How much is car insurance for a 20 year old?
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How much is car insurance for a 20 year old?

March 8, 2023
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How much is car insurance for a 20 year old?

If you're in your 20s and thinking about buying a car, you might be wondering how much car insurance you'll need. Since there are so many variations, it can be difficult to know where to start! Let's take a look at how much car insurance you need in comparison to your current situation.

Who Needs Insurance Most?

If you're a responsible driver who obeys the speed limit and keeps their cars in good condition, you might not need insurance at all. On the other hand, if you're driving a luxury vehicle or have done something careless, you might want to consider insurance. In these cases, your premiums will depend on your gender, how many miles you drive per week, and a variety of other factors. It's best to seek insurance assistance as soon as possible to avoid high premiums later on.

How Much Should You Expect To Pay?

The cost of car insurance varies by market and company, but it's generally accepted that you'll pay more for multiple drivers and if you're a woman. According to the Insurance Institute for Highway Safety, the average cost of auto insurance in the U.S. is $1534 per year. That's what you should expect to pay, regardless of your record as a driver.

There are a variety of situations where you might want to consider extra coverage beyond your basic liability insurance. For instance, if you have a high-end sports car, you might want to purchase collision insurance. This protects you from damage to both your car and any other vehicles or property that you might hit. In most cases, this type of insurance is extra and comes with a premium. However, if you're in an accident and need to file a claim, you'll have to pay the standard rate for car insurance.

What If You're Not Categorized As A Driver?

If you're a student or an employed person whose work takes them away from home frequently, you may want to consider purchasing a car insurance policy. This could help protect you from potential accidents if you're driving to and from work. You'll likely have to pay more for this coverage than you would for a standard car insurance policy. Depending on the type of vehicle you have, you might also want to consider specialized insurance coverage. For instance, if you're a motorcyclist, you might want to purchase full helmet coverage or side protection insurance.

The Best Way To Find The Best Rates

Since insurance companies want to avoid paying out claims, they are always looking for ways to reduce their cost-per-claim. One way is to review offers from different insurance companies and compare car insurance rates and coverage limits. You can also call the insurer directly and ask for a quote, or you can use an online resource like to find the best rates and plans for car insurance.

If you're a younger driver who is just beginning their journey, chances are you'll need insurance soon anyway. Take the time to compare rates and options before making a purchase. You may find that there are several companies that offer a competitive rate and sufficient coverage for your needs. If you do decide to purchase insurance, make sure to purchase the right policy for your needs. It's also important to read reviews online from current and former customers that are posted by companies that you may consider purchasing from. Doing so may help you find the best car insurance policy for your needs and budget. Good luck out there.

Factors that Affect the Cost of Car Insurance for 20-Year-Olds

If you're a young driver who's just entered the market, you may be wondering what factors affect the cost of car insurance. The following will examine several aspects of your premiums that could change based on your situation.

Your Driving History

One of the first things that determine your car insurance premium is your driving history. How many moving violations do you have on your record? How about accidents? Were you in a school zone? Was there damage to another vehicle?

These questions can help you determine how risky a driver you are. Young drivers who've been fortunate enough not to have any accidents could see their premiums drop significantly. Those who've paid into the motor vehicle accident fund might even see that payment waived.

Liability Insurance

Another factor that impacts your car insurance premium is the amount of liability insurance you carry. Having limited liability is better than having no insurance at all. It may also be possible to get your liability insurance reduced if you're in an assigned risk pool.

Liability insurance protects you from accidents that may be caused by someone else. For example, if you're driving on a highway and injure someone or cause damage to another vehicle, you could be held liable.

The minimum liability insurance required by law is 1 million dollars with $1 million in personal injury protection and $500,000 in property damage protection. You may want to consider looking into higher limits because it is never easy to estimate the actual cost of an accident. For example, if you have $2 million in liability insurance, your car insurance premium may be reduced by 10% or more.

Type of Vehicle

Depending on the type of vehicle you drive, your insurance premium could change. For example, if you're in an SUV or a pickup truck, your cost may be higher than someone who drives a sedan. Additionally, if you're in a higher risk category due to your driving history or have a specialized needs vehicle, you may see an increase in your cost.

Where You Live

Where you live can also impact the cost of your car insurance. Are you in a violent neighborhood? Do you live in a high-crime area? How about along a popular street corner?

If you live in a high-risk area, consider looking into moving or securing some of your belongings to minimize the danger from criminals. If you're going to be in a high-risk area, it might also be a good idea to purchase a security system for your vehicle.


If you're a young driver, consider the age of your vehicle as it relates to your car insurance premium. Most young drivers see a significant increase in their premiums once they turn 21. That's because young drivers are considered to be high-risk drivers. They're more likely to be in an accident and are more likely to have serious accidents. That leads to them having to pay more in premiums.

If you're going to be a young driver for a while, secure some life insurance to cover your eventual expenses. An extra $50,000 might not seem like a lot, but it could help you avoid a serious financial burden if you have an accident while in college.

Marital Status

If you're married, your car insurance premium may be different than if you're single. It's not clear whether or not your spouse or significant other affects your liability insurance, personal injury protection, or both. What is clear is that your premiums could increase if you have a wedding ring in the mail.

If you want to keep your costs down, consider getting divorced or separated. Your premiums may drop by as much as 30% after you've been divorced or separated for a year.

Missions, Dedications, And Achievements

Are you involved in any military service as a member of the armed forces? Do you volunteer your time at a service club or have you ever gone above and beyond in helping a stranger?

If so, you may see a significant drop in your premiums. How much of a drop? It's difficult to say because it depends on several factors, but it could be as much as 30%. You may also want to consider getting a waiver or discount for your volunteer firefighting service if you live in an area that requires it.

Do you have an achievement or a medal that you're especially proud of? If so, it may be possible to negotiate a lower rate or a discount for your insurance. Just make sure that you're honest about what you've accomplished and can produce the proper documentation.


What is your occupation? If you're in sales or related work, your cost may be higher than someone in a different field. For example, police officers or firefighters might see a significant increase in their premiums. It might also be worth noting that some jobs, like driving a truck, may require you to have certain types of insurance that you can't get rid of once you start working. For instance, you may be required to have worker's compensation insurance as a condition of your job.

Insurance Company

Which company do you choose for your insurance? Although most insurers are bound by state law to honor the preferred rates that you may have negotiated, there are still some who don't follow through. When this happens, it's important to switch to another insurance company. Some companies are more favorable to customers than others and could offer you a better deal. Doing business with a company that you feel isn't standing up for your interests could hurt your future premiums. This is why it's important to always read customer reviews before purchasing a policy.

Overall Risk Assessment

Taking everything into consideration, you could have a rough idea of how much your car insurance will cost you. The key factors that determine your premium are your driving history, type of vehicle, location, age, and marital status. If you want to keep your costs down, consider getting divorced or separated, joining a car sharing club, or renting a car when needed.

Tips for Reducing the Cost of Car Insurance for 20-Year-Olds

Insurance is a necessary evil that we all have to deal with. It is a fact of life that none of us would want to avoid and none of us can. There are many ways that you can reduce the cost of vehicle insurance without sacrificing coverage. Keep reading for some great tips on getting cheaper car insurance!

Choose The Right Car

What is the primary purpose of your car? Is it for transportation or is it a hobby? The right car will have the right coverage for the right price. One way of getting inexpensive car insurance is by selecting a model that has low depreciation. This way, the value will stay relatively stable, even though it is older model. It also means that you will be paying less in insurance premiums. Before making any major purchase, such as a car, consider the price tag versus the coverage you need to have.

Drive Safely

Being a safe driver will reduce your insurance premiums by up to 10%. Even if you have a perfect driving record, you will still need to pay a small premium due to the fact that you are a young driver. When choosing your next car, look for those models that have better safety scores than others. This will also help you save money in the long run.

Shop Around

It is always a great idea to compare car insurance rates in order to find the best deal. By calling several insurance companies, you can get a rough idea of what you will need to pay. By getting a quote from more than one company, you will be able to find the best coverage for your needs at the best price. Before making a decision, ask your parents for help or ask a trusted friend for advice. They may be able to help you find a better price if they have had experience in getting lower rates before.

Pay Your Insurances On Time

If you pay your insurance premiums on time, you will lower your rates considerably. For instance, if you pay your premiums a month late, you could be facing an extra 10% charge on top of what you already pay. Being late with your premium payments causes your insurance to be "in-risk", which means that you are considered high-risk because you are late in paying your insurance. The best thing for you to do is to pay your insurance premiums as soon as they are due. This will minimize the damage to your credit rating. If you are paying extra fees just to drive a car, it is certainly worth it to avoid any negative effects on your credit rating.

Don't Drink And Drive

One of the worst things that you can do for yourself is to drink and drive. It is already illegal for anyone to drink and drive. If you are caught by the police with alcohol in your system, you will automatically receive a ticket. This will increase the price of your car insurance by at least 5%. You are considered drunk if you have over.08% alcohol in your blood stream. The best thing for you to do is not drink and drive. It is the most effective way of ensuring that you don't pay any extra fees at all because of traffic accidents.

Avoid Rental Liability

If you ever get into an accident while using a rental car, you will have to deal with the damages yourself. This means that you will be responsible for replacing the car or paying for its damage. It is a good idea to carry insurance coverage in case you are ever involved in an accident while using a rental car. The best thing for you to do is to decline the offer to rent the car in the first place. This will help you avoid rental car insurance altogether. If you do end up renting a car, make sure that your insurance coverage is up-to-date and has a clean record. Otherwise, be prepared to pay higher rates because they will think that you are a higher-risk customer.

Choose The Right Location

The best way to save money on your car insurance is by shopping for plans in your area. The reason for this is because rates are determined by a number of factors, including where you live. The best thing for you to do is to compare car insurance rates in your area versus other areas of the country. If you are living in a more expensive area, it would be wise to look for a plan that covers more than just your car. You could also look into getting a homeowners insurance policy as well because these plans usually go hand-in-hand. Think about the types of cars that you drive and whether or not you have a garage for storing cars. These are just some of the items that you should consider when choosing a location. It would be best to shop for car insurance in your area because you will be able to get a better idea of what you will need and how much you will need to spend.

Consider bundling Your Insurance With Home Insurance

If you ever decide to add a second car to your household, it is always a great idea to consider bundling your insurance policies. A lot of insurance providers will give you a discount if you are bundling your home and auto insurance policies. The reason why this is a great idea is because it is usually cheaper to pay the one monthly premium than it is to pay for each policy separately. You should look into this option because it will help you save a ton of money.

Shop For Plans That Have Good Customer Reviews

If you want to find the best deal on your car insurance policy, you should look for plans that have good reviews. This will help you find the best price without worrying about whether or not the coverage is good. You should look into getting a plan that has at least 7.5 stars on the review website. Good reviews mean that the insurance company is a reputable company that you can trust. This is important because you will be giving your credit card information to the company when you get a quote. You don't want to do business with an unauthorized insurance company.

Don't Forget About The Little Things

One of the best tips for reducing the cost of car insurance is to be aware of the little things. You should know that there are certain things that you can do to save money without having to make any major changes to your car or your lifestyle. For instance, if you call your insurance company every month and let them know that you are still alive, you will save them money because they won't have to pay out on your behalf for burial insurance. You could also make sure that the tires are properly inflated and the oil is changed regularly. All of these things add up and they can help you save a great deal of money.

Keep in mind that the above tips for reducing the cost of car insurance will only work if you are actually following them. Just because you want to save money on your car insurance doesn't mean that you should cut corners or violate the rules of the road. You should follow all of the above tips in order to save as much as possible without jeopardizing your safety or the safety of others. Good luck out there!

Jonah Collins
Written by
Jonah Collins
Loans, Mortgage
Jonah Collins is a personal loans writer for Empire Finance Pro. Backed by Master's of Science in Finance from Bournemouth University, he has hands-on experience as an investor and trader, along with editing and writing experience in finance, investments.