Auto insurance typically costs more for a 20-year-old than for a more experienced driver, but less than for teenage drivers. That's because insurers consider young drivers a high risk to insure because they tend to file more claims. But there are ways to save money on car insurance as a 20-year-old driver, like staying on your parent's policy or qualifying for discounts.
Find out all you need to know about car insurance for 20-year-olds in this article, which covers:
- Cost of car insurance for a 20-year-old
- Cheapest car insurance for a 20-year olds
- College students and car insurance
How much does car insurance cost for a 20-year-old?
According to our data, a 20-year-old driver should expect to pay $321 per month for car insurance. Rates are typically high until you turn 25, when they drop off considerably. At that point, your rates gradually decrease as you age until you become a senior citizen, then they'll rise again. Although 20-year-old drivers pay more than people with more experience on the road, they pay significantly less than teen drivers.
This graph shows how much of an impact age has on insurance rates. According to our data, a 16-year-old pays $471 per month for car insurance, whereas a 20-year-old pays $321. That's a $1,800 difference per year!
Age is a huge factor in your car insurance rates, but it's not the only one. To make sure your rates continue to decline, avoid traffic violations, maintain a good credit score and try to limit the number of claims you file.
Cheapest car insurance for a 20-year-old driver
At $175 per month, we found that Erie offers the cheapest car insurance rates for a 20-year-old driver. Erie is only available in select states, but State Farm is close behind with a quote of $230 per month. USAA, Auto-Owners, Travelers and GEICO all offer rates below the average of monthly rate of $321.
Here's how car insurance quotes for a 20-year-old look:
Remember, your rates will vary quite a bit depending on several things. This includes where you live, how much coverage you want, what kind of car you drive, and more. The best way to find your ideal company is to compare quotes.
Compare car insurance quotes to find the best rates for drivers your age.
Saving money on car insurance as a college student
You may able to stay on your parent's car insurance policy, which is a great way to save money on car insurance when you're 20. Our research found that sharing a policy with your parents can cut your rates in half. You can likely even stay on it if you are a college student living away from home but plan to use a car when you return. And most insurers offer discounts to students with good grades, so hitting the books can save you even more.
Insurance discounts for young drivers
There are plenty of discounts that young drivers may be eligible for. Here are a few examples:
- Good student discount: If you're a college student with good grades, you may be eligible for a good student discount. If your insurer offers it, you may need to provide proof of your grade-point average, usually a B or better.
- Defensive driving classes: Some states require you to take a defensive driving course to obtain your license. Whether you take and pass a defensive driving class for your state requirements or just to be safer on the road, you may be eligible for a discount through your insurer.
- Resident student discount: This is another discount aimed at college students. For students who attend school more than 100 miles from home, your insurance company may offer a discount.
We analyzed thousands of quotes from every ZIP code in California, Connecticut and Illinois. These states were chosen because they tend to have rates near the national average and are representative of the U.S. insurance marketplace.
We considered the following 20 companies: Allstate, American Family, Amica, Auto Club, Auto-Owners, Cincinnati, CSAA, Erie, Farmers, GEICO, Kemper, Mercury, MetLife, National General, Nationwide, Progressive, State Farm, The Hartford, Travelers and USAA.
These quotes are based on a combination of minimum-coverage and full-coverage to get an accurate snapshot of rates. The minimum coverage plan is 25/50/50. The full coverage plan is 100/300/100, with 100/300 UM/UI plus comprehensive and collision coverages with a $500 deductible.
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