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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 |
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.
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.
INSURANCE AGENT EXPERTS
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
DATA SOURCES
Way.com’s Insurance Broker Quote Data
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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