What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

How much does car insurance cost for a 20 year old?

Auto insurance rates are a matter of concern as it is based on the age of a driver and the driving period. Insurance companies assign high-risk rates to drivers less than 24 age. Thus it is typical for drivers between 16 and 19 to pay highest premiums, especially male drivers.

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

Twenty-year-old drivers are not teens anymore and have scarce driving experience. Thus, it leaves insurers to determine if they are safe or risky drivers. It means you must determine the insurance needed, so focus on building a policy and finding the right insurer.

In the United States of America, a male 20 years old on an average pays around $4,100 and female pays $3,500 for auto insurance and this varies with each state.

Female vs. Male: Average Premiums for 20-year-olds drivers:

  • Male - $1,992
  • Female - $1,819

A 20-year old is no more a teenager, yet the auto insurance is high. The reasons causing to pay more are based on age, location, gender and vehicle type.

What type of coverage do you have to have by law?

Buying insurance means you must know the type of coverage required as per law. In case you are living in some tort state featuring low-limit requirement, consider buying only liability coverage such that it has low premiums on average. Of course, states with high average premiums may need you to buy complete coverage.

The common requirements are:

  • Body injury liability: In an auto-related accident the payments are done if you are liable for injuries.
  • Medical payments: This will include reasonable and immediate medical expenses in auto-related accident injuries.
  • Property damage liability: This is to pay if you are liable in the auto-related accident for damaging the property of someone else.
  • Personal injury protection: This includes paying for lost income, medical bills, and related expenses, in case you are in some no-fault state.

Can you stay on your parents' insurance policy to save money?

A 20-year old is legally an adult, but that does not mean you must buy your individual auto insurance. You can always stay as a driver on the policy of your parents if you are living with them. Insurers do permit this when you are in their home or you go to college or are a dependent. Even on buying your own car, you can stay added to the insurance of your parents.

Average Premium for 20-year old drivers on Family Plan: $1,906

Having the vehicle registered in your parent or parents name with your name is enough to make your policy remain added to their policy. In fact, some insurance carriers accept it with ease as long as you give evidence of being a blood relative.

Precisely, it is best to stick as long as possible with your parents for a 20-year-old so that you save money. However, you can shop around for pricing by contacting carriers directly or wisely spend your time and get at once all the online quotes.

Most Expensive Car Insurance by States for 20-year-old drivers


State Premium
Louisiana $9,240
Michigan $7,470
Texas $6,970
Delaware $6,060
New York $4,780

How can you save yet?

The 20-year-olds do pay more auto insurance is clear, but there are ways to acquire discounts.

  • Good Student Discount: Insurance companies give the discount for 16 to under 25-year-olds and this may vary. Students with good grades such as above 3.0 or 3.0 on an average are shown to drive cautiously without getting into accidents. If it is coming as a combination of defensive driver discount, you can save more.
  • Defensive Driver Discount: Taking a defensive driving class means you are entitled to a discount, but this driving class should be approved by your insurance company.
  • Clean driving record: This record saves you the dealing of tickets hassle and the tedious claims process. On an average, your premium per year can increase by $300 at-fault accidents. Thus racing and DUIs are the expensive citations to hike around 40% premium. In fact, you will be charged with accidents caused for the past 3 years. Thus, it is beneficial to have a clean driving record.
  • Bundling the policy: You may bundle the renter’s policy with your personal property. This means it refers to the place you stay on rent. The renter’s policies are inexpensive and so you can avail your auto insurance also from the same company and enjoy the multi-policy discount.

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