How Much is Car Insurance for a 20 Year Old?

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Leslie Kasperowicz
14 Years in the Insurance Industry (CSR & Writer)

UPDATED: Mar 13, 2020

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Car insurance is always more expensive for younger drivers. Younger drivers have less experience. They’re in a higher risk class.

The good news is that at 20 years old, you’ll pay lower insurance rates than teenage drivers. And, by comparing as many auto insurance quotes as possible, you can get surprisingly good rates on car insurance at age 20.

With that in mind, let’s take a look at how much car insurance costs when you’re 20 years old.

The Average 20 Year Old Pays About $3,800 Per Year for Car Insurance

car insurance for a 20 year oldFirst, let’s get one thing out of the way: you’re still going to pay a relatively high price for car insurance when you’re 20 years old. There’s no way of getting around that fact.

The average 20 year old driver will pay $3,816 for car insurance every year according to this study.

That may sound expensive – but it’s less than what drivers pay when they’re 16 ($6,777 per year, on average), 17 ($6,225), 18 ($5,473), or 19 ($4,163). 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, then 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). By age 25, you’re paying $2,184 for car insurance. By age 30 and above, the average driver pays less than $2,000 per year for car insurance.

Rates Vary Widely Between States for 20 Year Old Drivers

Certain states are always more expensive for vehicle insurance. States like Michigan, Florida, and Louisiana, for example, have infamously high insurance prices (they’re all also no-fault states).

If you’re a 20 year old driver in Michigan, Florida, Louisiana, and other states with high car insurance prices, then you can expect to pay significantly more than the $3,816 per year average we mentioned above. You might be paying closer to $5,000 per year for car insurance.

Meanwhile, certain states have famously low insurance rates. 20 year old drivers in Maine, Iowa, Wisconsin, Idaho, North Carolina, Vermont, Ohio, and South Carolina, for example, pay some of the lowest insurance premiums 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 a car insurance plan with premiums well under $3,800 per year.

Rates Vary Between Companies

Insurance companies calculate risk and premiums 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 4 years of clean driving history at 20, then you might pay significantly lower rates at a company that emphasizes clean driving.

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 insurance quotes.

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

At 20 years old, you should notice that rates change significantly between companies. As you get older, you’ll find the differences between insurance companies largely disappear. All major insurance companies in the United States are very competitive with one another. At 20 years old, however, you can still see major differences between companies – so take the time to shop around.

Ask About Discounts Available for Young Drivers

If you still find yourself paying too much for car insurance, then implement some cost saving strategies.

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

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, then you may be eligible for steep discounts while still being covered every time you visit.

Final Word On Finding Affordable Auto Insurance As A 20 Year Old

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 policies for 20 year old drivers.  A good place to start is 4AutoInsuranceQuote. Scroll back up to the top of this page and enter your zip code to compare rates in your area. Our licensed insurance agents are well equipped to help everybody, no matter how young or old, save money on their car insurance premiums.

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