Car insurance for a 21-year-old in the United States typically costs between 150 and 350 dollars per month. While rates drop after the teenage years, 21-year-olds are still considered higher-risk drivers by insurance companies. The actual monthly cost depends on your driving record, state, gender, type of vehicle, and whether you’re on your own policy or added to a parent’s plan.
In this guide, we’ll explain:
- The average monthly cost for 21-year-old drivers
- What affects your car insurance rate at age 21
- Cost comparison by policy type and location
- How to save money on premiums
- FAQs young drivers ask about car insurance
Average Monthly Cost of Car Insurance for a 21-Year-Old
Car insurance costs decrease steadily from age 18 through your mid-20s. At 21, the average monthly premium is lower than for teens but still not at the adult minimum. The biggest savings come with a clean driving record, a safe car, and access to family policy discounts.
National Monthly Cost Estimates
| Policy Type | Average Monthly Cost |
| Own Full-Coverage Policy | $220 – $350 |
| Parent’s Policy | $150 – $280 |
| Liability-Only Policy | $100 – $180 |
These are estimates. Your actual rate may vary depending on personal and regional factors.
Why Is Car Insurance Still Expensive at 21?
Though 21-year-olds are past the high-risk teenage phase, insurance companies still consider them more likely to:
- Speed
- Text while driving
- Drive late at night
- File claims more often than older drivers
According to the National Highway Traffic Safety Administration (NHTSA), drivers under 25 are involved in more accidents than any other age group. Because of this, insurers continue to charge higher rates until drivers prove themselves with a clean record.
Cost by Gender
In most states, gender still plays a role in pricing, especially for young drivers.
| Gender | Average Monthly Premium |
| Male | $230 – $350 |
| Female | $200 – $320 |
Note: Some states like California, Hawaii, and Massachusetts have banned gender-based pricing.
Cost by State
Location can dramatically impact how much you pay for car insurance at age 21. Factors include:
- State insurance laws
- Urban vs. rural area
- Vehicle theft rates
- Local accident statistics
Sample Monthly Costs by State
| State | Estimated Monthly Cost |
| California | $280 – $350 |
| Florida | $300 – $370 |
| Texas | $270 – $340 |
| New York | $310 – $380 |
| Illinois | $180 – $260 |
| Ohio | $160 – $220 |
Drivers in large cities like Los Angeles, Miami, and New York City pay more due to congestion and higher accident risks.
Should a 21-Year-Old Have Their Own Policy?
It depends on your situation. While you can legally have your own car insurance policy at 21, staying on a parent’s policy is usually cheaper.
Cost Comparison
| Policy Setup | Estimated Monthly Rate |
| Individual Policy | $220 – $350 |
| Added to Parent Policy | $150 – $280 |
Pros of staying on a parent’s policy:
- Access to multi-car and household discounts
- Higher liability coverage at a lower cost
- Easier to manage billing and renewals
If you live with your parents or are still financially connected, this is usually the smarter option.
Recommended Coverage for 21-Year-Olds
Every driver must carry liability insurance to meet state requirements. But full coverage is often smart for young drivers with newer or financed cars.
Coverage Options
| Type of Coverage | Description |
| Liability | Required. Covers damage you cause to others |
| Collision | Pays for your car after a crash |
| Comprehensive | Covers theft, vandalism, fire, weather |
| Medical Payments | Pays medical bills for injuries |
| Uninsured Motorist | Covers damage by drivers without insurance |
| Roadside Assistance | Helps with towing, battery, lockouts |
Liability-only policies are cheapest but come with more financial risk if you’re in an accident.
Best Cars to Insure for 21-Year-Olds
Choosing the right car can save hundreds per year. Avoid sports cars and expensive models with high repair costs or theft rates.
Cheaper Cars to Insure
| Car Model | Why It’s Affordable to Insure |
| Honda Accord | Safe, reliable, easy to repair |
| Toyota Corolla | Low-cost maintenance, high safety ratings |
| Mazda 3 | Compact, fuel-efficient, non-sporty |
| Ford Escape | Midsize SUV, reasonable parts cost |
| Subaru Impreza | All-wheel drive, strong safety scores |
Vehicles with high safety ratings, airbags, and anti-theft features usually cost less to insure.
Tips to Lower Car Insurance for a 21-Year-Old
1. Maintain a Clean Driving Record
Tickets and accidents can raise your rate by 20 to 60 percent.
2. Bundle Insurance Policies
If you have renters or health insurance, bundle them with auto insurance for a discount.
3. Good Student Discount
Still in college? Most insurers offer lower rates for students with a GPA of B or higher.
4. Take a Defensive Driving Course
Approved driving classes can reduce your rate by up to 10 percent.
5. Use a Telematics App
Insurers like Progressive and State Farm offer apps that track your driving. Safe habits can earn lower premiums.
6. Increase Your Deductible
Raising your deductible from $500 to $1,000 can save you up to 15 percent monthly.
7. Choose the Right Insurance Provider
Always compare quotes. Different companies may offer vastly different rates for the same profile.
What Affects Car Insurance Cost at 21?
Key Factors:
- Driving history: Accidents or tickets increase rates
- Credit score: In most states, a good score leads to lower premiums
- Vehicle type: Expensive or fast cars cost more to insure
- Mileage: Low annual mileage can qualify for discounts
- Location: Urban areas are riskier and more expensive
- Coverage level: Full coverage costs more than liability-only
Frequently Asked Questions
Yes. On average, rates begin to decrease each year between ages 18 and 25, especially if you maintain a clean driving record.
Yes, if possible. It’s usually cheaper and gives you better coverage for the price. You can switch to your own policy later when rates drop.
Yes. Full coverage is recommended if you drive a newer, leased, or financed car. It protects both your car and liability risk.
- Stay on a parent’s plan
- Choose a basic, safe vehicle
- Keep a clean record
- Use discounts (student, low mileage, telematics)
- Shop around for quotes using comparison tools like Alias Insurance
- Stay on a parent’s plan
- Choose a basic, safe vehicle
- Keep a clean record
- Use discounts (student, low mileage, telematics)
- Shop around for quotes using comparison tools like Alias Insurance
Final Thoughts
At age 21, car insurance becomes more affordable — but it is still higher than for experienced adult drivers. The average monthly cost ranges from 150 to 350 dollars, with factors like driving record, location, and vehicle type playing a big role.
To save money, compare quotes, stay on a parent’s policy if possible, and make smart coverage choices. Every year of safe driving builds your profile and helps you unlock cheaper premiums in the future.
If you’re ready to compare personalized quotes from trusted providers, Alias Insurance makes it fast and free. Find the best rate for your needs today and stay protected on the road.
