Cheapest Car Insurance for Drivers in Their 20s [2025]: Which Affordable Insurers Are Reputable?

I didn't get my own car until I was 20. Since I was already at college (officially an "adult") and bought my car with my earnings from summer jobs, I wanted an insurance policy separate from my parents. Boy, was that a mistake because auto insurance can be expensive at that age.

Of course, at the time, I didn't know how to look for the cheapest car insurance for drivers in their 20s. Now, I know there are options out there for affordable coverage if you shop carefully and take advantage of discounts.

I've found five great options, including some insurers with top-notch customer service and others that offer rock-bottom premiums. One of them is even a company I've used, Erie, which ended up providing me a decent deal on my first policy.

How we evaluate products

Smart Drivers, Smarter Savings.

Compare car insurance rates in Ohio

See if you qualify for a lower rate in less than 2 minutes

Currently Insured?

Yes

Multiple Cars?

Yes

Homeowner

Yes

Age

By clicking the button above, I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Cheapest car insurance for drivers in their 20s

Company name	Best/Excellent for	Average monthly full coverage cost	Average monthly liability-only cost
Auto-Owners	Comprehensive and customizable coverage	$89	$41
USAA	Qualifying military members	$121	$57
Erie	Residents of eligible states	$114	$62
GEICO	Many discounts	$141	$65
State Farm	In-person support	$148	$69

Auto-Owners

Best for comprehensive and customizable coverage

Company details

AM Best: A+ (Superior)
J.D. Power claims satisfaction: 692/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.46 (Private Passenger)

There's a lot for young adult drivers to love about Auto-Owners. Its rock-bottom premiums are likely the biggest draw, with its average monthly full coverage premium coming in at $25 lower than the next closest competitor. Auto-Owners also offers other features that younger motorists will appreciate, including good student and student-away-at-school discounts.

Since many young people have car loans and limited funds, they might like Auto-Owners' GAP coverage, which protects them from having to pay out of pocket for the remaining portion of their loan balance if their vehicle is stolen or declared totaled. Not all insurers offer this coverage.

Other unique offerings Auto-Owners has that can help cash-strapped young people include diminished value coverage to pay the difference if your vehicle loses value after an accident, rental auto gap coverage to protect against losses if something happens to a rental vehicle, and additional expense coverage if you can't use your car after a collision.

Of course, there are downsides, including the fact that tech-savvy drivers might not like the lack of an online quote option or the insurer's mediocrely rated mobile app. Still, if saving money on car insurance is the primary goal, Auto-Owners is a great option.

Pros

Multiple discounts for young adults
Comprehensive options, including GAP, additional expense, and diminished value coverages
Broad rental car coverage protection

Cons

Mediocrely rated mobile app
Below-average J.D. Power claims satisfaction ranking
No online quote option

Learn more in our Auto-Owners Review

USAA

Best for qualifying military members

Company details

AM Best: A++
J.D. Power claims satisfaction: 726/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.96 (Private Passenger)

USAA is open only to qualifying military members and their families. If you're eligible for USAA coverage, it's a standout choice for young drivers.

USAA typically charges much less for coverage than other insurers and provides military-specific discounts to help lower costs even further. There are also multiple additional discounts young adults in their 20s can take advantage of, including a good student discount and savings for completing defensive driving courses. Plus, there's the SafePilot telematics program.

The insurer has an above-average claims satisfaction rating with J.D. Power and a strong reputation for taking care of its customers. Young adults who prefer digital interactions to phone or in-person service will also appreciate USAA's highly-rated app and the ability to get quotes online.

USAA goes a step beyond offering GAP insurance by providing car replacement assistance instead. This coverage gives you 20% more than your car's actual value if it's totaled or stolen. This can go a long way toward ensuring you can pay off your loan or replace your vehicle if something goes wrong.

Unfortunately, there's no local agent to turn to for help if you have USAA coverage, so those who want in-person support will need to look for a different insurer to provide it.

Pros

High J.D. Power claims satisfaction rating
Affordable premiums
Top-rated mobile app

Cons

Eligibility is limited to military members and their families
No local agent network to turn to for help
Car replacement coverage might cost more than GAP insurance

Learn more in our USAA Review

Get Custom Quotes Today

Safe Drivers Save with Allstate®

Average Rate:

$ $$ /mo

Get rewarded with savings for having a clean driving record.

Paying too much for car insurance?

Average Rate:

$ $$ /mo

Car insurance can be so simple. And so affordable.

GEICO

The insurance savings you expect.

Average Rate:

$ $$ /mo

Enjoy personalized policies, comprehensive coverage & more.

See how much you could save today!

Average Rate:

$ $$ /mo

Drivers who switch their auto insurance and save with State Farm save $764 on average!

Erie

Best for residents of eligible states

Company details

AM Best: A+ (Superior)
J.D. Power claims satisfaction: 733/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.82 (Private Passenger)

Erie is available only in a very limited number of locations, including Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Washington, D.C., and Wisconsin. I signed up for this coverage when I was going to school in New York.

Still, if you live within these places, the insurer has a lot to offer. It has relatively low premiums for drivers in their 20s, beating out many competitors. It also offers special discounts that younger drivers can take advantage of, including an away-from-home student discount. These helped bring Erie's premiums down for me, making them much more affordable.

Erie also won't disappoint young adults who need to customize their coverage. Standard policies include things like first accident forgiveness by default, which some insurers charge you for as an add-on.

Plus, Erie's YourTurn telematics program seems to target young adults looking for some fun. Rather than reducing premiums, it gives you rewards you can use toward various gift cards or charitable donations.

Pros

Second-cheapest full coverage premiums
Above-average J.D. Power claims satisfaction rating
Full range of coverage options to earn bundling discounts

Cons

Limited availability nationwide
Mixed reviews for its mobile app
No premium savings with its telematics program

Learn more in our Erie Review

GEICO

Excellent for many discounts

Company details

AM Best: A++
J.D. Power claims satisfaction: 692/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.75 (Private Passenger)

GEICO has affordable premiums and a long list of discounts available, including several targeting drivers in their 20s, like a good student discount and an away-at-school discount for those still completing their studies. Online quotes are easy to get, and the mobile app is top-rated and fully featured, which younger tech-savvy drivers will appreciate.

Unfortunately, the insurer scored below average in claims satisfaction, and its local agent network is small. So, those who want in-person help or prioritize top-notch customer service may find themselves disappointed in GEICO's offerings.

However, GEICO offers diverse insurance coverage options to make bundling easier, and it has a very high financial strength rating for added peace of mind. Drivers can also potentially save with the DriveEasy telematics program.

Pros

Nationwide availability
Many discounts and coverage options
Top-rated mobile app

Cons

No GAP insurance
Small local agent network
Below-average J.D. Power claims satisfaction rating

Learn more in our GEICO Review

Save On Your Auto Insurance

You could save up to $600 with some companies.
Compare dozens of providers in under 5 minutes.
Fast, free, and easy way to shop for insurance.
Quickly find the perfect rate for you.

Average rate:

$ $$ /mo

State Farm

Best for in-person support

Company details

AM Best: A++
J.D. Power claims satisfaction: 710/1,000 (study average 697)
BBB: F
NAIC complaints: 0.84 (Private Passenger)

State Farm has a large in-person network of insurance agents and a highly rated mobile app, making it an ideal choice for those who want options for how they get help with coverage.

The company's claims satisfaction rating is also above average. However, there are some concerning reviews with the Better Business Bureau (BBB), and the insurer received an F grade. Drivers will need to carefully read through reviews to see the company's shortcomings.

Young drivers may find that State Farm's rates are, unfortunately, higher than what several competitors offer. Still, most will find premiums affordable, and there are good student and away-at-school discounts and the Drive Safe & Save telematics program. Plus, State Farm offers many coverage options, so bundling policies is easier.

Pros

Large agent network
Above-average J.D. Power claims satisfaction rating
Wide range of coverage options

Cons

Higher premiums than several competitors
No GAP insurance
Poor BBB rating

Learn more in our State Farm Review

What affects car insurance rates for drivers in their 20s?

If you're interested in how to get cheaper car insurance, you need to know what factors affect car insurance rates for drivers in their 20s. These factors include:

Driving experience: The longer you have had your driver's license, the less risk you present. Some people in their 20s have had a license since age 16 while others are more recent drivers who may pay higher rates due to a lack of experience.
Education/work status: Many people in their 20s are still pursuing their education, either by finishing up a college degree or going on to post-grad studies. Good student discounts and student-away-at-school discounts could provide additional savings.
Location: Some areas have a higher risk of theft and accidents than others, so premiums are often higher in those places. Drivers in their 20s may be more likely to live where insurance is more expensive, especially as many haven't settled down to become suburban homeowners who tend to pay lower premiums.
Driving history/habits: If you have an accident-free and incident-free driving record and don't drive many miles each year, you'll usually pay lower premiums than someone who drives more often or who has had past accidents or received tickets.
Coverage types: The kinds of car insurance coverage you buy will impact your premium cost. For example, if you add collision and comprehensive coverage to pay for losses to your own car, you'll pay higher premiums. However, you also get important protection and only need to pay a deductible out of pocket if your car is totaled, stolen, or damaged.
Credit score: Drivers with lower credit scores are considered higher risk. For those in their 20s who haven't yet had time to earn a good score, this could mean coverage costs more.
Gender: Women tend to cost less to insure than men because the chances of women causing an accident are statistically smaller.
Marital status: Married people generally pay less for insurance than their single counterparts, which is a disadvantage for young people who haven't tied the knot yet.
Vehicle features: Safer vehicles with anti-theft devices are likely to cost less to insure while vehicles with fewer safety features and a higher theft risk may cost more.

How to lower your premiums as a young adult

Young adults who want to save money on car insurance can follow several tips to reduce their premium costs, including:

Driving safely and avoiding moving violations or collisions
Getting and comparing quotes from the best car insurance companies
Claiming discounts available to young adults, such as a good student discount if you're still in school
Bundling multiple types of coverage, such as buying your auto and renters insurance from the same company
Carefully choosing the protections you need and avoiding unnecessary coverages or add-ons
Carefully evaluating your deductible amount, which usually leads to cheaper premiums when set high, but consider whether you have funds for higher out-of-pocket costs

The more of these tips you can try, the more affordable your insurance policy will hopefully become.

FAQs

Does car insurance go down at age 20?

According to Progressive, car insurance rates typically start to decline at around age 19 or 20. However, individual factors such as your driving history, the age when you obtained your license, and your chosen insurer and coverage will impact what you pay for coverage throughout your life.

What is the cheapest car to insure for a 20 year old?

The cheapest car to insure for a 20 year old can vary by insurer and location. In general, cars with more safety features and better anti-theft features cost less to insure. You can get quotes from insurers on different vehicles you're thinking about buying to see how much the coverage would cost.

Why is my car insurance so high in my 20s?

Car insurance costs can be high in your 20s for many reasons. Some insurers still consider drivers in their 20s a higher risk than, say, drivers in their 50s. You may also not yet have had time to build credit, may not have gotten married yet, and may not live in a safe location — all of which can affect your premium costs.

Smart Drivers, Smarter Savings

Ohio: Say Goodbye to High Auto Insurance Rates if You Live in These Zip Codes

See if you qualify for a lower rate in less than 2 minutes

Start Saving

By clicking the button above, I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Bottom line

Finding cheap car insurance for drivers in their 20s can be hard, but it's doable. Shop around to find the best rates, check out the carriers listed here to see if any are a fit, and make sure you know exactly what kinds of protections you're buying so you can get what you need at the right price.

Once you find affordable coverage, consider revising your options again near renewal. A different company might offer you even better rates at that time.

Save On Your Auto Insurance