Cheap Car Insurance for 20-Year-Olds

Nationwide is the cheapest car insurance provider for 20-year-old drivers, offering an average rate of $2,170 per year when added to a family policy. Since 20-year-olds are still seen as high-risk drivers, they face higher premiums despite having more experience than teens. To cut costs, young drivers can join a parent's existing policy and explore student discounts on car insurance. Check the table below for a full breakdown of rates by company, including how much more an individual policy can cost.

Travelers is the best overall provider for 20-year-olds, with strong ratings for coverage and claims support. It’s also one of the cheapest options at $2,346 per year, just behind Nationwide and GEICO. For a slightly higher price, you get more reliable service and better long-term value.

Massachusetts has the lowest average car insurance rate for 20-year-old drivers at $446 per year with State Farm, followed by Hawaii at $647, also with State Farm. Car insurance prices vary widely by state due to differences in local laws, accident rates and coverage requirements. What’s affordable in one state might be expensive in another — especially if full coverage is required. Use the table below to see the cheapest provider in your state.

Nationwide offers the cheapest car insurance for both male and female 20-year-old drivers when added to a family policy at about $2,235 per year for males and $1,760 for females. Male drivers typically pay more at this age due to higher accident risk, while female drivers tend to get lower rates. That gap narrows with age, but early on, the difference can be significant. Check the table below for a full comparison of premiums by company and gender.

Twenty-year-old drivers generally pay less than teens and new high school grads, but their rates are still higher than most age groups. Whenever possible, it’s more affordable to stay on a family policy. The average cost of an individual policy for a 20-year-old is $4,797, which is nearly double what you’d pay on a family policy. Since rates vary widely, it’s worth comparing quotes from the best car insurance companies to find the right fit.

Car insurance for 20-year-olds is expensive because insurers view them as high-risk, even with some driving experience. A 20-year-old is only a few years out of their teens. This group makes up just 14% of the population but accounts for 30% of vehicle injury costs. Premiums usually begin to decrease around age 25 as risk levels drop.

Adding a 20-year-old driver to a family policy is usually the most effective way to lower costs. Beyond that, there are other ways to reduce premiums without sacrificing essential coverage.

Choosing the right car can help 20-year-old drivers save on insurance. Safe, practical vehicles like the Subaru Forester ($2,086 per year) and Subaru Outback ($2,111 per year) are among the cheapest to insure. Insurers often charge less for vehicles with high safety ratings and lower repair costs. For high-risk drivers, this can make a big difference. Check the table below for a list of affordable cars to insure and their average annual premiums.

On this page, we broke down how 20-year-old drivers can find the cheapest car insurance , and what to look for beyond price. Nationwide is the most affordable option when added to a family policy, making it a smart first stop for budget-conscious drivers. Travelers, while slightly more expensive, offers stronger coverage and service for those who want more than just the lowest rate. The key is balancing cost with protection and making sure you’re not overpaying.

Finding affordable car insurance for 20-year-olds can be challenging due to their higher risk profile. Get insights on securing the most cost-effective policy for young drivers.

Why Trust MoneyGeek? 

MoneyGeek's auto insurance quotes are based on research conducted with information gathered from several sources, including state insurance authorities and Quadrant Information Services. The cost of insurance varies from person to person based on several criteria. One's age, gender, driving record, credit history and the kind of coverage required may all play a role in determining premiums.

Study Overview

MoneyGeek used a sample driver profile to determine national and state averages for vehicle insurance for 20-year-old drivers. Using this information, we assist readers in selecting the best policy at the lowest price possible.

Data Sources and Depth

We collected data from each state's insurance department and Quadrant Information Services. The data consists of 4,284 price estimates from 100 different ZIP codes and six auto insurance providers.

Driver Profile

MoneyGeek calculates yearly car insurance policy estimates based on a policyholder with the following characteristics:

• Toyota Camry LE
• Clean driving record
• 12,000 miles driven every year

To determine which companies provide the most affordable policies, MoneyGeek compared rates for 20-year-old drivers across different states. We made adjustments to this profile to reflect the differences in age, location and driving behavior.

Coverage Levels and Deductibles Explained

A deductible is the money you have to pay out of your own pocket before your insurance company will pay for your claim. Most drivers would benefit from purchasing full coverage vehicle insurance, which covers both collision and comprehensive damage.

Our national insurance quotes are based on a 100/300/100 full coverage policy with a $1,000 deductible, broken down as follows:

• Bodily injury liability per person: $100,000
• Bodily injury liability per accident: $300,000
• Property damage liability per accident: $100,000

We used 50/100/50 liability limits on a full coverage policy with comprehensive and collision coverage with a $1,000 deductible for our sample driver when researching state-specific data. Liability limits of 50/100/50 stand for:

• Bodily injury liability per person: $50,000
• Bodily injury liability per accident: $100,000
• Property damage liability per accident: $50,000

Learn more about MoneyGeek's methodology.