How Much is Car Insurance for a 20-Year-Old?
Last Updated on June 16, 2020
There are plenty of advantages to being young. Cheap car insurance prices are not one of them.
As a 20-year-old driver, you pay some of the highest rates in America for car insurance. You’re not a teenager anymore, but you’re still one of the riskiest drivers on the road. 20-year-old drivers have a high risk of making a claim or getting into an accident.
Car insurance is expensive as a 20-year-old. But how much is car insurance at age 20? How much should you be paying for car insurance? How can you save money on car insurance? Today, we’re explaining everything you need to know about the price of car insurance as a 20-year-old driver.
The Average 20-Year-Old Pays Around $2,250 Per Year for Car Insurance
Statistics show that the average 20-year-old driver pays around $2,000 to $2,500 per year for car insurance. In most states, that means 20-year-old drivers pay an average of $2,250 every year for insurance.
Statistics vary widely between states. In some states, 20-year-old drivers pay over $4,000 per year for car insurance, on average. States like Florida and Michigan have some of the highest car insurance prices in the United States.
In other states, 20-year-old drivers may pay significantly less for car insurance. Drivers in Iowa, Vermont, and Nebraska, for example, might pay under $1,500 per year for car insurance even at 20 years old.
Insurance prices also vary between companies. Some insurers welcome younger drivers because they balance the insurance pool. Some insurers like a mix of young, high-risk drivers and old, low-risk drivers. Other insurers focus mostly on low-risk drivers, charging higher rates to younger drivers.
Insurance Rates for 20-Year-Old Drivers, by State
According to CarInsurance.com, the following are the average full coverage insurance rates for 20-year-olds on their own policy, by state:
| State | Average Annual Premiums |
|---|---|
| Alabama | $3,511 |
| Alaska | $3,110 |
| Arkansas | $3,616 |
| Arizona | $3,722 |
| California | $4,393 |
| Colorado | $3,740 |
| Connecticut | $4,413 |
| Delaware | $4,489 |
| Florida | $4,001 |
| Georgia | $3,639 |
| Hawaii | $1,600 |
| Iowa | $2,546 |
| Idaho | $2,663 |
| Illinois | $3,244 |
| Indiana | $2,659 |
| Kansas | $3,198 |
| Kentucky | $4,786 |
| Louisiana | $4,996 |
| Massachusetts | $3,454 |
| Maryland | $3,941 |
| Maine | $2,340 |
| Michigan | $6,719 |
| Minnesota | $3,117 |
| Missouri | $3,506 |
| Mississippi | $3,259 |
| Montana | $4,056 |
| North Carolina | $1,942 |
| North Dakota | $3,107 |
| Nebraska | $2,882 |
| New Hampshire | $2,118 |
| New Jersey | $3,633 |
| New Mexico | $3,346 |
| Nevada | $5,003 |
| New York | $3,414 |
| Ohio | $2,566 |
| Oklahoma | $3,408 |
| Oregon | $3,169 |
| Pennsylvania | $3,244 |
| Rhode Island | $4,115 |
| South Carolina | $3,112 |
| South Dakota | $3,135 |
| Tennessee | $3,132 |
| Texas | $3,566 |
| Utah | $3,184 |
| Virginia | $2,491 |
| Vermont | $2,889 |
| Washington | $3,054 |
| Washington, D.C. | $4,139 |
| Wisconsin | $2,617 |
| West Virginia | $3,721 |
| Wyoming | $3,307 |
Stay on your Parents’ Policy to Save Money
Many teenage drivers remain on a parent’s insurance policy to save money. As a 20-year-old, you may still be living at home. As long as you still live at the same address as one or both parents, you can continue to get insurance through their insurance policy.
Your parents are older, more experienced drivers. They pay lower rates for car insurance. By adding yourself to your parents’ policy, you can save thousands per year on car insurance. Your parents’ premiums will increase, but it’s cheaper than buying your own insurance.
You can remain on your parents’ policy when moving away for college. In this situation, you are still a full-time resident of your home address, and you are temporarily living at college during the school year. For insurance purposes, you may be able to remain on your parents’ policy until you graduate college.
If, however, you have already moved out of your parents’ house, then you will need to buy your own car insurance policy.
The Best Car Insurance Discounts for a 20-Year-Old Driver
High insurance prices are inevitable for young drivers. It’s part of being young and inexperienced. However, you can fight back against high insurance prices by taking advantage of discounts. 20-year-old drivers can save 30% or more per year on car insurance by qualifying for the right discounts.
Contact your insurer or research the following discounts:
College Student Discount: If you are a college student living away from home, then you may qualify for certain insurance discounts. You might be able to stay on your parents’ policy while away at college, for example, without paying excessive rates.
Good Grade Discount: Many insurers offer a good grade discount to high school or college students with a B+ average or higher. If you have good grades at college, then you may qualify for a good grade discount.
Safe Driving Discount: Many 20-year-old drivers have never had an accident or claim, yet they continue to pay high rates. Ask your insurer about a safe driving discount. You might save a significant amount on car insurance if you have never made a claim in 3 to 5 years.
Defensive Driving Course Discount: Did you attend driver’s education? If so, you may qualify for a defensive driving course discount. Insurers reward drivers who have invested in their education. Statistics show drivers who take a defensive driving course are less likely to get into an accident.
Bundling Discounts: If you have multiple vehicles, home insurance, or renters insurance, then you may qualify for bundling discounts. As you get older and have greater insurance needs, you may qualify for additional bundling discounts.
To view the discounts offered by your auto insurance company, please click on your insurer below:
| Allstate Discounts | Farmers Discounts |
| GEICO Discounts | Esurance Discounts |
| Liberty Mutual Discounts | Progressive Discounts |
| State Farm Discounts | USAA Discounts |
Compare Quotes for 20-Year-Olds Online
The best way to save money as a 20-year-old driver is to shop around for car insurance.
Fortunately, shopping around for car insurance is easy. At our website, you can get started just by entering your ZIP code.
Wherever you are, there are dozens of companies providing car insurance in your area. Some companies cater to younger drivers, while others charge unusually high rates to young drivers.
Some 20-year-old drivers even work with an insurance broker. An insurance broker analyzes your insurance needs, then recommends the best policy for you. Most insurance brokers get paid by the insurance company – not you. That means you get the best policy for your needs without spending significantly more.
Reduce Coverage to Save Money
Some 20-year-old drivers change their insurance policy to save money. You are not required to have full coverage car insurance by law. In fact, if you have an older vehicle, full coverage car insurance may be unnecessary.
Many young drivers drop collision and comprehensive coverage to cut insurance premiums by 50% or more:
Collision Coverage: This coverage compensates you for vehicle repairs, damages, or replacement after an accident. If you cause an accident and your vehicle needs to be repaired, then collision coverage will cover this damage.
Comprehensive Coverage: This coverage compensates you for all other damage to your vehicle not related to an accident, like hail damage, theft, vandalism, and fallen tree branches.
Many 20-year-old drivers drive older, less valuable vehicles. On an older vehicle, even minor damage could “total” your car, making your claim a total loss. That means it costs more to repair your vehicle than your vehicle is worth.
Consider dropping collision and comprehensive coverage on your vehicle to save hundreds – or even thousands – per year on car insurance.
Final Word on Car Insurance for a 20-Year-Old
As a 20-year-old driver, you pay high rates for car insurance. There’s no way around it. You can’t change your age, but you can change your insurance policy.
Take advantage of insurance discounts. Shop around with different providers. Add or remove coverage to lower rates. Buy a safer vehicle.
By using all of these discounts, you can get cheap car insurance as a 20-year-old driver.
