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Cheapest Car Insurance for 20-Year-Olds
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Old enough to drive but not quite old enough to drink, 20-year-old drivers often find themselves in a unique position when it comes to auto insurance. Having spent a couple of years operating a vehicle, most drivers in this category have started to develop a driving history that insurance providers will take into account when offering quotes for coverage.
Generally, finding a cheap car insurance plan is the ultimate goal. It’s easier said than done, especially for a young driver. That is one of the reasons it is essential to compare quotes from multiple insurance companies before purchasing a policy. Insurify can show you the best and cheapest car insurance quotes and discounts available to you.
Since insurance providers consider many things when setting rates, knowing which ones offer the most affordable coverage is important. Here are the top five auto insurance companies to consider when looking for cheap car insurance.
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Many things can affect the overall insurance rates a driver pays. For instance, gender and age are two factors that have a significant impact on cost. On average, a 20-year-old female will pay only $304 a month for coverage, while a 20-year-old male will pay $346 for the same type of coverage. When analyzing car insurance rates by age, young drivers pay more on average.
The main reason that male drivers tend to pay more than female drivers is due to statistics that show male drivers as more likely to participate in risky driving behaviors than female drivers, meaning their rates will be higher. The practice of using gender as a rating factor is outlawed in a few states, including Massachusetts, California, and North Carolina.
Drivers under the age of 25 will pay more for car insurance because they are less experienced on the road and historically more likely to get into car accidents. However, 20-year-olds can still find cheap insurance coverage through discounts.
Whether it’s a full-coverage car insurance policy or minimum coverage, 20-year-olds tend to pay more than drivers with more experience. The main reason for this has to do with the number of years behind the wheel. Younger drivers haven’t been driving for as long and are more likely to have an accident.
This is one of the reasons why the average monthly premium for a 20-year-old is a jaw-dropping $325. Factors such as location, coverage type, driving history, and vehicle type also play a role in determining the final rate. 20-year-old drivers may be eligible for other discounts to help decrease their premiums, like good student discounts or by bundling with renters insurance.
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If you are looking for a provider with affordable coverage at a low price, Farmers is one of the best car insurance companies on the list. Not only is the company a great option for drivers both young and old, but they also have a reputation for excellent customer service and great discounts.
A few of the discounts that Farmers Insurance offers to 20-year-old drivers include:
Unlike other options on the list, Direct Auto specializes in offering coverage to drivers who are considered “high-risk” by other institutions. This makes them an excellent choice for drivers who have bad driving records or those struggling to find affordable car insurance elsewhere.
A few of the discounts that Direct Auto offers to 20-year-old drivers include:
National General may not have the lowest rates on the list, but it does offer several perks that make them a great choice to consider. For example, in many states, you can obtain coverage entirely online. The company also provides SR-22 forms for drivers who have had their license suspended.
A few of the discounts that National General offers to 20-year-old drivers include:
Progressive is a great option for many types of drivers. Even though its rates can be higher than other companies, it makes up for this in other areas. Progressive provides an excellent user experience on its website and offers drivers a wide range of add-on options. It also has a good reputation for being a strong, financially stable insurance company.
A few of the discounts that Progressive offers to 20-year-old drivers include:
Dairyland makes up for its slightly higher premium rates with outstanding customer support and flexible payment plans. Known for leniency in covering high-risk drivers, Dairyland also offers 24/7 live claims support. Since the company provides only personal auto and motorcycle insurance, it can offer expert knowledge regarding coverage options.
A few of the discounts that Dairyland offers to 20-year-old drivers include:
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Regardless of whether you are a brand new driver or a motorist who has been on the road for years, discounts are one of the best ways to get lower insurance premiums. Below are some of the best car insurance discounts for 20-year-olds to consider.
|Discounts for 20-Year-Olds||How to Get It||Companies That Offer It|
|Good Student Discount||Usually, a GPA of 3.0 higher qualifies you for good student discounts.||GEICO, Allstate, Progressive, State Farm, USAA|
|Distant Student Discount||If you’re starting college and leaving the car behind, you don’t have to pay for insurance that covers you as if you’re driving every day.||State Farm, Progressive, Allstate|
|Bundling with Home Insurance||If your parents own a home, ask them to make sure they’re getting auto insurance and home insurance from the same place.||GEICO, Allstate, Progressive, State Farm, USAA|
|Driver Training||Ask your auto insurance company for qualifying classes in your area.||GEICO, Allstate, Progressive, State Farm, USAA|
Even though younger drivers often pay more for an auto insurance policy, there are ways to lower the overall cost of car insurance. For example, teen drivers and 20-year-old drivers who are still in school may qualify for student discounts. Here are a few other tips that may help you score cheap car insurance:
Regardless of age, shopping around for car insurance is one of the most effective ways to save money. Each auto insurance company offers different discounts and weighs certain factors differently, making it more important to compare insurance quotes before selecting a provider. Free online quote-comparison tools like Insurify make this process easy.
Young adults who have the option to remain on their parents’ insurance policy should take full advantage. Often, staying on a plan with your parents will be your cheapest option, and can even give them a discount on their rates.
Having a brand-new car may seem like the cool thing to do, but it may end up costing you more to insure. Many insurance companies will offer lower insurance rates on older or used vehicles because they are less costly to replace or repair should they be involved in an accident.
Plans with higher deductibles can often result in a lower monthly premium. However, while it may save you money each month, you will need to pay more out of pocket before your insurance will cover any repairs or damages.
Most insurance companies, including major carriers such as GEICO, Allstate, and State Farm will offer lower auto insurance quotes to drivers who have kept a clean driving record for an extended period.
Motorists often think that their driving record is the only thing that plays a factor in their monthly premiums, but this isn't the case. Having a good credit score can often get you a lower rate when looking for insurance coverage.
Cash in on all the car insurance discounts you might be eligible for. Some might include:
Location often plays a large role in determining the average monthly cost of auto insurance coverage for motorists. 20-year-old drivers who live in the following states will enjoy the low car insurance rates that come with their location:
As a 20-year-old driver, you have many things to consider when looking at an auto insurance policy. It can be difficult to compare all the details of multiple quotes and determine which plan makes the most sense for you. Insurify helps make the process simple.
By providing a central marketplace to review and compare car insurance rates simultaneously, Insurify makes it easy to see which plans offer the coverage you need.
Many factors can play a role in the overall cost of insurance, such as location, driving history, age, vehicle type, and coverage limits for young drivers. 20-year-old drivers can expect average rates of $216 a month for a car insurance policy.
Finding affordable auto insurance is a goal for everyone, not just 20-year-olds. Often, in addition to car insurance discounts, one of the best ways to find cheap car insurance is to use a platform like Insurify that allows you to compare auto insurance quotes side-by-side.
One of the most important criteria that insurance providers use to determine auto insurance rates is driving history. If a driver has avoided any incidents on their driving record, they can expect lower car insurance quotes. Those with bad driving records accrue driver’s license points and are seen as higher risk, and end up paying higher car insurance premiums.
The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.
Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.