Cheap Car Insurance for 20-Year-Old Drivers (June 2026)
Auto-Owners, State Farm, and USAA are some of the cheapest car insurance companies for 20-year-old drivers.
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Written byTaylor Milam-Samuel
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Taylor Milam-Samuel Insurance Writer
8+ years writing for major outlets, including MarketWatch and Business Insider
Master’s in Education
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John LeachLicensed P&C Agent, Chief Copy Editor
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Reviewed byDavid Marlett
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Data reviewed byKonstantin Halachev
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Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Updated
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Quick Facts
Full-coverage car insurance in your 20s costs an average of $236 per month, while liability-only coverage averages $124.
Rates get cheaper with more experience, so drivers in their 20s usually pay less than teenagers but more than older drivers.
Insurance costs are higher for younger drivers because they tend to have more accidents, file more claims, and end up costing insurers more.
How much is car insurance for a 20-year-old driver?
Car insurance costs an average of $236 per month for full coverage and $124 for liability-only coverage in your 20s, according to Insurify data.
Male drivers pay slightly more than female drivers. But the bigger difference is that full coverage costs an average of $46 more per month, or $552 per year, for drivers in their 20s than it does for drivers in their 40s.
Cheapest car insurance companies for 20-year-olds
The following insurers offer the cheapest rates for drivers in their 20s. Country Financial, Auto-Owners, and USAA have the lowest costs. But all insurers have average rates well below the average cost of $236 for full coverage and $124 for liability-only coverage.
Insurance Company  | Average Monthly Quote: Liability Only | Average Monthly Quote: Full Coverage |
|---|---|---|
| Country Financial | $57 | $121 |
| Auto-Owners | $64 | $126 |
| USAA | $67 | $135 |
| State Farm | $71 | $144 |
| Erie | $89 | $162 |
| American Family | $90 | $183 |
| Allstate | $93 | $192 |
| GEICO | $95 | $177 |
| Mile Auto | $96 | $174 |
| Safeco | $97 | $158 |
Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
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Why car insurance is expensive for 20-year-olds
Drivers in their 20s usually pay less for car insurance coverage than teenage drivers, but more than older adults, mainly because they have less driving experience.
Drivers aged 21–24 make up 6.1% of licensed drivers but account for 9.1% of drivers in fatal crashes, according to National Highway Traffic Safety Administration (NHTSA) data.[1] Younger drivers also tend to take more risks, such as speeding or driving while distracted, which increases the chances of filing a claim.[2]
Hawaii and Massachusetts don’t allow insurers to use age as a factor when setting rates. But even if you’re not in one of those states, your rates usually get better in your mid-20s if you keep a clean driving record. Every year you go without an accident or ticket shows insurance companies you’re less risky, and your rates typically decrease as a result.[3]
Best car insurance companies for 20-year-old drivers
The following car insurance companies are the best options for 20-year-old drivers, and each one stands out in a different category.
State Farm: Best for discounts
| User Reviews | 4.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $53/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $106/mo |
4.1
Best choiceBased on 18,955 verified driver reviews and ratings
State Farm's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.3 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.7 | 2.9 |
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 7,686 State Farm reviews
Verified Review
Reviewed in Minnesota on June 22, 2026
Everything is excellent except the cost.
Verified Review
Reviewed in Ohio on June 22, 2026
Trouble with auto pay not debiting the bank, then they say they are canceling. We go to the office, and they need a 2-month payment; still, auto debit is not working. Next, the debit is 2 months; we are billed monthly. They say they don't know why it is not debiting auto pay and not to worry, LOL. The office doesn't know what the main branch is doing.
Verified Review
Reviewed in Michigan on June 21, 2026
We like State Farm's friendly, small-town insurance feel.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
657
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.84
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
State Farm is a good choice for drivers in their 20s. It offers coverage in every state and has more than 19,000 local agents to help you. State Farm also has two programs for young drivers, Steer Clear and Drive Safe & Save, which can help you save money if you show safe driving habits.
Pros
Steer Clear program asks for just five hours of driving
Full-time students younger than 25 with good grades can get a discount of up to 25%
Drive Safe & Save can lower your rates by up to 30% if you drive safely
Cons
May not be the cheapest insurer, especially before you apply discounts
Drive Safe & Save isn’t available in California, Massachusetts, or Rhode Island
Steer Clear program is only for drivers without recent violations
Auto-Owners: Best for strong coverage
| User Reviews | 4.3 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.2 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $45/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $87/mo |
4.3
Best choiceBased on 346 verified driver reviews and ratings
Auto-Owners's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 3.5 | 3.6 |
| Discounts | 3.6 | 2.9 |
| Policy transparency | 4.0 | 3.1 |
| Value | 3.5 | 2.9 |
How drivers feel about Auto-Owners
Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 150 Auto-Owners reviews
Verified Review
Reviewed in Nebraska on April 12, 2026
Not a local company anymore. I haven’t had a claim for years, and my insurance keeps going up.
Verified Review
Reviewed in Florida on April 4, 2026
Uneventful.
Verified Review
Reviewed in Missouri on March 22, 2026
Good, but I've never had a claim with them on this vehicle, and the rate has more than doubled. That's the reason for finding a cheaper policy.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
654
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.46
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
Auto-Owners stands out for its coverage benefits. Features such as accident forgiveness and gap coverage give younger drivers extra financial protection while they build their driving record and pay off their first car.
Pros
Common loss deductible can help lower costs if you have both auto and home coverage
Gap coverage is available if you’re financing a car
Accident forgiveness means you won’t pay a surcharge for your first accident
Cons
Available in only 30 states
Must contact an independent agent to get a quote
No usage-based or telematics program discount
USAA: Best for military families
| User Reviews | 4.9 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.1 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $51/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $102/mo |
4.9
Best choiceBased on 3,843 verified driver reviews and ratings
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.9 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
How drivers feel about USAA
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 1,600 USAA reviews
Verified Review
Reviewed in Colorado on June 21, 2026
They claim to support veterans, but their prices are steep. I've experienced rate increases without explanation, despite having no tickets or moving violations.
Verified Review
Reviewed in Florida on June 21, 2026
Subpar coverage and twice as much as others.
Verified Review
Reviewed in North Carolina on June 20, 2026
Expensive for a 76-year-old retired military person who drives less than 3,000 miles per year. No DUIs or tickets.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
739
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.31
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
USAA is one of the most affordable insurers for drivers in their 20s, but only some people can get coverage. If you or a parent served in the U.S. military, you can take advantage of USAA’s low rates and excellent young-driver discounts.
Pros
Save up to 30% with the SafePilot program
Car replacement assistance pays 20% more than your car’s cash value
Current policyholders get a 10% family discount when they add a young driver
Cons
Only active-duty, guard, or reserve members, veterans, and their immediate family can become members
SafePilot program isn’t available in California
No physical branch locations
To choose the best car insurance companies for 20-year-old drivers, we compared insurers’ rates, relevant discounts, nationwide availability, and our Insurify Quality (IQ) Scores, which measure overall company health and customer satisfaction. The companies we selected offer relatively low rates compared to competitors and provide relevant discounts, such as good grades, new driver, or driver’s education course discounts.
Liability vs. full coverage for 20-year-old drivers: Which should you choose?
Liability insurance covers injuries and property damage you cause to others in an accident, but it won’t pay for your own repairs. Full coverage includes both comprehensive and collision insurance. Collision insurance helps with damage from accidents, while comprehensive insurance covers things like theft, hail, flooding, and fire.
Drivers in their 20s pay an average of around $124 per month for liability-only coverage and about $236 per month for full coverage, Insurify data shows. If your car is older and not worth much, liability-only coverage could help you save money.
If you’re financing or leasing a car, lenders require full coverage. For most drivers in their 20s, full coverage is often safer and more practical, especially if you’re buying your first car with a loan.[4] Young drivers are also more likely to take risks that could lead to accidents, so full coverage gives extra financial protection.
Is it cheaper to stay on your parents’ insurance policy?
For most people in their 20s, staying on a parent’s car insurance policy is cheaper because the risk is shared with older, more experienced drivers. It can also help the family qualify for a multi-vehicle discount.
But sometimes it makes more sense to get your own policy. If you have a clean driving record, you might qualify for discounts that your parents’ insurer doesn’t offer, like good student or telematics discounts. Insurance companies also price policies differently for young drivers, so it’s a good idea to compare rates and see if you can find a better deal.
How driving history affects rates for 20-year-olds
Maintaining a clean driving record is key to managing insurance costs. Insurers consider personal risk factors when setting rates, such as speeding tickets and accidents, so even a single incident can increase already high rates.
If you’ve had accidents, tickets, or a driving under the influence (DUI) conviction, getting insurance can be tougher and cost more. Serious violations might even mean you can’t get regular insurance. It’s especially challenging for people in their 20s, who already pay more because of their age.
On the other hand, if you keep your driving record clean, insurance companies see you as less risky, and your rates usually drop as you get older.
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Liability rates for 20-year-old drivers average $124 per month
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Best discounts for 20-year-old drivers
Many insurance companies have savings just for younger drivers. Combining several discounts can help balance out the higher rates that come with less experience. Here are some common discounts to consider:
Good student discount: If you’re a full-time student with a good GPA, you could save up to 25% on your premium.
Telematics discount: Some insurance companies offer telematics programs that track your driving and give you discounts for safe habits, both when you sign up and when you renew.
Driver training discount: Completing an approved driver education or defensive driving course can help you get a discount.
Student away at school: Full-time students who live away from home and rarely use their car may qualify for a lower rate.
Multi-policy discount: You can save more if you have renters insurance with the same company as your car insurance.
Family or legacy discount: Some insurance companies offer lower rates if you switch from a parent’s policy to your own, or if your family has a history with the company.
How 20-year-old drivers can get cheaper car insurance
If you’re in your 20s, you probably pay some of the highest car insurance rates of any age group. The good news is you have practical ways to bring those costs down:[5]
Shop around and compare quotes
Prices can vary a lot between companies, so it’s worth getting quotes from at least three different insurers.
Consider raising your deductible
Picking a higher deductible can lower your premium, but make sure you have enough savings to pay it if you need to file a claim.
Drive less if you can
Some companies give discounts if you drive fewer miles than average or if you carpool to work.
Bundle your policies
Many companies offer discounts for buying more than one type of insurance from them, such as auto and renters or homeowners insurance.
Work on improving your credit score
In some states, insurers check your credit when setting rates. People with good credit usually file fewer claims and get lower rates.
Car insurance for 20-year-old FAQs
If you’re in your 20s, you might wonder how your age affects your car insurance rates and what you can do to pay less. Here are answers to some common questions young drivers have about car insurance.
How much is car insurance for a 20-year-old?
On average, car insurance for a 20-year-old costs $236 per month for full coverage and $124 for liability-only coverage, Insurify data shows.
What is the cheapest car insurance company for a 20-year-old?
Auto-Owners offers the cheapest car insurance for a 20-year-old. State Farm and USAA also offer affordable policies that are well below the nationwide average for drivers in this age group.
Why is car insurance so expensive for 20-year-old drivers?
Car insurance is expensive for 20-year-old drivers because they have less experience. Young drivers are also more likely to have accidents and file claims, which costs insurers more.
When do car insurance rates go down for young drivers?
Car insurance rates usually go down each year as you get older. For example, average full coverage drops to $197 for drivers in their 30s, which is $39 less than what you pay in your 20s.
Can a 20-year-old stay on their parents’ insurance?
Yes. In most cases, staying on your parents’ policy is cheaper than getting your own policy in your 20s. You might also get a multi-vehicle discount.
Is full coverage worth it for a 20-year-old driver?
For most drivers in their 20s, full coverage is worth it. If you’re financing or leasing a car, your lender will usually require it. Even if you own your car, the extra protection is often worth the cost, especially if you don’t have much driving experience.
Sources
- National Highway Traffic Safety Administration. "Young Drivers."
- Centers for Disease Control and Prevention. "Distracted Driving Risk Factors."
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
- Insurance Information Institute. "8 questions to ask before buying auto insurance."
- Insurance Information Institute. "How to save money on car insurance."
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Taylor Milam-Samuel Insurance Writer
8+ years writing for major outlets, including MarketWatch and Business Insider
Master’s in Education
Featured in
John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
David MarlettAdvisor
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology