthly rates: Allstate’s average monthly rate for 21-year-old drivers is relatively lower compared to other providers at $519.
- Variety of discounts: Provides various discounts, catering to different needs and preferences of customers.
Cons
- Possibility of rate fluctuations: While offering competitive rates, there might be instances of rate fluctuations or changes based on individual profiles.
- Discount dependency: Achieving the maximum discount might depend heavily on meeting specific criteria, potentially limiting some customers from accessing the full discounts.
Read more: Allstate Insurance Review & Ratings
#4 – Nationwide: Safe-driving Discount Expert
Pros
- Safe-driving discounts: Offers substantial discounts for safe driving habits, up to 25%, encouraging and rewarding responsible driving.
- Multi-policy discount: Provides a significant multi-policy discount of up to 30% for customers bundling policies.
- Reputation: Nationwide is known for its reliability and longstanding presence in the insurance market.
Cons
- Possibly higher rates: While offering good discounts, the average monthly rate might still be relatively higher compared to some competitors.
- Discount limitations: Eligibility criteria for discounts might be stringent, limiting access to some potential customers.
Read more: Nationwide Insurance Review & Ratings
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#5 – Travelers: Student Savings Champion
Pros
- Student savings: Offers specific discounts tailored for students, catering to the unique needs and financial constraints of young drivers in education.
- Multi-policy discount: Provides a multi-policy discount of up to 15%, allowing customers to save when bundling policies.
- Coverage options: Known for providing various coverage options, allowing customers to customize policies.
Cons
- Comparatively lower discounts: Offers slightly lower discount rates compared to some other providers in the market.
- Average monthly rate: The average monthly rate for Travelers might be relatively higher for 21-year-old drivers compared to other providers.
Read more: Travelers Insurance Review & Ratings
#6 – Farmers: Customizable Policies Innovator
Pros
- Customizable policies: Farmers insurance stands out for providing highly customizable policies, catering to individual needs and preferences.
- Discount opportunities: Offers up to 20% discounts for multi-policy holders and up to 25% for safe drivers.
- Customer service: Known for good customer service and efficient claim handling.
Cons
- Potential complexity: The level of customization might result in a more complex policy structure, which may not suit all customers.
- Varied rates: Rates can vary significantly based on individual profiles, potentially affecting competitiveness.
Read more: Farmers Insurance Review & Ratings
#7 – Liberty Mutual: Flexibility in Options Provider
Pros
- Flexible options: Liberty Mutual offers a wide range of coverage options and flexible policies to suit different customer needs.
- Multi-policy discounts: Provides a significant multi-policy discount of up to 25%, encouraging bundling policies for savings.
- Reputation: Known for its reputable presence and comprehensive insurance offerings.
Cons
- Possibly higher rates: While offering flexibility, the average monthly rates might be relatively higher for 21-year-old drivers.
- Complexity in options: The vast array of options might be overwhelming or complex for some customers.
Read more: Liberty Mutual Review & Ratings
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#8 – Hartford: Unique Benefits Specialist
Pros
- Unique Benefits: Hartford insurance provides unique benefits, potentially setting it apart in certain coverage aspects.
- Discount Rates: Offers up to 20% off for multi-policy holders and up to 25% for safe drivers, making it attractive for those seeking savings.
- Extensive coverage options: Known for providing a wide range of coverage options, catering to diverse needs.
Cons
- Limited Availability: Hartford insurance might not be available or as widely accessible in all regions.
- Policy Complexity: The uniqueness in benefits might result in complex policy structures or limited options for certain customers.
Read more: Hartford Insurance Review & Ratings
#9 – Chubb: Customer Service Excellence
Pros
- Customer service: Chubb is reputed for its exceptional customer service and claim handling, prioritizing customer satisfaction.
- Discount opportunities: Provides up to 20% off for multi-policy holders and up to 25% for safe drivers.
- Tailored policies: Known for tailoring policies to individual needs, providing more personalized coverage.
Cons
- Possibly higher rates: While offering personalized policies, the rates might be higher compared to some competitors.
- Limited accessibility: Chubb might have limited availability or might not cover certain regions or demographics.
Read more: Chubb Insurance Review & Ratings
#10 – American Family: Diverse Discounts Provider
Pros
- Various discounts: Offers a range of discounts catering to different needs, providing flexibility for customers.
- Multi-policy discounts: Provides up to 20% discounts for multi-policy holders and up to 25% for safe drivers.
- Customer support: Known for strong customer service, offering reliable assistance and guidance.
Cons
- Possibly moderate rates: While offering discounts, the rates might still be moderate compared to some other providers.
- Coverage limitations: Coverage options might not be as extensive or customizable compared to certain competitors.
Read more: American Family Insurance Review & Ratings
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How much is car insurance for a 21-year-old?
Securing car insurance as a 21-year-old can be a financial challenge, with premiums typically higher than the national average due to factors like age and limited driving experience. Understanding the specifics of these costs is crucial for young drivers navigating the insurance landscape. Let’s delve into the average minimum and full coverage rates for 21-year-olds as outlined in the table.
Insurance Company | Minimum Coverage | Full Coverage |
---|---|---|
Allstate | $223 | $519 |
American Family | $178 | $414 |
Chubb | $213 | $533 |
Farmers | $271 | $629 |
Hartford | $201 | $469 |
Liberty Mutual | $279 | $626 |
Nationwide | $167 | $387 |
Progressive | $281 | $662 |
State Farm | $125 | $284 |
Travelers | $310 | $740 |
Read More:
The table below shows the average costs of insurance for 17-year-old, 25-year-old, and 35-year-old males and females from the best insurance companies.
Age | 17-year-old Female | 17-year-old Male | 25-year-old Female | 25-year-old Male | 35-year-old Female | 35-year-old Male |
---|---|---|---|---|---|---|
Allstate | $774 | $887 | $285 | $298 | $263 | $260 |
American Family | $500 | $678 | $191 | $225 | $184 | $185 |
Farmers | $710 | $762 | $246 | $253 | $213 | $213 |
Geico | $471 | $523 | $198 | $189 | $192 | $193 |
Liberty Mutual | $968 | $1,143 | $330 | $375 | $317 | $321 |
Nationwide | $480 | $598 | $224 | $241 | $197 | $199 |
Progressive | $724 | $802 | $225 | $230 | $191 | $181 |
State Farm | $496 | $610 | $195 | $213 | $173 | $173 |
Travelers | $776 | $1,071 | $194 | $208 | $182 | $183 |
The average car insurance for 21-year-old females and males will vary based on many factors, such as location. In Florida, the average annual cost of car insurance for 21-year-olds is $5,500 and in Georgia, about $4,314.
Read more:
- Florida Car Insurance Discounts
- Michigan Car Insurance Discounts
- American National Car Insurance Discounts
There are more expensive places, too. How much is car insurance for a 21-year-old in Michigan? Annually, $12,875. Talk to a Michigan insurance agent or broker for more information.
See what is available in your area by entering your ZIP code.
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What’s the cheapest car insurance solution?
If you still live at home, you can be covered under the insurance of your mom or dad. To do this, you must live at home or be enrolled in college and the vehicle has to be registered in the name of the parents whose insurance you will be listed on.
If the car is registered in your name, you are responsible for purchasing insurance. Similarly, if you do not live in the same home or attend college, you are considered emancipated and responsible for your own insurance.
With the cost of education rising, a college student car insurance discount can provide substantial savings and help students manage their budget more effectively while they focus on their studies.
What are some car-related savings?
A four-door sedan is less expensive to insure than a two-door version of the same car. This is because two-door vehicles are considered sports cars, and sports cars are statistically more likely to be involved in serious accidents.
Other car-related discounts include air bags, anti-lock brakes, and electronic stability control.
In addition, you may be eligible for many car insurance discounts (e.g. student discounts or a distant student car insurance discount).
Furthermore, if you buy a cheap older car, you can avoid having collision car insurance coverage, and that will knock a large portion of your premiums.
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How To Take a Driver Improvement Course
Another way to save money on car insurance is to take a voluntary driver improvement course. Because taking an interest in being a better driver translates into being less of a risk for the car insurance company, you can get an insurance discount for doing so.
Keep in mind that the course cannot have been ordered by a judge or the Department of Motor Vehicles.
Can good grades save you money?
If you are still in college, your grades can save you money on car insurance.
Most insurance companies offer affordable car insurance for students who maintain a 3.0 or higher GPA, in recognition of taking on more responsibility for themselves, another statistical indication of reduced risk to the insurer.
Keep your grades up, and they will help make your car insurance premiums more affordable.
How much is liability car insurance for 21-year-olds?
Most states require at least some liability car insurance for 21-year-olds (or anyone) to drive. That said, liability coverage is the same as other, more expansive policies: 21-year-olds will most likely pay more for their car insurance coverage.
Basic car policies include bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorists, according to the Insurance Information Institute.
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How do I get trade insurance for a 21-year-old?
car trade insurance for a 21-year-old business owner is possible to obtain, though you may need to do a little research.
Companies such as Tradex for U.K. readers offer insurance to anyone who is buying and selling or mending or cleaning cars for trade. These can be car sales lots, mechanics, body shops, car jockeys. Etc.
When speaking with a possible insurance provider about their traders insurance requirements, remember that you will need to provide proof of your business. Other insurance requirements may include disclosure of drivers, among other things.
Can I get trade insurance at 21?
Yes. Although there may be increased car insurance premiums as those under the age of 25 are classified as “high risk.” So for those of you who are younger, asking if you can get trade insurance at 20: Yes, but expect to pay more.
What insurance coverage can you get if you’re under 25?
Car insurance experts recommend opting for the most comprehensive coverage available. However, at a minimum, drivers must obtain road risk insurance, which provides coverage for the vehicles they own or possess in relation to their business.
There may be more hoops to jump through for those who are under 23.
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Case Studies for Car Insurance for 21-Year-Old Drivers
Case Study 1: 21-Year-Old Driver With Excellent Credit Seeking Comprehensive Coverage
Emily, a 21-year-old with impeccable credit, sought comprehensive coverage for her new car. State Farm offered her tailored coverage at competitive rates, recognizing her excellent credit score, providing comprehensive protection, and ensuring financial security while staying within her budget.
Case Study 2: High-Mileage 21-Year-Old Driver Looking for Affordable Insurance
David, a 21-year-old who drives extensively for work, needed affordable insurance that catered to his high-mileage habits. State Farm’s flexible policies and competitive rates tailored to high-mileage individuals made it the ideal choice, providing cost-effective coverage without compromising on protection.
Case Study 3: 21-Year-Old Driver With a Less-Than-Perfect Driving Record
Sophia, a 21-year-old aiming to improve her insurance rates despite a less-than-perfect driving record, found Progressive’s innovative options appealing. The company’s policies incentivizing safe driving habits allowed Sophia to gradually enhance her record and benefit from reduced rates over time.
Case Study 4: 21-Year-Old Driver Valuing Personalized Service and Extensive Coverage
Jake, a 21-year-old prioritizing personalized service and extensive coverage, chose Allstate for its dedication to customer service and comprehensive coverage options. With Allstate’s emphasis on tailored support and exemplary claim handling, Jake found the peace of mind he sought amidst unforeseen incidents.
Case Study 5: 21-Year-Old Driver Seeking Discounts and Savings
Aiden, a budget-conscious 21-year-old, sought ways to save on insurance premiums. State Farm’s range of discounts, including multi-policy and safe driver incentives, provided Aiden with substantial savings, ensuring adequate coverage while fitting comfortably within his financial constraints.
What’s the bottom line?
Those who are under the age of 25 and looking for either their personal car insurance or trade insurance are high risk, but keep yourself organized and drive safely and there are surely some discounts in your future.
Ready to buy car insurance for 21-year-old drivers? Enter your ZIP code to find car insurance quotes for 21-year-old drivers.
Frequently Asked Questions
What factors contribute to the high insurance rates for 21-year-old drivers?
Insurance rates for younger drivers are often higher due to factors like limited driving experience, increased risk of accidents, and statistical data indicating higher accident rates among this age group.
How can 21-year-old drivers reduce their insurance premiums?
Several methods can help lower insurance costs, such as maintaining a good driving record, taking advantage of available discounts for safe driving or good grades, and bundling policies for additional savings.
What kind of coverage should 21-year-old drivers prioritize when choosing car insurance?
Comprehensive coverage is advisable, including liability, collision, and comprehensive coverage to ensure protection against various risks, especially considering the vulnerability of younger drivers.
Are there specific discounts tailored for young drivers?
Yes, insurers often offer discounts such as good student discounts, safe driver incentives, or discounts for completing driver improvement courses to encourage responsible driving habits among younger policyholders.
What’s the significance of multi-policy discounts for 21-year-old drivers?
Multi-policy discounts allow 21-year-old drivers to combine multiple insurance policies (e.g., car and renters insurance) with the same company, often resulting in reduced premiums as a reward for loyalty and bundling services.
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Angie Watts
Licensed Real Estate Agent
Angie Watts is a licensed real estate agent with Florida Executive Realty. Specializing in residential properties since 2015, Angie is a real estate writer who published a book educating homeowners on how to make the most money when they sell their homes. Her goal is to educate and empower both home buyers and sellers so they can have a stress-free shopping and/or selling process. She has studi...
Licensed Real Estate Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.