Best Auto Insurance for 21-Year-Olds: Cheap Companies (2022)

Best Auto Insurance for 21-Year-Olds: Cheap Companies (2022)

*The overall rating applies to a standard driving profile, while the ranking applies to 21-year-old drivers.

#1: Geico

Geico is our top pick for the best auto insurance for 21 year olds. Auto insurance rates for 21-year-olds are about 34% cheaper than the market average for the age group. Geico also offers a 15% good student discount and a discount of up to 22% for those who drove five years without accidents.

The company has been around since 1936 and has a A+ rating from the Better Business Bureau (BBB).

Read more in our Geico Insurance Review.

#2: USAA

USAA offers the cheapest auto insurance for 21-year-olds on average, with rates about 42% below the market average. However, we didn’t call it the best auto insurance policy for 21-year-olds because it’s not available to everyone. You can only qualify if you are in the military, are a veteran, or have a parent who is a member of the USAA.

USAA not only has low rates for 21 year olds but is also known for reliable customer service. The company has a A+ rating of the BBB and achieved the highest score in almost every region in the country in the JD Power 2022 US Auto Insurance StudySM.

Read more in our USAA Insurance Rating.

#3: State Farm

State Farm is another national provider that offers affordable auto insurance premiums for 21-year-old drivers. Our estimates show that State Farm average rates are about 17% cheaper than the national average for this age group.

State Farm also offers discounts for younger drivers, including a generous good student discount of up to 25% for maintaining a B average. Younger drivers can also save money with State Farm’s Steer Clear® program, an app-based driving course for drivers under 25.

Read more in our State Farm Insurance Review.

#4: rural

On average, 21-year-old drivers save about 23% at Nationwide compared to the national average. One thing that makes Nationwide unique is that it has two usage-based telematics insurance options. SmartRide® can grant discounts of up to 40% based on a person’s driving habits by tracking acceleration, braking, night driving and more. The other option, SmartMiles®is a pay per mile insurance program that can help people who don’t drive often to save money.

Nationwide has a good reputation in the industry and deserves a A+ financial strength rating by AM Best and an A+ rating of the BBB

Read more in our National Insurance Rating.

#5: Insurance car owners

Another affordable auto insurance company for 21 year olds is Auto Owners. Our estimates show that 21-year-olds pay about 26% less than the national average for car owners. The company offers a good student discount of up to 20% and a discount for students who are in school and leave their car behind. However, Auto-Owners is only available in 26 states.