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:
| Company | Average 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:
| State | Average 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:
| Company | Female | Male |
|---|---|---|
| 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:
| Coverage | Female | Male |
|---|---|---|
| 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.
Source:
- Men are more likely than women to have accidents, get tickets, or be arrested for a DUI conviction: AAA Foundation for Traffic Safety
Related articles
Insurance.com has prepared in-depth car insurance guides for drivers of different ages. You will learn how much you expect to pay for insurance based on your age and how you can save on premiums each year. Check out the guides below:
- Car insurance rates for 16-year-old drivers
- Car insurance rates for 18-year-old drivers
- Car insurance rates for 21-year-old drivers
- Car insurance rates for 22-year-old drivers
- Car insurance rates for 23-year-old drivers
- Car insurance rates for 24-year-old drivers
- Car insurance rates for 25-year-old drivers
