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A 20-year-old driver pays $3,329 per year on average for full coverage car insurance, based on a rate analysis by Insurance.com. That's $2,179 more expensive than the national average for car insurance, which is $1,150.

Motorists in their early 20s are not considered as risky as younger drivers, but they pay expensive premiums because they still are considered inexperienced by insurers and more likely to get into accidents.

It can be difficult finding the right coverage at an affordable price in your early 20s. However, there are ways a 20-year-old can save on car insurance.

What follows is a guide to help determine how much a 20-year-old can expect to pay for car insurance for different coverage levels along with which companies offer cheap car insurance rates for this age group. This guild also offers tips young drivers can use to save on car insurance premiums.

Cheapest car insurance for 20-year-olds by company

Geico is the cheapest full coverage car insurance provider for 20-year-old drivers in most states, based on a rate analysis by Insurance.com. Its average annual cost for a full coverage policy is $1,078.

Erie Insurance, Auto-Owners, Travelers and State Farm also offer great rates for full coverage policies.

Granted, rates can vary significantly from company to company. But if you shop around and compare quotes from multiple carriers you should be able to find the right policy for your needs.

Below is a list of companies that offer cheap car insurance for 20-year-old drivers:

CompanyAverage annual rate
Geico$1,078
Erie Insurance$1,119
Auto-Owners$1,208
Travelers$1,293
State Farm$1,304
American Family$1,488
Nationwide$1,581
Progressive$1,854
Allstate$2,001
Farmers$2,109
Kemper$2,378
Mercury$2,554

Note: USAA is the cheapest carrier for 20-year-old drivers in most states starting at $961 a year, but it provides services only to military members, veterans and their families.

Cheapest car insurance for 20-year-old drivers by state

When it comes to car insurance rates, there is no one-size-fits-all. Depending on your state, the average rates for car insurance can vary greatly.

Insurance.com found that Hawaii has the cheapest average rates for 20-year-old drivers at $695 per year. On the other hand, Florida has the most expensive average rates for 20-year-olds at $3,072 annually.

The differences in car insurance rates across states can be attributed to several factors, including state laws, weather conditions, average accident rate, etc.

The table below shows the average annual car insurance rates for 20-year-olds by state:

StateAverage annual rates
Hawaii$695
North Carolina$962
Iowa$1,067
Ohio$1,087
Idaho$1,167
South Dakota$1,175
Vermont$1,182
North Dakota$1,185
Maine$1,194
Alaska$1,225
Indiana$1,244
Kansas$1,341
Wyoming$1,345
Tennessee$1,357
New Mexico$1,377
Wisconsin$1,378
Minnesota$1,424
Virginia$1,432
New Hampshire$1,491
Oregon$1,545
Arkansas$1,558
Nebraska$1,563
Alabama$1,578
Oklahoma$1,589
Utah$1,633
Pennsylvania$1,646
Montana$1,647
Mississippi$1,661
Massachusetts$1,787
Arizona$1,789
West Virginia$1,795
Washington$1,811
California$1,812
Illinois$1,820
Colorado$1,826
District of Columbia$1,862
Missouri$1,894
South Carolina$1,953
Georgia$1,999
Maryland$2,023
Texas$2,032
Michigan$2,138
New York$2,139
Rhode Island$2,272
Nevada$2,315
New Jersey$2,330
Connecticut$2,347
Kentucky$2,370
Delaware$2,691
Louisiana$2,955
Florida$3,072

Cheapest car insurance for 20-year-old: male vs female

Erie Insurance has the cheapest car insurance for 20-year-old females, at about $976 a year, whereas the cheapest auto insurer for 20-year-old male drivers is Geico -- its average annual car insurance rate for males in the age group is $1,097 annually.

Auto-Owners, State Farm and Travelers also offer cheap car insurance for 20-year-old drivers.

The table below looks at average rates by company for female and male 20-year-olds:

CompanyFemaleMale
Erie Insurance$976$1,262
Geico$1,059$1,097
Auto Owners$1,143$1,272
State Farm$1,202$1,406
Travelers$1,227$1,358
Vermont Mutual$1,294$1,611
American Family$1,460$1,516
Nationwide$1,497$1,666
Progressive$1,775$1,933
Allstate$1,874$2,128
Farmers$2,054$2,164
Kemper$2,203$2,553
Mercury$2,353$2,755

Note: USAA has the cheapest rates for both 20-year-old male and female drivers in most states, but it provides insurance only to military members, veterans, and their families.

Average car insurance for a 20-year-old by coverage level

Male drivers are typically charged more than female drivers for car insurance because of their risky driving habits. On average, a 20-year-old male driver pays $3,759 for a full coverage car insurance policy, whereas female drivers pay $3,305 for the same coverage.

Insurance companies base their rates on risk. Men are more likely than women to have accidents, get tickets, or be arrested for a DUI conviction, thereby resulting in increased insurance rates, according to a study by the AAA Foundation for Traffic Safety.

Here's what both genders pay for car insurance by coverage level:

CoverageFemaleMale
State Minimum$1,058$1,159
Liability-Only$1,277$1,390
Full Coverage (100/300/100)$3,305$3,759

How can 20-year-old drivers save on car insurance?

Here are a few things that 20-year-old drivers can do to save money on car insurance:

  • Stay on your parent's policy: One of the easiest ways a 20-year-old can save money on their car insurance is by staying on their parent's policy.
  • Shop around: Car insurance for young drivers can be expensive, but shopping around can help you find affordable insurance. Make sure you get quotes from at least three insurers before deciding on your insurance company.
  • Good student discount: If a student has earned a 3.0 (B) grade in high school or college, use a good student discount to trim your car insurance cost.
  • Student away discount: If full-time students are on their parents' policy and attending school 100 miles away from home, parents can get a discount on their insurance policy.
  • Defensive driving course: Drivers can lower their car insurance premiums if they complete a defensive driving course from a government-approved institution.

Methodology

Insurance.com collected data from Quadrant Information Services for multiple insurance companies across the U.S. We used full coverage rates based on the sample profile of a 20-year-old driver with a clean driving record and for the coverage limit of 100/300/100, which represents $100,000 for bodily injury per person, $300,000 for bodily injury per accident and $100,000 for personal property damage.

To be on the list, the company must provide its services in at least ten states. You can use these averages to compare companies based on price, but your insurance rates may vary.

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