Compare Car Insurance Companies That Decrease Their Rates After the Driver Turns 21 [2021]

Car insurance companies that decrease their rates after the driver turns 21 include GEICO, USAA, Progressive, and State Farm. Affordable car insurance companies that don’t decrease rates after the driver turns 21 as substantially are Liberty Mutual and Allstate. However, car insurance quotes that decrease after the driver turns 21 are not as cheap as the rate reduction you typically receive at age 25.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 24, 2021

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Here's What You Need to Know

  • Car insurance companies that decrease their rates after the driver turns 21 include GEICO, USAA, and Progressive
  • Affordable car insurance companies that don’t decrease rates after the driver turns 21 as substantially are Allstate and Liberty Mutual
  • Most drivers see a more significant rate reduction when they turn 25

Your age heavily impacts your car insurance rates, and young drivers pay more for coverage. But the best car insurance companies that decrease their rates after the driver turns 21 are GEICO, USAA, and Progressive.

Below, compare affordable car insurance companies that decrease rates after the driver turns 21 and learn how to secure cheap premiums at any age.

After learning details about ​​car insurance companies that decrease their rates after the driver turns 21, enter your ZIP code into our free tool above to receive rates from the best companies near you.

What are car insurance companies that decrease their rates after the driver turns 21?

Most companies decrease rates for drivers who turn 21, but some only reduce the cost of coverage by an insignificant amount.

Others might underwrite incredibly high base quotes, which will make the rate reduction insubstantial.

Compare average annual quotes from the top car insurance providers based on age in the table below.

Average Annual Car Insurance Rates for a 21-Year-Old by Company
CompaniesAverage Annual Car Insurance Rates for 21-Year-Olds
Allstate$7,536
Farmers$4,932
Geico$2,484
Liberty Mutual$12,669
Progressive$3,624
State Farm$3,636
USAA$2,124
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You can buy car insurance that decreases rates after the driver turns 21 by comparing quotes online and choosing the provider that best fits your budget and coverage requirements.

However, GEICO Car Insurance Company is our top recommended car insurance company that decreases rates after the driver turns 21.

GEICO offers additional discounts young drivers can easily earn, including:

  • Distant student discount
  • Driver’s ed discount
  • Good student discount
  • Group or membership discounts

USAA Car Insurance Company provides the cheapest average quotes for drivers aged 21 and offers the same discounts.

However, only military personnel and their families are eligible to open an insurance policy through USAA.

Progressive Car Insurance Company is our third recommended company for young drivers, as it offers the same discounts.

However, rates from this provider are not always competitive, depending on where you live. So check out our honorary mentions:

A car insurance company that doesn’t decrease rates after the driver turns 21 as significantly as GEICO, for example, is Liberty Mutual Car Insurance Company.

In most states, rates for young drivers are also unreasonably high from this particular provider.

Similarly, Allstate Car Insurance Company underwrites car insurance rates that don’t decrease after the driver turns 21 as greatly as GEICO, USAA, and Progressive.

So why are there car insurance quotes that don’t decrease after the driver turns 21 as considerably as others? Some providers only service certain groups of people.

For instance, The Hartford Car Insurance Company partners with AARP and focuses on senior car insurance.

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When do car insurance rates decrease for men versus women?

When does car insurance go down for new drivers in general? Typically, people see a substantial decrease in rates once they turn 25, regardless of gender.

But car insurance costs the least in your 50s.

When does car insurance go down for females the most significantly? Most women see the largest drop in rates after age 18. However, at that age, rates are usually still costly.

When does car insurance go down for males? Data suggests that rates for men also decrease the most at age 18.

Typically, drivers do learn safer habits at that age. According to the Centers for Disease Control and Prevention (CDC), the crash rate per mile for 16-year-olds is 1.5 times higher than for 18-year-olds.

Check out the table below to see how annual car insurance rates decrease on average as you age.

Average Annual Car Insurance Rates by Age
AgeAverage Annual Car Insurance RatesChange in Annual Rates
18 years old$7,392.00N/A
19 years old$6,180.00-$1,212.00
20 years old$5,520.00-$660.00
21 years old$4,608.00-$912.00
22 years old$4,308.00-$300.00
23 years old$4,020.00-$288.00
24 years old$3,768.00-$252.00
25 years old$3,348.00-$420.00
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Some people worry women pay less for car insurance than men, but statistically, the difference in rates is usually only about 3%, if there’s any difference at all.

In some states, it’s illegal to use non-driving factors like gender when calculating car insurance premiums. Those states include:

  • California
  • Hawaii
  • Massachusetts
  • Michigan
  • Montana
  • North Carolina
  • Pennsylvania

In Michigan, the law varies regionally so that gender may factor into your premiums in some ZIP codes.

Don’t worry; if you buy car insurance that doesn’t decrease rates after the driver turns 21, all you need to do is shop around for new coverage.

Just ensure you secure a new policy before canceling your old one to prevent any coverage lapses.

Why didn’t my car insurance rates decrease at 21?

If your car insurance didn’t decrease after your 21st birthday, there are a few potential reasons.

If you’re a new driver, meaning recently licensed, then your experience with driving is still limited.

Plus, car insurance companies cannot analyze how risky a driver you are without a substantial driving history. Therefore, your rates may still be high even at age 21.

A rocky driving record is another reason why your rates may not decrease at age 21.

Any at-fault accidents or traffic violations lead to premium hikes, and insurers are notoriously hard on younger drivers who commit these offenses.

If your credit is bad, it can also negatively impact your car insurance rates, but only in states that allow credit scores to contribute to car insurance calculations.

Your ZIP code may be leading to higher insurance costs. If the auto theft rates, traffic congestion, and population density are higher than average in your neighborhood, your regional car insurance costs also usually cost more.

Or, it’s possible your provider just doesn’t decrease rates for 21-year-olds very substantially in your region.

Whatever the reason, consider shopping around and comparing quotes from multiple providers to secure your cheapest rates at any age.

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

Car insurance premiums from most national providers typically decrease when you turn 21, but you’ll see more considerable savings at ages 18 and 25.

Some companies, like Allstate and Liberty Mutual, aren’t as friendly to younger drivers.

In contrast, insurers like GEICO, Progressive, and USAA specialize in underwriting for teens and young clients.

The best way to keep your rates low as a young driver is by practicing safe driving techniques and qualifying for discounts, like:

  • Good student discount
  • Claim-free discount
  • Low-mileage discount
  • Defensive driving discount
  • Autopay discount
  • Paid-in-full discount.

You can also reduce your insurance rates by bundling policies with your family or using a telematics insurance program.

Also, drive a safe, reliable vehicle that is cheaper to insure and avoid luxury and sports cars. Anti-theft devices and safety features on your car can also earn young drivers additional savings.

To compare rates from car insurance companies that decrease their rates after the driver turns 21, enter your ZIP code into our free tool below.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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