21 Year Old Car Insurance

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Lauren Lewthwaite 10-08-2021

What You Need to Know About Car Insurance For 21 Year Old?

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It’s no secret that young drivers pay more for car insurance. In fact, the average cost for car insurance for a 21 year old is $1,250 compared to just $716 for a 45 year old. Luckily, there are strategic ways to save big on car insurance premiums for affordable, thorough coverage. Whether you’re looking to get 21 year old car insurance or looking to lower your bill, keep reading. 

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Why Car Insurance for a 21 Year Old Is So High?

Young drivers pay more for car insurance because insurance companies see them as higher risk; after all, drivers under the age of 25 are statistically proven to drive more dangerously. According to this report, 88% of drivers between the ages of 19-24 had engaged in at least one risky behaviour while driving within the last 30 days. These behaviours include texting while driving, speeding, running red lights and more. 

So it doesn’t come as a surprise that car insurance for 21 year old drivers is higher than average. Insurance companies have to determine how much of a financial risk you are to them when insuring you, and the risk of more frequent accidents means higher premiums. 

Other Factors For High Insurance

It’s not just your age that puts you more at risk of paying for high car insurance. In fact, there’s a whole host of factors that can raise (or lower) your car insurance premiums. These include:

  • Gender: Men end up paying more for car insurance than women, although the gap lessens as they get older. Some states don’t allow gender to factor into insurance premium calculations. 
  • Credit score: Lower credit scores can increase car insurance premiums, because those with poor credit scores are more likely to file claims (and higher value claims, at that). Unfortunately, this coincides with the student debt that 21 year olds are likely to have, which can adversely affect their credit score. 
  • Education: Having higher education can actually bring down your car insurance premiums, making you seem less likely to file claims or get into accidents. 
  • Vehicle: Driving a make and model that’s seen as risky to insurance companies can also raise your premiums. Insurance companies flag vehicles that are not only performance or off-road driving vehicles, but vehicles that are more expensive to replace. 
  • Location: Where you live also plays a factor in car insurance premiums. Premiums between states can vary significantly, and even your zip code can lower or raise your insurance. Neighbourhoods with higher car thefts or accidents can significantly affect how much you pay in car insurance. 

Car insurance calculations are detailed and complex; many factors are used to calculate each person’s exact quote, but each insurance company weighs each factor differently. This means that you can get a different quote from each insurance provider, which can save you money.

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How to Find the Best Car Insurance for 21 Year Old Drivers?

Your age might affect your car insurance premiums, but that doesn’t mean you can’t still save money and find affordable car insurance for a 21 year old. Some steps you can take to reduce your car insurance premiums include:

  • Maintain a clean driving history: Avoid getting any tickets or into any accidents to keep your premiums as low as possible. 
  • Compare quotes: Insurance companies are in competition with each other, so getting multiple quotes can help you find the best deal. 
  • Bundle insurance policies: Many providers offer discounts if you purchase multiple policies from them, such as car insurance and renter’s insurance. 
  • Consider your vehicle: Choose a safe, reliable make and model to not raise any red flags with your car insurance.
  • Ask for discounts: Don’t be afraid to ask for a discount, such as a good student discount, defensive driver discount, and low mileage usage discounts. 

Your insurance will start to go down as you get older, but in the meantime these tips can help keep your car insurance affordable. 

The Best Car Insurance For 21 Year Old Drivers

The bottom line is that 21 year old car insurance is expensive. Your very best bet is to compare quotes and find the best rates possible while keeping your driving record clean so that when you turn 25, your rates don’t stay high.

Lauren LewthwaiteLauren Lewthwaite has been freelance writing for almost five years writing content that ranges from health to insurance and everything in between. Lauren is also a trained translator in French and English and is a dog-mom to an adorable Australian Shepherd.