Why you can trust The Zebra

The Zebra partners with some of the companies we write about. However, our content is written and reviewed by an independent team of editors and licensed agents. Reference our data methodology and learn more about how we make money.

Author profile picture

Kristine Lee

Insurance Analyst

  • Licensed Insurance Agent — Property and Casualty
  • 4+ years of Experience in the Insurance Industry

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

Author profile picture

Jean Lucey, CPCU

Faculty, IIAA Virtual University

  • CPCU, Chartered Property Casualty Underwriter

Jean Lucey has researched and written about insurance matters for well over 30 years. A current member of The Zebra's Insurance Expert Review Bo…

Author profile picture

Ross Martin

Insurance Writer

  • 4+ years in the Insurance Industry

Ross joined The Zebra as a writer and researcher in 2019. He specializes in writing insurance content to help shoppers make informed decisions.

Ross h…

How to find affordable car insurance quotes as a 20-year-old — table of contents:

  1. Cheapest company
  2. Best rates
  3. By gender
  4. How to save

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.


Updating data...

Company Avg. Annual Premium Avg. Monthly Premium
USAA $2,496 $208
GEICO $2,763 $230
State Farm $3,351 $279
Nationwide $3,493 $291
Farmers $3,753 $313
Progressive $3,970 $331
Allstate $4,814 $401

Source: The Zebra

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

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.


Updating data...

Company Avg. Annual Premium Avg. Monthly Premium
USAA $1,998 $167
GEICO $2,210 $184
Nationwide $2,445 $204
State Farm $2,655 $221
Farmers $2,787 $232
Progressive $2,974 $248
Allstate $3,809 $317

Source: The Zebra

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.


Updating data...

Gender Avg. Annual Premium $ Difference
Female $3,189 $0
Male $3,602 $412

Source: The Zebra

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!


Age Male Female
19 $278 $160
20 $238 $139
21 $202 $117

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.


Updating data...

Accident/Violation Avg. Annual Premium Annual $ Increase
None $1,759 $0
At-fault accident - greater than $2000 $2,605 $845

Source: The Zebra

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.


Updating data...

Homeowner Status Avg. Annual Premium Annual $ Savings
Renter $1,760 $0
Renter With Multi-Policy $1,677 -$82

Source: The Zebra

Compare quotes from over 100 providers today!

Location pin icon
No junk mail. No spam calls. Free quotes.

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 editorial 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.