What You Should Know
- Twenty-one-year-old drivers have more driving experience than most teen drivers
- Drivers who turn 21-year-old pay about $90 less than 18-year-old drivers
- Student discounts can lower car insurance rates by at least 20%
- Male drivers usually pay more than female drivers
Are you looking for the best car insurance companies that decrease their rates after the driver turns 21?
There aren't many car insurance companies that don't decrease their rates after the driver turns 21, which is excellent news for parents who need affordable auto insurance for young adult drivers.
But how much does car insurance go down after 21? Does car insurance automatically go down at 25?
Read our guide to learn how much 21-year-old drivers pay at the best car insurance companies.
Use the free online quote tool above to compare multiple insurance companies in your area after learning more about car insurance companies that decrease their rates after the driver turns 21.
What are the best car insurance companies that lower rates when you turn 21 years old?
Most auto insurance companies provide more affordable rates after you turn 21 years old. However, 21-year-old drivers are a high risk to insure, but they are less risky than teen drivers.
Let's examine the best car insurance companies that issue monthly rates to 18-year-old and 21-year-old drivers.
|COMPANIES||MONTHLY RATES OF 18-YEAR-OLD DRIVERS||MONTHLY RATES OF 21-YEAR-OLD DRIVERS|
Erie, USAA, and GEICO are the cheapest car insurance companies for 21-year-old drivers.
Car insurance rates are cheaper as you get older. That's because older drivers have more experience behind the wheel, and they’re less likely to file an auto insurance claim.
Are car insurance rates for 21-year-old female drivers cheaper than 21-year-old male drivers?
The short answer is yes. Twenty-one-year-old females pay around $30 less per month than 21-year-old male drivers.
However, auto insurance rates for all drivers vary by the company and the state where you live.
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What is the cheapest car insurance company for 21-year-old drivers by the state?
Each company produces different rates in various states. For example, a GEICO car insurance policy in Macon, GA, won’t have the exact cost in Albany, NY.
Let's look at the average cost of auto insurance from a few states to see which companies are the cheapest.
|STATES||COMPANIES||MONTHLY CAR INSURANCE RATES|
|Georgia||Georgia Farm Bureau||$185|
GEICO is one of the most affordable car insurance companies in the nation, followed by State Farm and Progressive.
Georgia Farm Bureau is a regional auto insurance company, and you won’t find it in places like Kentucky, Illinois, or California.
Why won't some car insurance companies decrease rates after I turn 21?
Age is one of the significant factors when determining auto insurance quotes. Some car insurance companies may not lower rates when you turn 21 because they believe you’re still a high risk.
According to the Centers for Disease Control (CDC), drivers between 16 and 24 years old have the highest rates of motor vehicle fatalities and severe injuries by motor vehicles.
When auto insurance companies won’t decrease your rates at 21, pursue policy discounts to lower your monthly rates and avoid expensive costs.
What are the best car insurance discounts for 21-year-old drivers?
Young drivers should look for any available auto insurance discounts. Car insurance deals can save you hundreds of dollars per year.
Here's a list of auto insurance discounts that can help 21-year-old drivers.
- Multi-Policy Discount
- Good Student Discount
- Usage-Based Insurance Discount
- Distant Student Discount
- Defensive Driver Discount
- Anti-Theft Device Discount
College students who just turned 21 can save at least 20% if they maintain a good GPA and live over 100 miles from home.
Any anti-theft device on a 21-year-old driver’s vehicle may save at least 2% more, but the most effective car insurance discount is the defensive driver discount.
Some auto insurance companies provide at least 15% off when you have a clean driving record.
If a 21-year-old driver has an apartment, they should consider renters insurance in addition to car insurance. Bundling more than one insurance product at the same company can save up to 15%, also.
Drivers who are confident in their driving habits should enroll in a usage-based insurance program.
You can earn a car insurance discount for good driving behavior and stack it with your current savings with student discounts.
Why aren't my car insurance rates going down?
If you're a new driver, your auto insurance rates won't always decrease at 21. New drivers are considered just as risky as teen drivers.
When does insurance go down for new drivers? It could take at least two years of zero incidents on your driving history and insurance history.
If you maintain a clean driving record and file no car insurance claims, you may start to see a drop in car insurance rates.
Can driving infractions affect car insurance for 21-year-old drivers?
The answer is yes. Traffic violations and accidents stay on your driving record for at least three years in most states.
Ultimately, incidents on your driving record, such as accidents and speeding, impact your car insurance rates.
For instance, a 21-year-old with an accident or speeding tickets can expect their auto insurance rates to increase for the next three years.
When does car insurance become more affordable for young adult drivers?
Significant auto insurance rate decreases start to happen around 25 years old. Twenty-five-year-old drivers are statistically less likely to file a claim. Also, the majority of 25-year-old drivers are more experienced drivers.
New 25-year-old drivers are the exception. Any new driver will have more expensive car insurance rates.
Car Insurance Companies That Decrease Their Rates After the Driver Turns 21: The Bottom Line
Most 21-year-old drivers will see a decrease as they get older. However, 21-year-old drivers with traffic violations on their driving history pay significantly more for auto insurance.
Young drivers can secure more affordable car insurance when they qualify for discounts. Stack as many auto insurance bargains as possible to save hundreds of dollars each year.
Hopefully, you’ve learned more about car insurance companies that decrease their rates after the driver turns 21. Now that you know more, enter your ZIP code in the free online quote below to compare multiple companies near you.