Auto insurance typically costs more for a 20-year-old than for a more experienced driver, but less than the rates for teenage drivers. That's because insurers consider young drivers a high risk to insure as 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 parents’ policy or qualifying for discounts.

Find out all you need to know about car insurance for 20-year-olds in this article:

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

According to our data, a 20-year-old driver should expect to pay around $86 per month for a minimum liability car insurance policy and $364 a month for full-coverage 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.


Car insurance rates by state

Besides age, one of the biggest factors that determine your auto insurance cost estimates is where you live. Car insurance requirements vary on a state level. States with the cheapest minimum liability policies tend to have lower coverage requirements and are also less densely populated.

Here are monthly car insurance quotes for a 20-year-old in each state:

State Minimum coverage Full coverage
Alabama $154 $320
Alaska $113 $239
Arizona $281 $518
Arkansas $159 $366
California $119 $283
Colorado $309 $356
Connecticut $269 $521
Delaware $270 $545
District of Columbia $393 $433
Florida $214 $736
Georgia $196 $380
Hawaii $62 $141
Idaho $105 $223
Illinois $204 $444
Indiana $103 $230
Iowa $100 $242
Kansas $109 $263
Kentucky $275 $563
Louisiana $243 $655
Maine $87 $186
Maryland $234 $448
Massachusetts $135 $348
Michigan $308 $581
Minnesota $191 $380
Mississippi $189 $375
Missouri $164 $367
Montana $105 $267
Nebraska $105 $233
Nevada $319 $549
New Hampshire $156 $347
New Jersey $164 $359
New Mexico $135 $289
New York $419 $776
North Carolina $58 $114
North Dakota $96 $307
Ohio $102 $236
Oklahoma $142 $293
Oregon $216 $363
Pennsylvania $134 $334
Rhode Island $306 $584
South Carolina $186 $351
South Dakota $92 $313
Tennessee $126 $297
Texas $204 $449
Utah $151 $271
Vermont $83 $216
Virginia $140 $300
Washington $201 $346
West Virginia $133 $327
Wisconsin $100 $222
Wyoming $68 $286
National average $175 $364
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Car insurance costs by company

At $138 per month, we found that State Farm offers the cheapest full-coverage car insurance rates for a 20-year-old driver out of the major insurers. If you don't mind receiving protection from a smaller company, Country Preferred is an affordable option but is only available in select states.

USAA has the cheapest minimum-coverage policy and one of the cheapest full-coverage plans. However, you can only qualify for a policy if you or someone in your family is an active or veteran military member.

Cheapest major car insurance companies
Company Minimum coverage Full coverage
State Farm $138 $270
American Family $200 $337
Progressive $193 $374
GEICO $175 $386
Allstate $173 $398
Farmers $261 $404
Nationwide $262 $497
Travelers $295 $625
USAA $91 $196
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.
Cheapest smaller car insurance companies
Company Minimum coverage Full coverage
Country Preferred $99 $189
Erie $115 $227
Farm Bureau $129 $280
MetLife $166 $349
CSAA $216 $442
Auto-Owners $215 $580
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Compare car insurance quotes to find the best rates for drivers your age.

Best car insurance for 20-year-olds

Auto-Owners is the best overall-rated car insurance company, but has one of the most expensive policies for a 20-year-old driver. USAA, which is an excellent choice for military families, has some of the most affordable rates and also receives highly positive customer satisfaction ratings.

Company J.D. Power 2020 U.S. Auto Claims Satisfaction Study (higher is better) NAIC Complaint Index 2020 (lower is better)
Allstate 876 1.03
American Family 862 1.46
Auto-Owners 890 0.64
Country Preferred 863 0.17
CSAA 862 1.05
Erie Not available 1.32
Farm Bureau Not available 0.34
Farmers 872 1.1
GEICO 871 0.79
MetLife 886 1.45
Nationwide 876 0.48
Progressive 856 0.88
State Farm 881 0.7
Travelers 861 0
USAA 890 1.2
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

How to get the most affordable car insurance quotes


There are plenty of discounts for which young drivers may be eligible. 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.

Think about staying on your parents' insurance policy

You may be able to stay on your parents’ 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.

Compare auto insurance rates

Remember, your rates may 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.

Consider when to file a claim

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.

Getting into even one accident or receiving one moving violation can have a tremendous impact on your score. On average, your rates can go up by an average of 40% after having an at-fault accident. For speeding tickets, premiums increase by around 26%. The best way to ensure these rates don't follow you around is to wait three to five years until they fall off your record.

Regularly evaluate your insurance needs

Is your car at home or in storage? Have you not been driving as much? Consider if the amount of coverage you currently have is appropriate for your needs. Drivers who don't bring their car out as much can consider reducing their insurance limits, asking about away-from-home or storage discounts or see if a telematics program like pay-per-mile would be a better fit.


We analyzed thousands of quotes from all 50 states and the District of Columbia. The rates from the 20 most populated ZIP codes in each of these areas were compiled.

We considered the following 15 companies: State Farm, American Family, Progressive, GEICO, Allstate, Farmers, Nationwide, Travelers, USAA, Country Preferred, Erie, Farm Bureau, MetLife, CSAA and Auto-Owners.

Quotes are based on a combination of minimum coverage and full coverage to get an accurate snapshot of rates. The minimum-coverage plan varied according to the state legal requirements. The full-coverage plan has 100/300/100 coverage limits, with 100/300 UM/UI, plus comprehensive and collision coverages with a $500 deductible.

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