Car insurance is an important investment for all drivers. While the average cost to insure a 20-year-old driver is around $3,000, it is possible to find cheap car insurance for 20-year-olds.
Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy.
At 20-years-old, you have a lot to think about when you start shopping for car insurance, from the type of car you drive to how much it’ll cost to insure to how to find the best car insurance company.
Although no longer considered “teen drivers,” 20-year-olds are still considered high-risk due to their lack of experience driving, which leads to higher insurance prices for this age group.
However, you can do a few things to find cheap car insurance for 20-year-olds. One is to shop around and compare rates from different companies. Another is to take advantage of discounts for good students and safe drivers. You can also maintain a good credit score practice safe driving. These steps allow you to find the best, most affordable insurance policy that meets your needs without breaking the bank.
The cheapest car insurance company for you may be different than the cheapest car insurance for your friend or roommate. However, on average the cheapest car insurance companies for 20-year-olds are Geico, Nationwide, Progressive, Travelers, and State Farm; so you can start your search with those companies. Consider getting quotes from local companies as well that may be able to provide discounts or coverage at a lower rate.
20-year-olds will typically see a drop in their insurance rates since they’re no longer teenagers, but they are still considered young, inexperienced drivers. They’re also more likely to take risks behind the wheel and get into accidents. As a result, insurers typically charge higher rates for 20-year-old drivers than they do for more mature drivers. Other factors that impact insurance rates include where you live and what car you drive.
Car insurance costs vary for people of all ages, depending on where they live, their demographics, and their car make, model, and age. However, additional factors contribute to the price of car insurance for 20-year-old college student and non-student drivers.
Finding cheap car insurance for young drivers is not impossible. You just need to follow these three tips to secure the best car insurance for 20-year-olds.
To find the best car insurance for 20-year-old drivers, shop around and compare rates from top auto insurance companies. Be sure to ask about different options to lower your monthly payment, such as requesting a higher deductible or asking about discounts.
Here are the average rates for a driver in their early 20s at some of the most popular car insurance companies in the US.
| Company | Average Annual Premium |
|---|---|
| USAA | 2,044 |
| Progressive | 2,247 |
| Travelers | 2,354 |
| Geico | 2,359 |
| Nationwide | 2,385 |
| Auto-Owners Insurance | 2,677 |
| State Farm | 3,274 |
| Allstate | 3,457 |
| Farmers | 3,546 |
Annual rates for a male driving a 2023 RAV4, estimated using public rate filings sourced from First Interpreter. Rates do not represent actual quotes. Accurate as of January 2024.
As you can see, the cost of car insurance for a young driver can be very different depending on the company. Your rates will also be tailored to where you live and what car you drive. This is why it’s so important to compare rates for you.
Start today by finding the top providers for you with Rate Retriever.
Some auto insurance companies offer discounts to help lower the cost of car insurance for 20-year-old drivers, such as:
Every state has a minimum auto insurance requirement. If you’re driving an older car and purchasing your own insurance, you may consider a state-minimum policy if the value of the insured vehicle is less than or comparable to the deductible. You can also select additional coverage for greater financial protection.
It depends. If your permanent address is not your parents’ address, then yes, you need your own insurance policy in your 20s. If you don’t drive regularly, or if you live with your parents and drive their vehicle, then no, you don’t need your own insurance policy in your 20s.
Car insurance for 20-year-old drivers varies depending on where you live, the type of car you drive, and the type and amount of coverage you select.
There are a few ways that 20-year-olds can get good deals on car insurance. You can join your parents’ policy, choose a policy with a high deductible, and shop around and compare rates and discounts from different insurers before choosing a policy. With a bit of research, you can find cheap car insurance for 20-year-olds.
Temporary car insurance – or short-term coverage – covers you for a short time, usually no more than 30 days. This type of auto insurance can be useful if you know you will only need coverage for a short amount of time. It can also be helpful if you are borrowing a car for no more than 30 days, and the owner’s insurance does not cover you.
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Rate Retriever rates are based on public rate filings obtained by analytics company First Interpreter. This data comes from the rating plans insurance carriers submit to each state’s department of insurance. Rating plans detail how each carrier calculates premiums using factors such as location, age, gender, and driving record, and they ensure that insurance premiums are both fair and competitive.
For the data on this page, we made the following assumptions: a single male with a clean driving record and Good credit score, driving a 2023 RAV4. We adjusted this profile by age to determine the rates you see on this page.
These rates are not actual quotes and should be used only for comparative purposes. Your rates can vary significantly based on your unique driver profile.
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