For many insurance companies, Car insurance for 20 year olds depends on multiple factors, where age becomes one of the main determinants of the costs. As a young adult, the intricacies and legalities of driving around in your car might often get overwhelming.
You are responsible for your vehicle and have to make the right decisions about buying the best auto insurance for a 20-year-old and selecting one of the cheapest car insurance companies. Let us learn and compare auto insurance companies to get the minimum coverage limits and how much drivers pay on an average annual rate in 2023.
Car Insurance For 20 Year Old: Key Takeaways [2023]
Car insurance for 20-year-olds’ average premiums are expensive. And if you are looking for an affordable car insurance policy with the cheapest rates, you must remember that there are still several ways to reduce the average annual amount of your car insurance cost. Auto insurance rates also vary from state to state for young drivers.
In that case, GEICO offers the best cheap auto insurance for 20 year old drivers in most states. The average auto insurance rate for 20-year-old drivers is $ 5,517 annually or $460 monthly.
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Compare Cheapest Car Insurance For 20 Year Olds [2023]
For the cheapest car insurance companies, insurers will look into young driver clean driving record, location, vehicle details, et cetera.
If we talk about the best car insurance companies, USAA offers auto insurance for 20-year-old at $2,496, which is $208 a month. However, USAA auto insurance is limited only to those with military experience or connections. In the same range other auto insurance companies like GEICO, State Farm, and Nationwide offer cheap car insurance for 20-year-olds at $2,763, $3,351, and $3,493 yearly. It comes to $230, $279, and $291 monthly.
On the higher side, for full coverage car insurance, you can go for Allstate or Progressive insurance company. Their annual car insurance premiums are around $4,814 and $3,970, respectively. Their corresponding monthly premium payment rates come to $401 and $331.
| BEST CAR INSURANCE FOR 20-YEAR-OLD DRIVERS | ||
|---|---|---|
| Company | Avg. Annual Premium | Avg. Monthly Premium |
| USAA | $2,496 | $208 |
| GEICO | $2,763 | $230 |
| State Farm | $3,351 | $279 |
| Nationwide | $3,493 | $291 |
| Farmers | $3,753 | $313 |
| Progressive | $3,970 | $331 |
| Allstate | $4,814 | $401 |
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What Is The Average Car Insurance Rates For 20-Year-Olds? [2023]
Young adults are placed in a middle ground regarding auto insurance policy liability age brackets. A 20-year-old has just made it out of the high-liability teenager bracket but still lacks experience compared to a 40-year-old driver. Here driving history, age group, and car insurance policies they have opted for earlier or going to buy also matters a lot.
So, the average car insurance cost of yearly car insurance premium that one can expect as a 20-year-old is around $5,517. It comes to about $460 a month. However, as mentioned before, many factors go into the car insurance price for a 20-year-old, including their existing driving history and the nature of the vehicle they drive. Geico, for example, is a fairly common choice with car insurance buyers. They have one of the cheapest car insurance for 20-year-olds, at $3,026 a year.
Mount Shine Tip: To save on car insurance, follow traffic safety rules, check car insurance quotes, get a good student discount, maintain a clean driving record, compare national average insurance company rates, and then make a decision.
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Compare Cheapest States for Car Insurance for 20-Year-Olds [2023]
Car insurance rates vary significantly between one state and another. State laws on auto insurance vary, as do weather conditions, chances of accidents, and the general driver history of the state. These are all considerations that go into an auto insurer stating their quote.
GEICO generally provides the cheapest auto insurance for 20-year-olds in most states. Their rates in California, Florida, and Ohio are $2,486, $3,312, and $2,145 per year. In New York, buying auto insurance for a 20-year-old would be significantly more expensive, with GEICO offering quotes at $4,396 annually. State Farm provides relatively low quotes in certain states as well. For example, their annual car insurance premium rates in Texas and Illinois are $2,611 and $2,339, respectively. Similarly, the insurance rates in San Deigo will be different, so you have to check and compare the rates.
| State | Insurer | Average annual rate |
|---|---|---|
| California | Geico | $2,486 |
| Florida | Geico | $3,312 |
| Georgia | Georgia Farm Bureau | $2,955 |
| Illinois | State Farm | $2,339 |
| Michigan | Progressive | $3,149 |
| New York | Geico | $4,396 |
| North Carolina | NC Farm Bureau | $1,195 |
| Ohio | Geico | $2,145 |
| Texas | State Farm | $2,611 |
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Is Car Insurance Expensive For A 20-Year-Old? [2023]
As a 20-year-old, you have recently crossed the boundary of teenage. As young drivers, you no longer belong to the riskiest group. So, your car insurance rates are not the highest, as they vary according to age groups. Young drivers always tend to have high car insurance rates because they are categorized as more accident-prone and less experienced in driving expertise, according to Insurance Information Institute.
While ages between 16 and 20 years are considered the most expensive age slot to buy car insurance, average rates drop significantly for ages between 20 and 25 years. However, 20-year-olds still pay the next highest range of car insurance premiums. Insurance rates drop over $900 a year, on average, between auto insurance coverage for 20 year old and that for a 21-year-old.
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How To Get The Best Auto Insurance Discounts For 20-Year-Olds? [2023]
Follow these 4 tips to get the best auto insurance discounts for 20-year-olds in 2023:
- Your parents’ car insurance policy can still cover your car if you live under the same roof. Although it means you have to chip in with your parents’ insurance premium, it will be cheaper than buying new car insurance.
- Keep track of all the discounts and price reductions you qualify for. Car insurance providers often offer 20 year old drivers, a student discount to specific demographics, such as promising students, drivers with a defensive driving course in their cap, and 20-year-olds with a reasonably high credit score.
- Compare Car Insurance Quotes among the insurance providers you are considering. Shopping for the best cheap car insurance deals is the foolproof way to get any shopping done at the best insurance rates.
- Opt for less comprehensive coverage if the car insurance premium is a bit of a pocket pinch. Choose an appropriate coverage and deductible plan, so your car gets the security it needs without burning a hole through your pocket, and you can save money on car insurance.
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Average Car Insurance Costs For 20-Year-Old Men And Women
In most states, gender can also determine insurance coverage rates. Statistics show that men are more likely to drive dangerously than girls, making them more vulnerable. Because of this, most states in which gender is considered in the rate have male motorist coverage. Most states except Hawaii use the gender factor.
Typically, a 20-year-old female pays $304 monthly for coverage, while another 20-year-old male costs $336. In comparison, young drivers pay more than their older drivers for their car insurance.
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Car Choice Matters When Insuring a Young Driver?
Young drivers often look at the coolness of cars when choosing their vehicles as an enjoyable experience. Some people will have more fun with the cars that their parents hand out than the sleek and fast Chevy Camaro.
The Sport Car will increase rates, but it won’t be as convenient as driving an older model. Therefore 20-year-olds children must look at safety ratings and the cost. These cars are more affordable for the insured and have high safety scores, making them a suitable choice for a 20 year old drivers.
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How To Apply For Car Insurance For A 20-Year Old? [2023]
Applying for car insurance is as easy as shopping around for the perfect deal, contacting the insurance provider of your choice, producing the required documents, and completing the transaction. Sometimes, a third party or intermediate agent might be a massive help in getting you through to the right people or ensuring you have all the documents you need.
Also, make you have a good driving record as there are multiple insurance companies that offers good student discounts for young adult drivers. Best car insurance companies are not hard to find. You must study and research them to get auto insurance rates depending on your needs and save on car insurance.
How Much Is Car Insurance For A 17-Year Old?
For the younger drivers, either male or female drivers, the average rate for a car insurance company is $396 monthly if you want liability coverage. On the other hand, more comprehensive full coverage is $629 per month.
Except for some states, insurance rates are higher for male teenagers than for their female counterparts. As a 17 year old driver, you can also save money because many car insurance companies offer car insurance discounts like a student discount for the different age group.
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Frequently Asked Questions
FAQ 1: At what age is car insurance cheapest?
Answer: When young people start learning and getting older, they will likely lose about 33%. For many, the cost for this is usually decreased at every birthday in a typical year. When the driver is over the age of 60, they will offer the most favorable average rates. At 60, the cost of automobile insurance increases, but compares to what drivers see at 40.
FAQ 2: Why is car insurance so expensive for 20 year old?
Answer: Car insurance for young people averaging about $460 a month is $617 / year. Young drivers, particularly those under 18, are often the most expensive because they get into more accidents on average and insurers consider them riskier. The risk exposure with a 20-year-old male is higher than a female driver of the same age, according to auto insurance companies.
FAQ 3: Does insurance get cheaper when you turn 20?
Answer: Insurance rates have been dropping for drivers since the 20s, and the biggest drop occurred at 25. The growth rate is usually steady over ten years starting around 35 years. Once one is over 60, age affects driving ability.
