Does car insurance drop again at 21?

Yes, but by less than the drops between 18 and 20. On average, premiums fall a further 3% between 20 and 21. The bigger step for most drivers now happens at 25, when the young-driver risk category ends.

How much no-claims bonus does a 20 year old have?

A 20 year old who passed at 17 and had three claim-free years now has three full years of NCB. This typically unlocks a discount of 40 to 50% at renewal, which is one of the main reasons the premium is roughly half what it was at 17.

Insurance

Money

EV Zone

Sell Your Car My Account

EV Zone

Sell Your Car

My Account

Car Insurance for
20 Year Olds

How much does car insurance cost for a 20 year old? Costs by region, cheapest cars to insure, and how to reduce your premium.

Enter Your Car Reg

Get Quotes

Compare quotes from 130+ UK insurers in minutes

3 years driving experience means lower premiums

Your no claims bonus is building real value now

Partnered with Quotezone

?We're partnered with Quotezone.co.uk. As an Introducer Appointed Representative of Seopa Ltd, trading as Quotezone.co.uk (FCA FRN: 313860), we receive a commission if you purchase insurance products through the link above. We do not provide advice or make recommendations. Your choice of provider is entirely your own.

Search Great Deals from Trusted UK Insurers

Plus over 120 more UK providers searched in one comparison

How much is car insurance for a 20 year old?

A 20 year old in the UK pays between £743 and £1,364 per year for car insurance, depending on where they live. That is roughly half the national average at 17, thanks to three years of driving experience and up to three years of no-claims bonus.

£743

Cheapest (South West England)

£1.4k

Most expensive (London)

#	Region	Average premium
1	South West England	£742.96
2	Wales	£769.99
3	South East England	£817.61
4	North East England	£821.77
5	East of England	£831.18
6	Scotland	£848.87
7	East Midlands	£887.92
8	North West England	£972.00
9	Yorkshire	£1,009.95
10	West Midlands	£1,062.49
11	Northern Ireland	£1,238.82
12	London	£1,364.45

London remains the most expensive region for 20 year old drivers by a wide margin, with average premiums 84% higher than the South West. The regional spread narrows further at 21, when the young-driver premium starts to level out.

Source: Quotezone Car Insurance Price Index, Q2 2026. Based on a random sample of 100,000+ UK car insurance policies, April to June 2026.

Why is car insurance nearly half the price at 20 versus 17?

At 20, the average UK driver pays around £947 a year. That is less than half the average at 17 (£1,963), and the drop reflects three key changes:

Three years of NCB. Three claim-free years could unlock a significant renewal discount.
Lower statistical risk. Accident data drops after the first two years of driving. By year three, insurers may view the driver as having more experience handling common road situations.
More insurer competition. Some insurers who declined to quote at 17 or 18 will happily quote at 20, widening the pool and driving prices down.

The next big step change happens at 25. See our young drivers insurance guide for the full curve.

Many 20 year olds are in their second or third year at university. If you are a student, your car should always be registered at the address where it is kept most often. If your car stays at your parents' home rather than near campus, registering it there could result in a lower premium, as postcode is one of the biggest rating factors. See our student car insurance guide for more information. Temporary car insurance is still an option at 20 if you need short-term cover for borrowing a car or test driving.

What does "under 21" mean for car insurance?

Many insurance products set a minimum age of 21 or 25. At 20, you are still under 21 for those thresholds. In practice this affects:

Temporary car insurance. A few providers set a minimum age of 21 for short-term cover. Most accept 20 year olds, but always check the age limit before you apply.
Multi-car policies. Family multi-car policies typically allow drivers aged 21+ only. Adding a 20 year old to a family multi-car policy is not always possible.
Hire car cover. Some rental firms charge a young-driver surcharge for under-21s, and some do not rent to under-21s at all.
Company car schemes. Some employer schemes have a minimum age of 21 for pool car use.

None of this changes the availability of standard annual car insurance, which is straightforward at 20. See our temporary car insurance guide for what is available.

How can a 20 year old get cheaper car insurance?

At 20 you have real leverage. Three years of driving history and three years of NCB mean insurers compete for your business more actively.

Compare quotes at every renewal. Do not auto-renew. Compare via Brumble to see prices from 130+ insurers. Compare quotes →
Protect your NCB. A small extra premium keeps your NCB safe from a single claim. Increasingly worth it as your NCB grows in value.
Check both standard and telematics. By 20 the two types can be close in price. Compare both.
Raise your voluntary excess. Increasing your voluntary excess may lower your premium. Choose an amount you could afford to pay if you needed to make a claim.
Add a named driver. A low-mileage parent or partner on the policy can bring the price down without changing how the car is used. Do not front the policy.
Keep mileage honest. Estimate your actual annual mileage. Underestimating to save money can void a claim.
Pay annually if you can. Monthly instalments could add interest to the overall cost.
Consider a job-related discount. Some insurers offer discounts for teachers, NHS staff, and armed forces. Ask when you quote.

Building a no claims bonus as a young driver is the single most effective long-term way to keep your premium down. Four full years by 21 will keep you moving in the right direction.

Cheapest cars to insure for 20 year olds

At 20 many drivers are moving up from a first car to a second-hand family hatchback, small crossover, or compact estate. Insurance groups 5 to 15 are the sweet spot: enough car for a growing lifestyle without pushing the premium up too far.

Popular second cars for 20 year olds:

Volkswagen Polo (1.0 TSI)
Ford Fiesta (1.0 EcoBoost 100)
Skoda Fabia
Vauxhall Corsa (higher trims)
Toyota Yaris Hybrid
Nissan Juke
Renault Captur
Peugeot 208
Seat Ibiza
Hyundai i20

The exact insurance group varies by trim and engine size. Read our car insurance groups guide for more information on how insurance groups work.

What happens to car insurance at 21 and 25?

At 21 the average premium typically falls further. Small compared to the drops between 17 and 20, but it puts you past the "under 21" threshold that some insurers and rental firms use.

The next big step change is at 25, when most insurers reclassify you out of the "young driver" risk band. Average premiums typically drop between 24 and 25 for drivers with a clean claim history, based on the source data.

See our car insurance for 21 year olds and car insurance over 25 pages for the next steps in the curve.

Compare car insurance quotes for 20 year olds

Compare quotes from 130+ UK insurers via Brumble in around 3 minutes.

Compare Quotes

How much does car insurance change from 17 to 21?

Premiums fall sharply between 17 and 20 and then flatten. By 20, the average premium is roughly half what it was at 17. The next big step change comes at 25, when most insurers reclassify drivers out of the young-driver risk band.

Source: Quotezone Car Insurance Price Index, Q2 2026. Based on a random sample of 100,000+ UK car insurance policies, April to June 2026.

Age	National average
17	£1,963.04
18	£1,730.78
19	£1,174.90
20	£947.33
21	£922.67

See how prices change: 17 year olds, 18 year olds, 19 year olds, 21 year olds.

Car Insurance for 20 Year Olds FAQs

Based on the national average of around £947, that is roughly £79 per month. London drivers pay closer to £114, while drivers in the South West pay around £62. Annual payment avoids interest charges that could add to the overall cost.

Yes, but by less than the drops between 18 and 20. On average, premiums typically fall further between 20 and 21. The bigger step for most drivers now happens at 25, when the young-driver risk category ends.

A 20 year old who passed at 17 and had three claim-free years now has three full years of NCB. This could unlock a significant discount at renewal, which is one of the main reasons the premium is roughly half what it was at 17.

The saving from telematics narrows as your NCB grows, but many 20 year olds still find black box policies competitive. Compare telematics against standard cover at every renewal.

Yes. Many mainstream insurers now offer 20 year olds standard (non-telematics) policies at competitive prices, especially with three years of NCB. Always compare both types.

Yes, but the gap has narrowed sharply by 20. The under-21 label matters most for the availability of certain temporary insurance policies and multi-car policies, where some providers set a minimum age of 21.

Yes. Adding an experienced parent to your policy as a named driver often reduces the premium, especially if they use the car occasionally. Never list them as the main driver if that is not true: that is fronting and is illegal.

Insurance-wise, wait until you have 3 to 5 years of NCB and are comfortable that a larger or more powerful car will not push the group up too far. Compare a quote on your target car before you buy: the annual premium can vary by hundreds of pounds between similar models.

Car Insurance for20 Year Olds