Car insurance for 20-year-olds

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The average cost of car insurance for 20 year olds is $3,794 per year. Looking for affordable car insurance for a 20 year old isn’t the easiest thing to do, but there are possible ways to lower your monthly premium.

Cheapest car insurance for 20 year old drivers

Out of the best car insurance carriers, the cheapest options for 20 year old drivers according to 2021 rate data from Quadrant Information Services come from five major carriers:

Car insurance company Average annual premium for full coverage
USAA $2,422
Erie Insurance $2,422
Geico $2,724
Auto Owners $2,741
State Farm $2,907

Erie

Erie is easily the most affordable car insurance company for 20-year-olds. It doesn’t offer many discounts to its members, but it doesn’t have to for it to be competitive. However, it’s not just a cheap car insurance company. In 2020 it received a ranking of 850 out of 1,000 from J.D. Power, getting beat only by the likes of State Farm which received 855 out of 1,000 in the Mid-Atlantic.

USAA

USAA is a niche auto insurance company in that it only serves current and retired military as well as their eligible family members. USAA routinely scores well with J.D. Power (but is disqualified from ‘winning’ because of the eligibility restrictions). You might save even more with USAA when you bundle your car insurance with home insurance.

Geico

Geico offers affordable car insurance without discounts, but you might save even more on your premium when you take advantage of the numerous discounts that it offers. Geico also has a top notch mobile app (for both Android and iOS) where you can pay your bills, file a claim, request roadside assistance and check the status of your claim.

Auto Owners

Auto Owners Insurance provides several types of insurance, but car coverage may be its best known. Auto Owner’s Personal Automobile Plus package is ideal for people who have trouble deciding on the right amount of car insurance. The package comes with over 10 coverages, adding cell phone insurance, identity theft coverage and lost or stolen keys replacement insurance to its value-focused package.

State Farm

State Farm is the largest vehicle insurer in the country. You’ll find a large number of coverage options and discounts to create an affordable custom car insurance policy. State Farm’s mobile app and website are easy to use and ideal for 20-year-olds who prefer to handle most of their tasks digitally. In addition, there are over 19,000 agents nationwide available to sit down with you and help you choose the best car insurance.

Cost of car insurance for a 20-year-old

Across the nation, the average cost of car insurance for a 20-year-old is $3,794 a year. Therefore, depending on where you live, you may pay more or less than this amount.

Here’s a breakdown of the average cost per state:

State Average annual premium for full coverage
ALABAMA $4,247
ALASKA $3,549
ARIZONA $3,388
ARKANSAS $4,372
CALIFORNIA $3,984
COLORADO $4,506
CONNECTICUT $4,410
DELAWARE $4,352
FLORIDA $5,726
GEORGIA $4,757
HAWAII $1,294
IDAHO $2,648
ILLINOIS $3,634
INDIANA $2,949
IOWA $2,653
KANSAS $3,838
KENTUCKY $5,443
LOUISIANA $5,922
MAINE $2,373
MARYLAND $4,466
MASSACHUSETTS $3,127
MICHIGAN $5,746
MINNESOTA $3,333
MISSISSIPPI $3,830
MISSOURI $3,926
MONTANA $4,240
NEBRASKA $3,401
NEVADA $4,870
NEW HAMPSHIRE $2,797
NEW JERSEY $4,221
NEW MEXICO $3,035
NEW YORK $4,829
NORTH CAROLINA $1,656
NORTH DAKOTA $2,648
OHIO $2,682
OKLAHOMA $3,791
OREGON $2,955
PENNSYLVANIA $3,813
RHODE ISLAND $4,247
SOUTH CAROLINA $3,726
SOUTH DAKOTA $3,218
TENNESSEE $3,244
TEXAS $4,452
UTAH $3,229
VERMONT $3,540
VIRGINIA $3,243
WASHINGTON $3,029
WEST VIRGINIA $3,514
WISCONSIN $2,609
WASHINGTON, D.C. $3,851
WYOMING $3,034

Average cost of car insurance for 20 year old female vs. male

Females typically pay less for car insurance than males. Statistically, a female driver has fewer crashes and safer driving behavior than a male of the same age.

Average annual premium for 20 year old male Average annual premium for 20 year old female % difference
$4,097 $3,491 -15%

How 20 year old drivers can save money on car insurance

If you’re 20 years old and looking to lower your car insurance premium, you have a few strategies at your disposal to do so. Your best bet is to take advantage of discounts, but fortunately there are a few more things you can do.

Choose a high deductible

The fastest way to lower your premium is to choose a high deductible. Of course, this will lower the amount of help you’ll get should you get into an accident (thereby increasing the amount you’ll need to contribute), but it will stop you from having to pay more upfront.

Drive an older car

Newer cars cost more to insure than older cars because older cars don’t cost as much to replace. Opt for an older car and right off the bat your insurance will likely cost less than if you chose a new car.

Drive a car with a strong safety rating

Cars with solid safety ratings may not look as cool as other cars, but insurance companies love them. Because the car is more likely to keep you safe, you and your passengers will be less likely to need major medical care after an accident— therefore possibly saving your insurance provider a lot of money in the event you do get into a collision.

Usage-based car insurance

Not every company offers this type of auto insurance, so you will need to do a bit of research. However, if you don’t drive that often it’s worth a few minutes of your time. With usage based car insurance, you basically only pay for the days you actually drive. Think of it as prorated insurance.

With usage based car insurance, your insurance provider will look at such things as:

  • Miles driven
  • Time driven
  • Vehicle driven
  • Locations driven

Compare insurance rates

Most people don’t even think to do this because they assume all insurance companies basically charge the same amount. This couldn’t be further from the truth.
Each company looks at the following factors:

  • Type of car you drive
  • Where you live
  • How often you drive
  • Credit score
  • Coverage level
  • Marital status
  • Driving history
  • Insurance history
  • Annual mileage
  • Claims history

However, each company doesn’t weigh the importance of each factor the same way. For example, one company may consider your credit score to be the most important factor, while another is more concerned with your annual mileage. Unfortunately, companies don’t advertise their pricing formulas, so the best thing you can do is shop around and compare rates.

Improve your credit score

As a 20 year old, you haven’t had enough time to really develop a great credit score. However, that doesn’t mean you should just leave this variable alone because there are a few things you can do to help. Opening a credit card in your name and paying off the balance each month, or becoming an authorized user with someone who has a strong credit score are just some of the things you can do.

Improve your credit score and your insurance premiums will lower.

Discounts

Not every car insurance company offers the same discounts, so if you’ve been given a similar quote by multiple companies, take a look at the types of discounts they offer. Discounts can drastically lower your monthly premium.

Discounts a 20 year old might look at include:

  • Safe driver
  • Accident free
  • Defensive driving course
  • Low mileage
  • Good student
  • Away from home student discount
  • Military
  • E-bill
  • Paid in full
  • Auto-pay
  • Multi-policy
  • Anti-theft device

If you’re 20 and attending school, a good student discount is one of the easiest ways to save on your car insurance.

Average annual premium without student discount Average annual premium with student discount % difference
$3,794 $3,634 -4%

Frequently asked questions

How much is car insurance for a 20 year old?

How much you pay in car insurance varies by a lot of factors, such as which you state you live in, how often you drive, your gender and what type of car you drive. However, the average amount a 20 year old driver pays is currently $3,794 a year.

At what age will my rates go down?

Most people tend to see their rates go down by the time they turn 25 (assuming they’ve kept their driving record clean). However, each year it should go down a little bit until then.

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 $5,922.

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.

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 and drive 12,000 miles annually.

Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied.