How much is auto insurance for a 20-year-old?

Car insurance is always more expensive for younger drivers because they have less experience, which places them in a higher risk class. The good news is that when you turn 20 years old, you’ll pay lower insurance rates than teenage drivers.

By comparing as many auto insurance quotes as possible, you can get surprisingly good rates on car insurance at age 20. So how much is auto insurance for a 20-year-old?

Read this article to learn everything you need to know about understanding auto insurance and finding cheap car insurance for new drivers under 21. 

Before we get started, enter your ZIP code in our free tool to start comparing auto insurance quotes for 20-year-olds. 

Is car insurance for 20-year-olds expensive? 

First, let’s get one thing out of the way: you’re going to pay a relatively high price for car insurance around your 20th birthday. There’s no way of getting around that fact.

The average 20-year-old driver will pay $5,333 for car insurance every year. So how much is car insurance for a 20-year-old per month? Based on this per-year rate, you’re looking at $444 per month.

That may sound expensive but it’s less than what younger drivers pay, and we’ll discuss this in greater detail later.

Keep reading for more specifics on finding cheap car insurance rates for a 20-year-old.

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How much is auto insurance for a 20-year-old in my state? 

Certain states are always more expensive for vehicle insurance. Michigan, Louisiana, and Florida auto insurance, for example, is infamously more expensive (they’re all also no-fault states).

If you’re a 20-year-old driver in a state with high car insurance prices, then you may pay significantly more than the $5,333 per year average mentioned above.

Meanwhile, certain states have famously low insurance rates. Twenty-year-old drivers in Maine, Iowa, Wisconsin, Idaho, North Carolina, Vermont, Ohio, and South Carolina, for example, pay some of the lowest insurance rates in the United States.

If you’re a 20-year-old driver in one of these states, then you’ll likely be able to find car insurance rates well under $5,333 per year.

For more specifics on average rates for 20-year-olds in some of the largest states in the country, take a look at this table. 

Keep in mind that these rates are averages and may not reflect what you’ll pay, because your specific circumstances may significantly affect your rates.

What company offers cheap car insurance for 20-year-olds?

Insurance companies calculate risk and rates in different ways. Some insurance companies put a huge emphasis on age, for example, and will reward older drivers while punishing younger drivers.

Other insurance companies put a higher emphasis on your driving record— so if you have four years of a clean driving record at 20, then you might pay significantly lower rates at a company that emphasizes clean driving.

Take a look at this table for average rates for 20-year-old drivers from some of the major insurance carriers in the country.

All of this adds up to one simple conclusion: if you want to find the best car insurance for a 20-year-old driver, then you need to take time to compare auto insurance quotes.

Fortunately, comparing insurance quotes online is easier today than ever before. If you have a few minutes and an internet connection, you can instantly compare dozens of quotes from insurance companies serving your area.

At 20 years old, you’ll notice rates change significantly between companies. As you get older, you’ll find the differences between insurance companies become less drastic.

All major insurance companies in the United States are very competitive with one another so take the time to shop around for a range of car insurance quotes.

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Do gender and age affect car insurance for 20-year-olds?

Are you wondering if gender can affect your car insurance rates?

The answer is, yes, your gender matters—except in certain states. That’s because states like Hawaii and California prohibit the use of gender to adjust insurance rates.

However, the majority of states still allow companies to use gender as a factor in rate adjustments.

How much is auto insurance for a 20-year-old male versus female?

Across the country, the average rates for 20-year-old male and female drivers are:

• Female – $5,076 per year
• Male – $5,590 per year 

Overall, male drivers pay 10 percent more for insurance than female drivers at age 20.  

Whether you’re looking for cheap car insurance for 20-year-old males or cheap car insurance for 20-year-old females, your best bet is to shop around. We’ll spend some time in a later section discussing ways to find the best coverage for your needs.

How much is auto insurance for a 20-year-old compared to other ages?

As we noted earlier, while insurance for 20-year-olds is expensive, it’s not as much as auto insurance for teenagers will cost. Take a look at this table to see what we mean.

Rates drop significantly as you accumulate more years of driving experience. If you’ve been paying for your own insurance policy since you were 16, you should notice a significant rate drop by the time you’re 20.

Rates will continue dropping as you age (assuming you maintain a clean driving record). Auto insurance goes down at age 25. By age 30 and above, the average driver will pay less than $2,000 per year for car insurance.

What’s the best way to find cheap car insurance for 20-year-olds?

So what is the best way for 20-year-olds to find affordable car insurance?
Now that you know what you might pay for insurance as a 20-year-old driver, read through the next few sections to find out more about ways you can save on your rates. 

Should I compare rates on cheap insurance for 20-year-olds? 

Yes, the best way to find cheap car insurance for new drivers is to shop around. You should get quotes from at least three insurance companies so you can compare rates. One way to do this is to use a comparison tool like the one on this page.

Are there discounts available for car insurance for 20-year olds?

There are a number of auto insurance discounts that insurance companies often offer, which can help significantly lower your rates.

For example, ask your insurance company about good grade discounts. If you’re getting good grades (say, B+ or higher) in your high school or college education, you might be eligible for a small discount on insurance prices.

Distant student auto insurance discounts are also available to 20-year-old drivers who go to school over 100 miles away from their home. If you leave your car at home while you’re away at college, you may be eligible for steep discounts while still being covered every time you visit while in college.

Take a look at this table for discounts for young drivers that are offered by some of the major insurance companies in the country.

Speak with your insurance agent to make sure you’re getting all the discounts for which you qualify.

How much auto insurance coverage do I need as a 20-year-old? 

Another way you can save money is to reduce your coverage. Legally, you only need the minimum auto insurance coverage required in your state in order to drive.

However, the best way to determine if this is right for you is to consider your personal situation, driving risks, and the value of your vehicle.

If your vehicle is worth less than $4,000, it may make sense to let go of comprehensive and collision coverage, and just stick with liability auto insurance, but only you can decide if that’s the right decision.

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How much is auto insurance for a 20-year-old? What’s the bottom line?

Ultimately, 20-year-old drivers pay some of the highest rates for car insurance.

You can’t change your age but you can shop around for the best car insurance rates for 20-year-old drivers. You may also qualify for discounts, which can save you money.

You may find that female drivers pay less for insurance than male drivers, though not all states permit this.

To find affordable auto insurance for a 20-year-old, enter your ZIP code in our free tool to find the best car insurance for new drivers. 

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