According to ValuePenguin, the average cost of car insurance in the USA for a 20-year-old is $3,816 per year.
This amount is eye-wateringly high for a young adult. As one of the thousands of young adults flocking out of college in 2018, ready to spread your wings, a constant question must be hovering in your mind: how do I get the best car insurance deal?
As a teenager, you had been covered under your parent’s or guardian’s insurance plan, but the rules have changed. You have aged out of the system, and it’s time to branch out on your own.
One of the most off-putting aspects of becoming independent is realizing all the things you must include in an already tight budget. With student loans, utility bills and other expenses looming over your head, you could probably use a break.
As a financially savvy and go-getter young millennial, it becomes imperative to save money on auto insurance by picking insurance providers that offer great deals for young drivers.
But how exactly do you do that?
Years ago, I found myself sitting at Starbucks pondering the same question. In an attempt to save every spare dollar and pick the right car insurance company, I tried the following tips:
- Shop around & compare insurance quotes
- Improve credit score
- Got a cheap-to-insure car
- Ask for discounts
- Include an experienced and responsible party as a second driver
- Don’t modify or pimp the car
The fact is that there is a myriad of car insurance companies out there. Even with the aforementioned tips, it could be overwhelming to go through all the companies. Lucky for you, here’s a look at 3 of the top insurance companies in the USA and what they offer to young drivers:
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1. State Farm
According to the Insurance Information Institute (III), State Farm insurance company is one of the most recognized auto insurance companies in the USA. The company offers decent rates, discounts, and features for all client including young drivers.
State Farm discounts for 20-year-old drivers include those for multiple family automobiles, good students and good driving habits.
The company has a great mobile app for fast and easily accessible quotes to suit a young millennial. While State Farm doesn’t excel in any particular arena, it is a stable insurer for your insurance needs.
USAA was listed as one of the best auto insurance companies by Clearsurance after going through more than 39,000 reviews submitted by clients. USAA provides car insurance exclusive to service members and veterans of the U.S. military.
Family members including spouses and grandchildren can also become USAA members. USAA helps young adults cut insurance costs by providing the following discounts:
- Safe driving discount
- Driver training discount: Drivers under 21 save when they complete a basic driver training course
- Good student discount for 20-year-olds still in college
- Multi-vehicle discounts
Where USAA really stands out from other companies is their customer service. Many customers both young and old give glowing reviews of the company’s rates, claim handling and general customer service process.
As a 20 year old, an auto insurance company’s online presence is definitely a factor to consider. Allstate offers its customers a superb online experience that encapsulates online policy management, online auto claims, and blogs to help young drivers save to cut insurance costs and build a policy.
Some of the benefits of Allstate car insurance include:
- Accident forgiveness: Customers get a free pass after their first accident, and their rates are not increased. However, note that this is only for a one-time event.
- Allstate rewards: Safe drivers are rewarded with gift cards, etc. To qualify for prizes, you must install the Allstate’s surveillance device Drivewise.
- Smart student discount
The best way to navigate the auto insurance world, after you’ve understood what you are dealing with, is to start comparing car insurers to find the cheapest quotes.
Shop Around for Winning Rate
Make sure that you visit the top comparison sites. Why? This is because comparison websites analyze millions of quotes before suggesting the best deals in and out of town. You don’t need to go elsewhere, as we compare quotes and offers the best possible rate in the country.
Several factors might affect the quote such as your geographical location and your gender.
Yes, you’re not mistaken, you read it right. Like seriously! In this day and age!
While gender-based auto insurance rates might seem biased, there are impressive statistics that explain why gender matters to car insurers.
How Much Is Car Insurance for 20 Year Old Teen Drivers?
On average, a 20-year-old male spends about $4,109, and a female spends about $3,524 for car insurance in a year.
However, note that the insurance rates for 20-year-old drivers vary widely between states.
As a young driver, you have a lot of ground to cover before you find a car insurance company that you can stick with. Prices and circumstances change all the time. Don’t be scared to change your insurance providers if another company offers a better deal. Test the waters before you make up your mind.