Margaret Huntley Last Updated On: June 27, 2023

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What You Need to Know About Car Insurance for 20 Year Old?

20 Year Old Car Insurance

When you’re in your early 20s, you are in a strange transition period of your life. You are a full adult, but all of the responsibilities that come with being an adult are still quite new to you. It can get overwhelming trying to navigate all of these new responsibilities. 

This blog is here to help. It contains everything you need to know about getting the best car insurance rates while in your early 20s. 

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Insurance Rates For 20 Year Old Drivers

Rates are affected by a variety of factors, and age is one of them. The younger you are, the less driving experience you have and the more likely you are to get into an accident. Therefore, the rates are highest for younger drivers. 

Being in your 20s, your rates will be lower than they were in your teens, but still higher than they will be by the time you reach your 30s. The average monthly rate for a driver who is 20 years of age is $373.

That said, age is not the only variable that affects your insurance rates. The following are other factors that will affect your rates:
  • Driving Record – Fewer infractions = lower rates
  • Gender – In general, men pay more than women for insurance 
  • Make of Vehicle – Depending on the safety and value of your vehicle your rates will differ 
  • Location – More populated areas have more expensive insurance 
Depending on how each of these variables factor into your own life, your insurance rates will deviate from the average. 

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How to Save Money On Your Car Insurance As a Young Adult Driver?

Just because you will need to pay more in your 20s for car insurance doesn’t mean that you can’t save money.  Shop around! Compare different rates between different insurance companies to make sure that you are getting the best deal. Don’t just take the first quote that you are given.  Many insurance companies will also have discounts that people in their early 20s are likely to be eligible for:
  • Discounts for 20-Year-Old Drivers: Because rates are generally higher for people in this age bracket, insurance companies will sometimes offer discounted rates to drivers in their 20s in order to stay competitive. 
  • Student Discounts: Many people in their early 20s are completing a college education. If you are a student with a 3.0 GPA or higher, you can qualify for a student discount on car insurance.
  • Defensive Driving Course Discount: Taking a simple course on defensive driving will not only improve your driving abilities, but will discount your insurance since insurance companies will consider you to be more experienced. 
  • Bundled Insurance: If you are also in need of renters or homeowners insurance, bundling that with your car insurance will discount your rates and save you money. 
Beyond discounts, there are other ways to save on car insurance too:
  • Remain on Your Parents Policy: Adding yourself to an existing policy is generally cheaper than having your own independent one. Keep to your parent’s policy for as long as possible. 
  • Drive a Safe Car: As previously mentioned, cars with lots of built in safety features and ones that are sturdy and resistant to damage, have lower insurance rates compared to other vehicles. 
  • Drive an Older Car: While you don’t want to drive a car that is so old that it is unsafe, driving a reasonably old car will lower your rates because the car’s value will be lower than that of newer cars. 
  • Consider a High Deductible Plan: The higher your deductible, the lower your monthly rate is. These plans are worth considering, especially with the high rates for drivers in their 20s. Do keep in mind, however, that you will be paying more out of pocket in the event of an accident.
  • Keep a Clean Driving Record: The importance of a clean driving record cannot be stressed enough. Practising safe driving is the best way to avoid an accident and to avoid high insurance rates. It’s a win-win.
  • Maintain a Good Credit Score: Staying on top of your credit card payments proves to your insurance company that you will be able to stay on top of your insurance payments too. 
Most of these money-saving insurance tips not only apply to drivers in their early 20s, but apply to all drivers of all ages. Start applying these tips in your life today!

Margaret Huntley Margaret Huntley is a creative writing and philosophy student at Western University. She has been working as a freelance writer for over two years and has written about everything from insurance, to poker, to health and wellness for international businesses.

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