Auto Insurance Companies That Decrease Their Rates After the Driver Turns 21 (2022)

Erie and GEICO are the best auto insurance companies that decrease their rates after the driver turns 21. On average, 21-year-old drivers could pay as low as $170/mo for auto insurance. However, your rates may vary. You can avoid auto insurance companies that don't decrease their rates after the driver turns 21 by shopping around and comparing multiple companies.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Nov 3, 2021

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A Concise Overview

  • Twenty-one-year-old drivers have more driving experience than teen drivers
  • Most auto insurance companies have significant rate reductions when drivers turn 25 years old
  • Student discounts can bring down expensive rates for 21-year-old drivers
  • Males usually produce higher auto insurance rates than females

Are you searching for the best car insurance companies that decrease their rates after the driver turns 21?

There aren’t many auto insurance companies that don’t decrease their rates after the driver turns 21, which is good news if you’re looking for affordable insurance for young 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 insurance companies. Also, we’ll show you the average car insurance rates by age.

Enter your ZIP code in the free online quote tool above to compare multiple insurance companies near you after learning about auto insurance companies that decrease their rates after the driver turns 21.

Which auto insurance companies lower rates when you turn 21 years old?

Most car insurance companies provide cheaper rates after you turn 21 years old. Although 21-year-old drivers are a high risk to insure, they have a lower risk than teen drivers.

Let’s look at how the best insurance companies issue monthly rates to 18-year-old and 21-year-old drivers.

Monthly Auto Insurance Rates of 18 and 21-Year-Old Drivers by Company
CompaniesMonthly Rates for 18-Year-Old DriversMonthly Rates for 21-Year-Old Drivers
Allstate$894$628
Erie$264$170
Farmers$539$411
GEICO$352$207
Nationwide$478$252
Progressive$588$302
State Farm$473$303
USAA$330$177
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Erie, USAA, and GEICO are the most affordable auto insurance companies for 21-year-old drivers.

And car insurance rates are cheaper as you get older. That’s because older drivers have more experience behind the wheel.

Are auto insurance rates for 21-year-old females cheaper than 21-year-old males?

The answer is yes. On average, 21-year-old females pay about $29 less per month than 21-year-old males.

However, car insurance rates for all drivers vary by the company and the state where they live.

What is the most affordable auto insurance company for 21-year-old drivers by the state?

Each company generates different rates in various states.

Let’s review the average cost of car insurance from a few states to see which companies are the cheapest:

Cheapest Auto Insurance Companies for 21-Year-Olds by State
StatesCompaniesMonthly Auto Insurance Rates
CaliforniaGEICO$148
FloridaGEICO$208
GeorgiaGeorgia Farm Bureau$185
IllinoisState Farm$167
MichiganProgressive$248
New YorkGEICO$283
North CarolinaGEICO$76
OhioGEICO$163
TexasState Farm$244
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Although Erie is cheaper than GEICO, GEICO is the most affordable auto insurance company in most states.

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Why won’t some auto insurance companies decrease rates after I turn 21?

Age is a significant factor when determining car insurance rates. Some insurance companies may not decrease rates because they believe 21-year-old drivers pose the same high risk as drivers that are younger than 21.

According to the Centers for Disease Control (CDC), drivers from 16 to 24 have the highest fatality and severe injury rates among licensed drivers.

Car insurance companies may use statistics to justify their insurance rates. But you can avoid expensive rates when you qualify for discounts.

What are the best auto insurance discounts for 21-year-olds?

Young drivers should take advantage of any discounts that a car insurance company provides. Here’s a list of discounts that can help 21-year-old drivers save hundreds per year on auto insurance:

  • Multi-Policy Discount
  • Good Student Discount
  • Usage-Based Insurance Discount
  • Distant Student Discount
  • Defensive Driver Discount
  • Anti-Theft Device Discount

Any 21-year-old driver with an apartment should consider renters insurance in addition to auto insurance. This can save you at least 12% on your policy.

If you have a policy with an eligible car insurance company, consider enrolling in a usage-based insurance program. You can earn savings for good driving habits that you can stack your savings with student discounts.

Why aren’t my auto insurance rates going down?

There are various reasons why your car insurance rates won’t decrease. If you’re a new driver, your insurance rates won’t always decrease at 21-years-old.

When does insurance go down for new drivers? It may take at least three years to generate a reliable insurance history. After that, you may start to see a drop in car insurance rates.

Can traffic violations affect auto insurance for 21-year-old drivers?

Yes. Traffic violations and accidents can stick to your driving history for at least three years.

Incidents on your driving record can affect your auto insurance rates. For example, a 21-year-old with one or more speeding tickets can expect their rates to increase for the next three years.

When does auto insurance become more affordable?

You won’t start seeing significant decreases in car insurance rates until you’re 25 years old. Statistically, you’re less likely to file an insurance claim at 25.

But new drivers who happen to be 25 years old have insurance rates that are higher than average. Meanwhile, 25-year-old female drivers pay less expensive rates.

As you get older, you’ll see your auto insurance rates decrease regardless of gender.

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Auto Insurance Companies That Decrease Their Rates After the Driver Turns 21: The Bottom Line

It’s standard for car insurance companies to charge less as you get older. But new drivers encounter higher-than-average rates regardless of age. That’s because they don’t have much of an insurance or driving history.

However, you can secure more affordable auto insurance rates by shopping around at various insurance companies.

Now that you know more about auto insurance companies that decrease their rates after the driver turns 21, use our free online quote below to compare multiple companies in your area.

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