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Car insurance for 20-Year-Olds

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Even 20-year-old drivers who have a few years of driving experience can still pay, on average, hefty annual insurance premiums due to their above-average accident frequency, according to the Insurance Information Institute (Triple-I). The average cost of full coverage car insurance for 20-year-olds is $3,794 per year. For minimum coverage auto insurance, 20-year-olds spend an average of $1,125 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?

20-year-olds pay an average of $3,794 per year for full coverage car insurance, according to premium data from Quadrant Information Services. Although this is less than what 18- and 19-year old drivers pay on average, it is still far more than the national annual average cost of full coverage car insurance, which is $1,674 per year.

20-year-old drivers are still considered to be relatively inexperienced by auto insurers, which typically charge higher premiums to compensate for the greater risk of claims. You should see your premium begin to drop as you get older, assuming 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 in states that factor gender in rates.

Average annual full coverage premium for 20-year-old female driver Average annual full coverage premium for 20-year-old male driver
$3,491 $4,097

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

Every state has its own insurance laws, which can affect the average rates for car insurance at any age. Additionally, each state has differing average rates of accidents and weather-related damage, as well as variable costs associated with medical care and vehicle repairs. All of these factors affect the average rates for auto 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 for 20-year-old drivers
Alabama $4,677 $3,817 $4,247
Alaska $3,926 $3,172 $3,549
Arizona $3,642 $3,135 $3,388
Arkansas $4,829 $3,916 $4,372
California* $4,001 $3,966 $3,984
Colorado $4,954 $4,058 $4,506
Connecticut $4,892 $3,929 $4,410
Delaware $4,805 $3,899 $4,352
Florida $6,194 $5,258 $5,726
Georgia $5,390 $4,124 $4,757
Hawaii* $1,294 $1,294 $1,294
Idaho $2,931 $2,365 $2,648
Illinois $3,989 $3,279 $3,634
Indiana $3,231 $2,666 $2,949
Iowa $2,935 $2,371 $2,653
Kansas $4,225 $3,452 $3,838
Kentucky $6,040 $4,846 $5,443
Louisiana $6,398 $5,446 $5,922
Maine $2,671 $2,073 $2,373
Maryland $5,010 $3,922 $4,466
Massachusetts* $3,127 $3,126 $3,127
Michigan* $5,752 $5,740 $5,746
Minnesota $3,584 $3,082 $3,333
Mississippi $4,252 $3,409 $3,830
Missouri $4,335 $3,518 $3,926
Montana* $4,240 $4,240 $4,240
Nebraska $3,789 $3,014 $3,401
Nevada $5,275 $4,465 $4,870
New Hampshire $3,171 $2,422 $2,797
New Jersey $4,571 $3,871 $4,221
New Mexico $3,300 $2,772 $3,035
New York $5,335 $4,323 $4,829
North Carolina* $1,656 $1,656 $1,656
North Dakota $2,884 $2,411 $2,648
Ohio $2,951 $2,413 $2,682
Oklahoma $4,098 $3,484 $3,791
Oregon $3,171 $2,738 $2,955
Pennsylvania* $3,813 $3,813 $3,813
Rhode Island $4,660 $3,834 $4,247
South Carolina $4,121 $3,331 $3,726
South Dakota $3,506 $2,930 $3,218
Tennessee $3,548 $2,940 $3,244
Texas $4,961 $3,944 $4,452
Utah $3,533 $2,925 $3,229
Vermont $3,909 $3,171 $3,540
Virginia $3,615 $2,871 $3,243
Washington, D.C. $4,275 $3,427 $3,851
Washington $3,325 $2,734 $3,029
West Virginia $3,833 $3,195 $3,514
Wisconsin $2,827 $2,390 $2,609
Wyoming $3,406 $2,661 $3,034

*These states prohibit insurers from using gender as an auto insurance rating factor.

Best car insurance companies for 20-year-olds

Although price is important when shopping for insurance, it is not the only factor to consider when choosing your auto insurer. 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 coverage options, discounts, policy features and third-party rankings.

For 20-year-olds looking for the best car insurance, getting quotes from major carriers Geico, State Farm, Progressive and Travelers might be a good starting place:

Car insurance company Average annual full coverage premium for 20-year-old female drivers Average annual full coverage premium for 20-year-old male drivers Overall average annual full coverage premium for 20-year-old drivers
Geico $2,601 $2,846 $2,724
State Farm $2,645 $3,168 $2,907
Progressive $3,108 $3,576 $3,342
Travelers $3,133 $3,664 $3,399

Geico

Geico has 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 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 very satisfied with Geico’s digital service. The mobile app lets you pay bills, file claims, call for roadside assistance, view ID cards, make policy changes and more. 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. Attractive coverage options from Geico include rideshare coverage, which could be important to individuals who use their vehicle to earn money. However, the company does not offer gap insurance, so if you need that coverage type to protect your auto loan, you may want to consider another option.

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. In addition to offering the second-cheapest average rates on our list, State Farm is the largest personal auto insurer in the country and sells its products through a network of 19,000 local agents. Young drivers might be particularly drawn to State Farm’s Steer Clear usage-based insurance program, which can save you money and help you learn safer driving habits. You may also be able to lower your premium by benefiting from a student discount or taking an accredited driver training course. State Farm holds an A++ (Superior) financial strength rating from AM Best. However, the company received more complaints than average, filed with the National Association of Insurance Commissioners (NAIC).

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 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 below-average claims satisfaction score from J.D. Power.

Learn more: Progressive Insurance review

Travelers

Travelers has the highest average rates for 20-year-old drivers on our list, but the company’s extensive menu of optional coverage types 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 earning good grades or maintaining a clean driving record. Travelers carries an A++ (Superior) financial strength rating from AM Best. However, Travelers has a greater number of complaints filed with the National Association of Insurance Commissioners (NAIC) than the industry baseline of 1.0.

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. Fortunately, there are numerous carriers who offer coverage that is lower than the national average cost of full coverage for 20-year-old drivers.

Car insurance company Average annual full coverage premium for 20-year-old female drivers Average annual full coverage premium for 20-year-old male drivers Overall average annual full coverage premium for 20-year-old drivers
USAA $2,303 $2,541 $2,422
Erie $2,168 $2,676 $2,422
Geico $2,601 $2,846 $2,724
Auto-Owners $2,529 $2,953 $2,741
State Farm $2,645 $3,168 $2,907

These are average premiums, but the price you pay for car insurance will depend on more than a dozen individual rating factors like the type of car you drive, how much you drive per year, coverage types and deductibles you choose, your claims history and motor vehicle record, according to the Triple-I. You may pay more or less than the premium cited above.

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

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

Shop around

Car insurance can be expensive in your 20s. One of the best ways to save is to research your options. You may want to look for companies that offer discounts that apply to you, such as distant student or good student discounts. Some companies offer usage-based and telematics programs that award discounts for safe driving. Companies use different underwriting processes to determine your rate, so you may benefit from comparing quotes from multiple insurance providers. If you’re not sure where to start, an independent insurance agent may be able to help you find car insurance providers that offer a wide range of discounts and offer more affordable insurance options for 20-year-olds.

Take advantage of discounts

Although every company will typically have a unique suite of insurance discounts, most companies offer at least a few to help lower your premium. Choosing a company that has one or more discounts that you qualify for can help you save. Common discounts for 20-year-old drivers include going paperless, paid-in-full and good student discounts.

Choose a higher deductible

Understanding your auto insurance deductible is important. If you have full coverage car insurance, your policy likely has two deductibles: one for comprehensive and one for collision. These deductibles are the amount you claim out of pocket responsibility for in the event of vehicle damage under these coverage types, similar to health insurance copay. 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 to pay for losses incurred.

Consider the car you drive

There are some cars that are cheaper to insure than others. Price differences can vary due to the cost of parts and labor, the statistical likelihood of accidents, safety features and overall value. Most insurance professionals recommend that you get an insurance quote before you buy or lease a vehicle. 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 coverage types 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?

The national annual average for 20-year-old drivers is $3,794 for full coverage car insurance. However, your price will depend on your individual situation, including your driving history, the type of car you drive and claims history.

At what age will my rates go down?

Most young 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.

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

Car insurance in Louisiana is currently the most expensive for 20-year-old drivers on average, with an average annual premium of $5,922 per year. However, it’s possible for you to secure lower rates by shopping around for coverage, comparing quotes and applying any discounts you are eligible for.

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

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

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

While minimum coverage insurance for 20-year-old drivers is typically cheaper than full coverage insurance by an average of $2,669, most insurance experts recommend purchasing higher limits. Purchasing minimum coverage insurance could leave you financially vulnerable in the event of an accident. If your insurance doesn’t cover all the medical bills or damages associated with a crash, you could end up paying thousands of dollars out of pocket. For this reason, full coverage car insurance is often a valuable addition when aiming to offer more financial protection.

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 coverage that meets 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.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Hawaii rates indicate age is not a contributing factor.

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
Lizzie Nealon
Insurance Writer
Lizzie Nealon is a former insurance writer for Bankrate. Her favorite part of the job is making home, auto and life insurance digestible for readers so they can prepare for the future.
Edited by
Insurance Editor
Reviewed by
Assistant Vice President & Claims Field Manager