Cheap Car Insurance For 20 Year Olds - Erie offers the cheapest car insurance for 20-year-old drivers at $2,332 per year, based on our analysis of thousands of rates in nine states. To find the cheapest rate, get a free insurance quote online to compare rates from the cheapest companies for teenage drivers such as Erie, Geico and USAA.
Erie Insurance, available in 13 states, has the cheapest rates for 20-year-olds at $2,332 a year. USAA, which is only available to military members and their families, was the second most affordable at $2,732 a year.
Cheap Car Insurance For 20 Year Olds
Among widely available insurance companies, Geico ranks as the most affordable for 20-somethings, with an average rate of $3,026 per year.
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Allstate's rates are particularly expensive, with premiums nearly twice as expensive as its next-most-expensive competitor, Progressive. If you are a new driver looking for cheap car insurance, it is important to shop around and compare prices to find the cheapest insurer for you.
Young drivers, especially those 25 and under, tend to have particularly high car insurance rates because they have more accidents on average and are considered more risky by insurers.
Between the ages of 18 and 20, average rates dropped by nearly $2,000 per year. Additionally, rates fell over $900 per year, on average, between a 20-year-old and a 21-year-old.
Male drivers in their 20s pay an average of $5,777 per year, which is $519 more than female drivers who pay $5,258 per year. This is because young male drivers have more accidents on average than young female drivers.
Automobile Insurance Guide
Some states have banned the use of gender as a pricing variable, so men and women of the same age pay the same for car insurance in these states:
Geico was the cheapest insurer in most states. But these are average rates – the best way to find a cheap rate for yourself is to shop around.
We did not include USAA in these recommendations because its policies only serve current or former military members and their families. If USAA were to join, it would offer the cheapest car insurance for 20-year-olds in Illinois, Michigan, New York and Texas.
Auto insurance rates can vary greatly from state to state. Michigan is the most expensive state for car insurance for a 20-year-old driver, with an average rate of $16,367 per year.
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Conversely, North Carolina has the cheapest car insurance for young drivers. The average rate for our 20-year-old was $2,035 a year and was the only state with a rate under $3,000.
The quotes we've collected are just averages, and the truth is that each car insurance quote is unique to your driver profile. But there are some proven ways to save 20-somethings on car insurance.
If your parents carry you on their policy, it's almost certainly the cheapest way to get auto insurance coverage. yThe premium increase on your parent's policy is likely to be less than the cost of your policy.
That same 20-year-old could see a difference of hundreds — or even thousands — of dollars between different insurers for the same coverage.
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In California, for example, our 20-year-old driver paid $2,708 a year with State Farm versus $5,885 with Farmers, on average. That's an extreme difference, but even the difference between State Farm, the cheapest insurer, and AAA, the third cheapest, was hundreds of dollars.
If you are a 20 year old, shop around for cheap quotes online and make sure you get the same coverage from each. Start with our recommendations for the cheapest in your state, but expand your search to other insurers, because you never know who offers the cheapest rate.
When you get quotes, make sure you get credit for any discounts you qualify for, such as
It is a good idea to purchase enough insurance to cover you for potential liabilities as well as damage to your car. Therefore, we recommend a full coverage policy that covers the cost of damage or injury to others for which you are responsible, as well as the cost of damage to your vehicle.
How Much Does Car Insurance Cost On Average?
However, at some point you may buy too much coverage and you can save on your premiums by lowering your limits. If you're paying hundreds of dollars more for comprehensive and collision coverage, but your car isn't worth more than a few thousand dollars, you could end up paying more money to protect your car than it's really worth.
We collected quotes in nine of the most popular states in the country and thousands of zip codes. For our driver example, we used 20-year-old men and women driving a Honda Civic EX 2015. All factors influencing rates other than those discussed in this study were held constant to make a comparison of right.
We included 29 insurers in this analysis, and insurers' rates were included in our list of average prices and recommendations only if their policies were available in at least three of the nine states.
The analysis uses insurance rate data from Quadrant Information Services. These rates are publicly obtained from insurance files and should be used for comparison purposes only - your quotes may differ.
Car Insurance By Age
To get an insurance quote over the phone, call: (855) 596-3655 | Agents available 24 hours a day, 7 days a week! Partner Content: This content was created by a Dow Jones business partner and was independently researched and written by the editorial team. Links in this article may result in us earning a commission. Learn more
High rates often come with the territory of being a young driver, but the companies with the best car insurance for 20 units offer low average rates and good discounts. We at the Auto Guides team have compared dozens of companies to see which offer cheap car insurance for young drivers. Here, we'll highlight our top picks and show you ways to save on insurance for your 20s.
Why Trust Our Team The Auto Guides team is committed to providing reliable information to help you make the best possible decision about your vehicle insurance. Our researchers, writers and editors are dedicated to researching providers and analyzing customer reviews and insights so you can choose with confidence.
According to our estimates, the average 20-year-old driver pays between $2,700 and $3,700 a year for comprehensive auto insurance for individual police officers. Twenty-somethings pay more for auto insurance because of their relative inexperience behind the wheel. Families with 20-somethings living at home pay less if they have family insurance.
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The cost of car insurance for a 20-year-old driver is determined based on a number of factors that include gender, driving history, location and credit score.
Gender plays a big role in calculating your rates, especially if you are a teenager or young adult. This is often because young people (such as male drivers in their 20s) have significantly higher accident rates than female drivers, so they pay more for car insurance coverage. However, some states do not allow insurance companies to use gender to calculate your rates.
Our top picks for the best car insurance for 20-somethings are State Farm, USAA, Geico, Erie Insurance, and Liberty Mutual. We found these companies to be moderately affordable for new drivers.
* Overall rating applies to a standard driving profile, while the ranking applies to drivers in their 20s.
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State Farm is our top pick for the best car insurance for 20-somethings. The company stands out for its generous student discount, which is up to 25%. Drivers can be eligible for this discount until they turn 25, even after they graduate.
State Farm's Steer Clear® program is another reason for 20-somethings to consider the company. It is an educational app that includes quizzes and driver training modules and gives discounts after completing the program. Steer Clear is available to drivers under the age of 25.
Geico is one of the cheapest car insurance companies for 20-somethings because of its low average rates and variety of coverage options. Geico also offers helpful discounts like a 15% good student discount and driver's education discount.
Good drivers can also save with Geico's telematics insurance program, called DriveEasy. This program gives discounts based on your driving habits. It tracks things like hard braking, time of day and distracted driving. Getting consumption-based insurance can be a good way for new drivers to save money, especially if they drive less than 12,000 miles per year.
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Through our analysis, we found that USAA offers rates approximately 30% to 40% cheaper than the national average for new drivers. It's a good idea to get an auto insurance quote from USAA if you qualify. 20-year-olds who are military or veterans, as well as those with military parents, can qualify.
In addition to low fares, USAA also has a good reputation for customer service. The company scored 890 out of 1,000 points in the J.D. US Auto Claims Satisfaction Study scored. Power 2022℠, indicating that most of its customers have positive claim experiences. USAA also scored highly in every region in the JD Auto Insurance USA study. Power 2022℠, which took a broader look at customer service. We both
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