Drivers who are 21 years old pay less for car insurance coverage. Whether it's cheaper to stay on your parents' car insurance policy depends on your situation. To offset the increased risk of causing an accident, auto insurance companies typically charge a higher fee if you have a recent license. While car insurance is, on average, more expensive for 21-year-olds than for older drivers, there are ways you can save.
Full-coverage auto insurance in Texas costs an average of 230% more than minimum coverage policies, since full-coverage policies usually consist of comprehensive and collision insurance, as well as any coverage required by state law. Drivers who are 21 years old pay less for car insurance coverage than the average driver in Texas because they have a few years of driving experience to show that they are not risky drivers. Because car insurance is expensive for young drivers, MoneyGeek looked at the cheapest companies to help you save. However, the use of credit ratings as a rating factor in auto insurance has been banned or restricted in California, Hawaii, Massachusetts and Michigan.
All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. In general, the easiest way to make sure you get the cheapest full-coverage car insurance possible is to compare quotes from several companies and take advantage of all the discounts you qualify for. When an insured driver is responsible for an accident, liability insurance covers the other driver's expenses. At 21, you may not yet have home insurance or life insurance, but you may have renters insurance.
For more information on how age and location affect car insurance premiums, see WalletHub's guide to average car insurance rates by age and state. Because car insurance rates are often relatively expensive for 21-year-olds, many drivers will want to get a policy from the cheaper auto insurance company. For example, in states with a high risk of adverse weather conditions or with a large number of uninsured drivers, the average cost of car insurance is likely to be more expensive. The cheapest car insurance isn't necessarily the best car insurance, because every 21-year-old driver has different insurance needs.
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