How Much Car Insurance Costs 20-Year-Olds in 2024

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Updated: May 20, 2024

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The average cost of full coverage car insurance is around $2,419 per year for 20-year-olds, which is $1,365 more expensive than the average $1,054 paid by 40-year-olds. This difference in premium cost highlights the higher rates younger drivers pay due to enhanced risk for younger drivers. Factors like driving history, vehicle make and model and location also influence car insurance rates for 20-year-olds.

Nationwide offers the cheapest full coverage car insurance for 20-year-olds, with annual rates averaging $2,170. This competitive pricing makes it an appealing option for young drivers seeking affordable coverage.

Key Takeaways

On average, 20-year-olds pay $448 annually for liability-only car insurance and $2,419 for full coverage, paying more than older drivers due to increased risk factors.

For 20-year-olds, Travelers offers the most affordable liability-only policy at approximately $496 per year, while Nationwide has the cheapest full coverage option at around $2,170 annually.

Twenty-year-olds can secure more affordable coverage by comparing quotes, opting for higher deductibles and seeking discounts.

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These rates reflect the average cost of car insurance for 20-year-olds as of 2024.

Average Cost of Car Insurance for 20-Year-Olds

The average car insurance cost for 20-year-olds on a family policy is:

  • For liability-only: $448 per year, $37 per month
  • For full coverage: $2,419 per year, $202 per month

Twenty-year-olds should weigh their budget against potential risks when choosing between liability-only and full coverage. Opting for a higher deductible and seeking out student or safe driver discounts can significantly reduce their insurance costs.

Data filtered by:Results filtered by:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
$2,419Family Policy Monthly Premium$202

Cheapest Full Coverage Car Insurance for 20-Year-Olds

Nationwide and GEICO offer the cheapest full coverage car insurance policies for 20-year-olds on a family policy:

  • Nationwide: $2,170 per year, $181 per month
  • GEICO: $2,253 per year, $188 per month

Full coverage car insurance includes liability, collision and comprehensive coverage. This coverage is ideal for drivers with new or financed vehicles or those seeking extra financial protection for various road incidents and non-collision-related damage.

NationwideFamily Policy Annual Premium$2,170Family Policy Monthly Premium$181
GEICOFamily Policy Annual Premium$2,253Family Policy Monthly Premium$188
TravelersFamily Policy Annual Premium$2,346Family Policy Monthly Premium$195
State FarmFamily Policy Annual Premium$2,353Family Policy Monthly Premium$196
AllstateFamily Policy Annual Premium$2,380Family Policy Monthly Premium$198
ProgressiveFamily Policy Annual Premium$2,929Family Policy Monthly Premium$244
FarmersFamily Policy Annual Premium$3,327Family Policy Monthly Premium$277

Cheapest Liability-Only Car Insurance for 20-Year-Olds

The cheapest companies for liability-only policies for 20-year-olds on a family policy are:

  • Travelers: $496 per year, $41 per month
  • GEICO: $507 per year, $42 per month

Liability-only car insurance covers damages to other vehicles and injuries to others in an accident if you're at fault. It's a budget-friendly choice for 20-year-olds, especially those with older, less valuable cars. However, it's important to keep in mind that, in the event of an at-fault accident, this insurance won't cover damages to your vehicle and can leave you financially vulnerable to a substantial loss in the event of an at-fault accident.

TravelersFamily Policy Annual Premium$496Family Policy Monthly Premium$41
GEICOFamily Policy Annual Premium$507Family Policy Monthly Premium$42
NationwideFamily Policy Annual Premium$559Family Policy Monthly Premium$47
State FarmFamily Policy Annual Premium$576Family Policy Monthly Premium$48
AllstateFamily Policy Annual Premium$585Family Policy Monthly Premium$49
ProgressiveFamily Policy Annual Premium$653Family Policy Monthly Premium$54
FarmersFamily Policy Annual Premium$823Family Policy Monthly Premium$69

Average Cost of Car Insurance for 20-Year-Olds by State

The cost of your car insurance is heavily influenced by both your age and where you live. States with stricter minimum insurance requirements generally have higher rates. Additionally, insurers may charge more in areas with a higher frequency of weather-related incidents or elevated vehicle theft rates.

Louisiana and Florida have the highest car insurance rates for 20-year-olds, averaging $6,226 and $4,785 annually, respectively. In contrast, Hawaii offers the cheapest rates, averaging $1,046 per year. Hawaii's average rates are so low since insurers are not allowed to use age as a rating factor in Hawaii.

Data filtered by:Results filtered by:
AlabamaFamily Policy Annual Premium$2,345Family Policy Monthly Premium$195
AlaskaFamily Policy Annual Premium$2,298Family Policy Monthly Premium$191
ArizonaFamily Policy Annual Premium$2,275Family Policy Monthly Premium$190
ArkansasFamily Policy Annual Premium$1,984Family Policy Monthly Premium$165
CaliforniaFamily Policy Annual Premium$2,776Family Policy Monthly Premium$231
ColoradoFamily Policy Annual Premium$2,521Family Policy Monthly Premium$210
ConnecticutFamily Policy Annual Premium$2,293Family Policy Monthly Premium$191
DelawareFamily Policy Annual Premium$2,483Family Policy Monthly Premium$207

Cost of Car Insurance for 20-Year-Olds With Individual Policies vs. Family Policies

A 20-year-old on a solo car insurance policy pays an average of $4,797 per year compared to a family policy of $2,419.

While 20-year-olds can obtain their own insurance, being added to a parents’ policy is typically more cost-effective. However, if they own a car independently or live separately, insurance companies may require them to have their own policy. 20-year-olds are allowed to stay on a family policy while attending college as long as their family home is considered their permanent residence.

Data filtered by:Results filtered by:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
$2,419Individual Premium$4,797Increase in Premium$2,379

How to Get Cheap Car Insurance at 20

Car insurance tends to be relatively expensive for 20-year-olds. Fortunately, there are steps these drivers can take to reduce their rates and find affordable options, including:

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    Shop around

    Don't settle for the first car insurance quote you receive. Compare rates from multiple providers to find the best deal. Prices and coverage options can vary significantly between insurers.

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    Choose a practical vehicle

    Opt for a car that's affordable to insure. Generally, safer, mid-range vehicles come with lower insurance premiums than luxury or high-performance models. Research insurance and potential repair costs before purchasing a car.

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    Improve your credit score

    At 20, credit information may begin to impact your insurance rates. Building a good credit score can help in securing more favorable insurance rates.

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    Increase your deductible

    Consider choosing a higher deductible plan. This means you'll pay more out-of-pocket if you have to file a claim, but your monthly premiums will be lower. Make sure the higher deductible is an amount you can comfortably afford if you need to make a claim. Note that optional collision and comprehensive coverages are subject to separate deductibles but liability coverages do not have deductibles.

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    Limit your mileage

    If possible, reduce your annual mileage. Less time on the road means a lower risk of accidents, which can lead to cheaper insurance rates. Consider carpooling, using public transportation and rideshare services or combining errands to reduce driving time.

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    Maintain a clean driving record

    Strive to keep your driving record free of accidents and traffic violations. By 20, your driving record starts to impact insurance rates significantly. A clean driving record can lower premiums, while accidents or violations can increase costs.

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    Seek out discounts

    Always ask about available discounts. Many insurance companies offer reduced rates for maintaining good grades, completing defensive driving courses or using telematics devices that monitor driving habits. Students away at school who only use the car when at home may also be eligible for distant student discounts.

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    Bundle your policies

    Consider bundling your car insurance with other insurance policies — like renters or homeowners insurance — with the same company. This can often result in a discount on your premiums.

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    Consider usage-based insurance

    Look into usage-based telematics programs, where premiums are based on your actual driving behavior. This option can be cost-effective if you're a safe, low-mileage driver. State Farm and Allstate also offer teen-focused telematics programs that provide additional savings for safe driving.

FAQ About Car Insurance for 20-Year-Olds

Finding affordable auto insurance as a 20-year-old can be challenging. MoneyGeek answered some of the most common questions about coverage at this age to help simplify the process.

How much is car insurance for a 20-year-old per month?
What’s the cheapest car insurance provider for a 20-year-old?
Why is car insurance so expensive at 20?
What is the cheapest car insurance for college students?

About Mark Fitzpatrick

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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.