Cheap Auto Insurance for 20-Year-Olds in 2024 (Save With These 10 Companies!)

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.

Our Top 10 Company Picks: Cheap Auto Insurance for 20-Year-Olds

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.

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#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?“.

#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.

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#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.

#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.

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#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.

#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.

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#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.

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).

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.

Auto Insurance Monthly Rates for 20-Year-Olds by Coverage Level & Provider

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.

Auto Insurance Monthly Rates for 20-Year-Olds in the Top 10 Largest States

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.

Auto Insurance Monthly Rates for 20-Year-Olds by Provider

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.

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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?”.

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.

Auto Insurance Monthly Rates by Age

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.

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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.

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.

Auto Insurance Discounts for Young Drivers by Provider

Speak with your insurance agent to make sure you’re getting all the discounts for which you qualify.

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.

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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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