Car insurance for 20 year olds

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Looking for affordable car insurance for a 20 year old? Cheap car insurance for 20 year olds isn’t the easiest thing to find, but there are ways to lower your monthly premium if you know what you’re doing. Here’s what you need to know.364925BF-22D7-405E-BBD3-A35489D76575 Created with sketchtool. Back
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Quick Facts
Save $741 on average this year by shopping for new car insurance Rates vary by state up to 400% The average American pays $129/month for auto insurance Cheapest car insurance for 20 year old drivers

Company
Average Annual Rate for 20 year old drivers

Erie
$1,996

USAA
$2,444

Geico
$3,005

AAA
$3,335

Travelers
$3,347

ErieErie is easily the most affordable car insurance company for 20 year olds. It doesn’t offer very many discounts to its members, but, as you can see, that’s because it doesn’t have to. However, it’s not just a cheap car insurance company. In 2020 it received a ranking of 850 out of 1,000 from J.D. Power, getting beat only by the likes of State Farm which received 855 out of 1,000 in the Mid-Atlantic.
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Close Icon Close Icon The widget will live hereUSAAUSAA is kind of a niche auto insurance company in that it only serves current and retired military as well as their immediate family members. If this applies to you, give it a shot. USAA routinely scores well above its peers with J.D. Power (but is disqualified from ‘winning’ because of the military requirement). You can save even more with USAA when you bundle your car insurance with home insurance, too.GeicoGeico offers affordable car insurance without discounts, but you can really save on your premium when you take advantage of the numerous discounts that it offers. Geico also has a top notch mobile app (for both Android and iOS) where you can pay your bills, file a claim, request roadside assistance and check the status of your claim. AAAAAA requires you to join before you can get access to its car insurance program, but once you do it’s well worth it. Not only will you get access to awesome roadside assistance coverage (something every 20 year old needs but doesn’t have), but you’ll also get access to affordable car insurance with numerous discounts. No, it’s not the cheapest on this list, but it might just be the most comprehensive. TravelersTravelers auto insurance has a lot of discounts that many 20 year olds can take advantage of as soon as they join, which will take the monthly price down quite a bit (you can take a look at their discounts here). Travelers also routinely scores well with J.D. Power where in 2020, it received a score of 828 out of 1,000. Cost of car insurance for a 20-year-oldAcross the nation, the average cost of car insurance for a 20 year old is $3,592 a year. Therefore, depending on where you live, you may more or less than this amount. Here’s a breakdown of the average cost per state:

State
Average Cost for a 20 Year Old

Alaska
$3,458

Alabama
$3,057

Arkansas
$2,947

Arizona
$3,225

California
$3,549

Colorado
$3,251

Connecticut
$4,082

District of Columbia
$3,701

Delaware
$3,892

Florida
$4,798

Georgia
$3,318

Hawaii
$1,150

Idaho
$2,064

Illinois
$3,348

Indiana
$2,329

Iowa
$2,016

Kansas
$2,897

Kentucky
$3,523

Louisiana
$4,710

Maine
$1,584

Maryland
$4,144

Massachusetts
$3,408

Michigan
$6,536

Minnesota
$3,057

Mississippi
$2,960

Missouri
$3,383

Montana
$2,770

Nebraska
$2,482

Nevada
$4,628

New Hampshire
$2,577

New Jersey
$5,107

New Mexico
$2,696

New York
$5,392

North Carolina
$1,470

North Dakota
$2,670

Ohio
$1,986

Oklahoma
$3,065

Oregon
$2,579

Pennsylvania
$3,261

Rhode Island
$4,450

South Carolina
$2,784

South Dakota
$2,709

Tennessee
$2,478

Texas
$4,360

Utah
$2,795

Vermont
$2,261

Virginia
$2,247

Washington
$2,320

West Virginia
$3,368

Wisconsin
$2,551

Wyoming
$2,859

How 20 year old drivers can save money on car insuranceIf you’re 20 years old and looking to lower your car insurance premium, you have a few strategies at your disposal to do so. Your best bet is to take advantage of discounts, but fortunately there are a few more things you can do.Choose a high deductibleThe fastest way to lower your premium is to choose a high deductible. Of course, this will lower the amount of help you’ll get should you get into an accident (thereby increasing the amount you’ll need to contribute), but it will stop you from having to pay more upfront. Drive an older carNewer cars cost more to insure than older cars because older cars don’t cost as much to replace. Opt for an older car and right off the bat your insurance will cost less than if you chose a new car. Drive a car with a strong safety ratingCars with solid safety ratings may not look as cool as other cars, but insurance companies love them. The reason? By keeping you safe, you and your passengers will be less likely to need major medical care after an accident— therefore possibly saving your insurance provider a lot of money in the event you do get into a collision.Usage based car insuranceNot every company offers this type of auto insurance, so you will need to do a bit of research. However, if you don’t drive that often it’s worth a few minutes of your time. With usage based car insurance, you basically only pay for the days you actually drive. Think of it as prorated insurance. With usage based car insurance, your insurance provider will look at such things as:
Miles driven
Time driven
Vehicle driven
Locations driven
Compare Insurance RatesMost people don’t even think to do this because they assume all insurance companies basically charge the same amount. This couldn’t be further from the truth.
Each company looks at the following factors:
Type of car you drive
Where you live
How often you drive
Credit score
Coverage level
Marital status
Driving history
Insurance history
Annual mileage
Claims history
However, each company doesn’t weigh the importance of each factor the same way. For example, one company may consider your credit score to be the most important factor, while another is more concerned with your annual mileage. Unfortunately, companies don’t advertise their pricing formulas, so the best thing you can do is shop around and compare rates. Improve your credit scoreAs a 20 year old, you haven’t had enough time to really develop a great credit score. However, that doesn’t mean you should just leave this variable alone because there are a few things you can do to help. Opening a credit card in your name and paying off the balance each month, or becoming an authorized user with someone who has a strong credit score are just some of the things you can do. Improve your credit score and your insurance premiums will lower. DiscountsNot every car insurance company offers the same discounts, so if you’ve been given a similar quote by multiple companies, take a look at the types of discounts they offer. Discounts can drastically lower your monthly premium. Discounts a 20 year old might look at include:
Safe driver
Accident free
Defensive driving course
Low mileage
Good student
Away from home student discount
Military
E-bill
Paid in full
Auto-pay
Multi-policy
Anti-theft device
Frequently asked questionsHow much is car insurance for a 20 year old?How much you pay in car insurance varies by a lot of factors, such as which you state you live in, how often you drive, your gender and what type of car you drive. However, the average amount a 20 year old driver pays is currently $3,592 a year. At what age will my rates go down?Most people tend to see their rates go down by the time they turn 25 (assuming they’ve kept their driving record clean). However, each year it should go down a little bit until then.Which state is the most expensive state for 20-year-olds?Michigan is currently the most expensive state for 20-year-olds with an average annual premium of $6,536.Which state is the cheapest state for 20-year-olds?Hawaii is the cheapest state for auto insurance for 20-year-olds. Currently, the average annual premium is only $1,150.

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