How much is car insurance for a 20-year-old?

It’s no secret car insurance rates can be sky-high for young drivers. The national average annual rate for young adults aged 20-24 is $3,092 for a full coverage policy. It’s significantly less than how much teens pay — $5,914 per year — and once drivers reach the age of 20, they typically have gained some steady experience behind the wheel and established a good driving record. That pays off in lower car insurance rates.

Learn more about car insurance for 20-year-olds, including cost comparisons between males and females, a parents’ insurance policy vs. personal policy and potential cost-saving discounts.

Car insurance for young adults: What’s the average cost for a 20-year-old?

Young drivers pay some of the most expensive annual average premiums, next to teen drivers. For example, the national car insurance average for a 40-year-old driver is $1,580. A 16-year-old driver can expect to pay about $7,625 per year or $635 per month. By the time a driver reaches 18 years old, it drops to $5,565 per year or $464 per month.

The average annual car insurance rates for a 20-year-old at various coverage levels are below.

In the example above, 50/100/50 means $50,000 for injuries you cause in an accident, up to $100,000 per accident and $50,000 for property damage. The rates are quoted on a teen policy.

“The newest and youngest drivers pay the highest premiums, and that’s obviously for a good reason,” says Jana Foster, owner of Nevada Insurance Agency Co., a full-service broker with offices in Carson City and Reno, Nevada. “No. 1 is the lack of experience. Carriers don’t have anything to base their driving habits on, and they don’t how they’re going to behave once a parent gets out of the car.

“It starts to change after about four to five years of driving,” Foster says. “The carrier will have a better understanding of their driving history, whether they’ve had any accidents or a record of tickets, so starting around 20, 21, you’ll see this age group begin to get assessed differently.”

But the price a 20-year-old driver actually pays depends on many factors, ranging from the insurance company you choose to where you live and the coverage limits you want.

See the table below to see how much car insurance costs for males vs. females at various coverage levels in each state.

Note:

Check out our detailed guide on what are the average car insurance rates by age

How much is car insurance for a 20-year-old each month?

Car insurance costs $272 for a 20-year-old each month for a full-coverage policy.

As a young driver, your budget is likely a top concern. Therefore, it’s essential to understand how much your monthly expenses will be, including your car insurance costs. Learn more about the cost of car insurance including the national average for 20-year-olds, in the table below, and male and female drivers.

How much is car insurance for a 20-year-old male?

Insurance for a 20-year-old male is expensive and there’s a good reason. The average national full coverage insurance policy cost for a 20-year-old male with a $500 comprehensive/collision deductible is $3,495. That compares with the combined average of $3,251 for male and female drivers.

The Insurance Institute for Highway Safety (IIHS) reports that 20- to 24-year-old males were involved in 1,948 fatal accidents in 2022 — a rate of about 16.8 per 100,000 male drivers.

That’s even more than the fatal accident rate of 14.7 for 16 to 19-year-old male drivers. Female drivers aged 20- to 24-year-old were involved in only 886 fatal accidents by comparison, or a rate of 8.0.

Male drivers at this age represent a higher risk to insurers and they price their premiums accordingly. See the rates for 20-year-old males in the table below.

How much is car insurance for a 20-year-old male on a parent’s policy?

One strategy many parents use at this stage to help their young adult drivers save money is to keep them on the family car insurance policy. But it can pose a risk to the parent’s car insurance policy if their young driver is involved in a vehicle incident. For example, if the young driver is in an accident, the parents’ policy premiums will likely spike and stay that way for a while, and additional liability costs may come into play.

Full coverage insurance for a 20-year-old male added to a parent’s policy is about $2,674 on average, a savings of $821 beyond having the policy on their own.

There may be some instances when it would be wiser for a child to have their own policy, even if the parent would like to help them save money. Kevin Lynch, an assistant professor of insurance at The American College of Financial Services — a private online university dedicated to professional training for financial practitioners in Bryn Mawr, Penn. — says that if a child goes away to college in a state that has lower average insurance rates than their home state, they may be better off getting insurance there.

The average full coverage policy for a 20-year-old in Connecticut is about $4,000, for example, but in North Carolina, it’s only $1,711. 

How much is car insurance for a 20-year-old female?

Females are still deemed riskier drivers at 20 than older female but not as risky as males. For that reason, 20-year-old females generally pay lower premiums — an average $3,028 annually compared to an average annual rate of $3,495 that males pay. Their exact premium amount will be highly dependent on their driving record and credit score.

Yes, credit score. While it doesn’t seem to directly relate to how well someone will drive, credit scores play a significant factor in how insurance companies calculate premiums — except in California, Hawaii, Massachusetts and Michigan where it’s illegal to use credit as a rating factor.

“Carriers have been able to show, to the satisfaction of various courts, that a person’s credit rating is indicative of their driving tendencies,” says Lynch. “The (poorer) the credit rating, the higher the calculated risk.”

So having a good credit rating will lead to lower insurance costs for both females and males. See below for rates for 20-year-old females on their own policies.

How much is car insurance for a 20-year-old female added to a parent’s policy?

The average national cost of a full coverage policy for a 20-year-old female with a $500 comprehensive/collision deductible is $2,459, a $569 savings over what they would pay on their own policies. Car insurance costs will generally be lower for a 20-year-old female driver when added to their parent’s policy.

A 20-year-old female will pay an average of $2,459 per year if added to their parent’s policy, or about $205 monthly.

How much is car insurance for 20-year-old drivers in each state?

The cost of car insurance varies a great deal depending on your location. States have varying factors when determining car insurance premiums, including factors such as population density, claim statistics and theft rates. The table below shows each state’s annual average car insurance rates for 20-year-old males and females.

Note: This are the average annual rates for full coverage policies with the limits of 100/300/100 with a $500 deductible.

How much car insurance do 20-year-olds need?

Young drivers in most states must carry liability car insurance, which pays for injuries and damage they cause to others in an accident. While liability car insurance tends to be the most affordable option, it may not include enough coverage for collisions and repairs. Typically, the state-minimum coverage isn’t enough — medical costs can quickly escalate if there are significant injuries following an accident and property damages.

If you’re financing a vehicle, your lender might require comprehensive and collision coverage, which is also known as full coverage. They may also require that you pay for gap car insurance coverage, which helps protect your vehicle’s financial liability until the loan is paid in full. If you’ve paid off your car, you can decide if you want these coverages, which cover your car following a crash and for damage due to fire, hail, vandalism and animal strikes.

If you opt for comprehensive insurance and collision coverage, you could consider a higher deductibles to lower your rate. Just remember that you’ll be responsible for the deductible should you be involved in an accident.

Car insurance discounts for 20-year-olds

Lynch says the three most significant things a young adult can do to get the lowest insurance rates are to stay accident-free, avoid driving violations and maintain good credit scores.

After that, there are several other good strategies to employ. Some car insurance companies offer discounts to 20-year-olds with good grades in college, generally a 3.0 or better grade point average. 

Other university discounts also might be available, such as student-away discounts and special rates for students and alumni. 

Even if you’re not attending school, see what other discounts the carrier might offer, such as a discount for paperless billing or paying your premium upfront. If you have rental insurance on an apartment or condo, you will likely get a discount if you bundle your rental and car insurance with the same carrier.

Beyond discounts, Lynch said to be mindful of the type of car you buy. 

“I always tell parents, if you’re going to buy your kid a car, buy them one with a very favorable insurance rating,” he says. “Don’t be buying them a sports car, or an expensive car that has high repair costs.”

Another resource is CarInsurance.com, which provides guidance, including a rundown of the top cars for teens and young drivers that cost less than $15,000 with high safety ratings.

Guide: How to lower car insurance in 2024

Final thoughts on car insurance for 20-year-olds

As you gain more experience driving, your auto insurance rates should fall. The even better news is it will continue to get cheaper as you advance towards your 30th birthday. The average full coverage insurance rate for a 30-year-old is $1,673, around half what you can expect to pay at 20.

Also, shop around and compare rates with several different insurers. This should help you get an excellent policy at the best price. You can easily do that with an online calculator, or as Foster with Nevada Insurance Agency notes, work with an independent insurance broker. 

Resources & Methodology

Sources

Methodology

CarInsurance.com commissioned Quadrant Information Services in 2024 to field rates for auto insurance for 20-year-olds at various coverage levels and for males and females by gender in each state.

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Laura Longero

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Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

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*Carinsurance.com is not affiliated with any state or government agency. Advertised example rates are returned based on the driver's self-reported data, by comparing their current reported premium against their new policy premium, and the driver meeting certain criteria. Also, safe driver and other discounts may have been applied to achieve the advertised rate, which may not be available to the average consumer. Your actual quoted rate may vary greatly and may be subject to adjustment based on verification of your self-reported data.

Advertised example rates are returned based on the driver's self-reported data and the driver meeting certain criteria. Also, safe driver and other discounts may have been applied to achieve the advertised rate, which may not be available to the average consumer. Your actual quoted rate may vary greatly and may be subject to adjustment based on verification of your self-reported data.