At what age will my car insurance rates go down?

Most young adults tend to see their rates begin to go down by the time they turn 25, assuming no accidents, tickets or DUI convictions show up on their motor vehicle records (MVR). Car insurance rates generally decrease as you get older and gain more experience. Drivers aged 16 to 18 are often the most expensive to insure, on average, due to their lack of driving experience and statistically high accident rate, but this can vary between company, location and driver specifics.

How much car insurance do 20-year-olds need?

Although minimum coverage car insurance is all that’s legally required in most states and is already quite expensive for 20-year-olds, it leaves significant financial vulnerability, especially in the event of an at-fault accident. Many drivers choose to extend those coverage limits and add optional types of coverage. Because minimum liability coverage is only designed to cover damage and injuries you cause to others, this type of insurance won’t pay for damage to your car or injuries you incur if you cause an accident. For that reason, many drivers opt for full coverage car insurance or purchase higher limits than what’s required.

What is the cheapest car insurance company?

No specific auto insurer is always the cheapest for everyone, since drivers’ rates are based on multiple factors specific to them and their vehicles. However, Bankrate regularly compiles the cheapest average rates across a range of the largest insurers by market share, so it may be worth referencing the most up-to-date list we have available and getting quotes from those insurers first.

What factors affect car insurance rates?

Insurance companies all have their own proprietary rating systems that influence the underwriting process, with variables and their importance differing between insurers. In most states, insurance companies are permitted to put significant weight on driver age when estimating an applicant’s risk. Other key rating factors include driving record, claims history, location, vehicle type, credit-based insurance score (in most states) and more. Gender can affect cost in most states, with car insurance for a 20-year-old male typically costing more than for a female. Drivers can often save money on their policies by driving safely and avoiding traffic Infractions.

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Car insurance for 20-year-olds

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Updated Apr 02, 2025

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How much is car insurance for a 20-year-old?

How much you pay for car insurance for a 20-year-old depends on several factors, including coverage type and whether the driver is on their own policy. On average, car insurance for a 20-year-old driver costs $4,085 per year, or about $340 per month, for a standalone full coverage policy, according to average premium data from Quadrant Information Services. For state minimum insurance, 20-year-olds on their own policy pay an average of $1,265 per year or $105 per month.

For parents who have a 20-year-old driver on their policy, the average cost of full coverage insurance is $4,085 per year, or $340 per month, while minimum coverage costs just $1,265 per year, or $105 per month.

These costs are lower than the average cost of car insurance for teen drivers, which can range up to around $7,000 per year. However, they’re also higher than the average cost of car insurance for adult drivers with clean records, a group that presents a lower risk of accidents and claims than 20-year-olds. While 20-year-olds typically have a couple of years of experience as licensed drivers, insurance companies still see them as statistically high risk.

Average car insurance cost for 20-year-olds by state

To understand how much insurance is for a 20-year-old, it’s important to look beyond national averages to pricing trends in your state. Every state has its own insurance laws, which can affect the average rates for car insurance at any age. In addition, each state sees different rates of motor vehicle crashes, auto theft and severe weather, as well as varying costs associated with medical care and vehicle repairs. All of these factors affect average rates for auto insurance in your state.

Hawaii

Average annual full coverage premium for 20-year-olds on their parents’ policy

$1,740