Car insurance for 20-year-olds

Car insurance is an important investment for all drivers. While the average cost to insure a 20-year-old driver is around $2,750, it is possible to find cheap car insurance for 20-year-olds.


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Written by Alyssa DiCrasto

Last updated: January 23, 2023

Best car insurance for 20-year-olds

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. 

Cheap car insurance companies for 20-year-olds

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. 

Geico Auto Insurance
Nationwide Auto Insurance
Progressive Auto Insurance
Travelers Auto Insurance
State Farm Auto Insurance

Cheap car insurance for 20-year-olds

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Average cost of car insurance for 20-year-olds

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.

Based on a single male driving a 2022 RAV4

Unique factors that contribute to cost for 20-year-olds

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. 

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Your car insurance premium is largely dependent on where you live. If you move to a new city or state, your car insurance rate could come down.

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Adjusting your coverage, like lowering your policy limits or dropping optional endorsements, can result in a cheaper premium.

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If you have recent accidents or speeding tickets on your driving record, your premium will go down once those violations are removed.

How to get affordable car insurance for 20-year-olds

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.

1. Shop around and compare car insurance rates

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
Geico 1,806
Nationwide 2,104
Progressive 2,222
Travelers 2,231
State Farm 2,346
Auto-Owners Insurance 2,440
Allstate 3,130
Safeco Insurance 3,708
Farmers 4,095

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.

2. Ask about driver discounts

Some auto insurance companies offer discounts to help lower the cost of car insurance for 20-year-old drivers, such as: 

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20-year-old drivers in college or a vocational program can typically qualify for discounts if they have at least a B average in their classes.

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20-year-olds attending college at least 100 miles away from their home may be able to receive a discount on car insurance.

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Some car insurance companies offer Safe Driver Discounts, also known as Good Driver Discounts. These discounts are based on a driver’s record and are typically granted when a driver doesn’t have significant at-fault accidents, claims, or points.

3. Make sure you have the coverage you need

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. 

Car insurance FAQs for 20-year-olds

Do you need your own insurance policy in your 20s?

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. 

How much is car insurance for a 20-year-old?

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.

What are the best car insurance deals for 20-year-olds?

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.  

What is temporary car insurance for a 20-year-old?

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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The rates on this page are estimated based on the rating plans insurance carriers have submitted to each state’s department of insurance. An insurance carrier’s rating plan details how the company uses certain characteristics to assign different rates to different people. We use the same data sources to power our comparison tools.

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 2022 RAV4. We adjusted this profile by age to determine the rates you see on this page. 

These rates should only be used for comparative purposes. Your rates can vary significantly based on your unique driver profile. 

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