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Car insurance for 23-year-olds
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By age 23, drivers are past the most expensive average rates based on age, but they still typically pay higher rates than older, more experienced drivers. The average cost of car insurance for 23-year-olds is $2,985 for full coverage car insurance and $896 for minimum coverage car insurance. While this is quite a bit more than the national average cost of car insurance for full coverage and minimum coverage, it is less than what insurance costs for teen drivers and younger adults on average.
That said, it never hurts to find ways to save on the best car insurance policy for your needs. To help you find the best car insurance, Bankrate researched average premium data for dozens of insurance companies from Quadrant Information Services, specifically focusing on 23-year-old drivers. From there, we analyzed companies for a number of factors, including policy options and discount opportunities, to help you find the best car insurance for your needs.
How much is car insurance for 23-year-old drivers?
The average cost of full coverage car insurance for 23-year-old drivers on their own policy is $2,985 per year for full coverage and $896 per year for minimum coverage. These rates are higher than the national average cost of car insurance, which is $2,014 per year for full coverage and $622 per year for minimum coverage. Auto insurance companies view young adults as riskier to insure than older drivers since they do not have as much experience behind the wheel and have a greater accident frequency rate than older adults. Because of the increased risk, insurance companies charge young drivers a higher premium, according to the Insurance Information Institute (Triple-I).
Average car insurance cost for 23-year-olds by state
The average cost of car insurance can vary greatly based on your geographic location. This is because all 50 states and Washington, D.C., have different regulations surrounding auto insurance, as well as the potential impacts of weather hazards and other natural disasters on driving conditions and accident frequency rates. Regional medical costs and the price of parts and labor for vehicle repairs can also impact how much full coverage insurance costs in your location. Below, we’ve compiled the average full coverage rates for 23-year-old drivers by state:
|State||Average annual full coverage premium for 23-year-old drivers|
Rates were calculated for 22-year-old renters on their own policy.
*Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Best car insurance companies for 23-year-olds
In our search for the best car insurance for 23-year-olds, we first analyzed the average annual premium for full coverage from the largest car insurance companies by market share in the country. We also reviewed each company’s discounts, coverages, policy features, third-party ratings, customer service scores and financial strength ratings. Using this information, we calculated a Bankrate Score for each company on a five-point scale. The higher a company’s score, the better they performed across the different review areas. Bankrate Scores can be used as a tool for drivers to make informed decisions when deciding between insurance companies.
It might be worth getting quotes from the following auto insurance companies if you are looking for the best car insurance for 23-year-old drivers:
|Car insurance company||Bankrate Score||Average annual minimum coverage premium for 23-year-old drivers||Average annual full coverage premium for 23-year-old drivers|
Geico’s extensive list of discounts might be appealing if you are looking for cheap coverage. Taking advantage of discounts for safety equipment, good students, newer vehicles and defensive driving could maximize a younger driver’s savings on car insurance. Geico also has a highly-functional app and scored well in the J.D. Power 2022 U.S. Insurance Digital Experience Study for the shopping category. However, young drivers should be aware that Geico does not offer gap insurance, which pays the difference between the value of your totaled car and your loan amount, if you owe more than the car is worth after it is totaled in a covered accident. If you’re looking for this type of coverage, you may want to opt for another carrier.
Learn more: Geico Insurance review
On average, USAA is one of the cheapest car insurance companies for 23-year-old drivers. However, USAA only insures active-duty military personnel, veterans and qualifying family members. If you do qualify for coverage, USAA offers consistently low rates as well as numerous discounts to help lower premiums even more. Discounts include those for safe drivers, annual mileage and vehicle storage. You can also showcase your safe driving skills with USAA’s SafePilot program, which may save you up to 30 percent on your policy renewal by being a safe driver.
Learn more: USAA Insurance review
Progressive may have the highest full coverage premium on our list, but the company may still be a good choice for 23-year-olds who like to handle their insurance online. The company offers discounts for getting quotes online, buying policies online and opting for a paperless policy. Progressive ranked third in the Insurance Digital Experience Study for the service category. Additionally, enrolling in Progressive’s Snapshot program might help you lower your car insurance rate. Snapshot is a telematics program that tracks your driving through a mobile app or plug-in device to determine how safely you drive.
Learn more: Progressive Insurance review
Travelers might have the second-highest average annual full coverage premium on our list, but the average rate for 23-year-olds is still quite a bit lower than the national average annual rate. Travelers might be a good choice for 23-year-olds wanting a highly personalized policy. The carrier has a long list of optional coverages, including loan/lease gap coverage, accident forgiveness and new car replacement coverage. The company also offers several ways to save, like discounts for good students, homeowners and drivers with continuous insurance. Having a good driving history and paying your bills on time are other ways you may be able to save with Travelers car insurance.
Learn more: Travelers Insurance review
Cheapest car insurance for 23-year-olds
For many, finding cheap auto insurance is a priority. Several national and regional auto insurance companies offer low average rates for 23-year-olds, although your exact rate will likely vary from the averages provided below. Getting quotes from several companies is one of the best ways to compare prices for the same coverage. It can also help to compare available discounts between companies to see how much more you might be able to save on your premium.
|Car insurance company||Average annual minimum coverage premium for 23-year-olds||Average annual full coverage premium for 23-year-olds|
Although these companies have low average rates, your premium will differ based on your individual rating factors. The state you live in, the car you drive, your driving history and the coverages you choose will all impact how much you pay.
How to save on car insurance for 23-year-olds
Although 23-year-olds may pay more for insurance than older drivers, there are still ways to find cheap car insurance for young adults. Shopping around, choosing a financially appropriate car, taking advantage of discounts and increasing your deductibles can all save you money on your insurance costs.
- Shop around: Every car insurance company has its own method of rating policies. Getting quotes from a variety of companies for the same coverage allows you to compare the rates and choose a company that most closely fits your needs and provides cheap car insurance.
- Consider the vehicle you drive: Some makes and models are simply cheaper to insure. Selling or trading your car may be a drastic measure, but if you need to lower your insurance costs, this could be an option. It is important to consider getting quotes for a vehicle before you purchase it to factor the vehicle’s insurance costs into your overall budget.
- Take advantage of discounts: Although discounts will vary by company, common savings opportunities include insuring more than one policy with the same company (such as your home or apartment and auto), keeping a low annual mileage, participating in a telematics program and being a good student.
- Raise your deductible: With a full coverage car insurance policy, you will have separate deductibles for comprehensive and collision. Increasing the deductible limits may cause your premium to go down, but keep in mind that you will need to pay the new, higher deductible in the event of a claim, so this is not a savings option that’s right for everyone.
How to get the best car insurance for a 23-year-old
Although many 23-year-old drivers might be searching for the cheapest auto insurance, price is only one consideration you should think about. Skimping on coverage can leave you in a financially precarious position if you are in an accident, but paying too much for insurance can be a struggle if you are on a budget. Understanding what you want and need from your insurance, getting quotes from several companies and employing cost-saving methods can help you find the coverage you need at a price you can afford.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 23-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated based on 23-year-old drivers on their own policy (renters).