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Car insurance for 20-year-olds
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Powered by Coverage.com (NPN: 19966249)
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, 20-year-olds on their own car insurance policy pay $4,319 per year for full coverage car insurance, according to premium data from Quadrant Information Services. Young drivers are often less expensive to insure if they are on their parents’ policy. For 20-year-olds on their parents’ policy, coverage is $3,149 per year.
Full coverage includes liability insurance, as well as collision and comprehensive coverage. Although this is less than what teen drivers pay, on average, it is still far more than the national average cost of car insurance nationwide, which is $2,014 per year for full coverage.
By 20, many drivers have gained some skill on the road but are still relatively new to the responsibilities of driving. This driving inexperience leads insurers to charge higher premiums to compensate for greater claims risk. However, you should see your premium drop as you age, assuming you maintain a clean driving record.
Average car insurance cost for 20-year-olds by state
Understanding how much insurance is for a 20-year-old requires considering rate trends and insurance-related regulations in your 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-olds on their parents’ policy | Average annual full coverage premium for 20-year-olds on their own policy |
|---|---|---|
| Alabama | $2,857 | $4,209 |
| Alaska | $3,072 | $4,276 |
| Arizona | $2,916 | $3,860 |
| Arkansas | $3,008 | $4,445 |
| California | $3,539 | $4,236 |
| Colorado | $3,566 | $4,768 |
| Connecticut | $2,338 | $4,154 |
| Delaware | $3,198 | $5,199 |
| Florida | $5,017 | $6,835 |
| Georgia | $3,287 | $4,575 |
| Hawaii* | $1,332 | $1,355 |
| Idaho | $1,725 | $2,643 |
| Illinois | $2,938 | $4,602 |
| Indiana | $1,991 | $2,810 |
| Iowa | $1,940 | $2,701 |
| Kansas | $2,810 | $4,004 |
| Kentucky | $3,261 | $4,942 |
| Louisiana | $4,443 | $6,154 |
| Maine | $1,576 | $2,366 |
| Maryland | $3,285 | $5,104 |
| Massachusetts* | $1,964 | $2,986 |
| Michigan | $4,770 | $6,410 |
| Minnesota | $2,505 | $3,689 |
| Mississippi | $2,617 | $3,828 |
| Missouri | $3,020 | $4,319 |
| Montana | $2,949 | $4,471 |
| Nebraska | $2,336 | $3,587 |
| Nevada | $4,540 | $5,922 |
| New Hampshire | $2,001 | $2,958 |
| New Jersey | $2,769 | $4,048 |
| New Mexico | $2,312 | $3,269 |
| New York | $4,651 | $6,124 |
| North Carolina | $1,669 | $1,736 |
| North Dakota | $1,836 | $2,615 |
| Ohio | $1,991 | $2,953 |
| Oklahoma | $3,017 | $4,092 |
| Oregon | $2,146 | $3,080 |
| Pennsylvania | $3,441 | $4,648 |
| Rhode Island | $2,976 | $4,157 |
| South Carolina | $2,283 | $3,385 |
| South Dakota | $2,180 | $2,895 |
| Tennessee | $2,332 | $3,255 |
| Texas | $3,379 | $4,554 |
| Utah | $2,592 | $3,703 |
| Vermont | $2,070 | $2,986 |
| Virginia | $2,348 | $3,575 |
| Washington | $2,302 | $3,596 |
| Washington, D.C. | $3,160 | $4,263 |
| West Virginia | $2,370 | $3,445 |
| Wisconsin | $1,985 | $2,824 |
| Wyoming | $2,297 | $3,256 |
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
Although price is important when shopping for insurance, it is not the only factor to consider when choosing your auto insurer. Bankrate’s 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 to compile a Bankrate Score for these companies. Our five-point scoring model can be used as a tool to help drivers quickly narrow down the best auto insurance companies for their needs.
For 20-year-olds looking for the best car insurance, getting quotes from major carriers like Geico, State Farm, Progressive and Travelers might be a good starting place.
| 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 | $2,600 | $3,644 |
| Geico | 4.4 | $2,054 | $2,800 |
| State Farm | 4.3 | $2,361 | $2,917 |
| Travelers | 4.2 | $2,388 | $4,167 |
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 slightly below-average claims satisfaction score from J.D. Power.
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 mobile app lets you pay bills, file claims, call for roadside assistance, view ID cards, make policy changes and more. However, the company ranked near the bottom on the J.D. Power 2023 U.S. Insurance Digital Experience Study for the shopping category, meaning that customers are not always happy with the digital shopping experience offered by Geico. That being said, the company ranked second overall in the service category of the same survey.
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 vehicles 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.
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. It also ranks in the top five of the J.D. Power auto claims satisfaction survey and performed well per the digital shopping and service studies.
Young drivers might be particularly drawn to State Farm’s Steer Clear telematics 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 course. State Farm holds an A++ (Superior) financial strength rating from AM Best. However, the company does not offer gap insurance.
Travelers has the highest average rates for 20-year-old drivers on their own policies on our list, but the company’s extensive list 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.
In addition, 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 customer complaints filed with the National Association of Insurance Commissioners (NAIC) for private passenger insurance. It also earned a below-average ranking from J.D. Power in the categories of customer satisfaction, shopping and service.
How to get the best car insurance for a 20-year-old
The first step to finding the best car insurance for a 20-year-old 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.
The average annual rate for a 20-year-old driver on their parents’ policy with full coverage is $3,149, while it is $4,319 if they are on their own policy. Likewise, minimum coverage averages an annual $995 for 20-year-olds on their parents’ policies and $1,322 if they are on their own policy.
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, numerous carriers offer coverage lower than the national average cost of full coverage auto insurance for 20-year-old drivers. Cheap insurance for 20-year-olds is affected by whether or not the driver is on their own policy, so we’ve broken these rates into two sections to present options for both scenarios.
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 | $500 | $1,798 |
| Geico | $580 | $2,054 |
| Auto-Owners | $597 | $2,173 |
| Travelers | $682 | $2,388 |
| Amica | $715 | $2,603 |
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 | $746 | $2,711 |
| Auto-Owners | $766 | $2,800 |
| Geico | $782 | $2,800 |
| Erie | $893 | $2,525 |
| Amica | $899 | $3,241 |
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, the number of miles you drive per year, the coverage types and deductibles you choose, your claims history and your motor vehicle record. You may pay more or less than the premium cited above based on those details and more.
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 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 an apples-to-apples 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 going paperless, paid-in-full and good student discounts. Some insurance companies offer a premium discount to drivers who take and pass a defensive driving course, too. Telematics discounts may also help lower your premium if you exhibit safe driving habits.
- Choose a higher deductible: Understanding your auto insurance deductibles is important. 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.
- 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 the Subaru Outback, Honda CR-V, Honda Pilot and Ford Escape.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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 2021 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, North Carolina and Pennsylvania.
June Sham is a former insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies.
