When it comes to car insurance for 20-year-old drivers, the cost can vary depending on the coverage levels chosen. On average, car insurance for 20-year-old drivers can cost around $1,056 per year or $88 per month for state minimum liability only coverage. Opting for 50/100/50 liability coverage can increase the average cost to $1,272 per year or $106 per month. For more comprehensive coverage with 100/300/100 liability and a $500 deductible for comprehensive and collision, the average cost jumps to $3,497 per year or $291 per month.

Coverage level Average annual premium Average monthly premium
State Minimum Liability Only $1,056 $88
50/100/50 Liability Only $1,272 $106
100/300/100 Liability with $500 Comp/Coll Deductible $3,497 $291

Average car Insurance rates for 20-year-old male and female: Decoding gender impact

Gender can also play a role in determining car insurance rates for 20-year-old drivers. On average, 20-year-old females can expect to pay around $3,073 per year for car insurance, while their male counterparts may face slightly higher rates at $3,497 per year.

Gender Average annual premium Average monthly premium
Female $3,073 $256
Male $3,497 $291

How average car insurance rates for 20-year-old vary by State

Car insurance rates for 20-year-old drivers can vary significantly depending on the state they reside in. For example, in Alaska, the average cost for car insurance for a 20-year-old is $3,129 per year, while in Alabama it is $3,199 . In other states like Louisiana and Delaware, the average cost can skyrocket to $5,628 and $5,351 per year, respectively. On the other end of the spectrum, Hawaii offers the lowest average cost at $1,323 per year.

State Average annual premium Average monthly premium
Virginia $2,826 $235

Low-cost car insurance for 20-year-old: Drive without breaking the bank

Finding affordable car insurance for 20-year-old drivers is possible. Some companies offer lower average annual costs, such as North Carolina Farm Bureau at $1,273 , Island Insurance at $1,668 , and American National Finance at $1,706 .

Comparing rates from multiple insurers is one of the easiest ways to find which insurer offers the lowest cost for 20-year-old driver and provides all the required coverage.

Company Group Average annual premium Average monthly premium
Island Insurance $1,668 $139
North Carolina Farm Bureau $1,273 $106
American National Finance $1,706 $142
Southern Farm Bureau $2,588 $216
USAA $2,417 $201
Geico $2,511 $209
Erie Insurance $2,943 $245
New Jersey Manufacturers $2,603 $217
American Family $2,655 $221
Western National Mutual $3,208 $267
Auto-Owners $2,949 $246
State Farm $3,059 $255
Nationwide $3,074 $256
Travelers $2,868 $239
Iowa Farm Bureau $3,397 $283
Mapfre Insurance $4,035 $336
Vermont Mutual $4,378 $365
Country Financial $3,722 $310
Safety Insurance $3,210 $268
National General Insurance $3,849 $321
Shelter Insurance $4,330 $361
The Hartford $3,848 $321
Frankenmuth Insurance $5,495 $458
Arbella Insurance $4,003 $334
Palisades $3,057 $255
Allstate $4,302 $359
Progressive $3,951 $329
CSAA Insurance (AAA) $4,538 $378
Farmers $4,157 $346
Kentucky Farm Bureau $6,270 $522
Amica Mutual $3,254 $271
Kemper Insurance $5,355 $446
Automobile Club MI (AAA) $5,913 $493
Chubb Ltd $5,816 $485
Safeway Insurance $6,019 $502
Westfield Insurance $6,418 $535
Oklahoma Farm Bureau $5,986 $499
Auto Club Enterprises (AAA) $4,966 $414
Mercury Insurance $5,662 $472
Sentry Insurance $7,834 $653
The Hanover $11,717 $976

The impact of adding a 20-year-old driver to a family’s existing auto insurance policy

Adding a 20-year-old driver to a family’s existing auto insurance policy can lead to significant savings compared to getting their own policy. On average, a 20-year-old driver can expect to pay $3,497 per year for their own policy. However, by adding them to their parent’s policy, the cost can decrease to $1,171 per year, resulting in savings of $2,326 . This option can be a more cost-effective solution for families looking to insure their young drivers.

Cost with own policy Cost with parent’s policy Savings
$3,497 $1,171 $2,326

Conclusion

Car insurance costs for 20-year-old drivers can vary based on coverage levels, gender, state of residence, and choice of the insurance company. Opting for higher coverage increases the average cost, while gender differences can also impact insurance rates. The average cost varies significantly by state, with some states having substantially higher premiums than others. However, affordable options exist, and it is possible to find lower-cost insurance for 20-year-old drivers by comparing rates from different insurers.

Additionally, adding a 20-year-old driver to a family’s existing policy can lead to significant savings compared to getting a separate policy. Families looking to insure their young drivers can consider this cost-effective option.

Methodology

CompuQuote commissioned 2022 data for Average car insurance rates for 20-year-old drivers from Quadrant Information Services for all 50 states and Washington, D.C. Rates are based on the following profile:

  • 20-year-old driver
  • Honda Accord LX
  • 12-mile daily commute, 10,000 annual miles
  • Good credit
  • Clean record

Rates are based on coverage limits of:

  • $100,000 bodily injury per person
  • $300,000 bodily injury per accident
  • $100,000 property damage per accident
  • $500 comprehensive and collision deductible

CompuQuotes analyzed rates from more than 34,000 ZIP codes, 56 million quotes, and 136 companies. Rates sourced from Quadrant Information Services are for comparison purposes only; your rates may differ.

About the Author: CompuQuotes Editorial
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