Best car insurance for 21-year-olds: Cheap companies (2022)


*Overall rating applies to a standard driving profile, while ranking order applies to 21-year-old drivers.

#1: Geico

Geico is our top pick for the best car insurance for 21-year-olds. Its car insurance rates for 21-year-olds are about 34% cheaper than the market average for the age group. Geico also offers a 15% discount for good students and up to 22% discount for those who have driven for five years without an accident.

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

Find out more in our Geico Insurance Review.

#2: United States of America

USAA offers the cheapest car insurance for the average 21-year-old, with rates about 42% lower than the market average. However, we haven’t named it the best auto insurance for 21 year olds because it’s not available to everyone. You may only qualify if you are enlisted in the military, are a veteran, or have a parent who is a USAA member.

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

Find out more in our USAA Insurance Review.

#3: State Farm

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

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

Find out more in our State Farm Insurance Review.

#4: Nationwide

On average, 21-year-old drivers save about 23% with Nationwide compared to the national average. One thing that makes Nationwide unique is that it offers two options based on usage telematics insurance options. SmartRide® can provide 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 per kilometer insurance program that can help people who don’t drive very often save money.

Nationwide has a good reputation in the industry, earning a Financial strength rating A+ by AM Best and a A+ rating of the BBB.

Find out more in our National Insurance Examination.

#5: Car Owners Insurance

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


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