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A Clear Guide to All-Things-Insurance for a 23-Year-Old

Driving is, without a doubt, a liberating experience. Once upgraded from being a teen driver, it also becomes the time for you to take care of your car insurance. But, if you are below 25 years of age, finding affordable car insurance is still an arduous task. We give you a comparative study of insurance rates across companies and states, differences in insurance rates according to gender, cheapest available insurance rates, rental insurance, and hacks to save on your insurance.

Companies Offering Cheap Car Insurance for 23-Year-Olds

A 23-year-old driver does not experience the drop in insurance premium that a 25-year-old is eligible for. Insurance companies still categorize them as risk, despite charging them less than 16-year-olds. Car insurance companies review your location, driving history, marital status, credit history, car type, and the coverage you choose to determine your insurance rates.

The average insurance amount paid by a 23-year-old driver is $341 per month, which is $4092 on average for full coverage.

Company Monthly Full Coverage Rate Annual Full Coverage Rate
Nationwide $139 $1670
Progressive $150 $1800
Erie $158 $1896
Travelers $178 $2138
Allstate $228 $2740
Statefarm $258 $3100

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State Wise Auto Insurance for 23-Year-Olds

The different regulations posed by the states, the impact of natural hazards, frequency of accident rates can all play a role in your insurance premium based on where you are located.

State Annual Full Coverage Rate
Alabama $2748
Alaska $2463
Arizona $2405
Arkansas $2953
California $3070
Colorado $3022
Connecticut $2552
Delaware $2693
Florida $3961
Georgia $3,215
Hawaii $1278
Idaho $1801
Illinois $2393
Indiana $2135
Iowa $1913
Kansas $2681
Kentucky $3655
Louisiana $4182
Maine $1426
Maryland $2736
Massachusetts $1633
Michigan $3831
Minnesota $2450
Mississippi $2620
Missouri $2676
Montana $2766
Nebraska $2628
Nevada $3364
New Hampshire $1912
New Jersey $2824
New Mexico $2249
New York $3360
North Carolina $1546
North Dakota $1858
Ohio $1838
Oklahoma $2745
Oregon $2068
Pennsylvania $2593
Rhode Island $2830
South Carolina $2353
South Dakota $2385
Tennessee $2207
Texas $2966
Utah $2086
Vermont $1917
Virginia $2104
Washington, D.C. $2772
West Virginia $2376
Wisconsin $1819
Wyoming $2238

Gender-Based Insurance Rates for 23-Year-Olds

Statistics show that male drivers are more prone to accidents and traffic violations than females and hence pay higher insurance premiums. Though gender plays a prominent role in your insurance premium rates, states like California, Hawaii, Massasuchets, Michigan, Montana, North Carolina, and Pennsylvania do not consider gender as a rating factor. While a 23-year-old male driver pays $350 monthly, a female driver belonging to the same age group pays $332 monthly.

Company-wise Average Annual Full Coverage Rate

Company Average Annual Full Coverage Rate
Female Male
Progressive $2107 $2272
Allstate $2500 $2736
State Farm $1740 $1890
Erie $1717 $1896
Travelers $2043 $2232
Nationwide $1500 $1670

State and Gender-wise Average Annual Full Coverage Rate

State Female Male
Alabama $2258 $2938
Alaska $2256 $2269
Arizona $2298 $2512
Arkansas $2732 $3175
California $3065 $3055
Colorado $3222 $2823
Connecticut $2361 $2743
Delaware $2561 $2824
Florida $3769 $4153
Georgia $2932 $3498
Hawaii $1278 $1278
Idaho $1672 $1920
Illinois $2556 $2227
Indiana $1980 $2291
Iowa $1782 $2044
Kansas $2505 $2853
Kentucky $3383 $3919
Louisiana $3932 $4433
Maine $1315 $1536
Maryland $2508 $2956
Massachusetts $1632 $1635
Michigan $3833 $ 3829
Minnesota $2339 $2560
Mississippi $2407 $2833
Missouri $2489 $2859
Montana $2766 $2766
Nebraska $2092 $2439
Nevada $3170 $3559
New Hampshire $1733 $2090
New Jersey $2637 $3011
New Mexico $2118 $2380
New York $3142 $3572
North Carolina $1548 $1548
North Dakota $1724 $1992
Ohio $1697 $1976
Oklahoma $2592 $2894
Oregon $1973 $2163
Pennsylvania $2596 $2589
Rhode Island $2595 $3066
South Carolina $2194 $2511
South Dakota $2256 $2506
Tennessee $2044 $2370
Texas $2660 $3263
Utah $1952 $2221
Vermont $1775 $2058
Virginia $1928 $2276
Washington, D.C. $2574 $2971
West Virginia $2213 $2537
Wisconsin $1725 $1914
Wyoming $2005 $2470

Hacks to Save On Car Insurance

  • There are several applicable hacks to cut down on your insurance costs, including picking theright car, availing of appropriate discounts, and increasing your deductibles.
  • Regulate your coverage: If your car is less than $4000 or isn’t financed, it is wise to reconsider your comprehensive and collision coverage. In such a situation, carrying forward your liability coverage will be sufficient.
  • Watch your credit score: Your credit score has a significant impact on your car insurance. Insurance firms analyze the relationship between bad credit scores and filing hefty claims. Clients with poor credit scores pay higher premiums. Increasing your credit score can reduce your insurance premium rates by half.
  • Avail discounts: Car insurance companies offer good student and defensive driver discounts if you maintain good grades or attend courses on safe driving practices. Apart from this, bundling your home or pet insurance with your car insurance can earn you a multi-policy discount.
  • Choosing simple car models: Some models are cheaper to insure than others. Trading your car might be an unpopular measure, but it can help you reduce your insurance expenses.
  • Increase your deductibles: This may not be a cost-cutting measure for everyone. Though increased deductible limits may result in a lower premium, bear in mind that you will be responsible for the new, higher deductible in the event of a claim.
  • Remain on your parent’s policy: This can decrease the premium amounts because they qualify for discounts that a 23-year-old won’t, like homeowner’s discount or bundling discounts.

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Cheapest Cars for Auto Insurance for 23-Year-Olds

Less expensive cars can reduce the premium rates to a large extent. Here is a list of cars for 23-year-olds which will ensure affordable premiums.

Car Insurance Rates (average annual premium)
Toyota Tacoma $1411
Ford Explorer $1326
Nissan Sentra $940
Honda CR-V $1339
Subaro models $1333
Chevrolet Equinox $1462
Hyundai Elantra $1686
Jeep Compass $1345

Best Car Rental Company for 23-Year-Olds

Long road trips are essential in the timeline of a 23-year-old young driver. While driving your own car or taking a rental is a choice, rental car insurance is not to be taken lightly. A valid driving license, a valid debit or credit card are required for renting a car.

National Car Rental, Hertz, Avis, Budget Rent a Car, Advantage, Fox, and Payless are among the best car rental companies for 23-year-olds, aiding your rejuvenating drives, long or short.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

Frequently Asked Questions

What is the average car insurance rate of a 23-year-old?

The average cost of car insurance for a 23-year-old is $341 per month for full coverage.

How much is the car insurance for a 23-year-old male?

Though a few states do not consider gender as a rating factor, 23-year-old males pay $350 monthly on an average of $18 more than females belonging to the same age group.

Is it true that vehicle insurance rates drop when you reach the age of 23?

Car insurance rates decrease and later stabilize with the increase in age. Compared to an 18-year-old, a 23-year-old will pay $287 less each month. A 23-year-old, on the other hand, will spend $62 more each month on average than a 25-year-old.

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Learn more by city and state for car insurance




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