Car insurance is always more expensive for younger drivers. Younger drivers have less experience. They’re in a higher risk class. With that in mind, let’s take a look at how much car insurance costs when you’re 20 years old.
The Average 20 Year Old Pays About $3,800 Per Year for Car Insurance
First, let’s get one thing out of the way: you’re still going to pay a relatively high price for car insurance when you’re 20 years old. There’s no way of getting around that fact.
The average 20 year old driver will pay $3,816 for car insurance every year on average.
That may sound expensive – but it’s less than what drivers pay when they’re 16 ($6,777 per year, on average), 17 ($6,225), 18 ($5,473), or 19 ($4,163). Rates drop significantly as you accumulate more years of driving experience. If you’ve been paying for your own insurance policy since you were 16, then you should notice a significant rate drop by the time you’re 20.
Rates will continue dropping as you age (assuming you maintain a clean driving record). By age 25, you’re paying $1,584 for car insurance. By age 30 and above, the average driver pays less than $800 – $1200 per year for car insurance.
Rates Vary Widely Between States for 20 Year Old Drivers
Certain states are always more expensive for vehicle insurance. States like Michigan, Florida, and Louisiana, for example, have infamously high insurance prices (they’re all also no-fault states). If you’re a 20 year old driver in Michigan, Florida, Louisiana, and other states with high car insurance prices, then you can expect to pay significantly more than the $3,816 per year average we mentioned above. You might be paying closer to $5,000 per year for car insurance.
Meanwhile, certain states have famously low insurance rates. 20 year old drivers in Maine, Iowa, Wisconsin, Idaho, North Carolina, Vermont, Ohio, and South Carolina, for example, pay some of the lowest insurance premiums in the United States. If you’re a 20 year old driver in one of these states, then you’ll likely be able to find a car insurance plan with premiums well under $3,800 per year.
Rates Vary Between Companies
Insurance companies calculate risk and premiums in different ways.
Some insurance companies put a huge emphasis on age, for example, and will reward older drivers while punishing younger drivers.
Other insurance companies put a higher emphasis on your driving record – so if you have 4 years of clean driving history at 20, then you might pay significantly lower rates at a company that emphasizes clean driving.
Fortunately, comparing insurance quotes online is easier today than ever before. If you have a few minutes and an internet connection, then you can instantly compare dozens of quotes from insurance companies serving your area. To help everybody, no matter how young or old, save money on their car insurance premiums.