Cheap Auto Insurance for 20-Year-Olds in 2024 (Save With These 10 Companies!)
USAA, Geico, and Erie are the top providers for cheap auto insurance for 20-year-olds with rates averaging around $90-$100 monthly. These companies offer competitive pricing, excellent customer service, and various discounts tailored for young drivers, making them the top choices for affordable coverage.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: Jul 1, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 1, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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19,116 reviews
Company Facts
Min. Coverage for 20-Year-Old Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
19,116 reviews
1,814 reviews
Company Facts
Min. Coverage for 20-Year-Old Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
1,814 reviews
The top picks for cheap auto insurance for 20-year-olds are USAA, Geico, and Erie, offering rates starting around $90, $95, and $100 per month respectively. These companies stand out for their competitive pricing, extensive coverage options, and exceptional customer service.
USAA is particularly noteworthy for its overall value, making it the best choice for young drivers.We will delve into why these providers excel, examine specific data rates, and explore additional auto insurance discounts available for 20-year-old drivers. Understanding the insurance landscape is crucial for finding the best rates.
Company Rank Monthly Rates A.M. Best Best For Jump to Pros/Cons
#1 $90 A++ Military Benefits USAA
#2 $95 A++ Competitive Rates Geico
#3 $100 A Competitive Rates Erie
#4 $105 A+ Multi-Policy Discounts Progressive
#5 $108 A+ Good Student Nationwide
#6 $110 A++ Personalized Service State Farm
#7 $112 A+ Safe-Driving Discounts Allstate
#8 $115 A Competitive Rates American Family
#9 $118 A Safe-Driving Discounts Liberty Mutual
#10 $120 A Multi-Policy Discounts Farmers
By leveraging these insights, young drivers can make informed decisions and save significantly on auto insurance. Start saving on your auto insurance by entering your ZIP code above and comparing quotes.
- Top picks for cheap auto insurance for 20-year-olds: USAA, Geico, and Erie
- Rates starting around $90 with USAA, $95 with Geico, and $100 with Erie
- Explore discounts, coverage options, and tips for young drivers
#1 – USAA: Top Overall Pick
Pros
- Military Benefits: USAA offers exclusive benefits tailored to military personnel and their families.
- Competitive Rates: USAA provides some of the most competitive rates in the market.
- Excellent Customer Service: USAA is known for its exceptional customer service and member satisfaction.
Cons
- Limited Membership: USAA membership is restricted to military personnel, veterans, and their families.
- Limited Branch Availability: USAA has fewer physical branch locations compared to other insurers.
Discover additional insights on “What happens if I disagree with USAA’s decision on my auto insurance claim?“.
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#2 – Geico: Best for Competitive Rates
Pros
- Competitive Rates: Geico auto insurance review highlight offering some of the most affordable auto insurance rates in the industry.
- Online Tools: Geico provides a user-friendly website and mobile app for easy policy management.
- Wide Range of Discounts: Geico offers various discounts, including for good drivers, students, and federal employees.
Cons
- Mixed Customer Service Reviews: Geico’s customer service reviews vary, with some customers reporting dissatisfaction.
- Limited Coverage Options: Geico may not offer as many coverage options as some other insurers.
#3 – Erie: Best for Competitive Rates
Pros
- Competitive Rates: Erie offers affordable auto insurance rates, especially for young drivers.
- Excellent Customer Service: Erie auto insurance review is known for its exceptional customer service and claims handling.
- Personalized Policies: Erie provides customized insurance policies to meet individual needs.
Cons
- Limited Availability: Erie insurance is available in a limited number of states.
- Fewer Online Tools: Erie’s online tools and mobile app may not be as advanced as those offered by larger insurers.
#4 – Progressive: Best for Multi-Policy Discounts
Pros
- Multi-Policy Discounts: Progressive auto insurance review maintain significant discounts for bundling auto insurance with other policies.
- Name Your Price Tool: Progressive’s Name Your Price tool allows customers to find a policy that fits their budget.
- Snapshot Program: Progressive’s Snapshot program rewards safe driving habits with additional discounts.
Cons
- Rates May Increase: Progressive’s rates may increase after an accident, even if you’re not at fault.
- Limited Availability: Progressive may not be available in all states.
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#5 – Nationwide: Best for Good Student
Pros
- Good Student Discount: Nationwide auto insurance review underscore offering substantial discounts for young drivers who maintain good grades.
- Accident Forgiveness: Nationwide’s accident forgiveness program prevents rates from increasing after your first at-fault accident.
- Vanishing Deductible: Nationwide’s Vanishing Deductible program reduces your deductible for every year of safe driving.
Cons
- Higher Rates for Young Drivers: Nationwide’s rates for young drivers may be higher compared to some competitors.
- Limited Coverage Options: Nationwide may not offer as many coverage options as some other insurers.
#6 – State Farm: Best for Personalized Service
Pros
- Personalized Service: State Farm auto insurance review highlight personalized service through a network of local agents.
- Bundling Policies: State Farm offers significant discounts for bundling multiple insurance policies.
- High Low-Mileage Discount: State Farm provides a substantial discount for low-mileage usage.
Cons
- Limited Multi-Policy Discount: The multi-policy discount of State Farm is not as high compared to some competitors.
- Premium Costs: Despite discounts, State Farm’s premiums might still be relatively higher for certain coverage levels.
#7 – Allstate: Best for Safe-Driving Discounts
Pros
- Safe-Driving Discounts: Allstate auto insurance review accentuate rewarding safe driving habits with significant discounts.
- Accident Forgiveness: Allstate’s accident forgiveness program prevents rates from increasing after your first at-fault accident.
- Name Your Price Tool: Allstate’s Name Your Price tool allows customers to find a policy that fits their budget.
Cons
- Higher Premiums for Young Drivers: Allstate’s premiums for young drivers may be higher compared to some competitors.
- Limited Online Tools: Allstate’s online tools and mobile app may not be as user-friendly as those offered by other insurers.
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#8 – American Family: Best for Competitive Rates
Pros
- Competitive Rates: American Family offers affordable auto insurance rates, especially for young drivers.
- Excellent Customer Service: American Family auto insurance review is known for its exceptional customer service and claims handling.
- Wide Range of Discounts: American Family offers various discounts, including for good drivers, students, and loyal customers.
Cons
- Limited Availability: American Family insurance is available in a limited number of states.
- Fewer Online Tools: American Family’s online tools and mobile app may not be as advanced as those offered by larger insurers.
#9 – Liberty Mutual: Best for Safe-Driving Discounts
Pros
- Safe-Driving Discounts: Liberty Mutual auto insurance review reward safe driving habits with significant discounts.
- Accident Forgiveness: Liberty Mutual’s accident forgiveness program prevents rates from increasing after your first at-fault accident.
- Wide Range of Coverage Options: Liberty Mutual offers various coverage options tailored for different business needs.
Cons
- Higher Premiums for Young Drivers: Liberty Mutual’s premiums for young drivers may be higher compared to some competitors.
- Limited Availability: Liberty Mutual may not be available in all states.
#10 – Farmers: Best for Multi-Policy Discounts
Pros
- Multi-Policy Discounts: Farmers auto insurance review offer significant discounts for bundling auto insurance with other policies.
- Personalized Service: Farmers provides personalized service through a network of local agents.
- Name Your Price Tool: Farmers’ Name Your Price tool allows customers to find a policy that fits their budget.
Cons
- Higher Rates for Young Drivers: Farmers’ rates for young drivers may be higher compared to some competitors.
- Limited Online Tools: Farmers’ online tools and mobile app may not be as user-friendly as those offered by other insurers.
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Auto Insurance Costs for a 20-Year-Old
First, let’s get one thing out of the way: you’re going to pay a relatively high price for car insurance around your 20th birthday. There’s no way of getting around that fact. The average 20-year-old driver will pay $5,333 for car insurance every year. So how much is car insurance for a 20-year-old per month?
Based on this per-year rate, you’re looking at $444 per month. That may sound expensive but it’s less than what younger drivers pay, and we’ll discuss this in greater detail later. Certain states are always more expensive for vehicle insurance. Michigan, Louisiana, and Florida auto insurance, for example, is infamously more expensive (they’re all also no-fault states).
USAA offers the best value for 20-year-olds with rates around $90 per month, combining excellent customer service and comprehensive coverage options.Chris Abrams Licensed Insurance Agent
If you’re a 20-year-old driver in a state with high car insurance prices, then you may pay significantly more than the $5,333 per year average mentioned above. Meanwhile, certain states have famously low insurance rates. Twenty-year-old drivers in Maine, Iowa, Wisconsin, Vermont, Ohio, and South Carolina, for example, pay some of the lowest insurance rates in the United States.
Insurance Company | Minimum Coverage | Full Coverage |
---|---|---|
Allstate | $112 | $210 |
American Family | $115 | $215 |
Erie | $100 | $200 |
Farmers | $120 | $220 |
Geico | $95 | $195 |
Liberty Mutual | $118 | $215 |
Nationwide | $108 | $205 |
Progressive | $105 | $205 |
State Farm | $110 | $210 |
USAA | $90 | $190 |
If you’re a 20-year-old driver in one of these states, then you’ll likely be able to find car insurance rates well under $5,333 per year. For more specifics on average rates for 20-year-olds in some of the largest states in the country, take a look at this table.
Rank | State | Population | Rates |
---|---|---|---|
#1 | California | 39,538,223 | $308 |
#2 | Texas | 30,029,572 | $357 |
#3 | Florida | 22,461,475 | $517 |
#4 | New York | 19,857,492 | $392 |
#5 | Pennsylvania | 12,907,139 | $296 |
#6 | Illinois | 12,582,032 | $362 |
#7 | Ohio | 11,769,948 | $305 |
#8 | North Carolina | 10,835,491 | $998 |
#9 | Georgia | 10,799,566 | $444 |
#10 | Michigan | 10,028,509 | $297 |
Keep in mind that these rates are averages and may not reflect what you’ll pay, because your specific circumstances may significantly affect your rates.
Affordable Car Insurance Options for 20-Year-Olds
Insurance companies calculate risk and rates in different ways. Some insurance companies put a huge emphasis on age, for example, and will reward older drivers while punishing younger drivers.
Other insurance companies put a higher emphasis on your driving record— so if you have four years of a clean driving record at 20, then you might pay significantly lower rates at a company that emphasizes clean driving.
Take a look at this table for average rates for 20-year-old drivers from some of the major insurance carriers in the country.
Insurance Company | Monthly Rates |
---|---|
Allstate | $255 |
Farmers | $198 |
Geico | $138 |
Liberty Mutual | $284 |
Nationwide | $159 |
Progressive | $229 |
State Farm | $242 |
USAA | $120 |
All of this adds up to one simple conclusion: if you want to find the best car insurance for 20 year olds driver, then you need to take time to compare auto insurance quotes. Fortunately, comparing insurance quotes online is easier today than ever before.
If you have a few minutes and an internet connection, you can instantly compare dozens of quotes from insurance companies serving your area.
At 20 years old, you’ll notice rates change significantly between companies. As you get older, you’ll find the differences between insurance companies become less drastic.
All major insurance companies in the United States are very competitive with one another so take the time to shop around for a range of car insurance quotes.
The Impact of Gender and Age on Car Insurance for 20-Year-Olds
Are you wondering if gender can affect your car insurance rates? The answer is, yes, your gender matters—except in certain states. That’s because states like Hawaii and California prohibit the use of gender to adjust insurance rates.
However, the majority of states still allow companies to use gender as a factor in rate adjustments. Explore more information on our “Do auto insurance rates go down at 21?”.
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Auto Insurance Costs for 20-Year-Old Males Versus Females
Across the country, the average rates car insurance for 20 year old male and female drivers are:
- Female: $423 per month
- Male: $466 per month
Overall, male drivers pay 10 percent more for insurance than female drivers at age 20. Whether you’re looking for cheapest car insurance for 20 year old male or cheap car insurance for 20 year old female, your best bet is to shop around. We’ll spend some time in a later section discussing ways to find the best coverage for your needs.
Explore more insights on our “Affordable Auto Insurance Quotes for Women“.
Auto Insurance Costs for a 20-Year-Old Compared to Other Ages
As we noted earlier, while insurance for 20-year-olds is expensive, it’s not as much as auto insurance for teenagers will cost. Take a look at this table to see what we mean.
Age | Rates |
---|---|
18-Year-Old Driver | $598 |
19-Year-Old Driver | $502 |
20-Year-Old Driver | $444 |
21-Year-Old Driver | $371 |
22-Year-Old Driver | $344 |
23-Year-Old Driver | $320 |
24-Year-Old Driver | $300 |
25-Year-Old Driver | $267 |
Rates drop significantly as you accumulate more years of driving experience. If you’ve been paying for your own insurance policy since you were 16, you should notice a significant rate drop by the time you’re 20.
Rates will continue dropping as you age (assuming you maintain a clean driving record). Auto insurance goes down at age 25. By age 30 and above, the average driver will pay less than $2,000 per year for car insurance.
Discounts Available for Car Insurance for 20-Year-Olds
So what is the best way for 20-year-olds to find affordable car insurance? There are a number of auto insurance discounts that insurance companies often offer, which can help significantly lower your rates.
For example, ask your insurance company about good grade discounts. If you’re getting good grades (say, B+ or higher) in your high school or college education, you might be eligible for a small discount on insurance prices.
USAA offers the best overall value for 20-year-olds with competitive rates and exceptional customer service.Michelle Robbins Licensed Insurance Agent
Distant student auto insurance discounts are also available in availing car insurance for 20 year old college students who go to school over 100 miles away from their home. If you leave your car at home while you’re away at college, you may be eligible for steep discounts while still being covered every time you visit while in college.
Take a look at this table for discounts for young drivers that are offered by some of the major insurance companies in the country.
Insurance Company | Distant Student Discount | Driver’s Ed Discount | Good Student Discount | Claim Free Discount | Defensive Driver Discount |
---|---|---|---|---|---|
21st Century | NA | 10% | 15% | 20% | 10% |
AAA | 15% | 10% | 15% | 20% | 10% |
Allstate | 20% | 10% | 15% | 20% | 10% |
American Family | 15% | 10% | 15% | 20% | 10% |
Ameriprise | 15% | NA | 15% | 20% | 10% |
Amica | 15% | 10% | 15% | 20% | 10% |
Country Financial | NA | 10% | 15% | 20% | 10% |
Esurance | NA | 10% | 15% | 20% | 10% |
Farmers | 20% | 10% | 15% | 20% | 10% |
Geico | 15% | 10% | 15% | 20% | 10% |
Liberty Mutual | NA | 10% | 15% | 20% | 10% |
MetLife | NA | 10% | 15% | 20% | 10% |
Nationwide | 15% | NA | 15% | 20% | 10% |
Progressive | 15% | 10% | 15% | 20% | 10% |
Safe Auto | NA | 10% | 15% | 20% | 10% |
Safeco | 15% | 10% | 15% | 20% | 10% |
State Farm | 15% | 10% | 15% | 20% | 10% |
The General | NA | 10% | 15% | 20% | 10% |
The Hanover | 15% | 10% | 15% | 20% | 10% |
The Hartford | 15% | 10% | 15% | 20% | 10% |
Travelers | 15% | 10% | 15% | 20% | 10% |
USAA | 15% | 10% | 15% | 20% | 10% |
Speak with your insurance agent to make sure you’re getting all the discounts for which you qualify.
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Determining the Right Amount of Auto Insurance Coverage for a 20-Year-Old
Another way you can save money is to reduce your coverage. Legally, you only need the minimum auto insurance coverage required in your state in order to drive. However, the best way to determine if this is right for you is to consider your personal situation, driving risks, and the value of your vehicle.
If your vehicle is worth less than $4,000, it may make sense to let go of comprehensive and collision coverage, and just stick with liability auto insurance, but only you can decide if that’s the right decision.
Exploring Real-Life Scenarios: 20-Year Old Auto Insurance
In the following case studies, we delve into real-life scenarios encountered by 20-year-old drivers seeking auto insurance. These examples highlight the diverse challenges and opportunities young drivers face when navigating the insurance landscape.
- Case Study 1 – Sarah’s Savings Strategy: Sarah, a 20-year-old college student, researched insurance options when purchasing her first car. Leveraging good student and distant student discounts, she secured a comprehensive policy at a rate below the national average.
- Case Study 2 – Alex’s Accident Aftermath: After a minor at-fault accident, Alex, a 20-year-old working professional, feared premium increases. His insurer’s accident forgiveness program mitigated the rate hike, maintaining his coverage without financial strain.
- Case Study 3 – Emily’s Gender-Based Pricing Experience: Emily, a 20-year-old driver, discovered gender-based pricing discrepancies. Advocating for legislative changes, she campaigned for fairer rates for all young drivers.
These case studies underscore the importance of proactive research and advocacy in navigating the complexities of auto insurance for 20-year-olds. By understanding available discounts, policy features, and industry practices, young drivers can make informed decisions to protect themselves and their vehicles while advocating for fairness and equity within the insurance system.
Auto Insurance Costs for a 20-Year-Old: The Bottom Line
Ultimately, 20-year-old drivers pay some of the highest rates for car insurance. You can’t change your age but you can shop around to find the affordable best car insurance rates for 20-year-old drivers. You may also qualify for discounts, which can save you money.
You may find that female drivers pay less for insurance than male drivers, though not all states permit this. Find the best auto insurance company near you by entering your ZIP code into our free quote tool below.
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Frequently Asked Questions
How much is auto insurance for a 20-year-old?
The average 20-year-old driver will pay $5,333 per year for car insurance, which amounts to around $444 per month. However, rates can vary based on factors such as location and driving record.
Does the cost of auto insurance for a 20-year-old vary by state?
Yes, the cost of auto insurance for a 20-year-old can vary by state. Some states have higher insurance rates, while others have lower rates. States like Michigan, Louisiana, and Florida tend to have higher rates, while states like Maine, Iowa, and North Carolina have lower rates.
Check out more by comparaing auto insurance quotes by state for more information.
Which insurance company offers cheap car insurance for 20 year olds?
Insurance companies calculate rates differently, and some may offer more affordable options for 20-year-olds. It’s important to compare quotes from multiple insurance companies to find the best rates. Companies like GEICO, State Farm, and Progressive are known for offering competitive rates.
Stop overpaying for auto insurance. Enter your ZIP code below to find out if you can get a better deal.
Does gender and age affect car insurance for 20-year-olds?
In most states, gender can affect car insurance rates for 20-year-olds. Average car insurance cost for 20 year old male pay about 10% more for insurance than female drivers at age 20. However, some states, like Hawaii and California, prohibit the use of gender to adjust insurance rates.
How does auto insurance for a 20-year-old compare to other age groups?
Auto insurance rates for 20-year-olds are higher compared to older age groups but lower than rates for teenage drivers. As you accumulate more years of driving experience, rates tend to decrease. By age 30 and above, the average driver pays less than $2,000 per year for car insurance.
Delve more details on our “Affordable Auto Insurance Quotes for 19-Year-Olds”.
What are the factors influencing cheap auto insurance for 20 yearolds?
Cheap auto insurance for 20 year olds is influenced by various factors such as driving record, location, type of vehicle, coverage options, and eligibility for discounts. Maintaining a clean driving record and comparing quotes from multiple insurers can help secure affordable rates.
Which insurance provider offers the best insurance for 20-year-old males?
The best insurance for 20 year old males depends on individual circumstances and preferences. However, insurers like Geico, USAA (for military-affiliated individuals), and Progressive are known for offering competitive rates and discounts tailored to young male drivers.
Are there specific cars with cheap insurance for 20-year-olds?
Yes, certain cars with cheap insurance for 20 year olds. Generally, vehicles with good safety ratings, lower horsepower, and lower repair costs tend to have cheaper insurance rates. Examples include compact cars, sedans, and vehicles equipped with advanced safety features.
Know more insights on how to find your car’s make and model.
What’s the average car insurance rate for a 20-year-old male?
The average car insurance rate for 20 year old male varies depending on factors like location, driving history, and coverage options. However, average car insurance cost for 20 year old male is around $5,333 per year for car insurance, with monthly payments averaging $444.
Get fast and cheap auto insurance coverage today with our quote comparison tool below.
Which company offers the best car insurance for 20-year-old males?
The best car insurance for 20 year old males often depends on individual circumstances and preferences. However, insurers like Geico, USAA, and Progressive are frequently recommended for their competitive rates, diverse coverage options, and discounts tailored to young male drivers.
Compare over 200 auto insurance companies at once!
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.