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

How much is auto insurance for a 20-year-old? Auto insurance rates for 20-year-old drivers average $366/month or $4,392/year, but rates for female drivers may be cheaper. To find cheap car insurance for new drivers under 21, start by comparison shopping to get multiple quotes. Enter your ZIP code below and get the best car insurance rates for 20-year-olds.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Apr 8, 2021

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What You Should Know

  • Auto insurance rates for 20-year-old drivers may be more expensive than rates for older drivers because they have less road experience and are therefore perceived as higher risk
  • Average auto insurance rates for 20-year-olds are around $444 per month
  • You could lower the auto insurance rates for a 20-year-old driver by shopping for car insurance quotes and qualifying for discounts

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 auto 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 20-year-olds in my state? 

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 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. 

Average Annual Auto Insurance Rates for 20-Year-Olds in Select States
StateAverage Annual Rates for 20-Year-Old Drivers
North Carolina$1,996
Pennsylvania$3,546
Ohio$3,661
California$3,694
Texas$4,285
Illinois$4,348
New York$4,699
Georgia$5,327
Florida$6,200
Michigan$15,573
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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 auto 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 clean driving history 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.

Average Annual Auto Insurance Rate for 20-Year-Olds by Company
Insurance CompanyAverage Annual Insurance Rate
Allstate$3,064
Farmers$2,380
GEICO$1,656
Liberty Mutual$3,411
Nationwide$1,907
Progressive$2,749
State Farm$2,909
USAA$1,439
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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, 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 auto 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.

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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 20-year-olds compared to other ages?

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

Average Annual Auto Insurance Rates by Age
AgeAverage Annual Insurance Rate
18$7,179
19$6,021
20$5,333
21$4,453
22$4,128
23$3,840
24$3,597
25$3,207
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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). By the time you reach 25, average insurance rates will be almost cut in half. 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 auto insurance for a 20-year-old?

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. 

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Should I compare rates? 

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 young drivers?

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

For example, ask your insurance company about good student 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.

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.

Discounts on Auto Insurance for 20-Year-Old Drivers
DiscountsDistant StudentDriver's EdGood StudentClaim FreeDefensive Driver
21st CenturyNoYesYesYesYes
AAAYesYesYesYesYes
AllstateYesYesYesYesYes
American FamilyYesYesYesYesYes
AmeripriseYesNoYesYesYes
AmicaYesYesYesYesYes
Country FinancialNoYesYesYesYes
EsuranceNoYesYesYesYes
FarmersYesYesYesYesYes
GeicoYesYesYesYesYes
Liberty MutualNoYesYesYesYes
MetLifeNoYesYesYesYes
NationwideYesNoYesYesYes
ProgressiveYesYesYesYesYes
Safe AutoNoYesYesYesYes
SafecoYesYesYesYesYes
State FarmYesYesYesYesYes
The GeneralNoYesYesYesYes
The HanoverYesYesYesYesYes
The HartfordYesYesYesYesYes
TravelersYesYesYesYesYes
USAAYesYesYesYesYes
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Speak with your insurance agent to make sure you’re getting all the discounts for which you qualify.

How much coverage do I need? 

Another way you can save money is to reduce your coverage. Legally, you only need the minimum liability 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, but only you can decide if that’s the right decision.

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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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