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

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.

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.

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.

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.

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.

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.

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:

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.