How much do 20 year olds pay for car insurance

Young adults are just starting out in life, and the high cost of car insurance is one of the many challenges they face. The national average cost of auto insurance is $1,555, but teens and young adults typically pay double that amount. there are valid reasons: a 20-year-old does not have the driving experience of a 30-year-old. in fact, the 20-24 age category has the highest rate of fatalities in a car accident of all ages. this age group accounts for 18% of car accident deaths. Take a closer look in this article at how much car insurance will cost for men and women in their 20s and how you can save.

car insurance for 20 year olds

The average annual cost of auto insurance for 20-year-olds is $3,592. that’s more than double the national average cost of auto insurance of $1,555 per year. while still high, this 20-year-old rate is actually a reduction in the price a teen driver would pay. A teen auto insurance policy costs $4,048 for a man and $3,819 for a woman on average annually.

Reading: How much do 20 year olds pay for car insurance

The biggest factor affecting the rate of a 20-year-old driver is inexperience. Younger drivers are more likely to be involved in an accident due to their lack of driving experience. As a driver ages, their driving knowledge and skills improve, reducing the risk of being involved in an accident.

car insurance rates for 20-year-olds: men vs. women

The cost of car insurance for a 20-year-old man is different than the cost for a woman of the same age, as indicated in the table below. a young adult woman pays lower insurance costs than a man, mainly due to the number of accidents a man is involved in versus a woman. According to the Insurance Institute for Highway Safety (IIHS), young men die in car accidents at nearly triple the rate of women (2,902 deaths vs. 1,024).

The gender difference is high when drivers are younger and gradually decreases to close the gap at age 30. younger male drivers are more likely to speed, drink alcohol, or not wear a seat belt.

quadrant information services, 2020

how much does car insurance cost for 20 year olds in my state?

Another factor that can affect the cost of auto insurance for a 20-year-old is location; insurance rates can vary significantly by state. The following table compares the average car insurance rates for 20-year-olds by state, indicating the difference in cost and percentage with the national average.

average cost of insurance by state for 20 year olds

quadrant information services, 2020

most expensive states for car insurance for 20 year olds

According to the data in the table above, the 5 most expensive states for 20-year-olds are:

  1. michigan ($6536)
  2. new york ($5,392)
  3. new jersey ($5,107)
  4. florida ($4,798)
  5. Louisiana ($4710)
  6. These states are high across the board for all ages due to population density, accident rates, and other unique factors. liability, insurance fraud, and the number of uninsured drivers are just a few of the issues that can affect the high cost of insurance in these states.

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    michigan and new york are no-fault states, making insurance premiums much higher than average. Michigan has the highest insurance rates in the country for this reason, requiring all drivers to carry personal injury protection insurance to cover the unlimited medical benefits the state allows. Florida auto insurance rates are high due to the number of uninsured drivers, who make up more than 26% of drivers in the state.

    least expensive states for car insurance for 20 year olds

    The price of insurance for a 20-year-old between the most expensive and the least expensive state is a difference of $5,386. the least expensive states are:

    • Hawaii ($1150)
    • north carolina ($1,470)
    • main ($1,584)
    • ohio ($1986)
    • iowa ($2016)
    • The cheapest states for auto insurance are low cost for many of the same reasons some states are more expensive. population density, number of drivers, and accident statistics affect rates. Competition among insurance companies within the state tends to lower premiums for everyone. The weather also contributes: Hawaii and North Carolina do not have extreme weather, which increases the risk of accidents.

      car insurance rates by insurance company for 20 year olds

      We compare what the major insurance companies charge to insure a 20-year-old driver. The most expensive carriers for young male drivers are Hanover, Allstate, MetLife, Farmers, and Progressive. Providers with the highest rates for young drivers include Hanover, MetLife, Allstate, Farmers, and State Farm.

      20 year old driver is better off with erie, usaa, geico, aaa or travelers for lower rates. However, AAA and USAA require membership to qualify for auto insurance. AAA membership is available to most drivers, but USAA is only for active duty or retired military and their family members. it’s best to compare quotes from lower-cost insurers to determine which is best.

      Military and their families could benefit most from usaa auto insurance. erie provides coverage in new england, ohio and tennessee. Geico may be better for students in their 20s, thanks to discounts offered to drivers who attend college. Travelers is a better option for female drivers, with a 20-year-old man paying almost $500 more for auto insurance with this provider.

      The following table compares the average premiums for men and women in their 20s by provider and includes the cost difference from the national average by gender.

      how to get cheap car insurance for 20 year olds

      With rates so high in your 20s, finding ways to save on auto insurance is critical. saving just 5% on a $3,000 policy puts $150 back in your pocket each year. Consider the following ideas to lower your auto insurance costs:

      look for discounts

      Auto insurers offer a number of discounts that could reduce your auto insurance by up to 25%. Some of the more common discounts you may qualify for include:

      • good student
      • multi-policy insurance coverage
      • automatic payment
      • low mileage
      • burglar alarm
      • security team
      • take a road safety course

        One of the main reasons a young driver’s auto insurance is so high is lack of experience behind the wheel. Defensive driving safety courses are available to take and could lower auto insurance premiums for several years. most can be completed online in just a few hours, making them a valuable option for additional savings.

        add a 20 year old to the family plan

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        In some cases, it can be much cheaper to add a 20-year-old and their vehicle to an existing policy. There’s just one catch: If the young driver is involved in an accident, all other auto policies can go up in price. Before adding a young adult driver, check with your insurer to find out if they have an accident forgiveness policy that won’t increase your insurance costs after an accident.

        choosing a sensible car

        Some cars are much more expensive to insure than others. Sports cars and SUVs are some examples of vehicles to avoid if you are concerned about auto insurance premiums. an eco-friendly compact or hybrid car can be much less expensive to insure.

        raise your deductible

        The deductible is the amount you’ll pay out of pocket before your insurance company steps in to pay the rest. Consider raising your deductible amount to lower your insurance premiums. Before you increase the amount, make sure you can pay the lump sum in the event of a claim.

        car insurance rates for 20-year-olds with a good discount for students

        If a 20-year-old is enrolled in college, they could take advantage of their student status to save money with a nice student discount:

        • non-discounted rate: $3,592
        • discounted rate: $3,294
        • saving: 9%
        • That’s nearly $300 in savings per year on your auto insurance policy.

          In which states does the good student discount save you the most?

          Let’s take a closer look at the potential savings of having a good student discount by state. Based on the data below, you’ll save the most in the states of Michigan, Minnesota, and Wyoming.

          There are a couple of factors at play that explain why student savings are higher in certain states. Good student discounts are usually factored in as a percentage of your policy – ​​states with higher insurance premiums can give you the biggest savings. Also, insurers may offer better discounts in states with more college students.

          good student discounts by state

          the takeaway

          • the cost of auto insurance for a 20 year old is one of the highest of all age ranges
          • male drivers in the 20-24 age group pay more than women because they are three times more likely to die in a car accident
          • car insurance for young drivers may vary by state
          • Taking advantage of great student driver discounts can lower your insurance premium by up to 9%
          • Young drivers face high car insurance costs when they start out. It takes time to gain experience behind the wheel, so there’s not much to do about it in the meantime, other than find ways to save on insurance. Savings options include taking advantage of great student discounts and completing an online defensive driving course. As a 20-year-old driver ages, he will see his insurance premiums go down. In the meantime, making responsible decisions and driving safely will help them see lower auto insurance costs sooner.


            Coverage uses quadrant information services to analyze quoted rates for thousands of zip codes in all 50 states, including Washington D.C. Rates quoted are based on the profiles of a 20-year-old male and female, each with a clean record driving a 2016 Honda Civic. The drivers had the following coverage details:

            • $50k bodily injury liability per person
            • $100,000 bodily injury liability coverage per accident
            • $50,000 property damage liability coverage per accident
            • $500 collision coverage deductible
            • $500 comprehensive coverage deductible
            • To observe the effect of a good discount per driver, we analyze the rates for the profile with and without the discount applied. These rates should be used to inform your auto insurance shopping process, but keep in mind that your actual rates may differ.

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