Car insurance for under-21-year-olds

Find the cheapest premiums for drivers under 21, but balance cost with other benefits available.

By

Updated

In this guide

Guides

Car Insurance brands

Vehicle guides

Compare providers in your area.

For personalized quotes

For military

For claims-free drivers

Expect car insurance premiums to cost much more as a driver under 21 than for more experienced drivers. The best way to lower your premium is to look at multiple companies with a high tolerance for insuring young drivers, leading to low premiums. You also want to hone in on the right level of coverage for you, balancing solid protection with an affordable price.

Car insurance costs for under-21 drivers

Drivers at or under age 21 can expect to pay $104 to $115 a month, or $1,250 to $1,380 a year, for state-minimum car insurance coverage, or more for higher coverage. Rates are high for young drivers because these drivers get in more car accidents than more experienced drivers. Insurance companies make up for the risk by raising premiums until drivers hit specific age marks like age 21 or 25.

Cheapest car insurance for under-21 drivers

Of the national providers, Progressive and USAA offer some of the lowest rates for drivers under 21. But California drivers should get quotes from smaller, local companies like Mercury and Grange since these may offer the lowest rates, depending on your car and driving history.

Some car insurance companies cater to new and teenage drivers with lower rates than other companies offer. Compare sample annual quotes for an average driver living in California. While not representative of costs in every state or for every driver, these example rates should give you an idea of how varied premiums can be and which companies to compare to get your unique quote based on your driving history, vehicle and location.

Drivers at age 21 should consider switching insurers since some companies raise rates for hitting the legal drinking age. But the average rates drop by $40 per year.

At age 20, you’ll see rate drops from most insurers, and some may lower rates significantly since you’re no longer a teen driver, such as Mercury, USAA and Progressive.

At age 19, you may see some insurers like State Farm and USAA drop their rates compared to 18-year-old drivers, while other insurers raise them or hold steady.

Find low rates as an 18-year-old driver through smaller companies like Mercury and Capital as well as USAA. But the average is over $125 more than drivers at age 21.

What to consider when buying car insurance

If you’re looking for an under-21 car insurance policy, it’s vital to compare your options to find the policy that’s right for you. Factors to consider when weighing up your options include:

You’ll probably look at the cost as one of your deciding factors in choosing a policy. You can get quotes from a variety of insurers to see which one offers the cheapest premium for drivers under age 21. Then, look beyond the dollar figure to that company’s benefits to make sure that you’re getting the best value.

Read over your policy to learn the types of coverage included in your quote and each coverage’s dollar limit, which is the maximum amount that your insurer will pay after an accident. Consider extra coverage that’s included for free, like accident forgiveness or replacing your car with a new one after a serious accident.

Also, read through the list of exclusions so that you know when and why the insurer may refuse a claim. For example, insurers may not cover drivers in your household who aren’t named on your policy, modifying your car or ridesharing without add-on coverage.

Remember to investigate how the insurance company handles claims and what customers are saying about the company’s claims process. You should see 24/7 claims support by phone or online, and average to high ratings from customers for claims satisfaction, though every insurer receives complaints from time to time.

If you’re interested in joining an insurer’s safe driver program or managing your policy online or in an app, check out the company’s online tools to see what changes you can make to your policy. Safe driver programs, also known as telematics, usually use an app where you can see customer’s app ratings.

Compare car insurance for drivers under 21

Consider which companies offer the right coverage and benefits for you, and select Get quotes to see your customized rate.

Fetching your data...

Fetching your data...

Fetching your data...

Fetching your data...

Fetching your data...

Fetching your data...

Ways to lower premiums for drivers under 21

Buying car insurance when you’re under 21 can be expensive since insurers will take your youth and lack of driving history into account when calculating your premium. The good news is there are several things you can do to reduce the cost of your premium.

To qualify for a good student discount, you’ll need to show proof of the student’s grades, possibly reproving your status each time that you renew. Homeschooled students can qualify, and will need to qualify in the top 20% of standardized tests like the SAT or ACT.

Ask an expert: How do I save on car insurance as a young driver?

Steve Pritchard Founder of insurance website Cuuver.com

It’s well known that insurance policies are more expensive for young and new drivers; these high prices don’t go down until you turn 25, so you should aim to reduce the costs however you can during this period.

A good way of doing this is sitting an advanced [driving] course straight after you get your license. This trains you to deal with additional driving challenges which aren’t fully considered in your driving test, including driving in the dark, as well as driving on highways.

Many insurers acknowledge that this course provides you with additional skills which make you a safer driver, so reduce their premiums for those who have this qualification. This makes an advanced course like this well worth doing for both your skills and your pocket.

What factors affect my premium costs?

While the numbers above are average for the state of California, your premium may be different. There are a number of other factors that have an impact on the cost of under-21 car insurance.

Coverage to consider for drivers under 21

For drivers of any age, purchasing coverage is one of the major expenses you contend with when you start driving, and most states require you to have a minimum amount of coverage before you hit the road. Consider this coverage:

Traps to avoid for drivers under age 21

A few pitfalls can end up costing you a lot. Consider these suggestion when you’re buying car insurance:

Bottom line

While finding car insurance as a young driver can be difficult, it’s still possible to find an affordable policy that meets all your coverage needs. Compare car insurance policies to find the perfect coverage for your set of wheels.

Learn more about car insurance for drivers under 21

Roslyn McKenna Ayers is insurance manager at ValuePenguin and a former publisher at Finder, specializing in home and auto coverage. Her expertise and analysis has been featured on Bankrate, MSN and Reader's Digest. She holds a BA in writing and communications from Maryville College. See full bio

Guides

Car Insurance brands

Vehicle guides

Check out the top 50 American car models, and find out what makes them American.

Learn the basic steps for transferring your car registration from another state or previous car.

No receipts? See how you can still get your insurance claim paid with different types of policies.

Know what to do after a license suspension, like whether you can drive or what fees to pay.

How to get your license back after a suspension in Maryland.

Learn about common scams, warning signs and what to do if you suspect fraud.

Get your car fixed and settle your insurance claim after an accident.

Find out if your car insurance policy will cover you for paint damage and how to get your car’s paint job back in great condition.

Learn how to transfer a car title, add or remove people on a title and recover a lost title.

Find your car’s post-accident value and see whether you could file a diminished value claim.

Ask a question

Click here to cancel reply.

32 East 31st Street, 4th Floor, New York ,NY ,10016

Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current. Our information is based on independent research and may differ from what you see from a financial institution or service provider. When comparing offers or services, verify relevant information with the institution or provider's site. Talk with a financial professional if you're not sure.

Finder.com is an independent comparison platform and information service that aims to provide you with information to help you make better decisions. We may receive payment from our affiliates for featured placement of their products or services. We may also receive payment if you click on certain links posted on our site.

Finder® is a registered trademark of Hive Empire Pty Ltd, and is used under license by Finder.com LLC.

How likely would you be to recommend Finder to a friend or colleague?

Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.

Advertiser Disclosure

finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.

We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.

Learn how we maintain accuracy on our site.