How Much Is Car Insurance For A 20-Year-Old Driver?
A 20-year-old can expect to pay $1,200–$3,000 annually for minimum coverage, and $3,000–$6,000 for full coverage, depending on factors like driving history, location, credit score, and gender. Rates vary widely between insurers. Read on to learn what affects pricing and how to find the best deal.
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If you’re looking for clear, up-to-date information to help you make the right decision about protecting yourself on the road, you’re in the right place. As a former licensed property and casualty insurance agent, I’ve helped many people navigate the often-confusing world of car insurance.
In this article, we break down the average costs of car insurance for 20-year-old drivers, explain what factors influence those rates, and share tips on how to lower them. This isn’t about selling you car insurance; it’s about providing you with the knowledge and information you need to choose the best coverage for your situation. The figures I quote below are average figures. Actual costs may vary based on factors such as driving history, location, credit score, gender, and the specific insurance company.
Key Takeaways
The most important element in purchasing auto insurance is comparing multiple quotes
20 year olds can buy minimum coverage for $1,200 – $3,000 annually
There are a lot of ways for a 20 year old driver to lower their rates for car insurance
How Much Is Car Insurance For A 20 Year Old?
The cost of car insurance is based on several factors for a 20-year-old, such as driving history, coverage type, and gender. A 20 year-old driver can expect to pay anywhere from $1,200-$3,000 per year for minimum coverage up to $3,000-$6,000 per year for full coverage car insurance. Having a clear understanding of the cost of auto insurance for a 20 year-old is vitally important, since it can greatly affect your budget. It’s also important for you to note that insurance rates aren’t all the same, and that they are based on various factors like gender, coverage type, and driving history.
The glaring difference between minimum and full coverage car insurance costs only highlights how crucial it is that you understand what you’re paying for. Minimum coverage might seem appealing at first glance because of its cheaper cost, but it might leave you financially vulnerable in some situations. Full coverage, though, provides comprehensive protection that includes collision and comprehensive policy coverage and protects you against vandalism, theft, and even damage from natural disasters.
The good news is that there are multiple ways to lower your vehicle insurance costs. For example, maintaining a good driving history and taking advantage of discounts offered by insurance providers can substantially lower your rates. Shopping around and comparing rates from various auto insurers can help you find the best deal, too.
How Much Is Car Insurance For A 20 Year Old – By Gender?
Possessing a good understanding of the factors that go into the cost of auto insurance means that you can shop around for the best deal armed with the knowledge needed to get the best coverage for your needs, at the lowest cost. There are several factors that can impact rates, and one of the major determinants is gender.
Average car insurance rates will typically vary between genders because of how insurance companies view risk factors of males and females. Let’s examine the costs of car insurance for a 20 year old male as well as a 20 year old female driver.
| Coverage Type | Average Annual Cost for Male | Average Annual Cost for Female |
| Full | $3,500 – $6,500 | $3,000 – $5,500 |
| Minimum | $1,500 – $3,500 | $1,200 – $2,800 |
How Much Is Car Insurance For A 20 Year Old – By State?
Car insurance rates can and do vary widely, especially for 20 year-old drivers. Factors including the state where you reside can impact your rates greatly. Based on thorough research from numerous sources, I’ve put together a comprehensive comparison chart that shows the average auto insurance premiums for a 20 year-old by state.
| State | Average Annual Full Coverage Premium for 20-year-old Drivers |
| Alabama | $3,800 – $4,800 |
| Alaska | $3,600 – $4,500 |
| Arizona | $3,800 – $4,800 |
| Arkansas | $4,000 – $5,100 |
| California | $3,800 – $5,500 |
| Colorado | $4,500 – $5,700 |
| Connecticut | $4,800 – $6,200 |
| Delaware | $5,000 – $6,300 |
| Florida | $6,000 – $7,800 |
| Georgia | $4,800 – $6,000 |
| Hawaii | $3,500 – $4,200 |
| Idaho | $3,200 – $4,000 |
| Illinois | $4,000 – $5,000 |
| Indiana | $3,800 – $4,800 |
| Iowa | $3,200 – $4,100 |
| Kansas | $3,900 – $5,000 |
| Kentucky | $4,800 – $6,200 |
| Louisiana | $6,500 – $8,200 |
| Maine | $2,900 – $3,700 |
| Maryland | $5,000 – $6,400 |
| Massachusetts | $4,400 – $5,600 |
| Michigan | $7,500 – $9,800 |
| Minnesota | $4,000 – $5,100 |
| Mississippi | $4,500 – $5,800 |
| Missouri | $4,000 – $5,200 |
| Montana | $3,900 – $4,900 |
| Nebraska | $3,800 – $4,800 |
| Nevada | $5,200 – $6,500 |
| New Hampshire | $3,500 – $4,400 |
| New Jersey | $5,800 – $7,200 |
| New Mexico | $4,200 – $5,200 |
| New York | $6,500 – $8,000 |
| North Carolina | $3,500 – $4,500 |
| North Dakota | $3,300 – $4,200 |
| Ohio | $3,600 – $4,500 |
| Oklahoma | $4,100 – $5,200 |
| Oregon | $3,900 – $5,100 |
| Pennsylvania | $4,800 – $6,000 |
| Rhode Island | $5,800 – $7,100 |
| South Carolina | $4,500 – $5,800 |
| South Dakota | $3,700 – $4,600 |
| Tennessee | $4,000 – $5,200 |
| Texas | $4,800 – $6,100 |
| Utah | $3,900 – $5,000 |
| Vermont | $3,400 – $4,300 |
| Virginia | $3,700 – $4,800 |
| Washington | $4,100 – $5,400 |
| West Virginia | $4,700 – $6,000 |
| Wisconsin | $3,800 – $4,800 |
| Wyoming | $3,700 – $4,600 |
Please note that these figures are merely averages, and that actual costs may vary based on various factors.
Key Factors Affecting State-Specific Costs:
- State Regulations: Vehicle insurance requirements differ from one state to the next, which has an influence on rates.
- Population Density: States with high urban populations such as California and New York tend to have higher rates caused by increased risk of accidents and claims.
- Uninsured Drivers: States with more uninsured drivers like Michigan and Florida usually have higher car insurance rates.
- Weather and Natural Disasters: States that are prone to severe weather such as hurricanes in Texas and Florida might have steeper rates for full coverage because of the potential for damage to vehicles.
How Much Is Car Insurance For A 20 Year Old – By Credit Score?
Although exact car insurance premiums based on credit scores aren’t usually published by car insurance providers, it’s well known that credit scores do affect premiums. A low credit score may mean a high rate, and a high credit score might get you a low rate. Based on information collected from Forbes, average auto insurance rates may increase as much as 76% based on credit scores.
Auto insurance rates for a 20 year-old might vary based on credit score in a lot of states, because insurance companies often use credit scores in risk assessment. Below is a breakdown of the average annual full coverage car insurance rates for a 20 year-old driver based on credit score:
| Credit Tier | Avg. Annual Premium for 20-Year-Olds |
| Excellent (720-850) | $3,000 – $5,000 |
| Good (670-719) | $3,500 – $5,500 |
| Fair (580-669) | $4,000 – $6,000 |
| Poor (300-579) | $5,500 – $8,000 |
| Very Poor (Below 579) | $6,000 – $8,800 |
You can see in the table shown above the difference credit scores can make to auto insurance rates. A 20 year old with excellent credit may pay an average of $3,000-$5,000 a year for full coverage car insurance, whereas a 20 year old with very poor credit might pay as much as $6,000-$8,800 annually.
States Where Credit Score Cannot Be Used To Set Rates:
● Hawaii
These states don’t allow credit scores to affect car insurance rates, which means that drivers with poor credit might be able to find more affordable insurance coverage.
Cheapest Car Insurance Companies For A 20 Year Old
When you’re searching for the best and lowest priced vehicle insurance for a 20 year-old, you will find that a lot of companies are leaders in the industry with comprehensive coverage and rates that are priced to be competitive with similar coverage. It’s important to balance cost with quality of coverage if you want to be protected on the road. Your premium will depend on various factors, such as your driving history, the type of vehicle you drive, and your credit score, as well, in quite a few states.
Different car insurance providers have different rates. When looking for coverage, always compare rates and benefits between several companies before making a buying decision. A 20 year old driver will pay on average of $$100-$2000 monthly with USAA. Travelers, on the other hand, might cost a 20 year old driver around $160-$300 a month.
| Company | Monthly Rate |
| USAA | $100 – $210 |
| Travelers | $160 – $300 |
| Auto-Owners | $140 – $290 |
| GEICO | $120 – $250 |
| State Farm | $130 – $270 |
| Progressive | $140 – $280 |
| Nationwide | $150 – $290 |
| Farmers | $120 – $180 |
| Allstate | $120 – $170 |
How Much Is Car Insurance For A 20 Year Old – By Vehicle
Factors That Influence Insurance Costs By Vehicle:
- Performance: Sports cars are considered high-performance vehicles and come with higher insurance rates because of increased likelihood of speeding and/or accidents.
- Likelihood of Theft: Some cars, such as luxury or sports cars, are more frequently stolen, so they will have higher auto insurance premiums.
- Vehicle Safety Rating: Cars with high safety ratings are typically less costly to insure due to reduced risk of injury from accidents.
- Cost of Repairs: Expensive cars or cars with hard-to-locate parts are more expensive to insure.
A 20 year old driver will discover that the type of vehicle driven influences car insurance rates. For example, this age group may pay about $3,000-$4,500 a year for full coverage of a sedan, but a driver the same age who drives a luxury car is looking at an average of $5,000-$8,000 annually.
| Vehicle Type | Average Annual Premium for 20-Year-Olds |
| Sedan | $3,000 – $4,500 |
| Hybrid | $4,000 – $6,500 |
| Luxury | $5,000 – $8,000 |
| SUV | $3,800 – $5,500 |
| Truck | $3,500 – $5,500 |
| Van | $4,500 – $6,000 |
How Much Is Car Insurance – By Age
As shown in the table below, younger drivers pay much higher car insurance rates than mature, more experienced drivers. As drivers age and get more experience, rates usually decrease until they reach their lowest point during middle age. Rates will begin to rise again as drivers reach senior age, which is a reflection of the increased risk associated with this older age group.
A 20 year old is going to be paying substantially more for car insurance than someone older. Statistically, younger drivers have more vehicle accidents. A 20 year old will probably pay in the neighborhood of $4,500-$6,500 for an annual premium of full coverage. A 50 year old, with more experience and less inclined to engage in any risky driving behavior, only pays about $$1,500 to $$2,300 a year for full coverage.
| Age | Average Annual Premium for Minimum Coverage | Average Annual Premium for Full Coverage |
| 20 | $1,900 – $3,500 | $4,500 – $6,500 |
| 35 | $850 – $1,500 | $1,800 – $2,600 |
| 50 | $700 – $1,300 | $1,500 – $2,300 |
| 60 | $650 – $1,200 | $1,400 – $2,200 |
| 70 | $700 – $1,300 | $1,500 – $2,400 |
Key Statistics On Car Accidents For 20-Year-Old Drivers:
Statistics On 20-Year-Old Drivers And Car Accidents:
Fatal Crash Rate: 20 year-old drivers have a high fatal crash rate, with accident rates almost 3 times higher than the national average for all drivers. Young adults aged 18-20 are among the highest risk groups for fatal vehicle crashes.
Involvement in Crashes: Drivers aged 20-24 have an accident rate of approximately 25 crashes per 100 licensed drivers, a number that is substantially higher than that of older age groups. This age group is responsible for around 12-15% of all car accidents in the United States, although they represent a much smaller proportion of the total driving population.
Distracted Driving: 20-year-olds are considerably more likely to be involved in crashes caused by distracted driving. The National Highway Traffic Safety Administration (NHTSA) reports that 9% of all fatal crashes of drivers 15-20 years old were related to distracted driving such as texting and phone use.
Seat Belt Use: Young adults, especially in their early 20s, tend to use seat belts less often than older drivers, a contributor to accidents.
Although 20 year-old drivers are a high risk group for auto accidents, such measures as responsible behavior, safe driving education, and the use of safety features can help lower their involvement in accidents.
How To Save Money On Your Car Insurance As A 20 Year Old
As a 20 year-old driver, you’ll find that car insurance can be rather expensive. This is due in part to the perceived increased risk generally associated with a younger age group. But, there are still some strategies to decrease insurance rates and save. Here are 5 effective strategies that will help you save money on car insurance:
Take Advantage Of Multi-Car Discounts
If you have more than one car or live with someone who does, you might look into taking advantage of multi-car discounts. Numerous auto insurers offer discounts to those who insure multiple vehicles within the same policy.
Maintain A Clean Driving Record
One of the best ways to lower your car insurance rates is to maintain a good driving history. This means not receiving traffic citations, avoiding at-fault accidents, and not using drugs or drinking and driving. Insurance providers will frequently offer discounts to drivers who have no record of filing claims, as they are viewed as lower risk.
Shop Around For The Best Rates
It’s wise to shop around and compare rates from multiple auto insurance carriers. Each company has its own formula used to calculate rates, which means that prices can differ significantly from one insurer to the next. When you obtain quotes from more than one company, you can be sure you’re getting the best deal available.
Take A Defensive Driving Course
Taking a defensive driving course may bring savings on your vehicle insurance. This is helpful in two ways: It will help improve your driving skills, plus get you a discount on premiums from most insurance companies, as drivers who complete these courses are viewed as less likely to have accidents.
Regularly Review Your Coverage
Life changes as time goes by, and it’s likely your car insurance coverage will need to change accordingly. Make it a practice to review your policy at least once a year, or whenever you experience a major life change, such as getting married, moving to a new city or starting a new job. This will help to ensure you’re not paying for coverage you no longer need, and that you have the coverage you do need.
By utilizing these simple but effective strategies, you can reduce your car insurance premiums, leaving more cash in your pocket. Remember, the key to saving money on auto insurance is being proactive and taking the necessary steps to show insurers that you’re a good risk.
Note: If you’re on low income, you can still find affordable car insurance by comparing quotes, increasing your deductible, choosing liability-only coverage, and asking about available discounts or flexible payment plans. Even without government programs, smart shopping and safe driving can help you save.
How To Buy Car Insurance As A 20 Year Old
Purchasing car insurance can be a stressful experience, especially for younger drivers. However, armed with the correct knowledge and approach, it can be made much easier. Below are 7 steps that will help you navigate through the process of buying auto insurance as a 20 year-old:
Gather Your Information
Before you even start looking for car insurance, you should gather all of the information you’ll need. This will include information about your driving history, your driver’s license number, and vehicle identification number (VIN).
Maintain A Good Driving Record
Maintaining a clean driving history is one of the most effective ways to lower your insurance premium. Avoid accidents and traffic violations, as these things can substantially increase your insurance premiums.
Decide What Coverage You Need
Drivers have different needs, so it’s essential to calculate what coverage you need before you start shopping. Consider things such as your comfort level with risk along with the age and value of your vehicle, and your financial situation.
Choose How To Shop For Car Insurance
There are multiple ways to shop for car insurance. You can buy it online, contact a company representative, or work with an independent agent. Each method has its pros and cons, so choose the one that best suits your needs.
Compare Quotes
Don’t just settle for the first quote you get. Compare quotes from multiple insurance companies to ensure you’re getting the best deal. Remember, each company uses its own formula to calculate rates, so prices can vary significantly.
Purchase Your Policy
Once you’ve compared quotes and decided on a company, it’s time to purchase your policy. Make sure to read through the policy carefully so that you understand what is covered and what isn’t.
Regularly Review Your Coverage
Your insurance needs will probably change over time, so it’s important to review your coverage periodically. You don’t want to pay for coverage you no longer need, while making sure you’re adequately covered for your current needs.
By following these steps, securing car insurance as a 20 year-old can be a smooth, seamless and straightforward process. Remember, the key to getting the best car insurance is to shop around and compare quotes from various providers.
Note: If you’re buying car insurance for the first time, it’s important to understand what you’re paying for and how to get the best deal. Start by setting a realistic budget, including monthly insurance costs. Shop around and compare quotes from different providers, and don’t just take the first offer. Know what kind of coverage you need, especially if you’re financing your car, and ask about discounts you might qualify for. Being informed helps you avoid overpaying and ensures you’re properly covered from day one.
FAQs
What is the best car insurance for a 20 year old?
Leveraging my own personal experience, along with comparison charts and customer ratings, it’s my considered opinion that GEICO offers a superior balance of affordability combined with comprehensive coverage. Besides the numbers, plentiful testimonials from satisfied policyholders reinforce this choice. GEICO provides substantial discounts for good driving and safety features, robust policy options, and excellent customer service.
At what age is car insurance the cheapest?
Based on my extensive research, the age bracket that has the lowest average auto insurance rates is between 50-60 years old. This age group has the benefit of their many years of driving experience, something that insurance carriers see as an indicator of low risk.
Sources
⇅- Yahoo! Finance – Which Gender Pays The Most For Car Insurance
- Morris Bart – What Age Group Has The Most Accidents
