How much does car insurance cost for a 20-year-old driver?
The average cost of car insurance for a 20-year-old driver is $300 per month or over $3,600 per year. This is substantially more than the national average across all age brackets — 20-year-old drivers pay $1,366 more every year compared to other young adult drivers in their 20s.
While not considered as risky as teen drivers, motorists in their early 20s are riskier to insure than their more experienced counterparts. Whenever a driver is viewed as a risk by an insurance company, it will result in more expensive insurance rates.
Let's explore some ways to save money on car insurance as a 20-year-old driver — including collecting quotes from multiple insurance companies.
Which car insurance company is the cheapest for 20-year-olds?
Using a sample driver profile outlined in our methodology, we analyzed average premiums for 20-year-old drivers to determine which company offered the most affordable rates. For qualifying 20-year-old drivers, USAA was the cheapest option for a car insurance quote. GEICO offered the second-cheapest rates.
Dynamic auto insurance data methodology
Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.
How much is car insurance for young drivers?
Your 20s can be a time of personal, professional and financial flux. On average, drivers aged 20 to 24 pay $840 more for car insurance each year than drivers between the ages of 25 and 29 do. This has to do with the increased risk of insuring a younger driver versus a more experienced motorist. Drivers aged 25 to 29 file fewer claims and enjoy more affordable auto insurance premiums.
In order to find the cheapest car insurance company for young drivers, we got rates for drivers aged 20 to 24 from popular insurance companies in the US.
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Gender and car insurance rates for young drivers
Until your 25th birthday, gender is a considerable car insurance rating factor. Auto insurance companies look at risk exposure (the probability you will get into an accident and they will have to pay out a claim) when calculating premiums. To an auto insurance company, a 20-year-old male driver poses a greater risk than a female driver — males pay over $400 more per year for car insurance than female drivers. Across all age groups, there is less than a 0.5% difference in what men and women pay.
However, some states ban the use of gender as a rating factor for car insurance. If you have questions about your rating factors in your state, consult our guide or ask your insurance agent to provide more clarity.
|Gender||Avg. Annual Premium||$ Difference|
How to find affordable car insurance as a 20-year-old
Although it might feel like you’re going to pay an arm and a leg because of your age, there are some things you can do to save on your car insurance policy even if you’re a young driver.
Compare auto insurance quotes
The best advice we can give is to compare the offerings of as many car insurance companies as possible. Rates vary substantially based on the car insurance company. Keep in mind, the car insurance premiums we presented above are based on a generic user profile. The only way to find rates suited for you is to get a quote from as many different companies as possible. Enter your ZIP code below to see personalized estimates!
Good student discount
Most car insurance companies offer a discount to good students between the ages of 16 and 25. If you have a 3.0 GPA or above (on average), your car insurance company may offer you a student discount. The reason for this has less to do with a reward for academic success, but the way insurance companies view young adults with good grades. Returning to this idea of risk management, car insurance companies see high-performing students as less likely to take risks while driving — all of which makes them cheaper clients. Combined with a defensive driver discount, you can save an average of $189!
AVERAGE ANNUAL SAVINGS: GOOD STUDENT AND GOOD DRIVER INSURANCE DISCOUNTS
Defensive driver discount
If you’ve taken a defensive driving class, meaning a professionally instructed class that your car insurance company usually must approve of ahead of time, you may be entitled to a discount. Like having good grades, car insurance companies see those who have completed these types of courses as safer and cheaper clients.
Think twice before you file a claim
Car insurance can be a double-edged sword. The more you use it, the more it costs. After you file a claim, your insurance provider could assess an accident surcharge for three to five years. As such, the general rule of thumb in the insurance world is if you can cover the damages out-of-pocket and you're the at-fault driver, pay for the damages yourself.
|Accident/Violation||Avg. Annual Premium||Annual $ Increase|
|At-fault accident - greater than $2000||$2,605||$845|
If you’re unsure of whether or not to file a claim for damages to your vehicle, use this handy breakdown.
- Get an estimate for the cost of the work at a repair shop.
- Use our State of Insurance analysis to see how much an at-fault accident would raise your raises in your state. Consider that value over three years, as that’s usually how long your insurance company will charge you.
- Compare the premium increase and your deductible to the cost of out-of-pocket expenses. If it’s cheaper to pay for the repairs yourself, do that.
Collision car insurance claims have the greatest impact on your auto insurance rates and driving record. Not-at-fault accidents or comprehensive claims typically don’t raise your rates as dramatically as at-fault collisions.
Be smart with your car insurance coverage
As your vehicle ages, it loses value. In terms of your car insurance, this means that the coverage you once had on your 2000 Civic might not be necessary anymore. A general rule of thumb in the world of car insurance is if your vehicle is worth less than $4,000, you probably don’t need physical protection. On average, comprehensive and collision coverage make up about half of your premium.
Bundle your renters or homeowners insurance policy
If you’re paying rent, you should have a renter’s insurance policy. A renter’s policy will cover you (your liability) as well as personal property damage in the event of a covered claim. Compared to car insurance, renter’s policies are quite inexpensive — about $150 a year. But if you get your renter’s policy from the same insurance company as your auto, you can expect a multi-policy discount.
|Homeowner Status||Avg. Annual Premium||Annual $ Savings|
|Renter With Multi-Policy||$1,677||-$82|
Compare quotes from over 100 providers today!
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.