Best Car Insurance For 20-Year-Olds

If you've already been driving for a while by the time you get to your 20th birthday, you probably already know that auto insurance can be expensive for young people.
Get a Free Quote
Best Car Insurance For 20-Year-Olds

Written by Brian Greenberg
CEO / Founder & Licensed Insurance Agent

Last updated: November 24th, 2022

Reviewed by Grant Desselle
Licensed Insurance Agent

That’s because insurance companies see younger, inexperienced drivers as more of a risk. But that does change as you get older, which means your car insurance premiums may decrease over time. Find out more below, and discover the best auto insurance options for 20-year-olds. Get some average prices for full-coverage policies from a variety of insurance companies, and discover what factors may most impact the cost of your car insurance.

What is the Best Auto Insurance for 20-Year-Olds?

The best auto insurance for you is always the one that provides the right level of coverage while still being affordable enough that you can pay the premiums. For many 20-year-olds, the right policy is still their parents’. You can remain on your parent’s insurance policy as a 20-year-old if:

  • You still live at home or you live at college and are still a dependent
  • You still drive your parent’s cars somewhat regularly
  • You don’t own your own car in your name

If you do own your own car in your name, you may need your own policy. In that case, you’ll want to consider what type of coverage you need and how much you can pay for insurance. Then, you can start shopping around to find a policy that works best for you.

How Much is Car Insurance for 20-Year-Olds?

The average amount 20-year-olds pay for car insurance depends on a variety of factors. One of the biggest is the type of coverage purchased. The average monthly premium for 20-years-olds who purchase full coverage is $200-$350. Compare that with the average amount paid for liability-only coverage, which is around $100, and you can see that the savings are fairly drastic.

Other Factors that Impact Auto Insurance Premium Costs for 20-Year-Olds?

Of course, you can’t always rely on being able to choose liability coverage only as a way to save money on insurance. First, if you financed the car, the bank will require you to get full coverage. Second, even if you own the car outright, you may want the peace of mind that full coverage affords.
Understanding other factors that impact car insurance can help you find other ways to decrease costs. For example, insurance companies typically charge more when you’re insuring a vehicle that presents more potential risk. Sports cars or vehicles with large engines, for example, tend to drive up premium costs. A 20-year-old driver who picks a less risky vehicle may save on insurance.

Other factors that change how much you pay for car insurance include the value of the vehicle, the state you live in, your driving record, your credit score, and your gender. You obviously can’t control some of these factors, but you can try to drive safely to avoid tickets and be responsible with finances to improve your credit score.

You should also always ask about discounts when buying car insurance. If you’re in college, you may benefit from good student discounts. You might also be able to bundle other types of insurance, such as renters, with your car insurance for a discount.

What is the Cheapest Insurance for 20-Year-Olds?

Another proactive step you can take to reduce your insurance costs as a 20-year-old is to get quotes from more than one company. You can see in the tables below how much of a range there is in insurance costs for 20-year-olds, even among the cheapest options, when looking at averages from various companies like GEICO or State Farm.

Average cost for auto insurance for 20-year-old females

Company Average monthly premium, full coverage
GEICO $215
State Farm $220

Average cost for auto insurance for 20-year-old males

Company Average monthly premium, full coverage
GEICO $240
State Farm $260

Car Insurance for 20-Year-Olds: The Good News

On average, when you compare the cost of car insurance for a 20-year-old to the costs for a 19-year-old, the difference is $500-$900 less per year. And for most people in their early 20s, those savings keep coming with every birthday. If you keep your driving record clean and don’t make any other big changes to your car or where you live, there’s a good chance your car insurance costs will drop every year from age 20 to 25.

Find The Best Policy
Find The Best Policy

Get the most accurate rates in 2 minutes or less
Making a financial decision doesn’t have to be stressful.
Our online approach makes it fast and easy.

Related Content