How Much is Car Insurance For a 21 Year Old?
Searching for affordable auto insurance for a 21-year-old isn’t nearly as hard as finding cheap car insurance for a teen. Thankfully, by the time your child reaches adulthood, you should begin to see your policy rate decrease. And, if you’re curious as to how much is car insurance for a 21 year old, you’ll find that there are deals out there if you do your research and compare multiple quotes. Many insurance companies are more than happy to do business with you. This is especially true if:
- You have a pretty good driving history
- Have previously been insured
- Are currently or have been furthering your education
- Have established a good credit history
The truth is that with every birthday, insurance companies see you as having another year of driving experience. This is why it always a good idea to check out car insurance rates by age chart each time you blow out another candle.
The Price of Car Insurance for a 21-Year-Old
Currently, the average cost of a car insurance policy for a 21-year-old is around $1,284 for six months of coverage. However, this amount can vary greatly, depending on the:
- Insurance company
- Driving history
- Value of the vehicle
- Type of coverage being sought
- Credit score
Even gender and education level can cause one 21-year-old’s policy to differ from another. Unfortunately, that policy price is still around $570 more than the national average. Why is this? Even though they are no longer a teen driver, 21-year-olds are still seen as big risk by insurance carriers, particularly because data proves they are more likely to receive a traffic citation and or be involved in an accident.
How Much is Car Insurance For a 21 Year Old Per Month? Why Do They Pay So Much for Car Insurance?
As mentioned above, this age group is at high risk of being involved in an accident. 21-25-year-olds account for around 13.7% of all fatal traffic accidents. The only age groups with a higher risk of being involved in a fatal crash are drivers under the age of 20 and over the age of 65. When you consider this information, It’s no surprise that insurers are going to charge higher rates for these age groups.
Tips for Lowering the Insurance Rate for a 21-Year-Old Driver
Fortunately, there are several things you can do to help decrease the cost of your policy. They include:
- Opt for a higher deductible. The higher your deductible is, the lower your monthly insurance payment will be. (A deductible is the amount you will pay out of pocket if you are involved in an accident. Once this amount has been met, the insurance company will pick up the cost.) Today, you can choose to have a deductible as high as $1,000 to $2,000, which can have a dramatic impact on your premium.
- Go to school and keep your grades high. Insurance companies love to see younger people stay in and excel at school. In fact, they like it so much that they usually offer a discount to students who maintain a 3.0 GPA or higher. They may require that you provide them with copies of your grades each semester. The effort involved with doing this is a small price to pay when compared to what you may save.
- Choose your car wisely. It’s a fact. Some cars just cost more to insure, such as fancy sports cars and tricked out SUV. Again, insurance companies view these vehicles as a higher risk, meaning they will charge you more just for driving them. It’s best to wait until you are 25 or older before giving into your dream of owning a luxury or fast car. Until then, stick to something more sensible, especially if you want to lower your insurance costs.
- Don’t go too far from home. Living close to your home and school has its advantages. First, it cuts down on your gas costs. Second, insurance companies are likely to reduce your rate because they know that the closer you live to work and school, the less likely you are to be involved in an accident. For example, if you have to drive 45 miles to work each day, you are on the road much longer than if you only lived 3 miles away. All this time on the road increases your chances of being involved in an accident.
- Consider taking a driving class. Just because you took driver’s ed in high school, doesn’t mean you can’t afford to brush up on your driving skills from time to time. In fact, your insurance company is sure to appreciate it and may reflect that by giving you a small discount. If your school doesn’t offer a driver’s safety course, check around at local driving schools. You may end up paying a couple of hundred dollars to take the course, but you should make back the money spent, in savings over the next few years.
- Don’t even think about drinking and driving. Yes, you can legally drink at 21. However, drinking and driving is an entirely different situation that can have devastating consequences. In addition, being caught for a DUI can result in your driver’s license being revoked or, at the very least, seeing a huge increase in your car insurance rates. In some cases, the increase is as much as 50 to 60% for at least three years. If you don’t have a designated driver, always call someone to come get you. Don’t take that chance.
- Stay on (or join) your parent’s policy. While you may crave independence, it isn’t always a good thing when it comes to average car insurance for a 21 year old. Your parent’s safe driving record is almost guaranteed to give you a lower rate than you would get on your own policy. This is because insurance companies feel like your parents are taking on some of the risks on your behalf, which translates to a lower premium. If you aren’t already on their policy, talk to your parents and see how adding them would affect their rate.
Don’t Forget to Shop Around
When it comes to finding the cheapest car insurance for a 21-year-old, shopping around is an absolute must. Some companies offer better rates to younger drivers than others, which you can definitely take advantage of. Currently, USAA is believed to have the best rates for young drivers. However, you need to have a family member in the military to qualify.
Rates change all the time. This is why it is so important to get quotes from multiple companies before deciding and use a car insurance cost calculator. So, are you still wondering how much is car insurance for a 21 year old? Start comparing quotes now by entering your zip code. Explore the lowest rates available and save on the coverage you need.