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How Much is Car Insurance for a 21 Year Old?

Last Updated on January 25, 2021

It is no secret that car insurance for young adults is very expensive. The younger you are, and the more inexperienced you are as a driver, the higher your insurance rates will be. In fact, car insurance premiums drop by about $400 per 6-month policy period between the ages of 21 and 25.

A 21-year-old driver on his or her own car insurance policy can expect to pay $1199 for six months of insurance coverage. Therefore, if you have recently found yourself on your own and off of your parents’ car insurance policy, you could be looking at some steep prices for auto insurance. Here is a breakdown of what makes car insurance for 21-year-olds expensive and ways that you can save.

Why You Pay More for Insurance

You may be wondering why you pay more for car insurance as a 21-year-old than a 22-year-old or somebody even older does. The answer is fairly simple. You are not yet an experienced driver. But the full answer is more complex. Auto insurance rates are primarily based on risk. Insurance companies use a number of statistics to determine what constitutes risk. Statistics show that drivers age 21 are more likely to get citations, and they are more likely to have accidents. Based on those statistics and other factors, you will probably pay a lot more for auto insurance than your parents.

Average Rates for 21-Year-Old Drivers by State

The rates that 21-year-olds will pay for car insurance vary by state. Each state has different laws and requirements that play a role in determining insurance rates. Below are the average rates for full coverage auto insurance policies for 21-year-olds, by state.

What Factors Come Into Play?

There are many factors that come into play when calculating how much car insurance will cost for a 21-year-old besides your age. Some of these factors you can control, while others you cannot. Consider these things when budgeting for car insurance.

Ways You Can Save on Your Auto Insurance Rates

Now that you understand why auto insurance for 21-year-olds is more expensive, here’s a breakdown of what you can do to save money. There are a lot of discounts available these days depending on the car insurance company you buy from. Some of the most common discounts 21-year-olds qualify for include:

The Bottom Line – Car Insurance Rates for a 21-Year-Old

The national average cost for auto insurance for 6 months for a 21-year-old is $1199. If you can, stay on your parent’s policy as long as possible to save money on car insurance. You will pay less to your parents paying the difference than you will for a policy on your own. You can also save a bundle on insurance if you maintain a clean driving record and avoid accidents. Shop around for the best rates every 6 months to make sure you don’t pay more than you need to.

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Disclaimer: Insurance Panda strives to provide the most up-to-date info on saving on car insurance. Keep in mind, quotes may vary from individual insurance companies. Verify details directly with them for the most accurate rates. Content provided by Insurance Panda is for consumer education purposes, and is not intended to suggest any relationship with the brands or products compared herein.

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