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Best car insurance companies for 20-year-old drivers
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
How much is car insurance for a 20-year-old?
On average, car insurance for a 20-year-old driver costs $4,864 per year, or about $405 per month, for a standalone full coverage policy, according to average premium data from Quadrant Information Services. For state minimum insurance, 20-year-olds on their own policy pay an average of $1,367 per year or $114 per month. For parents who keep a 20-year-old driver on their policy, the average cost of full coverage insurance is $3,535 per year, while minimum coverage costs just $1,019 per year.
These costs are lower than the average cost of car insurance for teen drivers, which can range as high as $6,000 per year or more. However, they’re also higher than the average cost of car insurance for adult drivers with clean records, a group that presents a lower risk of accidents and claims than 20-year-olds. While 20-year-olds typically have a couple of years of experience as licensed drivers, insurance companies still see them as statistically high risk.
Average car insurance cost for 20-year-olds by state
To understand how much insurance is for a 20-year-old, it’s important to look beyond national averages to pricing trends in your state. Every state has its own insurance laws, which can affect the average rates for car insurance at any age. In addition, each state sees different rates of motor vehicle crashes, auto theft and severe weather, as well as varying costs associated with medical care and vehicle repairs. All of these factors affect average rates for auto insurance in your state.
| State | Average annual full coverage premium for 20-year-olds on their parents’ policy | Average annual full coverage premium for 20-year-olds on their own policy |
|---|---|---|
| Alabama | $3,128 | $4,767 |
| Alaska | $3,491 | $4,562 |
| Arizona | $4,038 | $5,339 |
| Arkansas | $3,180 | $4,744 |
| California | $4,066 | $4,926 |
| Colorado | $4,489 | $6,148 |
| Connecticut | $3,389 | $5,665 |
| Delaware | $3,717 | $5,889 |
| Florida | $5,484 | $7,509 |
| Georgia | $4,187 | $5,680 |
| Hawaii* | $1,721 | $1,793 |
| Idaho | $2,046 | $3,167 |
| Illinois | $3,318 | $5,115 |
| Indiana | $2,572 | $3,673 |
| Iowa | $2,510 | $3,492 |
| Kansas | $3,697 | $5,343 |
| Kentucky | $3,937 | $5,956 |
| Louisiana | $5,391 | $7,381 |
| Maine | $2,411 | $3,614 |
| Maryland | $4,184 | $6,366 |
| Massachusetts* | $2,413 | $3,734 |
| Michigan | $5,092 | $6,632 |
| Minnesota | $3,109 | $4,560 |
| Mississippi | $2,959 | $4,439 |
| Missouri | $3,629 | $5,385 |
| Montana | $3,522 | $5,281 |
| Nebraska | $3,056 | $4,800 |
| Nevada | $5,006 | $6,256 |
| New Hampshire | $2,649 | $3,764 |
| New Jersey | $3,687 | $5,250 |
| New Mexico | $3,304 | $4,647 |
| New York | $5,216 | $6,749 |
| North Carolina | $2,065 | $2,108 |
| North Dakota | $2,454 | $3,462 |
| Ohio | $2,545 | $3,504 |
| Oklahoma | $3,757 | $5,221 |
| Oregon | $2,813 | $4,011 |
| Pennsylvania | $4,171 | $5,557 |
| Rhode Island | $4,491 | $6,458 |
| South Carolina | $2,749 | $4,079 |
| South Dakota | $2,886 | $3,877 |
| Tennessee | $3,088 | $4,288 |
| Texas | $4,164 | $5,836 |
| Utah | $3,459 | $4,946 |
| Vermont | $2,370 | $3,518 |
| Virginia | $3,143 | $4,554 |
| Washington | $2,522 | $4,053 |
| Washington, D.C. | $3,821 | $5,093 |
| West Virginia | $2,837 | $4,024 |
| Wisconsin | $2,506 | $3,742 |
| Wyoming | $2,449 | $3,494 |
Best car insurance companies for 20-year-olds
At age 20, most drivers want a car insurance company with affordable rates, reliable customer service and a user-friendly digital interface. To find those things, Bankrate’s insurance editorial team analyzed the latest premium data available from Quadrant Information Services, along with third-party ratings, NAIC Complaint Index scores, coverage options and available discounts. Each carrier received a Bankrate Score on a five-point scale, which gives a quick snapshot of how well the company might meet the needs of its customers.
For 20-year-old drivers seeking the best car insurance company for their needs, getting quotes from Progressive, Geico, Auto-Owners and USAA (if eligible) may be a good starting point.
| Car insurance company | Bankrate Score | Average annual full coverage premium for 20-year-olds on their parents’ policy | Average annual full coverage premium for 20-year-olds on their own policy |
|---|---|---|---|
| Progressive | 4.4 | $3,039 | $4,179 |
| Geico | 4.4 | $2,622 | $3,574 |
| Auto-Owners | 4.3 | $2,635 | $3,314 |
| USAA | 4.2 | $2,223 | $3,378 |
Top carriers for 20-year-old car insurance
Progressive’s auto insurance tools can save you both time and money. If you are on a budget, the Name Your Price tool can help you find coverage options that will fit into your financial plan. You can also compare quotes from other companies through Progressive’s website, which could 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’s car insurance through its national 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 slightly below-average claims satisfaction score from J.D. Power.
Geico has some of the lowest average rates for 20-year-olds of any provider on our list. In addition, the company might appeal to young drivers for its highly-rated digital tools. The mobile app lets you pay bills, file claims, call for roadside assistance, view ID cards, make policy changes, locate nearby gas stations and more. The company ranked second overall on the J.D. Power 2023 U.S. Insurance Digital Experience Study for the service category, suggesting that it’s one of the most user-friendly digital insurance companies. That said, Geico ranked below the industry average in the digital shopping category, so you may want to get a quote through a local agent, if possible.
Geico is also known for having one of the most robust lists of discounts in the industry, with savings for federal employees, military members and safe drivers, among others. Geico carries an A++ (Superior) financial strength rating from AM Best, the highest available. However, the company does not offer gap insurance, so if you have a car loan and need that coverage, you may want to consider another option.
In 2024, Auto-Owners tied with Geico in the Bankrate Awards for Best Budget Auto Insurance Company. In our analysis of premiums for 20-year-old drivers, Auto-Owner consistently returned some of the lowest average rates for 20-year-olds on a standalone policy. Auto-Owners operates a wide network of local agents and offers a robust slate of coverage add-ons, such as accident forgiveness, gap coverage and collision deductible waivers. In J.D. Power’s 2023 U.S. Auto Claims Satisfaction Study, Auto-Owners scored well above the industry average.
Auto-Owners also advertises a strong discounts list, with some discounts such as a green discount or student discount that could appeal especially to 20-year-old drivers. However, auto coverage is limited to 26 states, so not every driver will be eligible for a policy. In addition, Auto-Owners scored well below average for both service and shopping in the J.D. Power 2023 U.S. Insurance Digital Experience Study, indicating that its digital tools may not be up to the industry standard.
In our analysis, USAA had the lowest rates for full coverage for parents with a 20-year-old on their policy, along with the lowest rates for 20-year-olds on a standalone minimum coverage policy. In addition to low rates, USAA has consistently received outstanding scores for customer service and claims satisfaction in J.D. Power’s most recent surveys.
The downside is limited eligibility: only 20-year-olds in the U.S. military, or those with a military parent or spouse, are eligible for an auto insurance policy through USAA. For those who are eligible, USAA’s generous list of discounts could mean additional savings, whether through a family loyalty discount, a low-mileage storage discount or a telematics discount from USAA’s SafePilot program.
How to get the best car insurance for a 20-year-old
The first step to finding the best 20-year-old car insurance is to understand your situation. Take stock of your rating factors, including the type of car you have, any specific coverage types you are looking for, your driving history and discounts you might qualify for. Next, compare quotes from several companies that might fit your needs.
Every insurance company prices policies for 20-year-old drivers a little differently — and every 20-year-old driver is different. That’s why comparison shopping is an essential step to help you find the ideal company for your own situation.
Cheapest car insurance for 20-year-old drivers
For many 20-year-old drivers, finding the cheapest car insurance possible is a priority. If that’s your situation, you may want to get quotes from the major carriers listed in the tables below: USAA, Geico, Auto-Owners, Erie, American Family and more. But keep in mind that auto insurance is highly personalized and often highly local — while we focused on the cheapest carriers available across multiple states, many young drivers find the cheapest rates with small regional carriers.
Cheapest car insurance for 20-year-old drivers on their parents’ policy
| Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
|---|---|---|
| USAA | $582 | $2,233 |
| Geico | $708 | $2,622 |
| Auto-Owners | $762 | $2,635 |
| Travelers | $775 | $2,725 |
| American Family | $891 | $2,601 |
Cheapest car insurance for 20-year-old drivers on their own policy
| Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
|---|---|---|
| USAA | $871 | $3,378 |
| Auto-Owners | $947 | $3,314 |
| Geico | $967 | $3,574 |
| Erie | $997 | $3,065 |
| Progressive | $1,196 | $4,179 |
Remember, the rates shown above are average premiums for 20-year-old drivers with clean driving records. In reality, you might find that you’re quoted higher or lower rates based on everything from your ZIP code and vehicle type to your claims history, other drivers on your policy and your credit history.
How to save on car insurance for 20-year-olds
Generally, 20-year-olds can expect to pay relatively high car insurance costs compared with the national average, but there are ways that you can save on your premium.
- Shop around: One of the best ways to save is to get quotes from several companies so you can compare them. Most companies offer quotes online, or an independent insurance agent or broker may be able to help you find insurers that offer a wide range of discounts and more affordable insurance options for 20-year-olds. Note that it’s important to request the same coverage types and policy limits from each company to make a direct comparison.
- Take advantage of discounts: Most companies offer at least a few discounts to help lower your premium. Common discounts for 20-year-old drivers include paperless billing, paid-in-full and good student discounts. Telematics discounts may also help lower your premium if you exhibit safe driving habits.
- Choose a higher deductible: Understanding your auto insurance deductibles can help you to budget appropriately for insurance. Deductibles are the out-of-pocket amount you are responsible for in the event of a vehicle damage claim. Increasing your deductible generally lowers your premium, but it also means you would have to pay more in an accident or a non-collision loss, like theft or fire, and might not be able to make a claim for lower damage amounts.
- 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 be paying for the car you’re thinking of choosing. Cars that are cheaper than average to insure include small or midsize SUVs, such as the Subaru Outback, Honda CR-V, Honda Pilot and Ford Escape.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full 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
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated by evaluating our base profile with the age 20 and age 40 (base) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
