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

A 20-year-old typically pays $2,419 for full coverage car insurance. Comparatively, on average, 40-year-olds pay about $1,365 less for full coverage yearly versus 20-year-olds.

Updated: November 21, 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.

Car Insurancefor a 20-Year-Oldin 2024

2024

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

Cost of Car Insurance for 20-Year-Olds

Cheapest Full Coverage Car Insurance for 20-Year-Olds - Nationwide

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

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

How to Get Cheap Car Insurance for 20-Year-Olds

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.

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.

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Coverage

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Coverage:100/300/100 Full Cov. w/$1,000 Ded.


$2,419	$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.


Nationwide	$2,170	$181
GEICO	$2,253	$188
Travelers	$2,346	$195
State Farm	$2,353	$196
Allstate	$2,380	$198
Progressive	$2,929	$244
Farmers	$3,327	$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.


Travelers	$496	$41
GEICO	$507	$42
Nationwide	$559	$47
State Farm	$576	$48
Allstate	$585	$49
Progressive	$653	$54
Farmers	$823	$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.

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Gender:Male


Alabama	$2,345	$195
Alaska	$2,298	$191
Arizona	$2,275	$190
Arkansas	$1,984	$165
California	$2,776	$231
Colorado	$2,521	$210
Connecticut	$2,293	$191
Delaware	$2,483	$207
District of Columbia	$2,499	$208
Florida	$4,785	$399
Georgia	$2,334	$194
Hawaii	$1,046	$87
Idaho	$1,272	$106
Illinois	$1,711	$143
Indiana	$1,565	$130
Iowa	$1,600	$133
Kansas	$1,955	$163
Kentucky	$2,275	$190
Louisiana	$6,226	$519
Maine	$1,607	$134
Maryland	$2,312	$193
Massachusetts	$1,753	$146
Michigan	$4,355	$363
Minnesota	$1,936	$161
Mississippi	$1,949	$162
Missouri	$2,782	$232
Montana	$2,306	$192
Nebraska	$2,255	$188
Nevada	$3,392	$283
New Hampshire	$1,504	$125
New Jersey	$3,727	$311
New Mexico	$2,128	$177
New York	$2,614	$218
North Carolina	$1,374	$114
North Dakota	$1,550	$129
Ohio	$2,558	$213
Oklahoma	$2,135	$178
Oregon	$1,878	$157
Pennsylvania	$1,977	$165
Rhode Island	$2,599	$217
South Carolina	$3,097	$258
South Dakota	$1,847	$154
Tennessee	$1,805	$150
Texas	$2,746	$229
Utah	$2,738	$228
Vermont	$1,469	$122
Virginia	$2,385	$199
Washington	$2,179	$182
West Virginia	$2,201	$183
Wisconsin	$1,750	$146
Wyoming	$1,888	$157

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.

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Coverage

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Coverage:100/300/100 Full Cov. w/$1,000 Ded.


$2,419	$4,797	$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:

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.

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.

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.

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.

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.

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.

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.

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.

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?

For a 20-year-old, car insurance costs an average of $37 per month for liability-only coverage and $202 monthly for full coverage. Meanwhile, an individual policy for a 20-year-old costs an average of $400 per month for full coverage. A 20-year-old student can stay on a family policy as long as their permanent residence is the family home

What’s the cheapest car insurance provider for a 20-year-old?

The cheapest car insurance provider for a 20-year-old is Nationwide for full coverage ($2,170 per year, $181 per month) and Travelers for liability only ($496 annually, $41 per month).

Why is car insurance so expensive at 20?

At 20, car insurance costs are notably higher due to a mix of inexperience and statistical risk. Younger drivers, often with less time behind the wheel, are seen as having a higher risk of accidents. A sparse credit history can also play a part, as insurers use credit data as part of the policy underwriting process.

What is the cheapest car insurance for college students?

MoneyGeek found that State Farm offers the cheapest car insurance for students at $2,272 annually. For family policies, Nationwide is the most affordable option for 20-year-olds, with an annual cost of $2,170. These are rates for 20-year-old students on a full coverage policy. 20-year-olds can also take advantage of several discounts offered by insurers, including good student and distant student discounts. The latter is typically available for a student attending college at least 100 miles from home without a vehicle.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He 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.

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