Car insurance for 20-year-olds

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 $4,067 per year, or about $339 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 $1,289 per year or $107 per month.

For parents who have a 20-year-old driver on their policy, the average cost of full coverage insurance is $4,067 per year, or $339 per month, while minimum coverage costs just $1,289 per year, or $107 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.

Best cheap car insurance companies for 20-year-olds

With high insurance premiums and tight budgets, many young drivers are looking for the cheapest insurance company available. Many young drivers also value an insurance provider that’s easy to work with, has digital tools and offers great customer service. Bankrate’s insurance editorial team utilized Quadrant Information Service’s most recent data and analyzed coverage options, discounts, third-party ratings and NAIC Complaint Index scores. Next, the team calculated a Bankrate Score for each insurance company. The score is based on a five-point scale, so drivers can quickly see how companies compare.

To get you started in your search for the best car insurance company for a 20-year-old, drivers might consider requesting quotes from Progressive, Geico, Auto-Owners and USAA (if affiliated with the military).

Top carriers for 20-year-old car insurance

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

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

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.

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.
• Pay your bill at once: Some discounts are available to all drivers, even those in a high-risk category. This often includes discounts for paying in full and paperless billing.
• Drive safe: 20-year-old safe drivers may want to consider telematics programs. This type of discount requires putting a gadget on your vehicle that tracks things like your speed and how often you come to a hard stop. If you exhibit safe driving habits, this program can help you lower your premium.
• Get good grades: If you’re enrolled in school and get good grades, many insurers offer a modest discount on your insurance rates in return.
• 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 — these apply separately to optional collision and comprehensive coverage. 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

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