Average Car Insurance Costs for 20-Year-Old Drivers – ValuePenguin
eries offers the cheapest car insurance for drivers 20 and under at $2,332 per year, based on our analysis of thousands of rates in nine states. To find the cheapest rate, compare quotes from the cheapest teen driver companies like erie, geico, and usaa.
how much does car insurance cost for 20 year olds?
erie insurance, available in 13 states, has the lowest rates for 20-year-olds at $2,332 per year. usaa, which is only available to military members and their families, was second most affordable at $2,732 per year.
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Among widely available insurance companies, Geico was ranked the most affordable for 20-year-olds, with an average rate of $3,026 per year.
find the cheapest insurers for young drivers in each state
All-state rates are especially expensive, with premiums nearly twice as high as the next most expensive competitor, progressive. If you’re a young driver looking for affordable car insurance, it’s important to shop around and shop around to find the cheapest insurer for you.
How is car insurance different for 20 year olds compared to other ages?
Car insurance for a 20-year-old averages $5,517 per year, or $460 per month.
Young drivers, particularly those under 25, tend to have particularly high auto insurance rates because they have more accidents on average and are considered riskier by insurers.
Between ages 18 and 20, average rates dropped by nearly $2,000 per year. In addition, rates fell by more than $900 per year, on average, among 20- and 21-year-olds.
men in their 20s pay more for car insurance than women
20-year-old male drivers pay an average of $5,777 per year, which is $519 more than female drivers, who pay $5,258 per year. This is because, on average, young male drivers have more accidents compared to young female drivers.
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Certain states have banned the use of gender as a pricing variable, so men and women of the same age must pay the same for car insurance in these states:
the best auto insurance company for 20 year olds in every state
geico was the cheapest insurer in most states. but these are average fares – the best way to find an affordable fare for you is to shop around.
Auto insurance prices can vary widely from state to state. Michigan is the most expensive state for auto insurance for a 20-year-old driver, with an average rate of $16,367 per year.
In contrast, North Carolina has the cheapest auto insurance for young drivers. the average rate for our 20 year old was $2,035 per year and was the only state with a rate under $3,000.
the best way for 20 year olds to find cheap car insurance
The quotes we’ve compiled are just averages, and the truth is that each auto insurance quote will be unique to its own driver profile. But there are several proven ways 20-year-olds can save on car insurance.
stay on your parent’s car insurance policy
If your parents keep you on their policy, it will likely be the cheapest way to get auto insurance coverage. yThe increase in premiums on your parent’s policy is likely to be less than the cost of your own policy.
check between insurers
The exact same 20-year-old could see a difference of hundreds, or even thousands, of dollars between various insurers for the same coverage.
In California, for example, our sampled 20-year-old driver paid $2,708 per year with state farm versus $5,885 with farmers, on average. that’s an extreme difference, but even the difference between state farm, the cheapest insurer, and aaa, the third cheapest, was hundreds of dollars.
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If you’re 20, shop for cheap quotes online and make sure you get the same coverage from each. Start with our recommendations for the cheapest in your state, but also broaden your search to other insurers as you never know who might offer the cheapest rate.
qualify for discounts
When getting quotes, be sure to get credit for any discounts you qualify for, such as:
lower your coverage limits
It’s a good idea to purchase enough insurance to cover potential liabilities as well as damage to your own car. That is why we recommend a comprehensive coverage policy, which covers the cost of damage or injury to third parties for which you are responsible and also the cost of damage to your own vehicle.
However, at any given time, you may be buying too much coverage and could save on your premiums by lowering your limits. If you’re paying hundreds of dollars more for comprehensive and collision coverage, but your car isn’t worth much more than a few thousand dollars, you may end up paying more money to protect your car than it’s actually worth.
frequently asked questions
We collect quotes in nine of the most populous states in the country and in thousands of zip codes. For our sample driver, we used 20-year-old males and females who drove a 2015 Honda Civic Ex. All factors affecting rates, except those discussed in this study, were held constant to make a fair comparison.
The levels of coverage in the full coverage policy were as follows:
We included 29 insurers in this analysis, and insurers’ rates were only included in our list of average prices and recommendations if their policies were available in at least three of the nine states.
valuepenguin’s analysis used insurance rate data from quadrant information services. These rates were obtained publicly from insurer filings and should be used for comparison purposes only; your own quotes may be different.