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Best car insurance companies for 20-year-old drivers

Updated May 13, 2024
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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

On average, car insurance for a 20-year-old driver costs $4,864 per year, or about $405 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 $1,367 per year or $114 per month. For parents who keep a 20-year-old driver on their policy, the average cost of full coverage insurance is $3,535 per year, while minimum coverage costs just $1,019 per year.

These costs are lower than the average cost of car insurance for teen drivers, which can range as high as $6,000 per year or more. 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.

State Average annual full coverage premium for 20-year-olds on their parents’ policy Average annual full coverage premium for 20-year-olds on their own policy
Alabama $3,128 $4,767
Alaska $3,491 $4,562
Arizona $4,038 $5,339
Arkansas $3,180 $4,744
California $4,066 $4,926
Colorado $4,489 $6,148
Connecticut $3,389 $5,665
Delaware $3,717 $5,889
Florida $5,484 $7,509
Georgia $4,187 $5,680
Hawaii* $1,721 $1,793
Idaho $2,046 $3,167
Illinois $3,318 $5,115
Indiana $2,572 $3,673
Iowa $2,510 $3,492
Kansas $3,697 $5,343
Kentucky $3,937 $5,956
Louisiana $5,391 $7,381
Maine $2,411 $3,614
Maryland $4,184 $6,366
Massachusetts* $2,413 $3,734
Michigan $5,092 $6,632
Minnesota $3,109 $4,560
Mississippi $2,959 $4,439
Missouri $3,629 $5,385
Montana $3,522 $5,281
Nebraska $3,056 $4,800
Nevada $5,006 $6,256
New Hampshire $2,649 $3,764
New Jersey $3,687 $5,250
New Mexico $3,304 $4,647
New York $5,216 $6,749
North Carolina $2,065 $2,108
North Dakota $2,454 $3,462
Ohio $2,545 $3,504
Oklahoma $3,757 $5,221
Oregon $2,813 $4,011
Pennsylvania $4,171 $5,557
Rhode Island $4,491 $6,458
South Carolina $2,749 $4,079
South Dakota $2,886 $3,877
Tennessee $3,088 $4,288
Texas $4,164 $5,836
Utah $3,459 $4,946
Vermont $2,370 $3,518
Virginia $3,143 $4,554
Washington $2,522 $4,053
Washington, D.C. $3,821 $5,093
West Virginia $2,837 $4,024
Wisconsin $2,506 $3,742
Wyoming $2,449 $3,494
Rates were calculated for 20-year-old drivers either on their parents’ policy or as a renter on their own policy. *Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Best car insurance companies for 20-year-olds

At age 20, most drivers want a car insurance company with affordable rates, reliable customer service and a user-friendly digital interface. To find those things, Bankrate’s insurance editorial team analyzed the latest premium data available from Quadrant Information Services, along with third-party ratings, NAIC Complaint Index scores, coverage options and available discounts. Each carrier received a Bankrate Score on a five-point scale, which gives a quick snapshot of how well the company might meet the needs of its customers.

For 20-year-old drivers seeking the best car insurance company for their needs, getting quotes from Progressive, Geico, Auto-Owners and USAA (if eligible) may be a good starting point.

Car insurance company Bankrate Score Average annual full coverage premium for 20-year-olds on their parents’ policy Average annual full coverage premium for 20-year-olds on their own policy
Progressive 4.4 $3,039 $4,179
Geico 4.4 $2,622 $3,574
Auto-Owners 4.3 $2,635 $3,314
USAA 4.2 $2,223 $3,378

Top carriers for 20-year-old car insurance

Progressive’s auto insurance tools can save you both time and money. If you are on a budget, the Name Your Price tool can help you find coverage options that will fit into your financial plan. You can also compare quotes from other companies through Progressive’s website, which could help you determine if another company has a better price for the same level of coverage.

If you plan to get your quote virtually and buy your policy online, Progressive might be a good option. The company offers savings for online quotes and purchases. However, you can also purchase Progressive’s car insurance through its national network of independent agents. Like our other top companies, Progressive has a strong balance sheet and is rated A+ (Superior) by AM Best. However, the company received a slightly below-average claims satisfaction score from J.D. Power.

Geico has some of the lowest average rates for 20-year-olds of any provider on our list. In addition, the company might appeal to young drivers for its highly-rated digital tools. The mobile app lets you pay bills, file claims, call for roadside assistance, view ID cards, make policy changes, locate nearby gas stations and more. The company ranked second overall on the J.D. Power 2023 U.S. Insurance Digital Experience Study for the service category, suggesting that it’s one of the most user-friendly digital insurance companies. That said, Geico ranked below the industry average in the digital shopping category, so you may want to get a quote through a local agent, if possible.

Geico is also known for having one of the most robust lists of discounts in the industry, with savings for federal employees, military members and safe drivers, among others. Geico carries an A++ (Superior) financial strength rating from AM Best, the highest available. However, the company does not offer gap insurance, so if you have a car loan and need that coverage, you may want to consider another option.

In 2024, Auto-Owners tied with Geico in the Bankrate Awards for Best Budget Auto Insurance Company. In our analysis of premiums for 20-year-old drivers, Auto-Owner consistently returned some of the lowest average rates for 20-year-olds on a standalone policy. Auto-Owners operates a wide network of local agents and offers a robust slate of coverage add-ons, such as accident forgiveness, gap coverage and collision deductible waivers. In J.D. Power’s 2023 U.S. Auto Claims Satisfaction Study, Auto-Owners scored well above the industry average.

Auto-Owners also advertises a strong discounts list, with some discounts such as a green discount or student discount that could appeal especially to 20-year-old drivers. However, auto coverage is limited to 26 states, so not every driver will be eligible for a policy. In addition, Auto-Owners scored well below average for both service and shopping in the J.D. Power 2023 U.S. Insurance Digital Experience Study, indicating that its digital tools may not be up to the industry standard.

In our analysis, USAA had the lowest rates for full coverage for parents with a 20-year-old on their policy, along with the lowest rates for 20-year-olds on a standalone minimum coverage policy. In addition to low rates, USAA has consistently received outstanding scores for customer service and claims satisfaction in J.D. Power’s most recent surveys.

The downside is limited eligibility: only 20-year-olds in the U.S. military, or those with a military parent or spouse, are eligible for an auto insurance policy through USAA. For those who are eligible, USAA’s generous list of discounts could mean additional savings, whether through a family loyalty discount, a low-mileage storage discount or a telematics discount from USAA’s SafePilot program.

How to get the best car insurance for a 20-year-old

The first step to finding the best 20-year-old car insurance is to understand your situation. Take stock of your rating factors, including the type of car you have, any specific coverage types you are looking for, your driving history and discounts you might qualify for. Next, compare quotes from several companies that might fit your needs.

Every insurance company prices policies for 20-year-old drivers a little differently — and every 20-year-old driver is different. That’s why comparison shopping is an essential step to help you find the ideal company for your own situation.

Cheapest car insurance for 20-year-old drivers

For many 20-year-old drivers, finding the cheapest car insurance possible is a priority. If that’s your situation, you may want to get quotes from the major carriers listed in the tables below: USAA, Geico, Auto-Owners, Erie, American Family and more. But keep in mind that auto insurance is highly personalized and often highly local — while we focused on the cheapest carriers available across multiple states, many young drivers find the cheapest rates with small regional carriers.

Cheapest car insurance for 20-year-old drivers on their parents’ policy

Car insurance company Average annual minimum coverage premium Average annual full coverage premium
USAA $582 $2,233
Geico $708 $2,622
Auto-Owners $762 $2,635
Travelers $775 $2,725
American Family $891 $2,601

Cheapest car insurance for 20-year-old drivers on their own policy

Car insurance company Average annual minimum coverage premium Average annual full coverage premium
USAA $871 $3,378
Auto-Owners $947 $3,314
Geico $967 $3,574
Erie $997 $3,065
Progressive $1,196 $4,179

Remember, the rates shown above are average premiums for 20-year-old drivers with clean driving records. In reality, you might find that you’re quoted higher or lower rates based on everything from your ZIP code and vehicle type to your claims history, other drivers on your policy and your credit history.

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Advertising disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

How to save on car insurance for 20-year-olds

Generally, 20-year-olds can expect to pay relatively high car insurance costs compared with the national average, but there are ways that you can save on your premium.

  • Shop around: One of the best ways to save is to get quotes from several companies so you can compare them. Most companies offer quotes online, or an independent insurance agent or broker may be able to help you find insurers that offer a wide range of discounts and more affordable insurance options for 20-year-olds. Note that it’s important to request the same coverage types and policy limits from each company to make a direct comparison.
  • Take advantage of discounts: Most companies offer at least a few discounts to help lower your premium. Common discounts for 20-year-old drivers include paperless billing, paid-in-full and good student discounts. Telematics discounts may also help lower your premium if you exhibit safe driving habits.
  • Choose a higher deductible: Understanding your auto insurance deductibles can help you to budget appropriately for insurance. Deductibles are the out-of-pocket amount you are responsible for in the event of a vehicle damage claim. Increasing your deductible generally lowers your premium, but it also means you would have to pay more in an accident or a non-collision loss, like theft or fire, and might not be able to make a claim for lower damage amounts.
  • Consider the car you drive: Some cars are cheaper to insure than others. Most insurance professionals recommend that you get an insurance quote before you buy or lease a vehicle, so you can anticipate what you’d be paying for the car you’re thinking of choosing. Cars that are cheaper than average to insure include small or midsize SUVs, such as the Subaru Outback, Honda CR-V, Honda Pilot and Ford Escape.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the age 20 and age 40 (base) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Written by
R.E. Hawley
Senior Writer, Insurance

R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license in the state of New York.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute