Entering your 20s is a major milestone. As you leave your teenage years behind, you can tell the world loud and clear that you’re an adult now. But as you celebrate your 20th birthday, your eyes are fixed on the future—to all the exciting experiences that await you in your 20s. But there’s one thing you’re probably less excited to deal with: car insurance.

On average, 20-year-olds pay a bit less for car insurance than 18- and 19-year-olds. While costs vary by gender and location, 20-year-olds can expect to pay $373 per month for car insurance. As you advance through your 20s, you can expect your average rates to go down year by year, with a dramatic drop around the age of 25. 

The tough part? Often, 20-year-olds aren’t making as much money as people in their mid or late 20s who have started their careers. That’s why it’s so important for young people to be proactive about finding great deals on car insurance. And that shouldn’t be too hard. After all, many car insurance companies offer generous student discounts.

Insurify helps you compare car insurance rates from a wide range of companies. Just enter some information about yourself and your vehicle, and Insurify will deliver the insurance quotes you need to find cheap car insurance

Insurify

Score savings on car insurance with Insurify

Compare Quotes

How does age affect car insurance rates?

When you’re a teenager, you’re likely to pay high average rates for car insurance. Car insurance carriers see you as a risky new driver who has a decent chance of filing a claim. Once you hit your 20s, car insurance companies have a bit more confidence in your driving abilities, and your rates go down as a result. But keep in mind, these rates will only go down if you keep a clean driving record.

On average, drivers in their teens pay $424 per month on car insurance, according to proprietary Insurify data. This is $167 more per month than the average rate for drivers in their 20s, which is $257 per month. Drivers in their 30s pay even less, which just goes to show that older age groups tend to pay less for car insurance.

A 20-year-old also pays less for car insurance than a teenager because teens are statistically four times more likely to get in an accident than someone aged 20 or older. Teens are also more likely to text while driving, drive while distracted, or exceed the speed limit. These behaviors are red flags to car insurance companies.

How does gender affect car insurance rates?

Much like age, gender plays a role in the price of car insurance. It may not be as dramatic or predictable as the way rates go down with age, but you’ll certainly see a difference in rates based on gender. In general, a 20-year-old male will pay more for car insurance than a 20-year-old female.

Why? Mostly because, on average, men file more claims than women. As a 20-year-old, you don’t have a very extensive driving record, so companies need to rely on statistics from the broader population. And historically, male drivers are much more likely to get into crashes than female drivers—so car insurance companies expect more claims from them and charge more as a result.

How does location affect car insurance rates?

Another factor that helps determine your car insurance rate is location. Car insurance is regulated at the state level, which can lead to more variation in price on a state-by-state basis. It’s yet another little quirk of car insurance shopping that makes it all the more important to do your research.

A 20-year-old driver in California can expect to pay more for car insurance than a 20-year-old driver in Iowa. That’s because California has higher minimum coverage requirements than Iowa, meaning drivers are expected to buy more liability insurance. In general, drivers in states with lower populations and less intense insurance laws will pay lower premiums for car insurance.

Best Car Insurance Companies for 20-Year-Olds

Fortunately, car insurance companies understand that young people deal with higher car insurance rates on average, so they do their best to offer discounts and programs that can ease the financial burden. Shopping around for companies that offer discounts is key. For 20-year-olds who want to pay less for car insurance, these should be some of the first car insurance companies you consider. 

Progressive

Few names are as synonymous with car insurance as Progressive. And with plenty of student discounts, this industry heavyweight is always ready to give young drivers a helping hand. On average, 20-year-olds pay $213 per month for Progressive car insurance. Discounts include a good student discount, a distant college student discount, and usage-based discounts for students who might not be driving as much.

A few of the discounts that Progressive offers to 20-year-old drivers include:

  • Multi-car discount
  • Multi-policy discount
  • Good student discount
  • Distant student discount
  • Snapshot: Safe driver discount
  • Paperless discount
  • Small accident forgiveness

21st Century 

When it comes to cheap car insurance for 20-year-olds, 21st Century Insurance, a member of Farmers Insurance Companies, finds a way to stand out. With an average price of $125 per month for 20-year-olds, 21st Century has some of the cheapest rates around. It has an A rating from A.M. Best, so you can get behind the wheel knowing you’re backed by top-of-the-line financial strength. 

A few of the discounts that 21st Century offers to 20-year-old drivers include:

  • Multi-vehicle discounts
  • Driver education course discount
  • Defensive driving course discount
  • Good grades discount
  • Automobile safety features discount

Kemper

While Kemper isn’t offered in all 50 states, young drivers in Western or Midwestern states should be sure to check it out. Kemper’s prices already start on the lower end of things. So taking into account their discounts—many of which are aimed at students—20-year-old drivers could be well on their way to major savings. 

A few of the discounts that Kemper offers to 20-year-old drivers include:

  • Student away at school discount
  • Good student discount
  • Multi-vehicle discount
  • Multi-policy discount
  • Anti-theft device discount

Clearcover

According to Insurify’s driver database of millions of unique car insurance quotes, 20-year-olds pay an average of $212 per month for Clearcover car insurance—which is a whopping $161 below the average cost of car insurance for this group. Factor in a highly rated mobile app, useful rideshare insurance, and plenty of discounts, and you have a carrier that’s a great deal for young drivers.

A few of the discounts that Clearcover offers to 20-year-old drivers include:

  • Good driver discount
  • Anti-theft device discount
  • Military discount
  • Multi-policy discount
  • Multi-vehicle discount

GEICO

With plenty of significant discounts that a 20-year-old could certainly take advantage of, it’s no wonder GEICO is one of the major players in car insurance. Additionally, GEICO is a modern company with a popular mobile app. Young people already spend most of their time on their phones—so why not also pay monthly premiums and file claims from your phone, too?

A few of the discounts that GEICO offers to 20-year-old drivers include:

  • Good student discount
  • Good driver discount
  • Anti-theft device discount
  • Seat belt use discount
  • Defensive driving discount

Cheapest Car Insurance Quotes for 20-Year-Olds

Just because you’re a 20-year-old shopping for car insurance doesn’t mean you need to break the bank. Below are a few of the car insurance companies that offer lower rates for young drivers. If you’re looking for a good deal on car insurance as a 20-year-old, these are some of the first places you should look. 

Car Insurance Company Average Monthly Cost
21stCentury $125
Amigo USA $188
Kemper $196
AssuranceAmerica $198
USH&C $200
Freedom National $204
Clearcover $212
Progressive $213
Motion Auto $216
Elephant $224

Before deciding on a policy, you’ll want to do your research on Insurify. Insurify makes it easy to compare quotes across a wide range of carriers so that you can find a policy that meets your needs and budget. 

Best Auto Insurance Discounts for 20-Year-Olds

Car insurance companies base their rates on statistics. And statistically, 20-year-olds file quite a few claims, which is why they tend to pay more for car insurance. Luckily, car insurance companies try to alleviate this burden for young drivers with discounts that encourage students to get good grades and build smart driving habits. Check out just two of the best car insurance discounts for 20-year-olds below.

Good Student Discount

For 20-year-olds who have been working hard in the classroom, a good student discount is a great reward. A driver can become eligible for a good student discount when they’re between the ages of 16 to 25, are enrolled full-time in high school or college, and maintain a GPA of 3.0 or above (about a B average). 

Distant Student Discount

If you move away from home to attend college, you might qualify for the distant student discount. In general, auto insurance companies will give this to students who are at colleges that are at least 100 miles from home. As always, check with your insurance agent to see how you qualify.

Car Insurance Tips for 20-Year-Olds

While 20-year-olds might think they know everything about car insurance, there’s always more to learn. Here are a few tips about the ins and outs of car insurance:

Shop Around for Car Insurance

When it comes to buying car insurance, knowledge is power. Knowing which policies are available to you and how much they cost is key to finding the best deal on car insurance. Using a quote-comparison tool to see how large companies like State Farm and Allstate stack up against smaller regional carriers is a great way to find affordable car insurance.

Take Advantage of Discounts

Looking up the price of a car insurance policy is only half the story. Almost all car insurance companies offer discounts, which can lead to major savings on your monthly premium. Better yet, these discounts often stack, which means a larger percentage off your auto insurance rates. Look for discounts like a good student discount, good credit discount, or multi-policy discount. 

Remain on Your Parents’ Policy

It’s often cheaper to add someone to an existing policy rather than start up a new policy. That’s why many 20-year-olds join their parents’ policy. Sure, this will increase the existing policy’s rate. But joining your parents’ policy could unlock a multi-car insurance discount that will knock a few dollars off your monthly premium. 

Drive a Safer Car

If you’re driving a car with a higher safety rating, car insurance companies will see you as less of a risk. A safe car means you have a lower chance of getting in a serious accident, which means the chances of you filing a claim are lower. Of course, an insurer will be in favor of that! 

Drive an Older Car

A car loses value the minute you drive it off the lot. And the older the car, the lower its value—which also means it’s easier to replace in the event of an accident. Meanwhile, a new car can cost quite a bit to replace. So if you want to seem less likely to file a costly claim, opt for a pre-owned car.  

Select a High-Deductible Plan

In the world of auto insurance, there’s a simple rule of thumb: the higher your deductible, the lower your monthly premium. While raising your deductible could mean you have to pay quite a bit out of pocket in the event of an accident, it also means your regular car insurance payments are lower. If you’ve built up your savings, a high deductible might be right for you. 

Keep a Clean Driving Record

As a 20-year-old, car insurance companies worry that you’re likely to file a claim. Why not prove them wrong and keep a clean driving record? This will let car insurance companies know you’re a safe driver and less likely to file a claim—which means insurance providers will charge you less on average for insurance coverage

Maintain a Good Credit Score

As a 20-year-old, you haven’t had a lot of time to build up an extensive credit history. But it’s never too early to start boosting your credit score. If you have a good credit score, car insurance companies know you’re financially responsible and pay bills on time. In fact, they might even offer you a discount on your car insurance based on your good credit

Most Expensive States for Car Insurance for 20-Year-Olds

On average, the following five states offer the highest car insurance premiums for 20-year-olds:

  • Rhode Island
  • Georgia
  • New York
  • Michigan
  • Louisiana

Least Expensive States for Car Insurance for 20-Year-Olds

On average, the following five states offer the lowest car insurance premiums for 20-year-olds:

  • Hawaii
  • Iowa
  • North Carolina
  • South Dakota
  • New Hampshire

20-Year-Old Driver Car Insurance FAQ

How much is car insurance for a 20-year-old per month?

According to proprietary Insurify data based on millions of driver quotes, 20-year-olds pay $373 per month on car insurance on average. Fortunately, average car insurance rates gradually decrease for 21-, 22-, and 23-year-olds.

Where can I compare car insurance quotes online for free?

If you’re hoping to compare free car insurance quotes from a wide range of insurance companies, you’ll want to check out Insurify. Gone are the days of jumping from site to site, trying your best to keep all the different auto insurance quotes in mind. With Insurify, all the information you need is in one place so that you can quickly zero in on cheap car insurance.

How does safe driving keep car insurance rates low for a 20-year-old?

Car insurance companies charge higher rates for younger drivers because they’re statistically more likely to file a claim. But just because other 20-year-olds are filing claims doesn’t mean you have to. If you start practicing safe driving habits at a young age, you’re telling car insurance companies that you aren’t a high-risk driver. This could earn you lower rates in the future.

Does the car you drive make a difference for insurance rates?

The car you drive is one of many factors car insurance companies take into account when figuring out your rates. In general, expensive sports cars and convertibles are more expensive to insure than your average sedan or truck. So if you want to find some low rates, you’ll want to make sure you don’t buy a car that’s pricey to insure.

At what age do insurance companies stop using age as a factor for rates?

When you’re younger, car insurance companies factor in your age when setting rates. This will continue until you’re about 25 years old. Then, your rates will be determined by factors like the car you drive and your driving history. Age will once again be a factor once you’re in your 60s and beyond.

Conclusion: The best way to compare and save on car insurance

Whether you’re finishing up school or just starting your career, the dawn of your 20s brings new beginnings and greater responsibility. And as a young person just starting out, it’s never too early to start saving money. Don’t let higher rates on car insurance get in the way of your financial goals.

Browsing at least 10 car insurance quotes before deciding on a policy is a good standard to set. This way, you can really get the lay of the land and see what kinds of rates big and small car insurance companies are offering. When you know all your options, you can really home in on a policy that works for you. 

Insurify makes this quote-comparison process easier than ever. Just enter some of your vehicle information and driver history, and Insurify will give you access to compare auto insurance quotes from a wide range of carriers. With Insurify, all the information you need is on one page, making it easy to find insurance prices that work for you as a young adult.

Score savings on car insurance with Insurify

Compare Quotes

Updated May 5, 2021

Mark Steinbach is a writer based in Brooklyn, NY. In addition to his years of work as a copywriter, he is also a TV writer with a degree in English from Harvard University. When he isn't writing, he can be found playing tennis or doing crossword puzzles.