Car insurance for 20-Year-Olds

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20-year-old drivers have a few years of driving experience, but they still pay, on average, hefty annual insurance premiums. The average cost of full coverage car insurance for 20-year-olds is $3,795 per year. Car insurance can be costly for 20-year-olds, but understanding the nuances of how your rate is calculated and what you can do to lower your premium might help you fit your coverage into your budget.

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

Twenty-year-olds pay an average of $3,795 per year for full coverage car insurance. Although this is less than 18- and 19-year olds pay, it is still far more than the national annual average cost of full coverage, which is $1,674 per year.

Drivers this age are still considered to be relatively inexperienced by insurance companies, which then charge higher premiums to compensate for the greater risk of claims. You should see your premium begin to drop as you get older, assuming that you maintain a clean driving record.

Average car insurance costs for 20-year-old men and women

In most states, car insurance policies are partially rated based on your gender. Statistics show that men engage in riskier driving habits than women do, which puts them at a higher risk for accidents. Because of this, men typically pay more than women for car insurance.

Average annual full coverage premium for 20-year-old man Average annual full coverage premium for 20-year-old woman
$4,098 $3,492

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

Every state has its own insurance laws, which can affect how much you pay for car insurance at any age. Additionally, each state has differing rates of accidents and weather-related damage, as well as different costs associated with medical care and vehicle repairs. All of these factors affect the average cost of insurance in your state.

State Average annual full coverage premium for 20-year-old male Average annual full coverage premium for 20-year-old female Overall average annual full coverage premium
Alabama $4,677 $3,817 $4,247
Alaska $3,921 $3,172 $3,534
Arizona $3,654 $3,135 $3,391
Arkansas $4,820 $3,916 $4,357
California* $3,988 $3,972 $3,980
Colorado $4,944 $4,060 $4,494
Connecticut $4,892 $3,914 $4,420
Delaware $4,805 $3,899 $4,352
Florida $6,194 $5,258 $5,726
Georgia $5,390 $4,122 $4,763
Hawaii* $1,295 $1,294 $1,294
Idaho $2,932 $2,365 $2,648
Illinois $3,981 $3,285 $3,634
Indiana $3,231 $2,666 $2,945
Iowa $2,935 $2,373 $2,657
Kansas $4,225 $3,452 $3,838
Kentucky $6,041 $4,846 $5,444
Louisiana $6,390 $5,446 $5,911
Maine $2,672 $2,073 $2,372
Maryland $5,010 $3,902 $4,473
Massachusetts* $3,126 $3,122 $3,124
Michigan* $5,752 $5,735 $5,743
Minnesota $3,584 $3,082 $3,333
Mississippi $4,252 $3,407 $3,840
Missouri $4,330 $3,519 $3,923
Montana* $4,240 $4,236 $4,238
Nebraska $3,791 $3,020 $3,414
Nevada $5,275 $4,543 $4,928
New Hampshire $3,171 $2,420 $2,806
New Jersey $4,587 $3,873 $4,232
New Mexico $3,298 $2,774 $3,033
New York $5,366 $4,353 $4,861
North Carolina* $1,651 $1,656 $1,653
North Dakota $2,884 $2,411 $2,648
Ohio $2,948 $2,413 $2,679
Oklahoma $4,098 $3,483 $3,791
Oregon $3,161 $2,738 $2,945
Pennsylvania* $3,798 $3,813 $3,806
Rhode Island $4,737 $3,834 $4,238
South Carolina $4,121 $3,329 $3,733
South Dakota $3,506 $2,941 $3,232
Tennessee $3,552 $2,940 $3,241
Texas $4,967 $3,942 $4,455
Utah $3,525 $2,924 $3,215
Vermont $3,909 $3,170 $3,539
Virginia $3,615 $2,866 $3,246
Washington $3,325 $2,734 $3,034
DC $4,275 $3,427 $3,863
West Virginia $3,833 $3,196 $3,520
Wisconsin $2,828 $2,390 $2,609
Wyoming $3,409 $2,661 $3,035

*These states do not allow insurers to rate consumers differently based on gender.

Best car insurance companies for 20-year-olds

Although price is important when shopping for insurance, it is not the only factor to consider. Bankrate’s team of insurance editors obtained current premium information for the largest insurance companies by market share in the country. After analyzing the data, we also reviewed each company’s coverages, discounts, policy features and third-party rankings.

For 20-year-olds looking for the best car insurance, these companies might be a good starting place:

Car insurance company Average annual full coverage premium for 20-year-old males Average annual full coverage premium for 20-year-old females Overall average annual full coverage premium
Geico $2,848 $2,600 $2,724
State Farm $3,169 $2,647 $2,908
Progressive $3,578 $3,112 $3,345
Travelers $3,671 $3,135 $3,403

Geico

Geico might appeal to young drivers for its highly-rated digital tools. The company earned the top spot in the J.D. Power 2021 U.S. Digital Experience Study for the Service category, meaning that most customers are satisfied with Geico’s digital service. The mobile app lets you pay bills, file claims, call for roadside assistance, view ID cards, make changes and more. Geico is also known for having one of the longest lists of discounts in the industry, with savings for federal employees, military members and safe drivers, among others.

Learn more: Geico Insurance review

State Farm

If you are looking for a well-established company with the weight of history behind it, State Farm might be a good choice. It is the largest personal auto insurer in the country and sells its products through a network of 19,000 agents. Young drivers might be particularly drawn to State Farm’s Steer Clear program, which can save you money and help you learn safer driving habits. You can also lower your premium by being a good student, taking a driver training course or being a student at college without a vehicle.

Learn more: State Farm Insurance review

Progressive

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 in your financial plan. You can also review quotes from other companies from Progressive’s website, which could allow you to see if another carrier has a better price for the same coverage. If you plan to get your quote and buy your policy online, Progressive could be a good option. The company offers savings for online quotes and purchases.

Learn more: Progressive Insurance review

Travelers

Travelers has the highest premium on our list, but the company’s extensive list of optional coverages might make up for the higher premium. You can add options like loan/lease gap coverage, new car replacement, accident forgiveness or ridesharing coverage to personalize your auto insurance policy. You might be able to lower your premium by being a good student, being away at school without a vehicle and by being a safe driver.

Learn more: Travelers Insurance review

Cheapest car insurance for 20-year-old drivers

Because 20-year-olds pay relatively high average premiums for car insurance, finding a cheap provider might be high on your list of priorities. Luckily, there are numerous carriers who offer coverage that is lower than the national average cost of full coverage for 20-year-olds.

Car insurance company Average annual full coverage premium for 20-year-old males Average annual full coverage premium for 20-year-old females Overall average annual full coverage premium
USAA $2,543 $2,302 $2,422
Erie $2,679 $2,167 $2,422
Geico $2,848 $2,600 $2,724
Auto-Owners $2,951 $2,528 $2,740
State Farm $3,169 $2,647 $2,908

These are average premiums; the price you pay for car insurance will depend on your individual rating factors like the type of car you drive, the state you live in and your driving history. You may pay more or less than these figures.

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

20-year-olds can expect to pay relatively high car insurance premiums when compared with the national average, but there are ways that you can save.

Shop around

Perhaps the best way to find affordable car insurance is to get quotes from several carriers. Every insurance company has its own proprietary rating method, so the same coverage can cost you more or less with different companies. Getting quotes from several carriers for the same coverage might help you find a policy that fits your budget.

Take advantage of discounts

Although every company will have a unique suite of discounts, most companies offer at least a few. Choosing a company that has one or more discounts that you qualify for can help you lower your premium. Some common discounts include multi-policy, paperless, paid-in-full and good student.

Choose a higher deductible

If you have full coverage, your policy has two deductibles: one for comprehensive and one for collision. These deductibles are the amount you will pay out of pocket if you file a claim for vehicle damage under these coverages. If you increase one or both of your deductibles — meaning that you are willing to pay more out of pocket if you file a vehicle damage claim — your premium will generally go down. But because you will have a higher out-of-pocket expense if you file a claim for damage to your car, you should consider your deductible levels carefully and make sure you can afford them.

Consider the car you drive

Some cars are cheaper to insure than others. This can have to do with the price of parts and labor, the statistical likelihood of accidents, safety features and overall value. Most insurance professionals recommend that you get an insurance quote for a vehicle before you sign a contract. That way, there are no financial surprises and you can factor the insurance cost into your budget to make sure you can afford the vehicle.

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

The first step to finding the best car insurance for your needs is to understand your situation. Take stock of your rating factors, including the type of car you have, any specific coverages you are looking for, your driving history and what discounts you might qualify for. Then, get quotes from several companies that might fit your needs. That way, you can compare the quotes and companies and choose the option that is right for you.

Frequently asked questions

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

20-year-olds pay a national average of $3,795 for full coverage car insurance. However, your price will depend on your individual situation. The state you live in, your driving history, the type of car you drive and potentially your gender could impact how much you pay.

At what age will my rates go down?

Most drivers 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 driving records. Car insurance rates generally decrease as you get older and gain more experience, but can begin to creep up again in your senior years, as you may once again be at a higher likelihood of accidents.

Which state is the most expensive state for 20-year-olds?

Louisiana is currently the most expensive state for 20-year-olds with an average annual premium of $5,911 per year.

Which state is the cheapest state for a 20-year-old driver?

Hawaii is the cheapest state for auto insurance for 20-year-olds. Currently, the average annual premium is only $1,294. Hawaii bans the use of age as a rating factor, which likely contributes to the low average cost for young drivers.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 20-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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week, drive 12,000 miles annually and have a renters insurance policy.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania.

Written by
Cate Deventer
Insurance Editor
Cate Deventer is a writer, editor and insurance professional. She is currently pursuing a Bachelor’s degree in English with a concentration in professional and technical writing from Indiana University East. She began writing for Bankrate in January 2021 and has nearly a decade of experience in the insurance industry as a licensed insurance agent. Cate has worked with over a dozen insurance companies and is experienced with auto, home, flood, umbrella and life insurance.
Edited by
Insurance Editor