Cheapest Car Insurance for Drivers Under 21 (2023)

When it comes to finding cheap car insurance, things are difficult for drivers under 21. Young drivers are more likely to file a claim, which means they pose a higher risk for insurance companies. As such, auto insurance companies across the country charge higher rates to drivers under 21 years old. But there are still ways to find affordable rates.

Because insurance companies change their rates often, drivers under 21 should make time to regularly compare car insurance rates.

Cheapest Car Insurance Companies for Drivers Under 21

We analyzed tens of thousands of real car insurance quotes to understand which companies consistently offer the lowest rates to drivers under 21. Remember that the company offering the cheapest car insurance on average won’t always offer the best rate for you. Always compare rates before you buy and every six months to ensure you’re getting the best deal.

See More: Cheap Car Insurance

Average Car Insurance Rates by Age and Gender

In most states, your gender and age affect your car insurance rate. Most insurance companies regard older and female drivers to be at lower risk of incidents than younger and male drivers. This isn’t without evidence: years of data collection by the IIHS show male drivers are more than twice as likely to die in a car accident, and young drivers are more likely to file a claim.

Car insurance companies always charge higher rates for drivers considered high-risk. It makes fiscal sense—insurers need to remain solvent after payouts. So young drivers, who are considered high-risk, will pay more than most older drivers, even when they live in the same area and have similar driving records.

How much does car insurance cost for drivers under 25?

As you get older, your car insurance rates will decline until age 65, when they’ll start to creep up again. Drivers between the ages of 21 and 25 should still expect high prices, but not as high as when they were an 18-year-old driver and much less than when they were a 16-year-old driver. On average, they should expect to pay between $160 and $240 a month.
Keep in mind that you can get cheaper car insurance using a number of tactics. Driving an older car, buying liability coverage (no collision or comprehensive coverage), and using discounts can save you a lot on annual premiums. You can also save by being added to your parents’ policy as opposed to buying your own.

Best Car Insurance Companies for Drivers Under 21

Farmers

Farmers is a well-regarded, large insurance company. It offers a huge set of discounts, but rates are cheap to begin with. The average under-21 driver spends $105 a month on car insurance with Farmers. The company also has high marks for customer satisfaction and many other insurance products, such as renters insurance.

A few of the discounts that Farmers offers to drivers 21 years old and younger include:

• Autopay discount

• Electronic payment discount

• Good student discount

• Multi-car discount

• Affinity group discount

Travelers

Travelers offers fairly low-cost car insurance to young drivers. Monthly premiums are $198 on average. The company also has a huge range of coverage options, insurance, and financial products and has received fewer complaints than other insurers of the same size. Be sure to speak with your insurance agent about any discounts you may have missed.

A few of the discounts that Travelers offers to drivers 21 years old and younger include:

• Good student discount

• Student away at school discount

• Defensive driver discount

• Electronic payment discount

• Early quote discount

MetLife

The average driver under 21 pays $247 a month for car insurance with MetLife. While that’s certainly not the cheapest, drivers do get a lot for their money with this company. MetLife gets great reviews from its customers and offers great technology and a large number of discounts that can help you significantly lower the cost of car insurance.

A few of the discounts that MetLife offers to drivers 21 years old and younger include:

• Safe driver discount

• Driver training discount

• Multi-car discount

• Low-mileage discount

• Car safety feature discounts

• Good student discount

Mile Auto

Mile Auto is a usage-based car insurance company that prices policies based on the number of miles driven. Drivers under the age of 21 pay $256 a month on average with Mile Auto. But they can pay much less by simply driving less. And the company is well-rated by its customers, who give it 4.2 stars on Trustpilot.

However, Mile Auto is only available in Arizona, California, Georgia, Illinois, Ohio, Oregon, and Texas. And the company does not offer any additional discounts.

Progressive

While Progressive charges the average driver under 21 around $272 a month for car insurance, there is still a lot to love about this provider. The Snapshot program is one highlight. This simple telematics program saves you $146 a year on average, according to the company.

A few of the discounts that Progressive offers to drivers 21 years old and younger include:

• Good student discount

• Multi-vehicle discount

• Teen driver discount

• Snapshot program

See More: Best Car Insurance Companies

Cheapest Auto Insurance Discounts for Drivers Under 25

Taking advantage of discounts is a no-brainer. Below are the best discounts for drivers under 25 years of age.

Tips for Cheaper Car Insurance

Most new drivers don’t understand how to save money on car insurance. Savvy young drivers take the time to research how car insurance works and the many ways they can reduce their costs. Below are our best tips for saving on car insurance, even when you’re under 21.

Compare Car Insurance Rates Often

Car insurance companies are constantly changing the way they assess risk and, therefore, costs for insurance. When you compare quotes often, you’re more likely to take advantage of lower rates sooner than people who don’t check rates.

See More: Best and Worst Sites to Compare Car Insurance

Discounts, Discounts, Discounts

Discounts are a policyholder’s best friend, but this is especially true for young adults. Most drivers can easily get a small discount for setting up autopay and choosing to get all documents electronically. Defensive driving course discounts and telematics programs are two great ways to become a better driver and save up to 50% on your auto insurance policy.

Cash in on all the car insurance discounts you might be eligible for. Some might include:

• Anti-theft discount

• Accident forgiveness

• TeenSMART driver education

• Defensive driver course discount

• Married couple discount

• Multi-vehicle discount

• Bundling discount

• Good student discount

Join a Parent, Guardian, or Older Sibling’s Existing Policy

Of course, there are some discounts that are hard or impossible to get when you’re a young driver. That’s why getting added to someone else’s policy is so powerful. You can simply pay the difference of the cost of adding yourself to the policy. Be sure to only be added to the vehicle you plan to drive. And you should still take advantage of other discounts.

Set Up Your Policy for Savings

Choosing a liability-only car insurance policy is the cheapest way to insure yourself. But this only works if you drive a car that’s inexpensive and paid off. Your policy will cover bodily injury and property damage liability. You can also set a high deductible to lower your rate. The higher the deductible, the less you pay.

Maintain a Clean Driving Record (and Good Credit)

Driving safely significantly lowers your chances of getting into an accident. Following the law reduces the chances of getting a ticket. Responsible driving leads to valuable discounts (e.g., a good driver discount). It also means insurance providers will offer you lower rates sooner. Drivers with good credit scores also pay less for car insurance.

See More: Car Insurance Quotes

Cheapest States for Car Insurance for Drivers Under 21

Where you live has a big impact on the price you pay for car insurance. Differences in state laws mean that some states, like Michigan, have higher rates on average. But even within states, there are big differences between costs. Claim rates, traffic patterns, and other location-specific factors make some ZIP codes more expensive than others.

The Best Way to Compare and Get Cheaper Car Insurance

It may seem a little complicated, but understanding how insurance works is the best way to get the cheapest car insurance. Once you know how insurance companies assess risk and rates, you know how to put yourself in the best position to save money. When you compare car insurance rates, you can see your full range of options, from national brands to regional insurers.

Frequently Asked Questions