By the time you reach 23 years of age, you have likely gained several years of driving experience, which can result in more affordable auto insurance costs. The average cost of car insurance for 23-year-olds is $2,591 per year for full coverage. While this is quite a bit more than the national average cost of car insurance for full coverage, it is less than what insurance costs for teen drivers.
Bankrate leverages Quadrant Information Services to gather up-to-date rate information and gain insight into the insurance options for drivers of all ages. We analyzed the average cost of car insurance for 23-year-old drivers by gender and state, and reviewed the best and cheapest companies for this age group, based on available data. Our research might help you find coverage that fits 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 who have their own policy is $2,591 per year. Insurance companies view young adults as riskier to insure than older drivers since they do not have as much experience behind the wheel. Because of the increased risk, insurance companies charge young drivers a higher premium.
Average car insurance costs for 23-year-old males and females
In many states, your gender will impact how much you pay for car insurance coverage. Female drivers are statistically safer behind the wheel compared to their male counterparts, which results in lower auto insurance premiums.
Below are the national average annual full coverage car insurance premiums for 23-year-old males and females.
|Average annual full coverage premium for 23-year-old male||Average annual full coverage premium for 23-year-old female|
The national average annual full coverage car insurance premium for 23-year-old female drivers is 12% lower than it is for male drivers. However, gender is not the only consideration that car insurance companies use when determining rates. Where you live also plays a role in how much you will pay.
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 each state has different laws surrounding insurance, as well as different rates of accidents or natural disasters. Regional medical costs and the price of parts and labor for vehicle repairs can also impact how much full coverage insurance costs.
|State||Average annual full coverage premium for 23-year-old male||Average annual full coverage premium for 23-year-old female||Overall average annual full coverage premium|
*These states do not allow the use of gender as a rating factor.
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 company. We also reviewed each company’s discounts, coverages, policy features and third-party ratings.
It might be worth getting quotes from the following companies if you are looking for the best car insurance for 23-year-old drivers:
Average annual full coverage premium by gender
|Car insurance company||23-year-old males||23-year-old females||Overall average|
On average, USAA is one of the cheapest car insurance companies for 23-year-old drivers. However, USAA only insures past and current military personnel 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.
Learn more: USAA Insurance review
Geico’s extensive list of discounts might appeal to you if you are looking for cheap coverage but do not qualify for USAA. Taking advantage of discounts for safety equipment, good students, newer vehicles and defensive driving can maximize a younger driver’s savings on car insurance. Geico also has a highly-functional app that just won the top spot in the J.D. Power 2021 U.S. Insurance Digital Experience Study for the Service category, meaning that most customers are highly satisfied with the functionality of the app for handling their insurance needs.
Learn more: Geico Insurance review
Progressive is 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. 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. Your premiums are discounted based on your driving activity, although drivers deemed high-risk by the program could see a premium increase.
Learn more: Progressive Insurance review
Travelers might have the 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 rate. Travelers might be a good choice for 23-year-olds wanting a highly customizable 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.
Learn more: Travelers Insurance review
Cheapest car insurance for 23-year-olds
For many, finding cheap auto insurance is a priority. Several 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.
|Car insurance company||Average annual full coverage premium for 23-year-old males||Average annual full coverage premium for 23-year-old females||Overall average annual full coverage premium|
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 save. Shopping around, choosing a financially appropriate car, taking advantage of discounts and increasing your deductibles can all save you money on your insurance costs.
Every car insurance company has its own method of rating policies. For example, one car insurance company might charge you more heavily for a speeding ticket than another. 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.
Consider the vehicle you drive
Some cars are simply cheaper to insure. Selling or trading your car may be a drastic measure, but if you need to lower your insurance costs, you may want to consider a car that will cost less to insure. It is important to get quotes for a vehicle before you purchase it. This way, there are no financial surprises and you can factor the insurance costs of a car into your overall financial plan.
Take advantage of discounts
Discounts are a great way to lower your car insurance premium, and most companies offer at least a few auto insurance discounts. Although discounts will vary by company, common savings opportunities include insuring more than one policy with the same company, driving low annual mileage, participating in a telematics program and being a good student.
Raise your deductible
If you have full coverage, your policy has two deductibles, one for comprehensive and one for collision. If you file a claim for damage to your vehicle, you will pay your applicable deductible. If you increase one or both of your deductibles, your premium generally will go down. Just make sure you can afford to pay your deductible if you do file a claim for vehicle damage.
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
What is the best car insurance company?
The best car insurance company depends on the type of coverage you need and what you specifically want from an insurance company. To find the best car insurance company for your needs, it is a good practice to get quotes from several companies to compare prices, coverage options and discounts.
How much is car insurance for a 23-year-old?
The average annual cost of car insurance for 23-year-old drivers is $2,591 for full coverage. However, since each driver has a unique set of circumstances, prices will vary. You may pay more or less depending on factors like the state you live in, the type of car you drive, your driving history and your coverage choices.
How much insurance do 23-year-olds need?
Determining how much car insurance you need involves thinking about your overall financial situation. You will not be able to purchase lower than your state’s minimum required coverages. If you have a loan or lease, you will likely be required to carry full coverage. Working with a licensed agent to determine the appropriate levels of coverage, which optional coverages to buy and what discounts and policy features to take advantage of can be helpful.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all 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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 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.
Gender: the following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania.
Age: Rates were calculated based on 23-year-old drivers on their own policy (renters).