Guide to the cheapest car insurance for 20-year-olds

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Car insurance for young adult drivers is expensive. In fact, a 20-year-old driver could pay nearly $5,000 a year for coverage. But there are cheaper rates available. American Family, for instance, offers policies at about $3,000 a year for 20-year-olds.

The average cost of car insurance for 20-year-olds is typically lower than the average rate for teens. By age 20, most drivers have several years of experience behind the wheel and are less likely to make critical errors that can lead to collisions. 

According to the CDC, the crash rate among drivers between the ages of 16 and 19 is nearly three times as high as the rate for drivers 20 and older per mile driven. 

Our recommendation for cheap insurance for 20-year-olds

Young drivers should start to see their car insurance premiums decrease by age 20. However, many 20-year-old drivers will continue to pay above-average rates, especially if they purchase their own policy. Staying insured on a parent’s policy is typically much cheaper. 

To save money on car insurance, 20-year-olds can look for discounts, bundle policies, and maintain a clean driving record. Additionally, shopping around and comparing rates from different insurance companies can help you find the most affordable policy for your situation and coverage needs.

What is the cheapest insurance for 20-year-old drivers?

An average car insurance policy for 20-year-olds costs $328 per month for males and $294 for females. However, car insurance rates are personalized to each driver. 

Factors like location, gender, driving record and insurance company are some criteria that can impact rates. The table below shows the cheapest car insurance companies for 20-year-old drivers and their average annual and monthly rates.

Best car insurance providers for 20-year-olds

When shopping for a car insurance company, it’s important to consider more than just cost. You should compare providers based on features like coverage options, discounts, and third-party ratings for customer satisfaction. 

Insure’s best companies for teens are based upon the 2024 Best Auto Insurance Companies ranking. Our research shows the companies shown in the table below offer some of the best car insurance for 20-year-olds. 

How much is car insurance for 20-year-old males vs. 20-year-old females?

Gender is one of the rating factors that insurance companies use to determine the cost of car insurance for individual drivers. Male drivers generally pay slightly higher rates for car insurance than female drivers. However, the rate difference between males and females will depend on the insurance company.

The table below shows the average annual car insurance premium for a 20-year-old male on a parent’s policy.

You can see the average rates from major companies below for a 20-year-old female.

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

Car insurance for 20-year-old males costs $328 per month; the same full coverage policy costs $294 per month for females.

“Adding a teen to a family’s auto insurance policy can be very expensive due to their inexperience behind the wheel and higher propensity to be involved in an at-fault accident than other demographic groups,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute. 

Average car insurance rates for 20-year-olds on a parent’s policy

While 20-year-olds can legally purchase their own car insurance policy, staying insured on a parent’s car insurance policy is usually much cheaper. Below, you can see the average annual car insurance premium for 20-year-olds on their own and parent’s policies.

Which states have the cheapest car insurance for 20-year-olds?

Your location is one of the biggest factors that can affect the cost of car insurance. Based on our analysis of recent rate data, Hawaii is the cheapest state for car insurance for 20-year-olds. The average rate in Hawaii is $1,538 per year, which is well below average.

Below are the states with the cheapest car insurance for 20-year-olds.

Which states are the most expensive for 20-year-olds?

Some states have more expensive car insurance premiums than others. Location-specific factors like the number of uninsured drivers, weather risks, and vehicle theft rate can all impact the average premiums in the area. Our rate data shows that Louisiana has the highest average car insurance rates for 20-year-olds. 

Below, you can see which states have the most expensive car insurance premiums for 20-year-olds.

How to get affordable car insurance rates for 20-year-old drivers

“Adding a young driver to a family’s auto insurance policy can be very expensive due to their inexperience behind the wheel and higher propensity to be involved in an at-fault accident than other demographic groups,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute. 

However, there are ways to reduce the cost of car insurance for 20-year-old drivers: 

• Bundle your insurance policies: 20-year-olds who live independently can bundle an auto insurance policy with a renters or home insurance policy to save money.
• Maintain a clean driving record: Your driving record directly impacts your car insurance premium. Avoiding tickets, accidents, and claims can help you get and maintain a low rate.
• Compare quotes: Car insurance companies charge different rates, even for the same type and amount of coverage. Shop around and compare quotes from multiple companies to find the best deal for your situation. 

Which discounts are available for 20-year-olds?

One of the best ways for 20-year-olds to save money on car insurance is to take advantage of discounts. While the discounts available will vary between insurance providers, these are some of the most common discounts for 20-year-olds: 

• Good student discount: If you’re looking for cheap car insurance for 20-year-old college students, look for an insurance company that offers good student discounts. This discount is available to full-time students with a good GPA (often a “B” average or better).
• Student away at school discount: College students who attend school at least 100 miles away from home and leave their vehicle behind can often qualify for this discount. However, remember that this discount usually only applies to collision and/or comprehensive insurance.  
• Driver training course discount: Most major insurance companies offer a discount to drivers who complete an approved defensive driver course or driver’s education program. 
• Telematics program discount: If your insurer offers a telematics-based safe driver rewards program, you could earn a discount by demonstrating safe driving habits. Depending on the program, you will use a smartphone app or a small device installed in the vehicle to track your driving habits, like speed and brake force. If you consistently drive safely, you get rewarded with a lower premium. 

What our expert says

Q. Why is teen car insurance so high?

Mark FriedlanderDirector of corporate communications for the Insurance Information Institute.

“Adding a teen to a family’s auto insurance policy can be very expensive due to their inexperience behind the wheel and higher propensity to be involved in an at-fault accident than other demographic groups.”

Resources & Methodology

Methodology

Insure.com editors in 2024 collected rates from Quadrant Information Services for 20-year-old drivers with a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductible on a Honda Accord LX. We analyzed 53,409,632 quotes, 34,588 ZIP codes and 170 insurance companies nationwide.

Elizabeth Rivelli

Contributing Researcher

 

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Elizabeth Rivelli is a freelance writer who covers various insurance topics. Her areas of expertise are life insurance, car insurance, property insurance and health insurance. Elizabeth’s byline has appeared in dozens of online publications, including Investopedia, CNET and Bankrate. She has also written for several insurance carriers.