Best Cheap Car Insurance Companies for 20-Year-Olds


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ByDevon Delfino
Reviewed byMark Friedlander
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ByDevon Delfino
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Reviewed byMark Friedlander
Edited byDenise Cristobal
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Updated: May 20, 2024

Advertising & Editorial Disclosure

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.

Key Takeaways

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Nationwide offers the cheapest premium at just $2,170 annually when added to a family policy.

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Young adults have less driving experience, leading to higher accident risk and insurance rates.

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Shop for discounts like good student rewards, safe driving bonuses and defensive driving courses to save on premium costs.

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.

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

1,904Quotes Analyzed
 
6Companies Compared
 
100ZIP Codes

Cheapest Car Insurance Companies for 20-Year-Old Drivers

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
NationwideAdded to Family Policy Annual Premium$2,170Individual Annual Premium$2,989Increase in Premium$819
GEICOAdded to Family Policy Annual Premium$2,253Individual Annual Premium$2,351Increase in Premium$97
TravelersAdded to Family Policy Annual Premium$2,346Individual Annual Premium$2,508Increase in Premium$163
State FarmAdded to Family Policy Annual Premium$2,353Individual Annual Premium$2,272Increase in Premium$-81
AllstateAdded to Family Policy Annual Premium$2,380Individual Annual Premium$2,571Increase in Premium$190
ProgressiveAdded to Family Policy Annual Premium$2,929Individual Annual Premium$3,110Increase in Premium$181
FarmersAdded to Family Policy Annual Premium$3,327Individual Annual Premium$3,413Increase in Premium$86

Cheapest Car Insurance for 20-Year-Olds by State

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.

AlabamaCompanyGEICOAdded to Family Policy Annual Premium$1,083
AlaskaCompanyState FarmAdded to Family Policy Annual Premium$1,221
ArizonaCompanyTravelersAdded to Family Policy Annual Premium$1,049
ArkansasCompanyState FarmAdded to Family Policy Annual Premium$1,141
CaliforniaCompanyGEICOAdded to Family Policy Annual Premium$1,337
ColoradoCompanyKemperAdded to Family Policy Annual Premium$1,202
ConnecticutCompanyGEICOAdded to Family Policy Annual Premium$706
DelawareCompanyState FarmAdded to Family Policy Annual Premium$1,418
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Cheapest Car Insurance for 20-Year-Olds by Gender

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.

Annual Car Insurance Rates for Males and Females

female
20-Year-Old Female

Annual Premium

$1,760
male
20-Year-Old Male

Annual Premium

$2,235
Rates for males are:$475 more

This is 27% more expensive.

Data filtered by:Results filtered by:
Gender:
Gender:Male
NationwideFamily Policy Annual Premium$2,235Family Policy Monthly Premium$186
GEICOFamily Policy Annual Premium$2,308Family Policy Monthly Premium$192
TravelersFamily Policy Annual Premium$2,451Family Policy Monthly Premium$204
AllstateFamily Policy Annual Premium$2,492Family Policy Monthly Premium$208
State FarmFamily Policy Annual Premium$2,543Family Policy Monthly Premium$212
ProgressiveFamily Policy Annual Premium$3,031Family Policy Monthly Premium$253
FarmersFamily Policy Annual Premium$3,330Family Policy Monthly Premium$278

Cheapest Cars to Insure for 20-Year-Olds

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Subaru ForesterCategoryCompact SUVCompanyGEICOAnnual Premium$2,086
Subaru OutbackCategorySedanCompanyState FarmAnnual Premium$2,111
Acura MDXCategoryLuxury SUVCompanyTravelersAnnual Premium$2,139
Nissan FrontierCategoryPickup TruckCompanyState FarmAnnual Premium$2,188
Honda PassportCategorySUVCompanyState FarmAnnual Premium$2,252
Honda OdysseyCategoryMinivanCompanyState FarmAnnual Premium$2,283
Hyundai IoniqCategoryCompactCompanyTravelersAnnual Premium$2,324
Nissan LEAFCategoryElectricCompanyTravelersAnnual Premium$2,341

Best Car Insurance for 20-Year-Old Drivers

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.

Company logo for Travelers
Travelers
MoneyGeek Score:
84/ of 100

Affordability2
Customer Satisfaction4
Claims Satisfaction3
Financial Stability5
Overview

Travelers is the best car insurance company because of its comprehensive coverage options, which are pivotal for protecting 20-year-olds with less driving experience. Its high ratings in customer satisfaction signify that policyholders value the comapny's support and service quality, which is essential for young drivers navigating the complexities of insurance for the first time.

Travelers offers the following discounts for 20-year-old drivers:

  • Distant student discounts for those in school far from home
  • Good student discounts reward academic achievement
  • Driver’s education discount for completing approved programs

The best car insurance company caters specifically to the unique needs of 20-year-olds, who may need robust protection but at a cost that doesn't strain their often limited budgets. With Travelers' discounts for students and a variety of coverage (including accident forgiveness), it recognizes the reality of young drivers’ greater risk on the roads and offers a safety net that is tuned to their life stage and driving experience.

Cost of Car Insurance for 20-Year-Olds

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.

Annual Car Insurance Premium for a 20-Year-Old

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Added to Family Policy

Average Annual Premium

$2,419
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Individual Policy

Average Annual Premium

$4,797
An individual policy is:$2,378 more

This is 98% more expensive.

How to Save on Car Insurance for 20-Year-Olds

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.

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    Compare Quotes for the Best Policy

    A way to save money is to compare auto insurance rates. Depending on where in the country you live, different companies may have the cheapest rates. Don’t be afraid to switch companies if it means significant savings. Insurance companies are counting on the fact that once you sign a policy with them, you’re less likely to shop around. The Insurance Information Institute (Triple-I) suggests getting quotes from at least three companies. MoneyGeek’s comprehensive study on insurance rates revealed that getting a policy with the lowest-quoted company for a 20-year-old would save an average of 28% as compared to using the company with the highest quote.

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    Help Your 20-Year-Old Maintain a Clean Driving Record

    Your 20-year-old driver likely has some experience now, but a clean driving record is still imperative to get the best rates on car insurance. As a parent, you should model good driving behavior. Don’t glance at your phone, text while driving or talk on a mobile phone that is not hands-free, don’t speed and don’t drink and drive. Impress upon your 20-year-old how much money they can save and how many injuries they can prevent by driving safely.

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    Find Companies That Offer Discounts

    If you are a 20-year-old who is a good student, look into good student discounts. For example, Travelers offers a 15% discount for full-time students with at least a B average. You may also get a discount from car insurance companies if you are a student away at college without a car.

    Look into defensive driving course discounts as well, although not every company offers a discount for these courses. State Farm recommends you contact your agent for a list of qualifying courses, so it pays to check before you sign up. On the other hand, even if your company doesn’t offer a discount, a defensive driving course is always a good idea. It will teach safe driving skills and pay off for years down the road.

    There are also telematics-based safe driving programs for young drivers you may take advantage of to earn a discount. Examples include State Farm's Steer Clear and Allstate's teenSMART.

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    Lower the Coverage Amount

    Except for New Hampshire, states have minimum liability requirements for car insurance. These are the bare minimum, so you might want more coverage than just these amounts for a greater level of financial protection from at-fault accidents.

    If you own a car that is only worth a few thousand dollars, you could go with just liability-only car insurance, forgoing collision and comprehensive coverage, optional coverages that protect your vehicle and make a policy full coverage. Note that you’ll have to pay for repairs and damage to your car out of pocket with liability-only coverage.

    In addition, where you live may require more than liability coverage, such as personal injury protection or medical benefits and uninsured and underinsured motorist (UM/UIM) coverage. You may choose the lowest amount of coverage to save money.

    You can also save money by increasing deductibles. You can have different deductibles for comprehensive and collision coverage, and raising just one or both can lower your car insurance costs. Just make sure you have the amount of the deductible handy in case you get into an at-fault accident. And remember, liability coverage does not have a deductible.

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    Choose a Sedan Over a Sports Car

    The type of car your 20-year-old drives will also affect insurance rates. Some cars are expensive to insure because they are expensive to repair, and some are more expensive because they lend themselves to risky driving. The MoneyGeek team found that driving a flashy sports car increased premiums anywhere from hundreds to thousands of dollars regardless of which state you live in.

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IS MINIMUM COVERAGE ENOUGH FOR A 20-YEAR-OLD DRIVER?

To better financially protect a driver should they cause an accident, insurance professionals recommend liability coverage of at least $100,000 bodily injury per person, $300,000 bodily injury per accident and $100,000 property damage liability per accident. They also suggest having full coverage by adding comprehensive and collision coverage to the policy, securing financial protection of their vehicle in an at-fault accident or non-collision incident like fire, theft or weather-related damage.

However, there are other optional coverages a young driver may consider getting. Roadside assistance coverage provides help during a breakdown, and rental car coverage gives you a loaner vehicle while your car in a covered claim is being repaired. If a young driver works for a rideshare company, whether a couple of nights a week or more, adding rideshare insurance is a smart choice. Mark Friedlander, Director, Corporate Communications, Insurance Information Institute

Why Car Insurance Is Expensive for 20-Year-Olds

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.

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FAQ: Best Cheap Car Insurance for 20-Year-Olds

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.

What is the cheapest car insurance for a 20-year-old?
What is the best insurance company for a 20-year-old?
Why is car insurance expensive for 20-year-old drivers?
Is car insurance more expensive for 20-year-old males?

About Devon Delfino


Devon Delfino headshot

Devon Delfino is an independent financial journalist covering topics in finance and marketing for six years. Her personal finance reporting has been featured in publications such as the L.A. Times, Teen Vogue, Mashable, MarketWatch, CNBC and USA Today, among others.

Devon earned a Bachelor of Science degree in Journalism from Boston University.


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