Best Car Insurance for 21-Year-Old Drivers in 2025 (Top 10 Companies Ranked)

These companies excel by combining affordability with excellent customer service and customizable policy options, ensuring that young drivers receive the protection they need without breaking the bank.

Our Top 10 Company Picks: Best Car Insurance for 21-Year-Old Drivers

State Farm leads with the most attractive rates for 21-year-old drivers, considering various factors such as driving history, vehicle type, and coverage preferences.

With these providers, finding affordable and extensive car insurance is streamlined, making them the go-to choices for young drivers looking to secure their vehicles and their futures on the road.

To find the perfect insurance plan for your car and budget, simply enter your ZIP code and compare rates from the industry’s leading insurance providers. Don’t miss out on the opportunity to find the best car insurance deal for 21-year-old drivers.

#1 – State Farm: Top Overall Pick

Pros

• Coverage Options: State Farm offers a comprehensive range of coverage options, making it suitable for those seeking varied and customizable policies.
• Low Rates: With an average monthly rate of $284 for 21-year-old drivers, State Farm stands out for providing competitive rates compared to other providers.
• Discount Opportunities: State Farm insurance review & ratings highlight substantial savings opportunities, such as multi-policy discounts reaching 25% and safe driver incentives reaching 30%.

Cons

• Limited Availability of Some Discounts: While offering good discounts, the availability and qualification criteria for these discounts might vary, potentially limiting some customers.
• Possible Regional Rate Differences: Rates can vary based on location, potentially affecting the competitiveness of the pricing in certain areas.

#2 – Progressive: Best for Competitive Rates

Pros

• Competitive Rates: Provides competitive pricing, rendering it a desirable option for individuals in pursuit of affordability in their Progressive insurance review & ratings.
• Safe Driver Discount: Provides a substantial safe driver discount of up to 30%, encouraging and rewarding safe driving behavior.
• Various discounts: Offers multi-policy discounts of up to 15% and has a wide range of discounts available for customers.

Cons

• Higher Average Monthly Rates: Progressive’s average monthly rate for 21-year-old drivers is $662, which might be relatively higher compared to other providers.
• Discount Structure: While offering multiple discounts, the eligibility criteria and how they apply might be complex or restrictive for some customers.

#3 – Allstate: Best for Big Discounts

Pros

• Big Discounts: Offers a considerable multi-policy discount of up to 25% and a safe driver discount of up to 30%, making it appealing for those looking for substantial savings.
• Monthly Rates: Allstate’s average monthly rate for 21-year-old drivers is relatively lower compared to other providers at $519.
• Variety of Discounts: Allstate insurance review & ratings offers a range of discounts tailored to suit the diverse requirements and preferences of its customers.

Cons

• Possibility of Rate Fluctuations: While offering competitive rates, there might be instances of rate fluctuations or changes based on individual profiles.
• Discount Dependency: Achieving the maximum discount might depend heavily on meeting specific criteria, potentially limiting some customers from accessing the full discounts.

#4 – Nationwide: Best for Safe-driving Discount

Pros

• Safe-Driving Discounts: Offers substantial discounts for safe driving habits, up to 25%, encouraging and rewarding responsible driving.
• Multi-Policy Discount: Provides a significant multi-policy discount of up to 30% for customers bundling policies.
• Reputation: Nationwide insurance review & ratings highlight the company’s reputation for dependability and extensive history within the insurance industry.

Cons

• Possibly Higher Rates: While offering good discounts, the average monthly rate might still be relatively higher compared to some competitors.
• Discount Limitations: Eligibility criteria for discounts might be stringent, limiting access to some potential customers.

#5 – Travelers: Best for Student Savings

Pros

• Student Savings: Offers specific discounts tailored for students, catering to the unique needs and financial constraints of young drivers in education.
• Multi-Policy Discount: Provides a multi-policy discount of up to 15%, allowing customers to save when bundling policies.
• Coverage Options: Travelers insurance review & ratings are distinguished for their assortment of coverage choices, enabling clients to tailor policies according to their needs.

Cons

• Comparatively Lower Discounts: Offers slightly lower discount rates compared to some other providers in the market.
• Average Monthly Rate: The average monthly rate for Travelers might be relatively higher for 21-year-old drivers compared to other providers.

#6 – Farmers: Best for Customizable Policies

Pros

• Customizable Policies: Farmers insurance stands out for providing highly customizable policies, catering to individual needs and preferences.
• Discount Opportunities: Farmers insurance review & ratings show that they provide discounts of up to 20% for customers with multiple policies and up to 25% for drivers with safe records.
• Customer Service: Known for good customer service and efficient claim handling.

Cons

• Potential Complexity: The level of customization might result in a more complex policy structure, which may not suit all customers.
• Varied Rates: Rates can vary significantly based on individual profiles, potentially affecting competitiveness.

#7 – Liberty Mutual: Best for Flexibility

Pros

• Flexible Options: Liberty Mutual offers a wide range of coverage options and flexible policies to suit different customer needs.
• Multi-Policy Discounts: Provides a significant multi-policy discount of up to 25%, encouraging bundling policies for savings.
• Reputation: Renowned for its esteemed standing and extensive range of insurance services, Liberty Mutual review & ratings are well-regarded.

Cons

• Possibly Higher Rates: While offering flexibility, the average monthly rates might be relatively higher for 21-year-old drivers.
• Complexity in Options: The vast array of options might be overwhelming or complex for some customers.

#8 – The Hartford: Best for Unique Benefits

Pros

• Unique Benefits: The Hartford insurance review & ratings suggest that Hartford insurance offers distinctive advantages, possibly distinguishing it in specific areas of coverage.
• Discount Rates: Offers up to 20% off for multi-policy holders and up to 25% for safe drivers, making it attractive for those seeking savings.
• Extensive Coverage Options: Known for providing a wide range of coverage options, catering to diverse needs.

Cons

• Limited Availability: Hartford insurance might not be available or as widely accessible in all regions.
• Policy Complexity: The uniqueness in benefits might result in complex policy structures or limited options for certain customers.

#9 – Chubb: Best for Customer Service

Pros

• Customer Service: Chubb is reputed for its exceptional customer service and claim handling, prioritizing customer satisfaction.
• Discount Opportunities: Provides up to 20% off for multi-policy holders and up to 25% for safe drivers.
• Tailored Policies: Known for tailoring policies to individual needs, providing more personalized coverage.

Cons

• Possibly Higher Rates: While offering personalized policies, the rates might be higher compared to some competitors.
• Limited Accessibility: The Chubb insurance review & ratings indicate that Chubb’s availability may be restricted, and there could be exclusions for specific geographic areas or demographics.

#10 – American Family: Best for Diverse Discounts

Pros

• Various Discounts: Offers a range of discounts catering to different needs, providing flexibility for customers.
• Multi-Policy Discounts: Provides up to 20% discounts for multi-policy holders and up to 25% for safe drivers.
• Customer Support: American Family insurance review & ratings are renowned for their robust customer service, providing dependable support and advice.

Cons

• Possibly Moderate Rates: While offering discounts, the rates might still be moderate compared to some other providers.
• Coverage Limitations: Coverage options might not be as extensive or customizable compared to certain competitors.

Car Insurance Costs for 21-Year-Old Drivers

Average Monthly Car Insurance Rates for 21-Year-Old Drivers

• Car Insurance Discounts by Age
• Florida Car Insurance Discounts
• Michigan Car Insurance Discounts 
• American National Car Insurance Discounts

The table below shows the average costs of insurance for 17-year-old, 25-year-old, and 35-year-old males and females from the best insurance companies.

Average Monthly Auto Insurance Rates by Age and Gender

The cost of the best car insurance for 21-year-old female and males will vary based on many factors, such as location. In Florida, the average annual cost of car insurance for 21-year-olds is $5,500 and in Georgia, about $4,314.

There are more expensive places, too. How much is car insurance for a 21-year-old in Michigan? Annually, $12,875. Talk to a Michigan insurance agent or broker for more information. 

See what is available in your area by entering your ZIP code.

Compare The Best Insurance Quotes In The Country

Compare quotes from the top insurance companies and save!

 Secured with SHA-256 Encryption

By clicking, you agree to our Terms of Use

Cheapest Car Insurance Solutions for 21-Year-Old Drivers

If you still live at home, you can be covered under the insurance of your mom or dad. To do this, you must live at home or be enrolled in college and the vehicle has to be registered in the name of the parents whose insurance you will be listed on.

If the car is registered in your name, you are responsible for purchasing insurance. Similarly, if you do not live in the same home or attend college, you are considered emancipated and responsible for your own insurance.

With the cost of education rising, a college student car insurance discount can provide substantial savings and help students manage their budget more effectively while they focus on their studies.

Car-Related Savings for 21-Year-Old Drivers

A four-door sedan is less expensive to insure than a two-door version of the same car. This is because two-door vehicles are considered sports cars, and sports cars are statistically more likely to be involved in serious accidents.

Other car-related discounts include air bags, anti-lock brakes, and electronic stability control. In addition, you may be eligible for many car insurance discounts (e.g. student discounts or a distant student car insurance discount). 

Furthermore, if you buy a cheap older car, you can avoid having collision car insurance coverage, and that will knock a large portion of your premiums.

Taking a Driver Improvement Course as a 21-Year-Old Driver

Another way to save money on car insurance is to take a voluntary driver improvement course. Because taking an interest in being a better driver translates into being less of a risk for the car insurance company, you can get an insurance discount for doing so.

For more information, explore our Defensive Driving Course Car Insurance Discount. Keep in mind that the course cannot have been ordered by a judge or the Department of Motor Vehicles. 

Good Grades Lead to Savings for 21-Year-Old Drivers

If you are still in college, your grades can save you money on car insurance. Most insurance companies offer affordable car insurance for students who maintain a 3.0 or higher GPA, in recognition of taking on more responsibility for themselves, another statistical indication of reduced risk to the insurer.

Keep your grades up, and they will help make your car insurance premiums more affordable. For additional information, consider our Best Car Insurance for College Students.

Liability Car Insurance Rates for 21-Year-Old Drivers

Auto insurance policies typically include liability for bodily injury, personal injury protection, property damage liability, collision, comprehensive, and uninsured/underinsured motorist coverage.

Obtaining the best insurance for 21-year-old drivers and choosing the best insurance companies for 21-year-old drivers are essential for comprehensive protection. Explore our comprehensive resource, the Car Driving Safety Guide for Teens and Parents, to gain further insights.

Securing Trade Insurance as a 21-Year-Old

Car trade insurance for a 21-year-old business owner is possible to obtain, though you may need to do a little research.

Companies such as Tradex for U.K. readers offer insurance to anyone who is buying and selling or mending or cleaning cars for trade. These can be car sales lots, mechanics, body shops, car jockeys. Etc.

When speaking with a possible insurance provider about their traders insurance requirements, remember that you will need to provide proof of your business. Other insurance requirements may include disclosure of drivers, among other things. Read our Traders car insurance review & ratings for more information.

Trade Insurance Availability for 21-Year-Old Drivers

Insurance Coverage Options for Drivers Under 25

Case Studies for Car Insurance for 21-Year-Old Drivers

Navigating car insurance options can be challenging for young drivers. Here, we explore five case studies of 21-year-olds who found insurance solutions tailored to their unique needs, demonstrating the importance of selecting the right provider and policy.

• Case Study #1 – Creditworthy Young Adult: Emily, 21, with excellent credit, secured affordable, comprehensive car coverage from State Farm, leveraging her credit for better rates. Check out our State Farm Car Insurance Review & Ratings for further details.
• Case Study #2 – High-Mileage Drivers: David, a high-mileage driver at 21, found flexible, cost-effective insurance with State Farm, fitting his extensive driving needs.
• Case Study #3 – Less-Than-Perfect Record: Sophia, 21, with a spotty record, was attracted to Progressive’s safe driving incentives, gradually lowering her premiums.
• Case Study #4 – Tailored Service and Extensive Coverage: Jake, 21, valued Allstate’s personalized service and comprehensive coverage, ensuring his peace of mind.
• Case Study #5 – Budget-Conscious Drivers: Aiden, 21, utilized State Farm’s discounts for multiple policies and safe driving, achieving significant savings.

The Bottom Line for 21-Year-Old Drivers

Those who are under the age of 25 and looking for either their personal car insurance or trade insurance are high risk, but keep yourself organized and drive safely and there are surely some discounts in your future. (Learn More: Cheap Car Insurance for 25-Year-Old Drivers)

Ready to buy car insurance for 21-year-old drivers? Enter your ZIP code to find car insurance quotes for 21-year-old drivers.