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Average Car Insurance Costs for 21-Year Old Drivers

Average Car Insurance Costs for 21-Year Old Drivers

Find Cheap 21-Year-Old Auto Insurance Quotes

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Erie, USAA and Geico offer the cheapest insurance rates for 21-year-old drivers starting at $170 per month, based on our analysis of thousands of quotes. To get the cheapest rate, compare car insurance quotes and take advantage of young driver discounts, as rates for 21-year-olds can vary by as much as $458 per month.

How much is car insurance for a 21-year-old?

The average cost of car insurance for a 21-year-old is $384 per month, or $4,611 per year.

However, rates vary significantly across insurers. Erie Insurance, which is available in 13 states, offered the cheapest monthly rates for 21-year-olds at $170. USAA, which is only available to military members and their families, was the second most affordable at $177 per month.

Geico was the most affordable and widely available car insurance for 21-year-olds at $207 per month.

Car insurance quotes for 21-year-olds across varying insurers

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Monthly cost
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Large differences in rates demonstrate why young drivers especially should compare car insurance quotes from several insurance companies. For example, there's a $458 difference between the cheapest and most expensive car insurance rates for a 21-year-old driver.

Find the Cheapest Insurers for Young Drivers in Each State

How much is car insurance for 21-year-old male and female drivers?

For 21-year-olds, female drivers pay $370 per month on average, while male drivers pay $399 per month. This difference is due to the fact that younger male drivers tend to get in more accidents compared to female drivers.

Monthly cost - male driver
Monthly cost - female driver

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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 should pay the same price for auto insurance coverage in these states, all else being equal.

The average cost of car insurance, by age

The cost of full-coverage car insurance usually decreases with age, and just a few years can result in widely different rates for young drivers. For example, the average 21-year-old pays $384 per month, which is $232 cheaper per month than the cost for an 18-year-old.

Young drivers typically pay more for car insurance compared to older drivers because insurers consider them to be higher risk. This is due to the fact that younger drivers tend to get into more accidents and file more insurance claims.

Average monthly cost

The cheapest auto insurance company for 21-year-olds, by state

Geico was consistently the most affordable insurer, as they are the cheapest company in four of the nine states. Below, we recommend the cheapest auto insurance companies for a 21-year-old in our nine sample states.

Cost of car insurance for 21-year-olds, by state

North Carolina is the cheapest state to insure a 21-year-old driver, with a monthly rate that is $234 cheaper than the overall average. Michigan is by far the most expensive state, as the monthly insurance cost for a 21-year-old is six times more than the cost in North Carolina.

Average monthly cost for 24-year-old
North Carolina$150
New York$281

How to get cheap car insurance as a 21-year-old

The best strategy to find cheap auto insurance as a 21-year-old driver — or a driver of any age, for that matter — is to shop around for rates at different insurers. Insurance companies charge premiums based on many factors, from the car you drive to your driving history. The insurer that offers you the best rate may be very different from those best-suited for your peers or family members.

When shopping around for quotes, 21-year-olds and other young drivers, especially teenagers, can save by staying on their parents' car insurance policies or taking advantage of all available discounts.

Frequently asked questions

Who has the cheapest car insurance for a 21-year-old?

We found the cheapest rates for 21-year-olds at Erie, where the typical price is $170 per month.

Is car insurance cheaper when you're 21?

Yes, car insurance rates generally go down after you turn 21. The average rate for a 21-year-old is about 16% cheaper than the price a 20-year-old pays. Car insurance rates generally decrease in your early 20s, with smaller decreases into your late 20s.


Our study pulled quotes from thousands of ZIP codes across nine of the most populated states in the U.S. Our sample drivers were 21-year-old men and women who drove a 2015 Honda Civic EX. The drivers were single and had clean driving records.

We collected full-coverage rates with the following limits:

Coverage type
Study limits
Bodily injury liability$50,000 per person/$100,000 per accident
Property damage$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Comprehensive and collision$500 deductible
Personal injury protection (PIP)Minimum when required by state

Our analysis covered 29 insurance companies. However, an insurer was only added to our list of average prices and recommendations if their policies were available in at least three of the nine states.

ValuePenguin's analysis collected insurance rate data from Quadrant Information Services. The rates used to calculate the averages were sourced publicly from insurer filings. These averages should only be used for comparative purposes — your own quotes may be different.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.