Car insurance for a 20-year-old costs an average of $1,569 per year for minimum coverage. Twenty-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
The exact cost of car insurance for a 20-year-old depends on a few factors, including their driving record, gender, location, vehicle, and car insurance company. Some of the best insurance companies for 20-year-old drivers are USAA, Geico and AAA.
Cost of Car Insurance for a 20-Year-Old by Company
The average cost of car insurance for a teenager is $215 per month, for an individual policy. Younger teens typically pay the most for car insurance coverage, with 16-year-olds paying an average of 85% more than 19-year-olds.
Average Cost of Car Insurance for Teenagers by Age
Teenagers are more expensive to insure than older, more mature drivers because they’re more likely to be involved in an accident, which makes them high-risk. In fact, teen drivers are nearly three times as likely to be involved in a fatal car accident as drivers over the age of 20, according to the CDC. Teenage boys are even more expensive to insure than teenage girls, paying an average of 10% more for coverage.
How to Lower the Cost of Teenage Car Insurance
Even though car insurance is typically expensive for teenagers, there are still ways to lower the cost of covering a young driver. One of the best ways to reduce the cost of teen car insurance is to add them to an existing policy rather than have them purchase their own policy. Adding a teen to a policy raises rates by an average of $1,461 per year, but it’s still cheaper than the cost of a separate policy. Also, look for discounts that are specifically for young drivers, like good-student and student-away-at-school discounts.
If your teen does need to purchase their own policy, they should compare quotes from at least three different insurers in order to find the best deal. The cheapest car insurance companies for teens are Travelers, USAA, and Progressive, according to WalletHub’s analysis.
The best way to lower your teenager’s car insurance rate is to add them to your existing insurance policy if they currently have their own and then look for discounts to further lower the cost. Other notable ways to lower the cost of teenage car insurance include reducing your teen’s coverage and getting multiple quotes.… read full answer
Teen drivers typically pay more for car insurance than mature drivers because insurers consider them high-risk. Rates don’t usually drop until age 25, unless you intervene with these strategies.
Four Ways To Lower Teenage Car Insurance Costs
Add your teen to an existing policy
Sharing an insurance policy with a teen driver is usually the most cost-effective option for a family. For example, car insurance for a 16-year-old with their own policy costs an average of $3,343 per year. By comparison, adding a teen to an existing policy raises the premium by about $1,400, on average.
Look for applicable discounts
Most major insurers offer several discounts designed to help lower the cost of insuring a teen driver. The two most common types of discounts that apply specifically to teens are good student discounts and resident student discounts. Good student discounts apply to high school or college students who maintain a certain GPA, while a resident student discount reduces premiums for college students who go to school more than 100 miles away from their vehicle.
Teens can still qualify for some general discounts, too. For example, they may be able to receive a discount if they take an approved defensive driving course or stay accident-free for a certain period of time.
Considering how expensive car insurance is for young drivers, your teen could save on their premium by limiting the amount of coverage they include on their policy. However, they still need to be in compliance with state law and avoid driving uninsured.
Get multiple quotes
The best way to lower teen car insurance is to shop around for quotes from at least three different providers, especially if your teenager is getting their own policy. Every insurer uses their own methods to calculate premiums, so the rate that you get from one company might not be the same as another. As a result, simply shopping around could save a teen driver hundreds of dollars per year on car insurance.
It costs an average of $1,461 per year to add a teenager to your car insurance policy - an increase of 173% compared to the average driver's premium. The exact amount your insurance will go up depends on many factors, including where you live, your driving history, and your credit score.… read full answer
The most affordable way to cover a teen is to add them to your policy sharing the family car. Adding both a teen driver and a new vehicle to your policy would be more expensive than just adding your child as a listed driver on cars you’re already paying to cover. Adding a new car creates the need for more coverage, which costs more. It’s also way more expensive to get your teenager an individual policy, separate from your own, because sharing a policy with a more experienced driver brings rates down.
Below you can see how adding a 16-year-old driver to an existing policy compares to paying for a separate policy. Quotes assume Geico coverage and a 2014 Hyundai Sonata that is shared between the primary policyholder and the teen driver.
Cost of Adding a Teenager to Car Insurance
Age of Primary Driver
Primary Driver Only
Add Teenager to Existing Policy
Get Teenager an Individual Policy
Note: Sample quotes are based on a 16-year-old driver.
Having a young driver on the policy can have drawbacks for the primary policyholder. Because your policy will pay for their claims, your teen’s driving habits become part of your insurance history. If your child gets into an accident, you will see premiums go up for everyone listed on the policy. Teens are risky drivers and four times more likely to crash, so your rates could definitely be affected. Premiums increase for about three to five years after a claim.
On the bright side, you’ll be eligible for discounts your teen might not be, like bundling with homeowner’s coverage. Plus, you may be eligible for additional discounts if your child has good grades, attends driver education courses, or takes a defensive driving class.
Most car insurance companies will require teenagers who live with parents to be listed on the parents’ policy. If you’re a parent of a teen with a learner’s permit, your teen should be typically covered by your policy with no action necessary on your part. But as soon as a teen driver is licensed, you’ll need to add them to your policy or prove that they are either insured or permanently residing elsewhere.
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