Although they have only a few years driving experience, 20-year-olds still pay high annual premiums. The average cost of full coverage car insurance for 20-year-olds is $3,795 per year. For 20-year olds, car insurance can be expensive. However, understanding how your premium is calculated and what you could do to reduce it might help you make your coverage affordable.
What is the cost of car insurance for a 20 year old?
For full coverage car insurance, twenty-year-olds typically pay $3,795 annually. This is less than what 18- and 19 year-olds pay but it is still much more than the national average annual cost of full coverage which is $1674 per annum.
Insurance companies consider drivers this old to be inexperienced, and they charge higher premiums to cover the increased risk of claims. As long as you have a clean driving record, you should notice your premium drop.
Average car insurance cost for women and men aged 20 years
Car insurance policies in most states are partly rated on the basis of gender. Statistics show that men engage in riskier driving habits than women do, which puts them at a higher risk for accidents. Men pay more for car insurance than women because of this.
Average car insurance costs for 20-year olds by state
Each state has its own insurance laws that can impact how much you pay to insure your car. Each state also has its own insurance laws, which can have an impact on how much you pay for car insurance. These factors all affect the average cost for insurance in your state.
The best car insurance companies for young adults aged 20
While price is an important factor when looking for insurance, it’s not the only one. Bankrate’s insurance editors gathered current premium information from the top insurance companies based on their market share. We also looked at each company’s policies, coverages, discounts and third-party rankings after analysing the data.
These companies may be a good place to start if you are a 20-year old looking for the best car coverage.
Geico
Geico’s highly-rated digital tools might be appealing to young drivers. The J.D. Top 100 list ranked the company at the top. The J.D. Power 2021 U.S. Digital Experience Survey for the Service category shows that most customers are happy with Geico’s digital services. You can use the mobile app to pay your bills, make claims, get roadside assistance, view ID cards and make changes. Geico is known for its long list of discounts, including savings for federal employees and military personnel, as well as safe drivers.
State Farm
State Farm is a solidly-established company that has a lot of history. State Farm is the country’s largest personal auto insurance company and has 19,000 agents. State Farm’s Steer Clear program is a great option for young drivers. It can help you save money and teach you safer driving habits. Your premium can be reduced by being a good student and taking a driver training class or attending college without a car.
Progressive
Progressive’s auto insurance tools will save you time and money. The Name Your Price tool is a great way to find coverage options that fit within your budget. Progressive’s website also allows you to compare quotes from other companies, which may allow you see if a different carrier offers a lower price for the same coverage. Progressive is a good choice if you are looking to purchase your policy and get a quote online. Progressive offers discounts for online quotes and purchases.
Travelers
The highest premium for Travelers is on our list. However, the company’s wide range of optional coverages may make up the difference. To personalize your auto policy, you can add optional coverages like loan/lease gap coverage or new car replacement, as well as accident forgiveness and ridesharing coverage. Your premium might be lower if you are a good student, a safe driver, and away from school without a car.
Car insurance at the lowest price for drivers aged 20 years old
Because 20-year-olds pay relatively high average premiums for car insurance, finding a cheap provider might be high on your list of priorities. There are many carriers that offer coverage at a lower cost than the national average for full coverage for 20 year olds.
These are the average premiums. The price of your car insurance will vary depending on your individual rating factors such as the type of car that you drive, where you live and what your driving record is. These figures are an average. You might pay more or less.
How to get car insurance at a discount for 20-year olds
Although 20-year-olds are likely to pay higher car insurance premiums than the national average, there are still ways you can save.
Take a look around
It is possible to compare quotes from multiple carriers to find affordable car insurance. Each insurance company uses its own rating system, which means that the same coverage may cost you less or more with different companies. You might find the right policy for you by getting quotes from multiple carriers for the same coverage.
Get discounts
Each company may offer a different set of discounts but most offer at least one. You can lower your premium by choosing a company with one or more discounts you are eligible for. Discounts that are common include multi-policy discounts, paperless discounts, paid-in fulll, good student discounts.
Select a higher deductible
Your policy will have two deductibles if you have full coverage: one for comprehensive, one for collision. These deductibles will be the amount that you pay out of your pocket to file a claim for vehicle damages under these coverages. Your premium will decrease if you raise one or both your deductibles. This means that you will be willing to pay more out-of-pocket if you file vehicle damage claims. However, a higher out of pocket expense will result if you file a claim to repair damage to your vehicle. You should carefully consider your deductibles and ensure you have the funds available.
Take into account the car you drive
Some cars are cheaper to insure than others. It could be due to the cost of parts and labor, statistical likelihood of accidents and safety features, or overall value. Insurance professionals strongly recommend getting an insurance quote before you sign a contract. This will ensure that there are no unexpected financial costs and that you can budget for the insurance cost to make sure you can afford it.
How to get the best car coverage for a 20 year old
The first step to finding the best car insurance for your needs is to understand your situation. Consider your rating factors. Take note of the car you drive, your driving record, and any discounts you may be eligible for. Next, compare quotes from different companies to see which ones might be most suitable for you. This will allow you to compare quotes from different companies and help you choose the best option for you.
Questions frequently asked
What is the cost of car insurance for a 20 year old?
For full coverage auto insurance, 20-year olds will pay an average of $3795 Your individual circumstances will determine your price. How much you pay will depend on where you live, what your driving record is, how many cars you own, and possibly your gender.
What age do my rates drop?
If no DUI convictions, tickets or accidents are on your driving record, most drivers will see their rates drop by the age of 25. Car insurance rates generally decrease as you get older and gain more experience, but can begin to creep up again in your senior years, as you may once again be at a higher likelihood of accidents.
Which state is the most costly for 20-year olds?
Louisiana is the most expensive state in Louisiana for 20-year olds, with an average annual premium $5,911 per.
What state is the most affordable for a 20 year-old driver?
Hawaii is the best state for auto insurance, especially for 20-year olds. The average annual premium is currently $1,294. Hawaii prohibits the use age as a rating factor. This likely contributes to the low cost of young drivers.