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Cheap car insurance for 20-year-olds

  • Average car insurance cost for 20-year-olds: $5,203
  • Cheapest car insurance companies: Auto-Owners, Nationwide, Progressive
  • Comparing quotes is the best way to find the cheapest insurance

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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. 

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. 

Picture of Written by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Written by Alyssa DiCrasto
Picture of Edited by <a href="https://rateretriever.com/about/rob-deming/"><span style="text-decoration: underline;">Rob Deming</span></a>
Edited by Rob Deming

Last updated: July 18th, 2024

Picture of Written by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Written by Alyssa DiCrasto
Picture of Edited by <a href="https://rateretriever.com/about/rob-deming/"><span style="text-decoration: underline;">Rob Deming</span></a>
Edited by Rob Deming

Last updated: July 18th, 2024

What's on this page?

Understanding car insurance for 20-year-olds

Car insurance is an important investment for all drivers. While the average cost to insure a driver in their 20s is around $3,000, it is possible to find cheap car insurance for 20-year-olds.

The cost of car insurance for 20-year-olds:

$5,203

Average annual premium

154% more

Than a 35-year-old

133% more

Than a 25-year-old

Why does this matter?
  • Knowing the average cost of car insurance for your age group gives you a benchmark to compare your own rate. If you’re paying a lot more, it might be time to shop around or ask your insurer why.

Best car insurance for 20-year-olds

To find the best car insurance for a 20-year-old, you’ll need to look at several important things including cost, coverage, and how good the insurance company is. At this age, car insurance can be more expensive because young drivers are seen as riskier to insure. But you can still find a good deal if you start by getting quotes from different companies to see who offers the best price and discounts for young drivers. 

When choosing a policy, don’t just look at the price. Also consider: 

  • Policy coverage: Make sure it covers everything you need. For 20-year-old drivers, a full coverage policy is usually the best car insurance. Full coverage includes liability insurance (required in most states), collision, and comprehensive coverage; so you’ll have coverage if you damage someone else’s property or if your property gets damaged in a collision, natural disaster, or theft.  
  • Additional coverage options: Some companies also offer extras like roadside assistance, rental car coverage, and accident forgiveness. 
  • Customer satisfaction: Reading reviews can help you see how good the company is at helping customers.

By thinking about all these things, you can find car insurance that gives you good coverage and value as a 20-year-old driver.

Cheapest companies for full coverage for 20-year-olds

Company Average Annual Premium
USAA 3,403
Auto-Owners Insurance 4,008
Nationwide 4,510
Progressive 4,519
Geico 4,762
State Farm 4,771
Travelers 4,835
Allstate 6,983
Farmers 7,010

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. 

We use these limits for a full coverage policy: 

  • $100k/$300k/100k for liability insurance 
  • $500k deductible for comprehensive and collision insurance 

Benefits of full coverage

  • More Protection: Covers a wide range of incidents, from accidents to theft. 
  • Peace of Mind: You’ll feel more secure knowing you’re covered in many situations. 
  • Financial Security: Helps you avoid big out-of-pocket expenses for repairs or replacement. 
  • Required for Loans/Leases: Often needed if you finance or lease your car.

Cheap car insurance for 20-year-olds

Average cost of car insurance for 20-year-olds

20-year-olds will typically see cheaper insurance rates than when they were 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. 

Average annual cost:  $5,203/yr

The price you pay for car insurance will be different depending on where you live. Below are the average cost of car insurance for a 20-year-old by state. 

Average cost of car insurance by state (20-year-olds)

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. 

Why is car insurance so high for people in their 20s?

Car insurance is often higher for people in their 20s because insurance companies see young drivers as riskier to insure. Statistics show that drivers in this age group are more likely to be involved in accidents compared to older, more experienced drivers. This increased risk means insurance companies charge higher premiums to cover the potential costs of these accidents.  

Additionally, younger drivers may have less driving experience, and they might also be more inclined to engage in risky driving behaviors, such as speeding or not wearing seat belts, which further increases the chances of accidents. Insurance companies take all these factors into account when determining rates, which is why premiums tend to be higher for young drivers. 

As people move through their 20s, car insurance rates often start to decrease, especially if they maintain a clean driving record. Each year without accidents or traffic violations signals to insurance companies that the driver is responsible and less risky. Typically, by the mid to late 20s, drivers see noticeable reductions in their premiums. This is because insurance companies recognize that as drivers gain more experience and demonstrate safe driving habits, they are less likely to be involved in accidents. Therefore, maintaining a clean driving record is one of the most effective ways for young drivers to lower their car insurance rates over time. 

Why does this matter?
  • The role your age plays in the price you pay for car insurance will decrease over time. When you are between the ages of about 25-70, your age will not play as big of a factor in your car insurance rates.

Cheapest car insurance for 20-year-olds

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 and 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, you can start your search with some of the national companies that offer the cheapest car insurance on average:

  • Auto-Owners 
  • Nationwide 
  • Progressive 
  • Geico
  • State Farm

Also if you or someone in your family serve or have served in the military, you can look into USAA which offers the lowest rates on average for people in their 20s.

Consider getting quotes from local companies as well that may be able to provide discounts or coverage at a lower rate.  

If you still live at home and are able, staying on your parent’s car insurance policy will save you money rather than purchasing a policy on your own. Be sure to check with your insurance agent to be sure you’re still covered properly under your parent’s insurance. 

Average car insurance rates for young adults

To get the cheapest car insurance:

  • To get the best price, shop around, compare rates from different insurers, and take advantage of discounts. Many insurers offer discounts for good students or for drivers who have successfully completed a defensive driving course.  

Factors that impact car insurance cost for 20-year-olds

There are many factors that will impact the price you’ll pay for car insurance beyond your age or location. Here are some of the most common: 

Gender

In most states, your gender can play a role in how much your car insurance costs. The impact that your gender will play in your car insurance rates is generally minimal, especially as you get older. However on average, car insurance for males in their 20s is typically more expensive than car insurance for females.  

Credit

Your credit score can be used as a rating factor in all states except CA, HI, and MA. People with poor credit generally pay more for car insurance than people with good credit, and people with excellent credit pay the least of all.

Vehicle

The vehicle you drive will also impact the price you pay for car insurance, especially for young drivers. Basically, the more expensive your vehicle is to repair or replace, the more your insurance will have to pay out if you make a claim. 

If you’re driving a newer vehicle, a luxury vehicle, or one with additional features or enhancements, you can expect your insurance to be more expensive than if you’re driving an older model with a basic trim level. Additionally, fast cars or ones with higher rates of accidents will usually have higher insurance premiums. 

When deciding what car to buy in your 20s, consider shopping for a used vehicle with excellent safety ratings and features, since this will bring your insurance down. Generally SUVs have the lowest insurance rates. 

See how much car insurance costs for your vehicle:
Make & Model Rate Calculator

Your driving record

Your driving history is one of the most critical factors insurance companies consider when deciding how much you’ll pay for car insurance. Especially if you haven’t been driving long, any incidents on your record will have a big impact on the price you pay for car insurance. Incidents can include:

  • Traffic violations 
  • Accidents 
  • Claims history 
  • License suspensions or revocations
  • Time since last incident

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

Additional factors contribute to the higher cost of car insurance for 20-year-old drivers. 

Car insurance for 20-year-old college students is more expensive if you own your policy. That’s why some parents choose to include their 20-year-olds on their existing family insurance policy. 

Either way, insurance companies may offer discounts to help lower the cost of car insurance for 20-year-old drivers. 

Drivers in this age group are more likely to binge drink, which leads to an increased risk of drinking and driving. Insurance companies consider 20-year-olds higher-risk drivers because they’re more likely to need to file a claim. 

If you live with roommates, some insurance companies may require you to list your roommates on your policy if you share your car often. This can increase the cost of car insurance for 20-year-old drivers. 

How to get affordable car insurance for people in their 20s

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
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

As you can see, the cost of car insurance for a young adult can be very different depending on the company – and your rates will look different than the ones in the table above depending on 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 best car insurance providers for your profile 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:  

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.

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

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

Will my car insurance rates go down as I get older?

Generally, car insurance rates can go down as you get older. This is because older drivers tend to have more experience on the road and are considered to be less risky to insure. As you age, you may also qualify for additional discounts or benefits from insurance companies. However, other factors such as your driving record, the type of car you drive, and where you live can also impact your rates. It’s important to regularly review your policy and shop around for the best rates to ensure you’re getting the best deal as you age.

How much does car insurance typically cost for a 20-year-old?

The cost of car insurance for a 20-year-old can vary depending on factors like driving record, location, and type of coverage. On average, a 20-year-old can expect to pay around $2,000 to $3,000 per year for car insurance. However, shopping around and comparing quotes from different insurance companies can help you find a more affordable rate. Remember, maintaining a clean driving record and taking a defensive driving course can also help lower your insurance premiums.

Can a 20-year-old get their own car insurance policy?

Yes, a 20-year-old can get their own car insurance policy. Many insurance companies allow individuals over the age of 18 to purchase their own policy. However, being younger and having less experience can sometimes result in higher premiums. It’s important to shop around and compare different insurance companies to find the best rate. Additionally, having a good driving record and completing a defensive driving course can help lower insurance costs. Remember to always check the specific requirements of each insurance company before purchasing a policy.

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

It depends. If your permanent address is not your parent’s 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.

Are there any discounts available for 20-year-old drivers?

Yes, some car insurance companies offer discounts for young drivers, including 20-year-olds. These discounts could be for things like good grades, defensive driving courses, or low mileage. It’s always a good idea to shop around and ask about discounts when looking for car insurance. Some companies may also have special programs for young adult drivers that could help lower the cost of insurance. Make sure to compare different options to find the best deal for your specific situation.

Can a 20-year-old be on their parents’ car insurance policy?

Yes, usually a 20-year-old can be on their parents’ car insurance policy. Many insurance companies allow young adults to remain on their parents’ policy as long as they still live in the same household, which can help save money on insurance premiums. However, it’s important to check with your specific insurance provider to see if they have any age restrictions or requirements for being included on a family policy.

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

Temporary car insurance is a short-term policy that provides coverage for a specified period, usually days or weeks. It is helpful for 20-year-olds who may only need insurance for a brief time, such as when borrowing a friend’s car or renting a vehicle. This type of insurance can be more cost-effective than a traditional annual policy, as it only covers the period of time needed. It is important to remember that temporary car insurance may have limitations, so it’s best to carefully review the terms before purchasing.

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 parent’s 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.

Does car insurance go down in your 20s?

Car insurance can go down in your 20s as you get more experience driving. As you gain more years behind the wheel and have a clean driving record, insurance companies may lower your rates. However, factors like accident history, location, and the type of car you drive can also affect your premiums. It’s important to shop around and compare quotes to find the best rate for your age and circumstances.

How often should a 20-year-old review their car insurance policy?

A 20-year-old should review their car insurance policy at least once a year. This helps ensure they have the right coverage for their needs and are not paying for unnecessary expenses. Reviewing the policy can also help find any potential discounts or changes in rates. It’s important to check the policy regularly to make sure it still meets their needs as they grow older and possibly acquire new assets or vehicles. Keeping tabs on their car insurance can save money and provide peace of mind in case of any unexpected situations while driving.

Related content

Methodology

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. 

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.  

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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