The cost of car insurance for 20 year olds can be astronomical compared to other age groups. According to a study by ValuePenguin, the average cost of car insurance for a 20 year old is $5,333 per year. This is more than twice the national average for drivers of all ages. However, there are ways to save money on car insurance as a 20 year old.
Factors That Affect Car Insurance for 20 Year Olds
There are several factors that affect the cost of car insurance for 20 year olds. Understanding these factors can help you find ways to save money on your car insurance premiums.
Your driving record is one of the most important factors that determine your car insurance rates. If you have a clean driving record with no accidents or tickets, you will likely pay less for car insurance than someone with a history of accidents or tickets.
However, as a 20 year old, you may not have a lot of driving experience. This inexperience can increase your risk of accidents and therefore increase your car insurance rates.
Where you live can also impact your car insurance rates. If you live in an area with high rates of accidents or car theft, your car insurance rates will be higher than if you lived in an area with low rates of accidents or car theft.
If you live in a city or densely populated area, your car insurance rates may also be higher due to the increased risk of accidents.
The type of car you drive can also impact your car insurance rates. Generally, more expensive cars cost more to insure than cheaper cars. This is because expensive cars are more expensive to repair or replace if they are involved in an accident.
However, some cars are also more expensive to insure due to their safety ratings. Cars with a poor safety rating may result in higher car insurance rates.
Believe it or not, your credit score can also impact your car insurance rates. Insurance companies use your credit score to determine how likely you are to make your car insurance payments on time. If you have a poor credit score, you may be seen as a higher risk and therefore pay higher car insurance rates.
How to Save Money on Car Insurance as a 20 Year Old
Now that you understand some of the factors that impact car insurance rates for 20 year olds, here are some tips for saving money on car insurance:
The most important thing you can do to save money on car insurance is to shop around. Get quotes from multiple insurance companies to compare rates and coverage options.
Don’t just settle for the first quote you receive. By taking the time to shop around, you can find the best deal on car insurance.
Take Advantage of Discounts
Many insurance companies offer discounts for things like good grades, safe driving, and multiple policies. Be sure to ask about these discounts when getting quotes from insurance companies.
You may also be eligible for a discount if you take a defensive driving course or install safety features in your car.
Consider a Higher Deductible
A deductible is the amount you pay out of pocket before your insurance kicks in. By choosing a higher deductible, you can lower your monthly car insurance premiums.
However, be sure to choose a deductible that you can afford in case of an accident. You don’t want to be in a situation where you can’t afford to pay your deductible if you need to file a claim.
Frequently Asked Questions
How much does car insurance cost for a 20 year old?
According to a study by ValuePenguin, the average cost of car insurance for a 20 year old is $5,333 per year.
Why is car insurance so expensive for 20 year olds?
Car insurance is expensive for 20 year olds because they are considered high risk drivers. They have less driving experience and are more likely to be involved in accidents or receive traffic violations.
What can I do to lower my car insurance rates as a 20 year old?
You can lower your car insurance rates as a 20 year old by shopping around, taking advantage of discounts, and choosing a higher deductible.
Do I need car insurance as a 20 year old?
Yes, in most states you are required to have car insurance if you own or drive a car. Even if car insurance is not required in your state, it is still a good idea to have it in case of an accident or other unforeseen events.
While car insurance for 20 year olds can be expensive, there are ways to save money on car insurance premiums. By understanding the factors that impact car insurance rates and taking advantage of discounts and other cost-saving measures, 20 year olds can find affordable car insurance that fits their budget.