Car insurance for 20-year-olds

At 20 years old, it’s possible that you’ve racked a couple of years of driving experience. That will help drive down down the cost of your car insurance, but premiums can still be expensive for motorists of this age.

In this guide, we’ll explore how much car insurance is likely to cost for a 20-year-old, and how drivers of this age can lower the costs of their premium.

Why is car insurance more expensive for 20-year-olds?

Insurers will calculate a customer’s premium based on the risk of someone in their demographic making a claim on their policy, among other things.

This is a problem for 20-year-olds because the youngest drivers are historically the most likely to make a claim on their car insurance. Insurers charge them far more to compensate for this added risk.

Cheapest cars to insure for a 20-year-old

In the table below, you’ll find a list of the cheapest cars to insure for the average 20-year-old driver.

Average insurance cost for a 20-year-old

To provide an estimate of how much it may cost a 20-year-old to insure a car, we ran several quotes to find an average figure. Based on our results, we found a 20-year-old can expect to buy a comprehensive policy for an annual sum of 1873.

• How we got this rate

  To generate these quotes we used the following information:

  • Hyundai i20 1.0T GDI 120bhp Premium 5d
  • The vehicle is a 2016 model
  • Manual transmission
  • Petrol
  • 1.0 litre engine

Average insurance cost for a 20-year-old by location

There are many factors that affect the cost of your car insurance premiums, including your location.

To show the potential impact of home address, here are some average quotes for a 20-year-old living in three different locations. The quotes are for a Dacia Sandero 1.0 SCe Ambiance 5dr.

• Cheap: 1235.053885 (Truro, TR8)
• Average: 1555 (Chester, CH1)
• Expensive: 1926 (London, E10)

• How we got these rates

  These rates are based on the average cost of cover for cars in the locations shown. Our research suggests E10 is one of the most expensive locations, CH1 represents an average cost location and TR8 represents one of the cheapest locations. Updated: March 2021 (source: Quotezone).

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What other costs are involved for 20-year-old drivers?

Here are some other costs that motorists need to find the funds for:

• Petrol. New drivers tend to underestimate the cost of keeping the gas tank full.
• Car tax. This annual tax is also known as vehicle excise duty. Your bill will depend on your choice of vehicle, its emissions and when it was registered.
• MOT. An MOT test takes place to check your car meets the minimum legal standards for road safety and environmental friendliness. Once your car is three years old, you’ll need to arrange one every year.
• Servicing and maintenance. You’ll have to pay for the cost of repairs of maintenance as a vehicle ages. An MOT test will identify what maintenance jobs are required.
• Repairs. If your car needs repairs, you can make an insurance claim, so your insurer covers the costs. However, as this will impact your no-claims bonus, it might be more cost-effective to cover the costs of minor repairs out of your own pocket.

How can 20 year-olds save on their car insurance?

• Choose a cheaper car. Scroll up to see our list of cheapest cars to insure.
• Add a named driver. If you add a more experienced driver onto your policy, insurers are often happy to reduce your premium.
• Take your ‘Pass Plus’ course. This course teaches newly-qualified motorists how to handle some more advanced aspects of driving, such as driving at night or on the motorway. You’ll get a certificate for completing the course, and some insurers will offer a discount to younger drivers who have this.
• Add a ‘black box’. This device tracks your driving activity and passes information onto your insurer. This allows insurers to check whether you’re a safe driver or not. Most insurers will cut the cost of your policy if you install a black box in your car.
• Increase your voluntary excess. A higher excess means you’ll agree to contribute more to your repair costs. Insurers will lower your premium if you voluntarily raise it. Don’t raise your excess higher than you can afford to pay though.
• Add additional safety measures. Any installations that make your car safer are likely to lower your premium.
• Avoid unnecessary modifications. Any installations that raise potential repair costs will send your premium skyrocketing.

The bottom line

Although car insurance can be costly for 20-year-olds, there are plenty of things they can do to lower their premiums.

Frequently asked questions

• Will my gender affect the cost of my car insurance

  In 2012, the European Union forbid insurance companies from discriminating on their customers by gender. Following Brexit, the UK is free to ignore these rules, but they remain in place at the time of writing.

• At what age does car insurance get cheaper?

  It depends on a number of factors, but a no-claims bonus makes a significant difference. You should be able to find a cheaper deal after one year of making no claims on your policy.

• Can my parents help me get cheaper car insurance?

  Yes, if your parents are experienced drivers it could pay to add them to your policy as a named driver.

• Are older cars cheaper to insure for a 20-year-old?

  Insurers base your premiums on the the cost of repairing a vehicle, rather than its age. However, as older cars tend to be cheaper to insure, they are usually cheaper to repair.

• Do all insurance companies insure 20 year olds?

  Insurance companies are free to set their own age limits for customers. However, you’ll find that most UK insurers are happy to cover 20-year-olds.