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A Complete Guide to Car Insurance for 20-year-olds

Drivers in their early 20s are riskier to insure than those in their 30s and 40s, despite not being as dangerous as teenagers. When an insurance company views a driver as a risk, it’s given that they will raise their premiums accordingly.

Our aim is to help you to make an informed decision about which insurance company to choose based on discounts, your location, gender, type of vehicle, and money-saving tips.

Companies Offering Cheap Car Insurance for 20-year-olds

Average insurance premiums for 20-year-old drivers are $5,600 per year for full coverage and $2,500 for minimum coverage. Here is a list of companies with their average insurance premium rates for 20-year-olds present in most states.

Company Minimum Coverage Rate Full Coverage Rate
Progressive $2,578 $4,328
Allstate $3,432 $8,734
State Farm $2,472 $4,240

USSA is also a prominent insurance company present in almost all the states. But only active military members, veterans, and their families are covered by USAA.

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State Wise Auto Insurance for 20-year-olds

In addition to the driver's age and vehicle type, the driver's geographic location has a significant impact on the premiums they pay for auto insurance. The state's regulations and the city's population density have a significant impact on insurance rates. Here is a state-wise average insurance rate for full and minimum coverage.

State Annual Minimum Coverage Rate Annual Full Coverage Rate
Alabama $2,498 $4,256
Alaska $1,424 $3,576
Arizona $1,280 $3,399
Arkansas $2,480 $4,386
California $2,300 $4,000
Colorado $2,140 $4,510
Connecticut $1,998 $4,430
Delaware $2,603 $4,378
Florida $2,997 $5,736
Georgia $1,204 $4,767
Hawaii $558 $1,300
Idaho $1,300 $2,659
Illinois $1,060 $3,660
Indiana $1,560 $2,965
Iowa $1,239 $2,660
Kansas $1,655 $3,838
Kentucky $3,300 $5,450
Louisiana $3,768 $5,950
Maine $1,536 $2,386
Maryland $2,125 $4,499
Massachusetts $1,790 $3,135
Michigan $2,096 $5,790
Minnesota $1,653 $3,358
Mississippi $1,550 $3,848
Missouri $1,345 $3,956
Montana $1,765 $4,260
Nebraska $1,356 $3,420
Nevada $1,868 $4,868
New Hampshire $1,883 $2,820
New Jersey $1,121 $4,230
New Mexico $1,657 $3,060
New York $1,890 $4,868
North Carolina $868 $1,668
North Dakota $1,327 $2,648
Ohio $1,452 $2,698
Oklahoma $1,916 $3,800
Oregon $1,100 $2,955
Pennsylvania $1,759 $3,825
Rhode Island $2,166 $4,265
South Carolina $1,419 $3,745
South Dakota $1,057 $3,256
Tennessee $1,686 $3,265
Texas $2,054 $4,465
Utah $1,457 $3,245
Vermont $1,225 $3,565
Virginia $1,142 $3,256
Washington, D.C. $1,783 $3,856
West Virginia $1,911 $3,565
Wisconsin $1,456 $2,618
Wyoming $1,150 $3,058

Gender-Based Insurance Rates for 20-year-olds

Gender also has a significant impact on insurance rates. A male 20-year-old driver pays an average of $154 and $525 more than a female driver of the same age group for limited and full coverage, respectively.

Company Full Coverage Rate
Female Male
Progressive $3,108 $3,576
Allstate $4,568 $5,433
State Farm $2,645 $3,168

Reasons for High Insurance Rates for 21-year-olds

Car insurers still consider 20-year-old drivers to be relatively inexperienced, and so charge higher premiums to compensate for the increased risk of claims. Your premium should decrease as you age, assuming you keep a clean driving record.

Hacks to Save On Car Insurance for a 20-year-old

Although 20-year-olds can expect to pay higher auto insurance premiums than the national average, there are strategies to lower your price.

Utilize available discounts

Despite the fact that each insurance company has its own unique set of discounts, most provide at least a couple to lower your costs.

You can save money if you choose a company that offers one or more discounts that you are eligible for. Going paperless, paying in full, and good student discounts are some of the most common 20-year-old driver discounts.

Do your research before settling for an insurance provider

When you're in your early twenties, car insurance might be a lot more expensive. Investigating your alternatives is a great approach to saving money.

As a student, you may be able to take advantage of special discounts, such as those for distant students or good students. Some organizations reward safe driving through usage-based and telematics initiatives.

You can save money by comparing quotes from numerous insurance companies because each company uses a different underwriting method to calculate your premium. Insurance agents that specialize in finding lower-cost policies for young drivers might be a great resource for those who aren't sure where to begin their search.

Have a good know-how of deductibles

Understanding the deductible on your car insurance policy is critical. Deductibles are like the copy for health insurance in that they represent the amount of money you are expected to pay out of pocket if your car is damaged.

You can lower your insurance premiums by increasing one or both of your deductibles, which means that you are willing to pay more out of your own money if you file a claim for damage to your vehicle.

As a result of the greater out-of-pocket costs associated with filing an insurance claim for automotive damage, you should carefully assess your deductible levels and ensure that you have the funds available to cover any losses.

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Know the influence of your vehicle’s type on premiums

Some automobiles have lower insurance costs than others. Part and labor costs, accident rates, safety features, and overall value all play a role in price variances.

You should receive an insurance quote before purchasing or leasing a vehicle, according to most insurance experts. With the insurance costs included in your monthly budget, there will be no surprises and you will be able to afford the vehicle.

Cheapest Vehicles for Auto Insurance for 20-year-olds

A car's coolness, appeal, and fun factor are important considerations for younger drivers when shopping for a vehicle. Affordability is also an important consideration for 20-year-olds as well as their parents. Because of their low insurance costs and high safety ratings, the following vehicles are ideal for 20-year-old drivers.

Car Model Average Insurance Rates
Toyota Camry $1,510
Toyota Rav-4 $1,200
Chevy Traverse $1,620
Kia Soul $1,280

Driving Laws for 20-year-olds

If you've just received your driver's license, you may be subject to heavier penalties or obligatory suspensions for traffic offenses during your probationary period, which can last anywhere from six months to two years in most states.

  • The legal age to operate a commercial vehicle on interstate highways is 21 years old, according to federal law. To qualify for an unrestricted commercial driver's license, a person must be 21 years old.
  • A CDL is required to operate a school bus. Driving a school bus typically requires a driver to be at least 25 years of age.
  • A restricted intrastate commercial driver's license, which is valid exclusively in that state, is issued to drivers who are at least 18 years old. Drivers under the age of 20 are normally not allowed to operate tractor trailers, hazardous chemicals, or school buses.

There is no such thing as a car insurance provider that caters to everyone's individual needs. The best car insurance provider will supply you with the coverage you need, maintain a high level of customer satisfaction, and offer discounts to make your premiums reasonable. Your search for the best auto insurance company to match your home and auto insurance needs can be narrowed by seeking quotes from different insurers.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with

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