Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 21, 2020

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Here's what you need to know...

  • The cost of insurance for a 20-year-old is usually more expensive
  • Many factors can affect car insurance rates for 20-year-old driver
  • Rates will vary between car insurance companies

The cost of car insurance for a licensed 20-year-old driver in the U.S. is wide.

To be sure, a 20-year-old driver in any area is going to pay more for car insurance than most other licensed drivers based on proven risk.

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Table of Contents

Categories of 20-year-old licensed drivers

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There are many different scenarios that involve 20-year-old drivers and their car insurance rates.

The newly-licensed 20-year-old licensed driver who lives in a family home and drives of a multi-car family.

This driver does not own his or her own vehicle but is listed as one of the drivers on the family insurance policy.

The experienced and independent 20-year-old licensed driver has not had any citations or involvement in at-fault accidents, the monthly insurance premium will begin to decrease as driving experience and age increase.

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Real life 20-year-old car insurance consumers

Rob lives with his aunt and cousin in Reno Nevada. His aunt lets him drive her 2003 Volvo sedan. Rob is the only driver of the Volvo, but his aunt is the legal owner.

Rob is listed as a licensed driver in the household, but he is not the legal owner of any vehicle.

Listed below are the monthly payments Rob’s aunt would pay to the car insurance policy:

  • Geico – $109.00 per month for Ford Flex and one licensed driver and $264.00 per month for a second car and 20-year-old driver
  • USAA – $115.00 per month for Ford Flex and one licensed driver and $269.00 per month for a second car and 20-year-old driver
  • State Farm – $117 per month for Ford Flex and one licensed driver and $312.00 per month for a second car and 20-year-old driver
  • American Family – $129.00 per month for Ford Flex and one licensed driver and $317.00 per month for a second car and 20-year-old driver
  • Progressive – $160.00 per month for Ford Flex and one licensed driver and $405.00 per month for the second car and 20-year-old driver
  • Allstate – $196.00 per month for Ford Flex and one licensed driver and $389.00 per month for a second car and 20-year-old driver
  • Liberty Mutual – $208.00 per month for Ford Flex and one licensed driver and $600.00 per month for the second car and 20-year-old driver

Rob’s aunt learns that Rob was cited last May for driving while impaired because she received a notice of an increase in premiums resulting in one of the following monthly amounts:

  • State Farm – $341.00
  • Progressive – $434.00
  • Geico – $467.00
  • USAA – $485.00
  • Allstate – $530.00
  • American Family – $582.00
  • Liberty Mutual – $908.00

She is very angry and insists that Rob pay the higher amount of insurance. He admits that he is unable to pay any more money because he has also lost his job.

Her insurance agent tells her she can avoid the increase in her insurance premium if Rob turns in his driver’s license to the DMV or moves from her address so he is no longer a licensed driver in the household.

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Cassandra is 20 years old and just became licensed to drive in Baton Rouge Louisiana. Her first car is a 2004 Chevy Malibu.

For a basic level policy which will give her $50,000.00 per person and $100,000.00 per accident for bodily injury and $25,000.00 for property damage as well as uninsured and under insured motorist.

Here are Cassandra’s insurance options:

  • State Farm  $253.00
  • LA Farm Bureau – $281.00
  • Allstate – $391.00
  • Liberty Mutual – $647.00
  • Progressive  $925.00

Cassandra does not believe she can sustain even the lowest monthly payment for basic level car insurance. A minimum liability policy for Cassandra and her 2004 Chevy Malibu would give her this coverage.

Here’s what will allow Cassandra to be licensed drive legally:

  • • Up to $15,000.00 per person and $30,000.00 per accident for bodily injury to the other party
    • Up to $25,000.00 per accident for property damage to the other party
    • Up to $15,000.00 per person and $30,000.00 per accident for bodily injury caused by uninsured or underinsured motorist
    • Up to $25,000.00 per accident for property damage caused by uninsured or underinsured motorist

The minimum liability insurance would not pay for any bodily injury to Cassandra or damage to her vehicle if she were found to be at-fault.

Minimum liability with an uninsured and underinsured motorist is available to Cassandra for these monthly payments:

  • State Farm – $128.00
  • LA Farm Bureau – $133.00
  • Allstate – $168.00
  • Liberty Mutual – $287.00
  • Progressive – $495.00

To Cassandra, her 2004 Chevy Malibu is very precious, but the reality is that it only has a value of about $1,500.00 to $1,700.00 which is less than one year of the higher insurance premiums.

Cassandra applies for and is accepted by State Farm Insurance for a minimum liability policy with uninsured and underinsured motorist protection.

Her insurance agent reassures her that at renewal time after her 21st birthday, assuming she is able to maintain a good driving record, her rates will go down.

Hunter is a 20-year-old licensed driver living in Cincinnati. He has been driving his grandfather’s car since he was 15 years old because his grandfather became unable to drive.

He needs the car to Hunter with the understanding that Hunter will continue to transport him wherever he needs to go. As the legal owner of the car, Hunter must now get car insurance.

A basic level policy for Hunter and his Grand Marquis is available from these companies in Cincinnati at these monthly payments:

  • Erie Insurance – $138.00
  • State Farm – $166.00
  • Allstate – $183.00
  • Nationwide – $390.00
  • Progressive – $395.00
  • Farmers – $395.00

Even though there are many responsible 20-year-old licensed drivers, there are insurance companies that will only insure 20-year-old drivers if they part of a household of older drivers.

As a result, there are not as many insurance choices for 20-year-old licensed drivers. There are also insurance companies that offer more competitive rates to younger drivers.

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