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.
| 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. | ||
| 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
Discounts
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.
Methodology
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.
References:
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