Car Insurance Costs for 21-Year Old Males and Females

Car Insurance Costs for 21-Year Old Males and Females

Find Cheap 21-Year-Old Auto Insurance Quotes

Currently insured?

The estimated average cost of car insurance for 21-year-olds is $4,453, which is about $371 every month. That's almost $900 less than the average cost for 20-year-olds ($5,333), but $325 more than for 22-year-olds ($4,128).

Young drivers typically pay more for car insurance compared to older drivers because insurers consider them to be a higher risk. For most young or new drivers looking for inexpensive coverage options, the cheapest car insurance for 21-year-olds is through Erie Insurance. Current and former members of the military and their families may be able to find even cheaper rates with USAA.

Below, we compare auto insurance rates by company, gender and location for 21-year-olds, though young drivers should only use this as a general guide to search for coverage options. To get your best rate on car insurance, we recommend shopping around for quotes and exploring potential discounts, as rates vary substantially across insurance companies.

Find insurance rates by:
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Or read our analysis on how you can get the cheapest rates possible:

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

The average annual price of full-coverage car insurance is $4,496 for a 21-year-old, or nearly $375 per month, but annual premiums vary across insurers.

  • USAA, with an annual premium of $2,014, offered the cheapest rates among our qualifying insurers; however, the company only offers car insurance policies to current and former members of the military and their families.
  • Erie Insurance, which offered the second-cheapest rates at $2,073, only offers car insurance policies in 13 states.
  • Geico, with an annual premium of $2,749, is the cheapest car insurance company for 21-year-olds that is widely available across the country.
This graph ranks car insurance quotes for 21-year-olds across varying insurers

Find Cheap 21-Year-Old Auto Insurance Quotes

Currently insured?
Annual premium
State Farm$4,043

Large differences in rates demonstrate why young or new drivers should always compare car insurance quotes from several insurance companies. For example, there is a $4,752 difference in the average cost of car insurance for a 21-year-old driver between the cheapest insurer, USAA, and the most expensive, Allstate.

How much is car insurance for 21-year-old men and women?

The average cost of car insurance for females is generally cheaper than that for males. For 21-year-olds, women pay $4,258 per year on average, while men pay $4,647.

This trend is similar for drivers of similar ages, with men paying about $500 more, or almost 10% greater, than women for a given age.

Annual premium - male
Annual premium - female
Percent difference

However, some states—California, Hawaii, Massachusetts, parts of Michigan, Montana, North Carolina and Pennsylvania—prohibit insurers from using gender to determine car insurance rates. Accordingly, men and women should pay the same price for auto insurance coverage, all else being equal.

The average cost of car insurance for 21-year-olds by age

Car insurance quotes for drivers under 21 can be very costly. The average 21-year-old pays $4,453 per year in insurance premiums, which is $2,747 less than the average 18-year-old at almost $7,200.

The cost of full-coverage car insurance usually decreases with age, and just a few years can result in widely different annual premiums for young drivers.

Average annual premium

Best cheap car insurance for 21-year-olds by state

We compared average car insurance premiums for the 10 most populated states in the U.S. and offer recommendations for the cheapest insurers in each.

North Carolina is the cheapest state for 21-year-old car insurance, with an annual premium almost three-fourths cheaper than the overall average.

Michigan is by far the most expensive state, with annual auto insurance costs for 21-year-olds almost three times more pricey than our overall average.

Average 21-year-old annual premium
North Carolina$1,775
New York$3,965
Average cost of car insurance$4,496

Below, we recommend the cheapest auto insurance companies for a 21-year-old in the 10 most populous states.

The cheapest auto insurance company for 21-year-olds in the 10 most-populous states

Average annual premium
GeorgiaGeorgia Farm Bureau$2,133
IllinoisState Farm$2,242
New YorkGeico$2,937
North CarolinaGeico$600
PennsylvaniaErie Insurance$2,128
TexasState Farm$2,463

USAA was excluded, as policies are only available for current or former military members and their families. Without its exclusion, it offers the cheapest car insurance for 21-year-olds in Georgia, Illinois, Michigan, New York, Pennsylvania and Texas.

Shopping for 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—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, siblings or someone who drives a van, pick-up truck or high-performance sports car.

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.

To find cheap car insurance rates, 21-year-olds can …

  • Shop around. Insurance companies price higher rates for younger or more inexperienced drivers, but costs vary substantially across insurers. Some insurance companies charge lower premiums for younger drivers and teens compared to their peers. For 21-year-olds, we recommend USAA, Erie and Geico where eligible, but the company best-suited to your needs can vary.
  • Remain on a parent's policy. If you're a young driver, then staying on your parents' car insurance policy, when possible, can help you avoid typically higher premiums. A combined policy or multicar insurance policy may be more expensive for your parents than if you weren't included, but the total cost will be cheaper than that of two separate policies.
  • Take advantage of car insurance discounts. Insurers offer many discounts for which you may be eligible. These can reduce your car insurance price. A 21-year old driver, in particular, may qualify for discounts for being a good student, passing a defensive driving course, having a good credit score or maintaining a clean driving record.


We collected car insurance quotes for thousands of ZIP codes across the 10 most populated states in the U.S. Our sample drivers were 21-year-old men and women who drove a 2015 Honda Civic EX. All other parameters affecting car insurance rates were consistent; drivers were single and had a clean driving record. Coverage levels in the full coverage policy, including liability insurance, are listed below. These coverage levels are slightly higher than any individual state's minimum coverage requirements:

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

The analysis included 23 insurance companies, though rates were only added to our list of average prices and recommendations if their policies were available in at least three of the 10 states.

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

Michael Hoffmann is a Senior Research Analyst focused on insurance. He was previously a Technology Editor at The Economist Intelligence Unit and has had prior roles as an ETF and Equity Analyst focused on emerging technologies like artificial intelligence, cybersecurity and cloud computing.

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.