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Car insurance for 23-year-olds
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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 $3,419 per year for full coverage and $933 per year for minimum coverage. These rates are higher than the national average cost of car insurance, which is $2,314 per year for full coverage and $644 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. To account for the added risk of insuring a younger driver, many insurers charge higher rates.
However, this is not the case in every state. In Hawaii and Massachusetts, insurance companies are not permitted to take your age into account when calculating your rate.
Average car insurance cost for 23-year-olds by state
In addition to age, 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. The potential impacts of weather hazards and other natural disasters on driving conditions and accident frequency are also considered. In addition, regional medical costs and the price of parts and labor for vehicle repairs can 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 |
|---|---|
| Alabama | $3,335 |
| Alaska | $3,527 |
| Arizona | $3,794 |
| Arkansas | $3,086 |
| California | $3,824 |
| Colorado | $4,143 |
| Connecticut | $3,550 |
| Delaware | $3,548 |
| Florida | $5,200 |
| Georgia | $3,966 |
| Hawaii* | $1,762 |
| Idaho | $2,103 |
| Illinois | $3,265 |
| Indiana | $2,645 |
| Iowa | $2,578 |
| Kansas | $3,707 |
| Kentucky | $4,077 |
| Louisiana | $5,400 |
| Maine | $2,456 |
| Maryland | $3,900 |
| Massachusetts* | $2,160 |
| Michigan | $4,277 |
| Minnesota | $3,191 |
| Mississippi | $3,144 |
| Missouri | $3,771 |
| Montana | $3,560 |
| Nebraska | $3,170 |
| Nevada | $4,442 |
| New Hampshire | $2,700 |
| New Jersey | $3,747 |
| New Mexico | $3,383 |
| New York | $5,089 |
| North Carolina | $1,923 |
| North Dakota | $2,446 |
| Ohio | $2,396 |
| Oklahoma | $3,808 |
| Oregon | $2,738 |
| Pennsylvania | $3,966 |
| Rhode Island | $4,332 |
| South Carolina | $2,784 |
| South Dakota | $2,886 |
| Tennessee | $3,016 |
| Texas | $3,994 |
| Utah | $3,153 |
| Vermont | $2,192 |
| Virginia | $3,014 |
| Washington | $2,525 |
| Washington, D.C. | $3,650 |
| West Virginia | $2,895 |
| Wisconsin | $2,590 |
| Wyoming | $2,564 |
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, coverage options, policy features, third-party ratings, customer satisfaction 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 it 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 | 4.4 | $623 | $2,367 |
| Progressive | 4.4 | $845 | $3,030 |
| USAA | 4.2 | $626 | $2,480 |
| Travelers | 4.2 | $726 | $2,584 |
Geico’s extensive list of discounts might be appealing if you are looking for cheap coverage. Its lengthy list of discounts helped it tie for two 2024 Bankrate Awards — Best Auto Insurance Company Overall and Best Budget Auto Insurance Company — and take the title of Best Auto Insurance Company for Young Drivers. Taking advantage of discounts, such as those for having certain vehicle safety equipment, getting good grades, owning a newer vehicle or taking a defensive driving course, could maximize a young driver’s savings on car insurance. Geico also has a highly functional app and scored well in the J.D. Power 2023 U.S. Insurance Digital Experience Study in the service 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 if it is totaled in a covered accident. If you’re looking for this type of coverage, you may want to opt for another carrier.
Progressive may have the highest full coverage premium on our list but the company could 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 above average in the shopping and service categories in J.D. Power’s digital experience study, too.
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.
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 could be extended to safe drivers, those with low annual mileage and vehicle owners who are temporarily storing their cars. 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.
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 coverage types, 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.
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 |
|---|---|---|
| NJM | $920 | $2,008 |
| American Family | $871 | $2,641 |
| Geico | $623 | $2,367 |
| Auto-Owners | $674 | $2,457 |
| USAA | $626 | $2,480 |
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, the coverage you choose and more 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 rates and choose a company that most closely fits your needs and budget.
- Consider the vehicle you drive: Some makes and models are simply cheaper to insure. Selling or trading in 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 purchasing more than one insurance product from the same company (such as auto and home or renters insurance), limiting your 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 insurance. Increasing these deductibles 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. Therefore, 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
Methodology
Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-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 2022 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).
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
