Even drivers in their 20s with a few years of driving experience can pay, on average, high annual insurance premiums due to their higher-than-average accident frequency, according to the Insurance Information Institute (Triple-I). . The average cost of full coverage auto insurance for 20-year-olds is $3,782 per year. For minimum coverage auto insurance, 20-year-olds spend an average of $1,160 per year. Car insurance can be expensive for 20-year-olds, but understanding the nuances of how your rate is calculated and what you can do to lower your premium could help you fit your coverage into your budget.
how much does car insurance cost for a 20 year old?
On average, 20-year-olds pay $3,782 per year for full-coverage auto insurance, according to 2022 premium data from Quadrant Information Services. Comprehensive coverage includes liability insurance as well as comprehensive and collision coverage. Although this is less than what teen drivers pay, on average, it is still much more than the national average cost of car insurance in 2022, which is $1,771 per year for full coverage and $545 per year for minimum coverage.
Reading: How much is insurance for a 20 year old
Although drivers in their 20s have experience behind the wheel, auto insurers still consider them relatively inexperienced. this driving inexperience leads insurers to charge higher premiums to compensate for the increased risk of claims. however, you should see her premium go down as she gets older, assuming she maintains a clean driving record.
average cost of car insurance for men and women in their 20s
In most states, gender is a qualifying factor for auto insurance policies. Statistics show that men adopt more risky driving habits than women, which increases the probability of being involved in an accident. Because of this, men tend to pay more than women for auto insurance in states that take gender-sensitive rates into account. All states except California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania use gender as a rating factor.
average cost of auto insurance for 20 year olds by state
Each state has its own insurance laws, which can affect average auto insurance rates at any age. Additionally, each state has different average rates of weather-related accidents and damages, as well as varying costs associated with medical care and vehicle repairs. All of these factors affect the average car insurance rates in your state.
*these states prohibit insurers from using gender as a rating factor for auto insurance.
**The ban on barring gender as a rating factor has been lifted as of 2022 and is not currently reflected in these rates.
best auto insurance companies for 20 year olds
Although price is important when buying insurance, it’s not the only factor to consider when choosing your auto insurer. Bankrate Insurance Editors obtained current information on premiums from the largest insurance companies by market share in the country. After analyzing the data, we also reviewed each company’s coverage options, discounts, policy features, and third-party ratings.
For 20-year-olds looking for the best car insurance, getting quotes from major geico, state farm, progressive, and travelers companies can be a good starting point:
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geico has the lowest average 20-year-old rates of any provider on our list. In addition, the company could attract young drivers for its highly qualified digital tools. the company took first place in the j.d. energy 2021 usa uu. digital experience study for the service category, which means that most customers are very satisfied with geico’s digital service. The mobile app lets you pay bills, file claims, request roadside assistance, view ID cards, make policy changes, and more.
geico is also known for having one of the strongest discount lists in the industry, with savings for federal employees, military, and safe drivers, among others. geico has an a++ (superior) financial strength rating from am best, the highest available. Geico’s attractive coverage options include rideshare coverage, which could be important for people who use their vehicle to earn money. however, the company does not offer gap insurance, so if you need that type of coverage to protect your auto loan, you may want to consider another option.
more information: geico insurance review
If you’re looking for a well-established company with the weight of history behind it, state farm might be a good fit. In addition to offering the second cheapest average rates on our list, State Farm is the nation’s largest personal auto insurer, selling its products through a network of 19,000 local agents.
Young drivers may be especially attracted to State Farm’s Steer Clear usage-based telematics insurance program, which can save you money and help you learn safer driving habits. You can also lower your premium by taking advantage of a student discount or by taking an accredited driving course. state farm has an a++ (superior) financial strength rating from am best. however, the company received more than average customer complaints filed with the national association of insurance commissioners (naic).
more information: state agricultural insurance review
progressive auto insurance tools can save you time and money. If you’re on a budget, the Name Your Price tool can help you find coverage options that fit your financial plan. You can also compare quotes from other companies through the Progressive website, which may help you determine if another company has a better price for the same level of coverage. If you plan to get your quote virtually and buy your policy online, progressive might be a good option. The company offers savings for online quotes and purchases. however, you can also purchase progressive car insurance through its nationwide network of independent agents. like our other top companies, progressive has a strong balance sheet and is rated a+ (superior) by am best. however, the company received a below-average claim satisfaction score from j.d. power.
more information: progressive review of insurance
Travellers has the highest average rates for 20-year-old drivers on our list, but the company’s extensive menu of optional coverage types might offset the higher premium. You can add options like loan/lease gap coverage, new car replacement, accident forgiveness, or rideshare coverage to customize your auto insurance policy. you may be able to lower your premium by getting good grades or keeping a clean driving record. travelers has an a++ (superior) financial strength rating from am best. however, travelers file a greater number of customer complaints with the naic.
See also: How Is General Liability Premium Calculated?
more information: travel insurance review
the cheapest car insurance for 20-year-old drivers
Because 20-year-olds pay relatively high average car insurance premiums, finding a cheap provider may be high on your list. Fortunately, numerous companies offer coverage lower than the national average cost of full-coverage auto insurance for drivers in their 20s.
These are average premiums, but the price you pay for car insurance will depend on more than a dozen individual qualifying factors, such as the type of car you drive, how much you drive per year, coverage types, and deductibles. you choose, your claims history and vehicle record, according to the triple-i. you may pay more or less than the premium listed above.
how to save on car insurance for 20 year olds
In general, 20-year-olds can expect to pay relatively high car insurance costs compared to the national average, but there are ways to save on your premium.
- Check: One of the best ways to save is to get quotes from multiple companies so you can compare them. Most companies offer quotes online, or an independent insurance agent can help you find insurers that offer a wide range of discounts and more affordable insurance options for 20-year-olds.
- Take advantage of discounts: Most companies offer at least some discounts to help lower your premium. Common discounts for drivers in their 20s include undocumented, paid-in-full, and good student discounts. telematics discounts can also help lower your premium if you exhibit safe driving habits.
- Choose a higher deductible: Understanding your auto insurance deductibles is important. Deductibles are the out-of-pocket amount you are responsible for in the event of a vehicle damage claim. Increasing your deductible usually lowers your premium, but it also means you’d have to pay more in an accident or non-collision loss, like theft or fire.
- Consider the car you drive: Some cars are cheaper to insure than others. Most insurance professionals recommend that you get an insurance quote before you buy or lease a vehicle, so you can anticipate what you’d pay for the car you’re considering.
At what age will my rates go down?
How much car insurance do 20-year-olds need?
what is the cheapest car insurance company?
what other factors can affect my car insurance rates?
bankrate uses quadrant information services to analyze 2022 rates for all zip codes and carriers in all 50 states and washington, d.c. Rates quoted are based on a 20-year-old male and female driver with a clean driving record, good credit, and the following total coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- full $500 deductible
To determine the minimum coverage limits, Bankrate used a minimum coverage that meets each state’s requirements. our base drivers own a 2020 toyota camry, commute five days a week, drive 12,000 miles a year, and have a renters insurance policy.
age: rates were calculated by evaluating our base profile with ages 18-60 (base: 40 years) applied. Depending on age, drivers may be renters or owners. Hawaii rates indicate age is not a contributing factor.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania.
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how to get the best car insurance for a 20 year old
The first step in finding the best auto insurance for your needs is understanding your situation. Take stock of your qualifying factors, including the type of car you have, the specific types of coverage you’re looking for, your driving record, and any discounts you might qualify for. then get quotes from various companies that may meet your needs. that way you can compare quotes and companies and choose the right option for you.