UPDATED: Mar 19, 2020
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All drivers under the age of 25 fall into the highest risk group of all basic car insurance. Statistically, the lack of driving experience for young drivers translates into a higher risk of accidents, so insurance companies charge higher rates. There are some things you can do to reduce the cost of car insurance for a 21 year old, but time and good driving habits are the only way to get completely beyond the high cost of car insurance.
The Cheapest 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 parent 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.
Car Related Savings
Your choice of vehicle can save you money on insurance. A 4 door sedan is less expensive to insure than a 2 door version of the same car. This is because 2 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. Furthermore, if you buy a cheap older car you can avoid having collision coverage, and that will knock a large portion off your premiums.
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 insurance company, you can get a discount for doing so. Keep in mind that the course cannot have been ordered by a judge or the Department of Motor Vehicles.
Students and Grades
If you are still in college, your grades can save you money on car insurance. Most insurance companies offer discounts to students who maintain a 3.0 or higher grade average, in recognition of taking more responsibility for yourself, another statistical indication of reduced risk to the insurer. Keep your grades up, and they will help make your car insurance premiums more affordable.