So, you are 21 years old and you can vote, drink legally and join the military, but car insurance for 21 year olds still costs about the same as does for much younger drivers. When you are 21 years old, you are certainly a young adult, but insurance companies still consider you a child in terms of driving safety. There is not a lot you can do about your age classification (but wait until you are older); however, there are a few things you can do to make sure you get the lowest rates possible.
Choose Higher Deductibles
Most car insurance policies are quoted using standard $100 or $250 deductibles. However, if you want to save a considerable amount on your monthly insurance payment, you should consider raising your deductible to $500 or even $1000. While the higher deductible amount will cost you more money out of pocket if you're involved in an accident, you will save a considerable amount of money on your monthly payments. In fact, you'll probably save more on your car insurance payments over the course of a year then the added deductible amount.
Wait Until You’re 25 for That Sports Car
The car you drive will play a large factor in how much you pay in car insurance premiums. So, wait another few years until your age 25 before buying that fancy sports cars you've been dreaming of. Choosing a more practical car will save you hundreds of dollars every year in car insurance over a fancy sports car or trendy SUV.
Your Grades – 3.0 is the Magic Number
If you are still in school, try to keep your grades as high as possible. Most car insurance companies will give you a discount if you can maintain a 3.0 grade point average while in college. To qualify for the discount, simply inform your agent that your GPA meets the 3.0 standard of most car insurance companies and ask that the discount be applied. The company may require that you provide copies of your grades as you receive them in the future in order to remain eligible for the discount.
Stay Close to Home
Commuting fewer miles to your work or school not only saves you money on your fuel bill, it also helps you save money on car insurance. When you apply for an insurance policy, the insurance company will ask where you live, where you work or where you go to school. The reason for this is quite simple—people that drive fewer miles every day or involved in fewer accidents. So choosing a place of employment or school that is close to your home will help you save money on your car insurance.
Never Too Late for a Driving Course
Even if you didn't take a driver's education course in high school, it's never too late to save money by taking a driver safety course. If you're in college, check and see if your school has a driver safety course and if they do make sure to enroll and pass it. Even if your school doesn't offer a course, look for basic driver safety courses in your area and enroll. Although the classes will cost you a couple hundred dollars, you'll more than make up for that in savings of your car insurance over the next several years.
Drinking and Driving – Don’t Even Think About It
Because you're 21 years old, you're now legally entitled to drink alcohol. However, drinking and driving is not only a crime that could land you in jail—it will also affect how much you pay for your car insurance for several years. In fact, if you are fortunate enough to be able to keep your driver’s license, your insurance rates may increase by as much as 50% to 60% for three years or more.