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Car insurance for 23-year-olds

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Drivers with more years of experience typically benefit from lower rates. By the time you reach 23 years of age, you’ll likely have more experience, especially if you started driving at 16 years old. 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 and younger adults.

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 who have their own policy is $2,591 per year. 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 costs for 23-year-old males and females

In most 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, having less accidents and accident severity than adult men and teen boys, which typically results in lower auto insurance premiums for women.

Below are the national average annual full coverage car insurance premiums for 23-year-old males and females on their own policy who rent — rather than own — their own home. While other personal rating factors such as your driving history, claims experience and geographic location influence your insurance premium, the following averages may be useful for the sake of comparison.

Average annual full coverage premium for 23-year-old male Average annual full coverage premium for 23-year-old female
$2,733 $2,446

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 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.

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
Alabama $2,932 $2,552 $2,742
Alaska $2,663 $2,250 $2,457
Arizona $2,506 $2,292 $2,399
Arkansas $3,169 $2,726 $2,947
California* $3,069 $3,059 $3,064
Colorado $3,216 $2,817 $3,016
Connecticut $2,737 $2,356 $2,546
Delaware $2,818 $2,555 $2,687
Florida $4,147 $3,763 $3,955
Georgia $3,492 $2,926 $3,209
Hawaii* $1,272 $1,272 $1,272
Idaho $1,914 $1,666 $1,795
Illinois $2,550 $2,221 $2,387
Indiana $2,285 $1,974 $2,129
Iowa $2,038 $1,776 $1,907
Kansas $2,847 $2,499 $2,675
Kentucky $3,913 $3,377 $3,649
Louisiana $4,427 $3,926 $4,176
Maine $1,531 $1,309 $1,420
Maryland $2,950 $2,502 $2,732
Massachusetts* $1,626 $1,629 $1,627
Michigan* $3,823 $3,827 $3,825
Minnesota $2,554 $2,333 $2,444
Mississippi $2,827 $2,401 $2,614
Missouri $2,853 $2,483 $2,670
Montana* $2,760 $2,760 $2,760
Nebraska $2,433 $2,086 $2,262
Nevada $3,553 $3,164 $3,358
New Hampshire $2,084 $1,727 $1,906
New Jersey $3,005 $2,631 $2,818
New Mexico $2,374 $2,112 $2,243
New York $3,566 $3,136 $3,354
North Carolina* $1,542 $1,542 $1,542
North Dakota $1,986 $1,718 $1,852
Ohio $1,970 $1,691 $1,832
Oklahoma $2,887 $2,586 $2,739
Oregon $2,157 $1,967 $2,062
Pennsylvania* $2,583 $2,590 $2,586
Rhode Island $3,060 $2,589 $2,824
South Carolina $2,505 $2,188 $2,347
South Dakota $2,500 $2,250 $2,379
Tennessee $2,364 $2,038 $2,201
Texas $3,258 $2,654 $2,960
Utah $2,215 $1,946 $2,080
Vermont $2,052 $1,769 $1,911
Virginia $2,268 $1,922 $2,098
Washington $2,027 $1,747 $1,887
Washington, D.C. $2,965 $2,568 $2,766
West Virginia $2,531 $2,207 $2,370
Wisconsin $1,908 $1,719 $1,813
Wyoming $2,464 $1,999 $2,232

*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 country. We also reviewed each company’s discounts, coverages, policy features, third-party ratings, customer service scores and financial strength ratings.

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:

Average annual full coverage premium by gender

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
Geico $2,005 $1,845 $1,926
Progressive $2,266 $2,101 $2,184
Travelers $2,226 $2,037 $2,132
USAA $1,797 $1,655 $1,727

Geico

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 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. However, Geico does not offer gap insurance. If you’re looking for this type of coverage, you may want to opt for another carrier.

Learn more: Geico Insurance review

Progressive

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. 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

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.

Learn more: Travelers Insurance review

USAA

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.

Learn more: USAA 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.

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
USAA $1,797 $1,655 $1,727
Erie $1,912 $1,728 $1,821
Geico $2,005 $1,845 $1,926
Nationwide $2,158 $1,962 $2,060
State Farm $2,211 $1,957 $2,085

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

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. Some things to think about could be the level of accessibility you prefer, whether it is through a mobile app or a local insurance agent, as well as the policy options and available discounts. Though it may take a little extra effort, it is a good practice to get quotes from several companies to compare prices, coverage options and discounts to find the right car insurance for you.

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 in regards to rating factors, 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, your credit-based insurance score (in most states), your claims history and your coverage choices. Many states also allow insurers to use gender as a rating factor, with female 23-year-old drivers paying less than male 23-year olds.

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. Insurance experts recommend you purchase more coverage than your state’s minimum levels to be financially protected from substantial losses.

Which discounts might apply to 23-year-olds?

23-year-olds typically contend with high insurance premiums due to their limited experience behind the wheel. The best car insurance discounts on the market may help bring your premium down. To start, you may want to explore student discounts, which typically apply to drivers under the age of 25 who are enrolled in classes. If you’re a safe driver, you may want to look into usage-based telematics programs, which track your driving in real time and reward you for safe driving habits. Insurance companies offer several more discounts. Likely, the easiest way to figure out which discounts apply to you is to speak with a licensed insurance agent.

Methodology

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 coverage that meets 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: Seven states prohibit insurers from using gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.

Age: Rates were calculated based on 23-year-old drivers on their own policy (renters).

Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by
Insurance Editor
Reviewed by
Director of corporate communications, Insurance Information Institute