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Turning 21 brings a lot of fun for young adults. One of the reasons people celebrate the lesser consideration is that it can reduce the burden of car insurance premiums.
Fobes Advisor analyzed average costs to find the cheapest car insurance for 21-year-olds.
How much is car insurance for a 21 year old?
It costs a 21-year-old child an average of $1,110 a year to buy a parent’s car insurance, according to Forbes Advisor analysis. That’s about $93 a month..
Adding a young driver to a parent’s policy can be expensive, but it’s cheaper than a young adult buying their own auto insurance. The average cost of auto insurance for a 21-year-old individual is $3,459 per year, or about $288 per month.
Overall, the average cost of a parent’s car insurance policy including a 21-year-old driver is $4,072 per year.With these eye-popping numbers, it’s good to look for the best car insurance so your whole family has a financial safety net in the event of an insurance claim.
Auto insurance rates for 21-year-olds are lower than for teen drivers, but still slightly higher than for drivers over 25. This is because a 21-year-old driver is more likely to have an accident than an experienced driver. According to the Insurance Institute for Road Safety, from age 20 he had a 19.2 fatality rate per 100,000 for drivers aged 24 and from age 25 he had 17.5 for drivers aged 29.
What is the cheapest car insurance for 21 year old drivers?
According to our evaluation, Geico is the cheapest auto insurance company to add a 21-year-old driver to a parent’s policy.
USAA and American Family are the cheapest companies to check next when weighing auto insurance. These three cheapest companies are over $500 less per year than the national average.
It’s usually cheaper for parents to get car insurance for their 21-year-old than it is for a young adult to buy their own car. Let’s take a look at the cheapest car insurance for drivers over 21.
Cheapest car insurance company to add a 21 year old driver.
This is the cost of adding a 21 year old to your existing parent’s car insurance.
Cheapest car insurance for parents and 21 year old drivers.
If you’re looking to buy new policies for both parents and 21 year olds, USAA, Geico, and Travelers are likely to have the cheapest rates.
Cheap auto insurance for 21 year old with own policy.
USAA, Geico, and Auto-Owners have the cheapest car insurance for individuals aged 21 and require separate coverage.
What factors affect the cost of a 21-year-old driver?
Understanding the factors insurance companies use to determine auto insurance rates can help you control costs.
Adding a teen or young adult to a parent’s auto insurance increases costs because insurers consider inexperienced drivers to be more risky. Increases cannot be avoided, but steps can be taken to mitigate the economic impact. For example, proper driver training can help teenagers avoid accidents. That alone can be a significant savings compared to the car insurance bills you face if your 21-year-old has an accident.
Auto insurance companies base their rates on previously paid claims. Men in their teens and young adults cause more claims than women of the same age group, which is why men pay higher premiums.
Some of the regional factors related to location that often affect auto insurance prices include:
- Frequency of car accidents.
- Vehicle repair costs, including parts and labor.
- Frequency of claims related to auto theft and vandalism.
- Claims related to weather and disasters such as hail and floods.
- Medical bills. This affects how much an insurance company will pay for an accident claim.
Including collision and blanket insurance as part of your car insurance will pay for claims related to damage to your vehicle due to car accidents, crashes into guardrails, car theft, trees falling on your car, etc. If your vehicle is more expensive to repair or replace than another vehicle, the additional costs will be reflected in the cost of Collision and Comprehensive Coverage.
What discounts are available if I’m 21?
21-year-olds are known to be high-risk drivers, so car insurance discounts may not be great. However, it is wise to check what your young adult driver qualifies for.
good student discount
The ‘Great Student Discount’ is a good way to save if you’re a 21-year-old driver. Your auto insurance company may not know to add it, so you need to bring it up with your agent.
Forbes Advisor’s analysis of leading student discounts found an average savings of 4%.
Eligibility rules for this discount may vary slightly by insurer, but typically students must be within a certain age range, attend high school or college full-time, and have good grades.
A “good student” usually means one of the following:
- B’s grade point average is better.
- Average of 3.0 or higher.
- A list of deans, honorary rolls, or equivalent.
- Top 20% of class.
- Scored in the top 20% on national standardized tests such as the SAT and ACT within the last 12 months.
student outing discount
If your 21-year-old isn’t attending college away from home, you may be able to get a discount. A Forbes Advisor analysis shows that the “student discount away from home” saves an average of 8%.
To be eligible for the student discount, 21-year-olds must meet certain requirements, which vary by company. Basic eligibility for discounts typically includes:
- The student attends and lives at a school more than 100 miles from home.and
- The car stays at your home while the students are out of school.and
- Students drive only when they are home during school holidays or vacations.
Driving class discount
This discount isn’t very common, but it’s worth asking. If your 21-year-old has completed a Certified Driver Training Her program, you can get a discount. Before you start your course, make sure your insurance company has approved the course discount.
Can 21 year olds get their own policy?
Yes, 21 year olds can purchase their own car insurance. A 21-year-old young adult can own and register a car in their own name and have auto insurance in their own name.
First-time auto insurance buyers should be familiar with the types of auto insurance and how they work. This is true regardless of age, but especially for young adults. According to Forbes His Advisors’ survey of basic auto insurance knowledge, drivers between the ages of 18 and 25 were most likely to misunderstand how auto insurance coverage works.
If the 21-year-old doesn’t have his own car yet and lives at home, it’s usually cheaper to add or keep a young adult on a parent’s insurance.
How to get the cheapest insurance at 21
Here are some tips for getting the cheapest car insurance at 21.
get multiple quotes
When adding a 21-year-old to your policy, the car insurance company that offers the most competitive rates for parents may not be the best choice. When you add a new driver, especially a young driver, it’s a good time to compare auto insurance quotes to see which company offers the best deal.
Explore discount opportunities
To find discounts for 21-year-olds, look out for great student discounts and fee discounts for completing driver education classes. However, please check with your auto insurance agent for other discounts that apply to families with 21-year-old drivers.
take an affordable car
As vehicle repairs and replacements become cheaper, so does collision and comprehensive insurance. Young adult drivers need a safe car, but avoid luxury cars, especially sports cars if you want to keep your car insurance premiums low.
Select a deductible when purchasing Collision and Comprehensive insurance. You can usually save money with a higher deductible, such as $1,000 instead of $500.
To determine which deductible is best for you, ask your auto insurance agent for estimates of various deductibles. Then you can decide if the savings are worth it. Keep in mind that 21-year-old drivers are more likely to crash into something than older people.
To save money on your car insurance premium, you may be thinking of reducing your coverage. But if you have a 21-year-old driver, it’s not the time to cut back on auto insurance coverage. Teenage and young drivers are more likely to be involved in a car accident and are more likely to need adequate insurance for insurance claims.
You can find inexpensive full-coverage auto insurance with higher liability limits than your state requires, as well as comprehensive collision coverage to protect your vehicle.
Average car insurance premiums by state for 21-year-olds
Average car insurance premiums for 21-year-old drivers by gender
21-year-old men are more likely to get in a car accident and file an insurance claim, so men pay slightly more for car insurance than women. Adding a 21-year-old man to a parent’s policy will cost her 39% more than if a 21-year-old woman were to be insured.
Average car insurance premium for 21-year-old drivers with parental insurance
Average car insurance premiums by gender for 21-year-old compulsory automobile liability drivers
We used data from Quadrant Information Services, a provider of insurance data and analytics. Rates are based on a 21-year-old driver with both parents and a good driving record, with $100,000 personal injury liability per person, $300,000 per accident, and property damage liability (total of $100/ known as 300/100) to cover $100,000. , uninsured driver coverage and collision, and a $500 deductible.
Best Auto Insurance Company 2023
With so many auto insurance companies to choose from, it can be difficult to know where to find the right auto insurance policy. We evaluated insurance companies to find the best car insurance companies.
21 year old cheap car insurance frequently asked questions
Why is car insurance cheaper for a 21-year-old than an 18-year-old?
Auto insurance is cheaper for 21-year-olds than 18-year-olds. This is because the more experience behind the wheel, the less risk there is for the insurer. By the age of 21, you may have about five years of driving experience.
Usually, if you have 3 to 5 years of driving experience and can avoid traffic violations such as accidents and speeding, you can get a driver’s discount from your car insurance company. Having access to these auto insurance discounts can help you pay less.
Can a 21 year old get a parent’s car insurance?
Yes, a 21-year-old driver can take out parental car insurance if he/she continues to drive the parent’s vehicle and lives at home. When young adults purchase and register a vehicle in their own name, they usually also purchase their own insurance.
If you’re a 21-year-old looking to get your own auto insurance, it’s wise to compare auto insurance quotes from multiple companies to find the one offering the best premium.
Will Safe Driving Affect A 21-Year-Old Driver’s Auto Insurance Premium?
Safe driving has a positive impact on car insurance premiums for 21-year-old drivers. By demonstrating safe driving habits, your car insurance premiums will be lower. For example, if you have a clean driving record, you may be eligible for a good driver discount to help lower your car insurance costs.