Why is car insurance expensive for young drivers?

Young drivers often face higher rates because of the increased risk to insurers. Young drivers lack the experience that older drivers have, which could lead to slower or unsafe responses while driving. Young drivers are also more likely to speed, drive under the influence, not wear a seatbelt, and be distracted while driving. These factors lead to a higher number of claims for young drivers versus older drivers.

At what age do car insurance rates go down?

Around the age of 25, your auto insurance premium generally tends to drop significantly in price. Car insurance rates are likely to continue decreasing as a driver gets older.

How much car insurance do 20-year-olds need?

The type and amount of car insurance a 20-year-old needs depends on several factors. First, if a young driver doesn’t own a car and just uses their parents’, they can be added to their parents’ existing policy with its existing coverages.For young drivers who have older cars not worth much, it may be wise to only buy liability coverage. However, if a young driver has a vehicle that would be too expensive to replace out of pocket, it’s likely worth adding comprehensive and collision coverage.

Which company has the cheapest car insurance for 20-year-olds?

Plymouth Rock Assurance has the cheapest rates for liability-only coverage for 20-year-olds, at an average of $106 a month. Meanwhile, Kemper has the lowest average rates for full coverage, at $166 a month.

Best Cheap Car Insurance for 20-Year-Olds (2023)- Insurify

Insurance cost
Cheapest companies
Rates by age
Rates by state
Best auto discounts
How to save
FAQs

Insurance cost
Cheapest companies
Rates by age
Rates by state
Best auto discounts
How to save
FAQs

If you’re a young driver shopping for car insurance or shopping on behalf of a young driver, you may notice quotes higher than you’re used to. It’s true. Younger drivers tend to pay higher premiums for car insurance because their inexperience poses a higher risk to insurers.

Depending on the insurance company and coverage you choose, monthly insurance rates for 20-year-old drivers could be $100 to more than $400, on average. Your premiums will also depend on your location, gender, driving history, and more.^[1]

But young drivers and their families can save money on car insurance by shopping around for the best rates online and taking advantage of insurance discounts.

Quick Facts

Insurance rates for young drivers vary by gender, as young male drivers are statistically more likely to engage in unsafe driving behaviors and more likely to file claims.
Young drivers’ insurance rates also vary by state — the difference between the cheapest and most expensive state is more than $700.
Plenty of discounts are specifically tailored to young drivers and students.

How much does car insurance cost for 20-year-olds?

Car insurance for 20-year-olds costs an average of $106 to $225 a month for liability-only coverage and $166 to $417 for full coverage, according to Insurify data.

How much a young driver will pay for insurance depends on a variety of factors. While age is certainly an important factor, others include gender, car type, policy coverage, driving history, and more.^[1]

Another factor that can affect a young driver’s insurance is whether they stay on their parents’ policy or buy their own. It’s typically cheaper for 20-year-olds to remain on their parents’ insurance policy than to be on their own. However, remaining on their parents’ policy typically only works until they move out of their parents’ house.

Finally, liability-only coverage and full coverage can come with a substantial price difference. Liability coverage provides both bodily injury and property damage liability coverage and typically costs less than a full-coverage policy, which includes comprehensive, collision, and other optional coverages.

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Cheapest car insurance companies for 20-year-old drivers

The insurance company you choose can have a major influence on your rates. Plymouth Rock Assurance offers the cheapest rates for liability-only coverage, with a rate that’s about 72% lower than Allstate’s. Meanwhile, Kemper has the lowest average full-coverage insurance rates.

The table below shows the average liability-only and full-coverage insurance rates for 20-year-old drivers from different auto insurers.

Insurance Company	Average Monthly Quote: Liability Only	Average Monthly Quote: Full Coverage
Plymouth Rock Assurance	$106	$183
Kemper	$110	$166
Auto-Owners	$125	$184
Erie	$147	$209
USAA	$150	$233
SafeAuto	$153	$239
GEICO	$155	$241
State Farm	$181	$280
National General	$214	$409
Allstate	$225	$352

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Plymouth Rock Assurance

Headquartered in Boston, Plymouth Rock Assurance serves customers in Massachusetts, New Jersey, Connecticut, New Hampshire, New York, and Pennsylvania.

In addition to its relatively cheap premiums for young drivers, Plymouth Rock Assurance offers plenty of discounts that can help 20-year-olds save on auto insurance, including:

Safe driver discount
eDocument discount
Accident forgiveness
New-car replacement
Gap coverage
Roadside assistance

Kemper

Kemper is a Chicago-based insurance company that serves more than 5 million policies around the country under four different subsidiary companies.

Kemper is particularly known for offering policies for drivers who may struggle to find coverage elsewhere. Some features that could make it a great option for 20-year-old drivers include:

Coverage for high-risk drivers
SR-22 certificates
Good student discount
Defensive driving course discount
Military discount
Roadside assistance

Auto-Owners

Auto-Owners is a Michigan-based insurance company that’s more than 100 years old. It offers relatively low average premiums for young drivers, at $125 a month for liability only and $184 a month for full coverage.

A few of Auto-Owners’ coverage options and discounts that might appeal to 20-year-old drivers include:

Roadside assistance
Gap insurance
Good student discount
Student away at school discount
Paperless billing and online payment discount

Erie

Erie is a Pennsylvania-based insurance company that’s been in business for almost 100 years. Today, it offers policies in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington, D.C., West Virginia, and Wisconsin. Its average monthly premiums for 20-year-old drivers are $147 for liability only and $209 for full coverage, making it one of the more affordable options, especially for young drivers buying a policy on their own.

Erie has some unique coverages and discounts that could appeal to 20-year-old drivers:

Accident forgiveness
Pet injury coverage
Diminishing deductible
ERIE Rate Lock
Roadside & Rentals coverage bundle
Young driver discount
College student discount

USAA

USAA is a great option for young drivers in the military or who come from military families. Founded in 1922, USAA specifically serves current and former military members and their families.

USAA has plenty of characteristics that young drivers may appreciate, including:

Pay-per-mile insurance
Roadside assistance
Good student discount
Clean driving record discount
Discount for storing your car
Legacy policy discounts

What are average car insurance rates by age and gender?

Generally speaking, men tend to cause more car accidents, have more serious accidents, and are more likely to engage in high-risk driving behavior like driving under the influence and speeding.^[1] The result is that men are roughly twice as likely to die in a car accident, according to the Insurance Institute for Highway Safety (IIHS).^[2]

Because young men tend to be higher-risk drivers — and, therefore, cost insurance companies more money — they also typically pay more for car insurance. Young male drivers pay roughly 7% more for liability-only coverage and 15% more for full coverage than female drivers, according to Insurify data.

As age increases, the rate difference between men and women tends to decrease. In fact, a 2019 Pew Charitable Trusts report suggested that for drivers between the ages of 40 and 60, women actually pay a bit more for car insurance.^[3]

It’s worth noting that a handful of states ban insurance companies from using gender as a factor for setting insurance rates. Insurance companies in California, Massachusetts, Michigan, North Carolina, and Pennsylvania can’t charge drivers more for insurance based on their gender.^[3]

Average Monthly Quotes by Gender

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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Cheapest car insurance companies for 20-year-olds by state

Insurance rates can vary significantly by state, city, and ZIP code. Drivers generally pay more in areas that insurance companies deem to be higher risk. For example, you might pay more if you live in a state that has a high rate of uninsured drivers or in a city with a high rate of vehicle theft.^[1]

The table below shows the average rate for liability-only and full-coverage insurance for 20-year-old drivers in each state. As you can see, there’s a wide range. A young driver could pay anywhere from $73 in North Carolina to $723 in New York for liability insurance, on average.

State	Average Monthly Quote: Liability Only	Average Monthly Quote: Full Coverage
Alabama	$219	$393
Arizona	$288	$479
Arkansas	$245	$431
California	$201	$482
Colorado	$243	$441
Connecticut	$423	$652
Florida	$524	$668
Georgia	$389	$605
Idaho	$146	$290
Illinois	$182	$338
Indiana	$149	$268
Iowa	$158	$343
Kansas	$212	$402
Kentucky	$380	$628
Louisiana	$559	$765
Maryland	$407	$659
Michigan	$309	$614
Minnesota	$221	$329
Mississippi	$222	$449
Missouri	$264	$502
Nebraska	$219	$379
Nevada	$603	$663
New Jersey	$437	$547
New Mexico	$184	N/A
New York	$723	$811
North Carolina	$73	$183
Ohio	$170	$292
Oklahoma	$229	$408
Oregon	$249	$412
Pennsylvania	$210	$383
South Carolina	$354	$519
Tennessee	$166	$332
Texas	$298	$532
Utah	$206	$340
Virginia	$245	$392
Washington	$287	$411
West Virginia	$222	N/A
Wisconsin	$183	$304

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Best auto insurance discounts for 20-year-olds

Most insurance companies offer discounts to help drivers save on their insurance premiums. While some discounts may appeal to any customers, others are specifically designed for young and college-aged drivers.

Here are a few discounts that may help 20-year-old drivers save money on car insurance:

Discounts for 20-Year-Olds	How to Get it	Companies That Offer it
Good student	Maintain a GPA of 3.0 or higher, be on the dean’s list or honor roll, or be in the top percentage in your class	Allstate American Family Auto-Owners Farmers GEICO Kemper Liberty Mutual Nationwide Progressive State Farm Travelers USAA
Student away at school	Go to college away from home and store your car at your parents’ house	Allstate American Family Auto-Owners Erie Farmers Liberty Mutual Progressive Travelers State Farm
Driver training or education	Take a driver training or education course that meets your insurer's requirements	Allstate GEICO State Farm Travelers
Military	Be a current and/or former military member, or a family member (depending on the insurance company)	GEICO Kemper Liberty Mutual
Young driver	Be a young driver under a certain age, usually unmarried, and often living with your parents	Erie Farmers Progressive

How 20-year-old drivers can save on car insurance

Car insurance for young drivers comes with higher premiums because of the increased risk for insurers. But you can still save money on your premiums.^[4]

Shop around to find the best rates. Sometimes, young drivers may simply join their parents’ policy without checking how that company’s rates compare to others’. By getting quotes from a handful of companies, you can find an insurer that offers the coverage you need for a price that doesn’t break your budget.
Take advantage of car insurance discounts. The more discounts you qualify for, the more you can save. “Many insurance providers offer discounts, and, in some cases, you can combine those discounts for greater savings,” says Cherie Lindsey, a COUNTRY Financial insurance agent in Tulsa, Oklahoma. “For example, when a family insures multiple cars or insures both your home and car together, they could get a discount.”
Consider adjusting your policy to save money. For example, you could lower your premiums by reducing your policy coverage limits or increasing your deductible. “While you may explore trimming coverages or making changes to your deductible, talk with your agent and make sure you completely understand the impact of those cost-saving changes,” Lindsey says. “They could have long-term consequences if you have an accident or claim.”

As Lindsey notes, it’s important to make sure your coverage limits are still high enough to truly protect you after an accident. Additionally, make sure your deductibles are low enough that you can afford to easily pay them out of pocket after an accident.

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Car insurance for 20-year-olds FAQs

Are you a 20-year-old shopping for car insurance or a parent shopping for car insurance on their behalf? You can start with Insurify’s guide on the best cars for teens and learn more about car insurance for young drivers.

Why is car insurance expensive for young drivers?
Young drivers often face higher rates because of the increased risk to insurers. Young drivers lack the experience that older drivers have, which could lead to slower or unsafe responses while driving. Young drivers are also more likely to speed, drive under the influence, not wear a seatbelt, and be distracted while driving. These factors lead to a higher number of claims for young drivers versus older drivers.^[5]
At what age do car insurance rates go down?
Around the age of 25, your auto insurance premium generally tends to drop significantly in price. Car insurance rates are likely to continue decreasing as a driver gets older. ^[1]
How much car insurance do 20-year-olds need?
The type and amount of car insurance a 20-year-old needs depends on several factors. First, if a young driver doesn’t own a car and just uses their parents’, they can be added to their parents’ existing policy with its existing coverages.
For young drivers who have older cars not worth much, it may be wise to only buy liability coverage. However, if a young driver has a vehicle that would be too expensive to replace out of pocket, it’s likely worth adding comprehensive and collision coverage.
Which company has the cheapest car insurance for 20-year-olds?
Plymouth Rock Assurance has the cheapest rates for liability-only coverage for 20-year-olds, at an average of $106 a month. Meanwhile, Kemper has the lowest average rates for full coverage, at $166 a month.

Methodology

Insurify data scientists analyzed more than 90 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 50+ 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

Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:

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.

Sources

III. "What determines the price of an auto insurance policy?." Accessed May 1, 2023
Insurance Institute for Highway Safety. "Males and females." Accessed May 1, 2023
The Pew Charitable Trusts. "What? Women Pay More Than Men for Auto Insurance? (Yup.)." Accessed May 1, 2023
III. "Nine ways to lower your auto insurance costs." Accessed May 1, 2023
Centers for Disease Control and Prevention. "Teen Drivers and Passengers: Get the Facts." Accessed May 1, 2023

Erin Gobler

Erin Gobler is a personal finance writer and journalist based in Madison, Wisconsin. With more than five years of experience, Erin has covered topics such as investing, credit cards, mortgages, insurance, and more. Her work has been featured in major publications like Business Insider, Fox Business, and Time. Erin received her bachelor’s degree from the University of Wisconsin-Oshkosh in 2013, studying journalism and political science. She also received a certificate of financial planning from Boston University in 2022.

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Edited byCourtney MikulskiSenior Editor, Auto

Courtney MikulskiSenior Editor, Auto

3+ years producing insurance and personal finance content
Main architect of the Insurify Quality Score

Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.

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Reviewed byAmber BenkaLicensed Insurance Agent

Amber BenkaLicensed Insurance Agent

Amber Benka is a licensed insurance agent specializing in auto, home, commercial, life, and health insurance. She has owned the R.A.L Insurance Agency for four years.

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Data reviewed byKonstantin HalachevVice President of Engineering

Konstantin HalachevVice President of Engineering

7+ years experience in data analysis
Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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