Best Cheap Car Insurance Companies for 20-Year-Olds

For 20-year-old drivers, Nationwide offers the cheapest car insurance option when added to a family policy, at an average monthly rate of $181 and an annual rate of $2,170. This compares favorably to the average car insurance cost of $2,419 per month or $202 per month when added to a family policy.

Twenty-year-old drivers have lower premiums compared to teenagers due to increased driving experience, leading to potentially fewer risks. However, rates for 20-year-olds are still higher than those of older drivers because the former are considered more likely to be involved in accidents than drivers who are in their mid-twenties and beyond.

For 20-year-olds seeking affordable car insurance, the top two cheapest providers are:

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

These rates reflect the cost of adding a 20-year-old to an existing insurance policy. There's a notable cost difference when a 20-year-old is added to a family policy, with monthly rates substantially lower than individual policies. Teen drivers are often considered high risk by insurers, resulting in higher premiums compared to more experienced drivers. To help reduce these costs, young drivers should explore all available student discounts on car insurance.

Massachusetts has the cheapest car insurance for 20-year-olds at $446 annually with State Farm. Hawaii follows at $647 annually, also with State Farm.

For 20-year-old drivers, car insurance costs can be very different in each state. States with strict insurance rules, more car crashes or more car thefts may have higher insurance prices. An affordable plan in one state might not be the best in another with more risks; state laws may also require you to carry a full coverage policy. It's smart for parents to look at different quotes and think about what each state needs when they pick insurance for their young driver.

Twenty-year-old male drivers usually face higher insurance rates than female drivers of the same age. Nationwide offers the most affordable car insurance for both male and female drivers at this age.

• For males: Nationwide, $186 per month, $2,235 per year
• For females: Nationwide, $147 per month, $1,760 per year

These rates represent the cost of adding a 20-year-old to an existing family car insurance policy.

Young male drivers often pay more for car insurance because they are more likely to be in accidents. Twenty-year-old women usually pay less for car insurance than men. However, the price difference gets smaller with age.

Discover the cheapest cars to insure for 20-year-old drivers:

• Subaru Forester: $174 per month, $2,086 per year
• Subaru Outback: $176 per month, $2,111 per year

To lower costs for young drivers, it's a good idea to drive a safe and affordable car. Older cars with high safety ratings are usually less expensive to insure. This means you can save money and still keep a 20-year-old safe on the road.

For drivers who are considered high risk, finding the right car can make a big difference. Also, look into student discounts to save even more.

Travelers provides the best car insurance for 20-year-olds, with a monthly premium of $195 and an annual premium of $2,346 when added to a family policy. Opting for the best provider ensures reliable coverage and dependable claims support despite a potentially higher price point.

Twenty-year-old drivers will pay less than 16-year-old drivers and recent high school graduates, but they still pay more than the national average than almost every other age group. If you can, consider keeping your 20-year-old on your family car insurance policy. The average annual cost of an individual policy for a 20-year-old is $4,797. However, companies have varying offers and rates, so shopping around for the best car insurance company for your needs is important.

Adding your 20-year-old driver to the family policy is the easiest way to save on car insurance. Note that doing so will increase the premiums if they aren’t already on your policy, but it’s still much cheaper than getting an individual policy.

Car insurance for 20-year-olds is expensive because, while they do have some experience under their belts, they’re still fairly new at driving and are considered high risk by insurers. A 20-year-old is just a couple of years removed from their teenage years. Although teen drivers make up just 14% of the population, they’re responsible for 30% of the costs of vehicle injuries. When your 20-year-old reaches 25 or so, car insurance premiums become more reasonable.

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.