The Best Car Insurance Companies for New Drivers Over 21
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You’re over 21 years old but new to being behind the wheel. Plus, you find yourself in an interesting position because while you’re not a 16-year-old teenager, insurance companies might treat you the same because you lack driving experience. When looking for the best auto insurance company, you want to balance quality coverage, good customer service, and a price you can afford. Thankfully, many auto insurance companies will serve your needs.
- Drivers new to being behind the wheel pay more for car insurance because of their increased risk of getting into an accident.
- Several car insurance companies offer competitive pricing, quality customer service, plenty of coverage options, and even discounts for drivers with less experience.
- Even though car insurance is going to be expensive when you’re a new driver, there are still ways that you can save on your insurance costs.
The Best Car Insurance Companies for New Drivers Over 21
From providing great discounts to delivering quality customer service and plenty of coverage options, these car insurance companies are some of the best options for new drivers over 21.
State Farm has many qualities that appeal to new drivers over 21 years old. It provides a wide selection of car insurance products. Some policies and add-ons include standard options like comprehensive and collision, electric and hybrid vehicle insurance, emergency roadside service, and rideshare coverage. State Farm has more than 19,000 agents nationwide, so you can get personalized service that feels much more like working with a small company.
The company offers many discounts that are particularly appealing to new drivers. With the Drive Safe & Save app, telematics will track your driving habits and provide tips on how to drive safer. Practicing safe driving habits can earn you a discount of up to 30%. The student away at school discount can reduce premiums if you move away from school and only use your vehicle during vacations. Additionally, State Farm’s Steer Clear program is specifically for drivers under age 25. If you drive for at least three years without any at-fault accidents or moving violations, you could save up to 15% on your insurance premium.
You can also get other types of insurance through State Farm, including renter’s insurance, supplemental health insurance, pet medical insurance, and more. By bundling multiple policies, you can save extra money.
With over 100 years in the insurance industry, State Farm has established itself as a trusted insurer. It’s known for providing quality customer service, and between its agents and robust mobile app, it’s easy to get help when needed.
Clearcover is changing the car insurance game with its innovative use of technology. Its award-winning app and artificial intelligence are at the heart of the company’s appeal. The company can offer highly competitive pricing on its policies by using technology to streamline operations.
The Clearcover app will guide you through shopping for car insurance with its 60-second Coverage Wizard. You can quickly choose the coverage you need and nothing more.
Clearcover also boasts some of the fastest claim payouts, thanks to the app. It allows you to file a claim, submit photos, and answer additional questions with ease. The app’s technology scans the damage and can issue payment on some claims in minutes. According to Clearcover, it pays some claims in as quickly as seven minutes and most within a week.
With its creative use of technology, this company may be an excellent choice if you’re looking for a tech-savvy, modern car insurance company. Clearcover is known for its competitive rates and flexibility as you shop for and choose your insurance coverage. It only offers coverage in 20 states but plans to expand further.
Founded in 1907, Amica is a mutual company owned by its shareholders. It has earned a reputation for its excellent customer service and an A+ AM Best rating.
Amica’s coverage options include your traditional coverages and options like rental reimbursement, glass coverage, and accident forgiveness. If you want to customize your policy, consider adding the Platinum Choice Auto plan, which includes perks like rental car coverage with no daily limit, free credit monitoring, and replacing a totaled vehicle with a new one.
The company also offers many discounts, including loyalty, defensive driver training, paid-in-full, and paperless discounts. Full-time college students with a B average or higher can get a good student discount, and Amica also offers a discount for students who go away to school and leave their vehicles at home. Suppose you’re under 30 years old and your parents have had an auto insurance policy with Amica for a minimum of five years. In that case, you may become eligible for a legacy discount on your premium.
If you need to file a claim, Amica makes it easy and gives you plenty of choices. You can file by phone, online, or through the app.
Find affordable auto insurance as a new driver over 21.
Located in California, Mercury Insurance has established an exceptional customer loyalty rate, with more than 96% of customers choosing to renew their policies. Those loyalty rates are indicative of the company’s dedication to customer service. While it may not be an insurance giant, its quality service sets it apart from others on the market.
You may be eligible for many discounts, including paid-in-full, e-signature, anti-theft, and auto-pay discounts. A good student discount is available to students who maintain good grades. In contrast, a good driver discount can save you money if you go for a certain period without getting into an accident or receiving a traffic violation. Mercury also offers a RealDrive tracking program that monitors your mileage, and you can save more by driving less.
With so many great things about Mercury insurance, there is one downside. The company only offers insurance in 11 states at this time.
Safeco, a part of Liberty Mutual, has offered insurance policies for nearly a century. The company is known for providing competitively priced policies that include car insurance, pet health, ridesharing insurance, renter’s insurance, and identity recovery.
It offers many coverage options, like new vehicle replacement and rental car reimbursement, and allows you to personalize your coverage so you only buy what you need. Safeco even pays you for driving safely. If you are claims-free for more than six months, you’ll receive a check for 2.5% of your policy premium.
Safeco offers several other discount options, including the RightTrack program. When you sign up for RightTrack, telematics monitors your driving safety, and you can save up to $513 per year when you practice safe driving habits. Safeco guarantees a discount just for participating in the program. With so many potential discounts, you can look forward to paying a lower premium as a new driver.
Metromile could help you save money on your car insurance if you don’t drive often. One of the first companies to offer pay-per-mile insurance, it uses a tracking device in your vehicle to report your daily mileage. With Metromile, you’ll pay a smaller monthly fee that starts at $29 per month. Then, you’ll pay an additional monthly per-mile fee, so the less you drive, the lower your premium is. You could see significant savings if you drive less than 10,000 miles annually.
A relatively new company, Metromile has earned an A+ Better Business Bureau rating. It offers flexible coverage, including collision, comprehensive, roadside assistance, and glass repair options.
Metromile’s app makes it easy to monitor your driving habits and mileage. You can use the app to locate your vehicle if it’s stolen, and in some cities, you can receive street sweeping alerts. You can also file your claim in the app, and Metromile’s AI-assisted system helps to ensure your claim is processed quickly.
Metromile is available in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.
Factors That Affect Car Insurance Rates for New Drivers Over 21
Many factors – some within your control and others out of your control – will affect your car insurance rates.
Your driving record plays a crucial role in your car insurance rates. As a new driver, you won’t have much of a history, so it’s essential to keep it clean. If you accumulate traffic violations, your rates will increase because insurance companies view you as a high-risk driver.
The type of coverage you choose, as well as your coverage limits and deductibles, will affect your premium. While you will need coverage that at least meets your state’s minimum insurance requirements, you might decide to add on options like roadside assistance or comprehensive and collision coverage, which will increase the price.
Lower policy limits will help to keep costs down, but remember that if you’re in an accident, you could be financially responsible for any resulting expenses that your insurance doesn’t cover. Rather than lowering your policy limits, it may be better to choose a higher deductible, but keep in mind that you will need to pay your deductible out-of-pocket before your insurance will pay out on a claim.
Type of Vehicle
The type of vehicle you drive can have a significant impact on your insurance costs as well. A more expensive, newer car costs more to insure because it would be more costly to repair or replace the car. Older vehicles with a lower value typically cost less to insure.
Age and Experience
Car insurance companies consider younger drivers with less experience to be higher-risk drivers, meaning you will pay higher rates. As you gain experience, your rates will gradually decrease as long as you maintain a clean driving record.
Even your gender affects your car insurance rates. Since men tend to exhibit riskier driving behaviors, they pay more for insurance.
California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania prohibit car insurance companies from using gender to calculate policy costs. In other states, though, gender could play a role in what you pay.
Even where you live has an impact on your car insurance. Car insurance companies consider your location because it affects the chance of filing a weather claim or potential theft and vandalism if you drive in a high-crime area.
If you live in an urban location, you will pay higher rates because of the traffic on the roads and the increased chance of getting into an accident compared with living in a more rural setting. Your location also impacts medical care and car repair costs, so your insurance company will adjust your rates to reflect those costs.
Why Is Car Insurance for New Drivers So Expensive?
Car insurance companies charge more to insure new drivers because they need experience behind the wheel. Less experienced drivers are more likely to be involved in an accident, meaning the insurance company assumes additional risk by insuring them.
As you get older and gain more experience driving, your rates should decrease as long as you maintain a clean driving record.
How to Save on Car Insurance Costs for Drivers Over 21 Years Old
While your insurance premiums will be more expensive when you’re a new driver over 21 years old, there are still plenty of ways to keep those costs down.
Focus on Safe Driving
Your insurance premium will drop as you age, but only if you maintain a safe driving history. Focus on staying safe behind the wheel and avoiding at-fault accidents and traffic violations.
You should take a defensive driving course, making you a safer driver and helping you qualify for a discount from your car insurance provider. Before you sign up for a course, confirm your insurer offers a discount and a qualifying option.
Consider a Telematics Program
More insurance companies are using telematics to provide good drivers with additional discounts. Consider choosing a car insurance company that offers this program.
When you enroll in telematics, you will drive with a device attached to your car or a special app on your phone for a certain period. The device will track your driving habits, including flagging risky behavior like speeding or hard braking. It provides that information to your insurance company, and the insurer will customize your premium to reflect your driving habits. A telematics program can pay off if you’re a safe and careful driver.
See if a Pay-Per-Mile Program Would Pay Off
If you don’t drive much, a pay-per-mile policy might save you money compared to a standard insurance policy. With a per-mile policy, you will pay a low monthly base rate and then a per-mile fee that depends on how far you drive each month. This type of policy might be ideal if you live in a city or don’t use your car often.
Build Your Credit
Some car insurance providers believe that drivers with a poor credit rating are riskier to insure than drivers with good or excellent credit. Improving your credit rating could lower your car insurance costs.
To build your credit:
- Focus on responsible spending.
- Try to use as little credit as possible to show that you don’t depend on it.
- Consider signing up for automatic bill payments to ensure you make all payments on time.
Ask Your Parents to Add You to Their Policy
You may be able to save money by having your parents add you to their existing policy rather than venturing out on your own. You can establish a clean driving history by remaining on your parent’s policy for a few years. Then, as your rates decrease, feel free to take out your own policy.
Carefully Choose Your Coverage
Think carefully about what you need, and ensure you’re not paying extra for coverage that isn’t necessary. For example, you might want full coverage on a newer, more valuable car to provide complete protection in the event of an accident. But as your vehicle ages and depreciates, full coverage might not be necessary.
Make Sure You’re Using Available Discounts
When you compare different insurance companies or take out a policy, ensure you’re taking advantage of all available discounts. Options such as automatic bill pay, pay in full, and good student discounts may save you small amounts individually, but those savings can add up when you combine them.
Carefully Choose Your Vehicle
If money is tight and you’re worried that your insurance is expensive, then carefully choose the vehicle you drive. A newer, more expensive car will cost more to insure because of its value. Choosing a used vehicle or even a more economically priced new vehicle can save you money on your insurance.
Buying a cheaper vehicle could also help you avoid paying for gap insurance. If you purchase an expensive car and have to take out a significant auto loan, then it’s essential to buy gap insurance to protect yourself. Suppose you get into an accident and total the car. Gap insurance covers any remaining difference between the amount your standard car insurance would pay for the vehicle’s depreciated value and what you still owe on your car loan. The gap insurance helps to avoid a situation where you are left still making payments on a car loan, even though your vehicle is totaled.
Save on your next car insurance policy.
Tips for Buying Car Insurance for New Drivers Over 21
As you shop for car insurance, consider how an ideal policy and insurance company looks. Think about the coverage you need and any essential perks, like an app or certain discounts.
Next, it’s time to shop around. Compare.com makes it easy to find the best policy at a price that works for you. Simply use our auto insurance comparison tool, and within minutes, you’ll receive a list of the most affordable insurers that offer the coverage you need. Then you can compare those companies to find the right one for you.
Compare.com users save an average of $720 per year on their car insurance.
Is your car insurance supposed to go down at 25?
Yes, car insurance costs should decrease at age 25 and continue to decrease as you move into your thirties. However, multiple factors affect your rates, mainly your driving record. Be sure to avoid traffic violations and accidents to see your premium decrease over time.
What is the best insurance company for first-time drivers?
Many insurance companies are ideal for first-time drivers. Companies like Mercury Insurance and State Farm offer multiple discounts for first-time drivers. MetroMile may be suitable if you don’t drive often.
How can I lower my car insurance as a 21-year-old?
You can lower your car insurance premiums by establishing a good driving record without a history of at-fault accidents or traffic violations. Building your credit score may help, and choosing a lower-value vehicle will also keep your rates down. Don’t forget to shop around for insurance to find the best rates, too, and then make sure that you take advantage of discounts that the insurance company offers.
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