Cheap Car Insurance for 23-Year-Olds

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Car insurance for 23-year-olds

Finding affordable car insurance as a young driver under 25 years old can be difficult — especially if you’re a young male driver. The average 23-year-old male pays $1,023 in insurance premium for a six-month car insurance policy in the US. Compared to the average rate, this is $249 more expensive. Let’s explore some cheap car insurance companies for 23-year-olds — as well as auto insurance rates from popular companies — and some additional ways to save and discounts.

  1. Cheap car insurance companies for 23-year-olds: male and female
  2. Additional ways to save
  3. Related content

 

Cheapest companies for 23-year-old males

Using a profile outlined here, we discovered USAA and State Farm are the cheapest companies for a 23-year-old male. USAA will set you back $902 in car insurance cost for a six-month policy or $150 per month. If you do not qualify for USAA (you must be a military member or family of one to qualify) State Farm costs an average of $1,158 for a six-month policy — $43 more than USAA per month.

 

Average car insurance rates for a 23-year-old male
Car insurance provider6-Month premium
Allstate$1,847
Farmers$1,420
GEICO$1,337
Liberty Mutual$2,770
Nationwide$1,459
Progressive$1,278
State Farm$1,158
USAA$902

 

Cheapest companies for 23-year-old females

If you’re a 23-year-old female, the average cost for insurance will actually be slightly cheaper than the rates we displayed above. Because of their risk profile, young female drivers are charged less for car insurance than men. For more information, see here.

On average, a 23-year-old woman will pay almost $200 less in car insurance premiums per six-month policy than her male equivalent. While USAA was again the cheapest option, not everyone can qualify. Consider starting your search for auto insurance with State Farm — which is $32 more per month than USAA.


Average car insurance rates for a 23-year-old female
Car insurance provider6-Month premium
Allstate$1,611
Farmers$1,220
GEICO$1,253
Liberty Mutual$2,224
Nationwide$1,283
Progressive$1,171
State Farm$1,018
USAA$825

This data is reflective of a very generalized profile throughout the US and should only be considered directionally. If you’re looking for a personalized free quote, enter your zip code below!

 

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Additional ways to save on car insurance

The best way to save is to follow our suggestion above and shop around as much as possible, in addition to maintaining a clean driving record. Discounts and changing your coverage can only save you so much in premium. More often than not, you’re paying too much money on car insurance because your company is overpriced. Still, there are some tips we should outline.

 

Avoid claims

Most insurance companies will charge you for three to five years after you’ve filed a claim. Depending on the value of the damage, the surcharge could be greater than simply paying for the damage yourself. If you’ve damaged your own vehicle, follow our steps before contacting your insurance company.

  1. Get a cost estimate for the damage independently.
  2. Use The Zebra's State of Insurance analysis to see how much an at-fault accident would raise rates in your state. Again, consider this surcharge for over three years.
  3. Compare the three-year surcharge value plus your deductible to the out-of-pocket expenses you learned in step one. If it is cheaper to pay for your claim out-of-pocket, do just that instead of going through insurance and facing a rate increase.

For example, you get into a car accident and cause $1,000 worth of property damage to your vehicle. You have a collision deductible of $500 and the average rate increase for an at-fault accident where the damage amounts to between $1,000-$2,000 is $686 annually. Factoring in a three-year accident surcharge and your deductible, you would end up paying $2,558 for a claim that would only cost $1,000 to repair out-of-pocket. In this sense, it would cost you more overall to file a claim.

For more information on whether or not to file a claim, see here.

 

Adjust your coverage

If your vehicle is worth less than $4,000, consider if you need comprehensive and collision coverage. These coverages are designed to protect the physical integrity of your vehicle. However, if your vehicle isn’t particularly valuable, you could be paying for insurance coverage you do not need. It may be sufficient to only carry liability coverage. Get an estimate for your vehicle by using Kelley Blue Book and NADA online.

 

Be mindful of your credit score

Whether you know it or not, your credit score has a major impact on what you pay for car insurance. Insurance companies see a correlation between a poor credit score and proclivity for filing costly claims. As such, they charge higher premiums for clients with poor credit. On average, if you can improve your credit score from Poor to Excellent you can decrease your premium by more than double what you were paying. Just another reason to keep your credit score high!

Premiums by Credit Score.png

Finding cheap car insurance with bad credit is difficult, but not always a death sentence. See more info here for our guide.

 

Keep your grades up

If you’re still in college and have above a 3.0 GPA, you should look into getting what’s called a Good Student Discount. Insurance companies see students with above B averages as less risky drivers and thus better clients. Often grouped together with a Defensive Driver Discount, you can expect an average savings of $119!

Age

MaleFemale
22$176$103
23$151$88
24$135$78


Learn more about popular car insurance discounts.

 

Avoid high-value vehicles

It’s important to consider the relationship you and your vehicle have in terms of auto insurance. Pairing a risky driver with a high-value vehicle is always going to be more expensive than if the same driver drove a more moderate vehicle. While you don't need to opt for the cheapest car possible, driving something like a modest lightly-used sedan will help you cut down the cost of car insurance.

Vehicle-type6-Month premium
Hybrid$1,055
Luxury$1,045
SUV$967
Truck$865
Van$844
Cars$1,137

 

Look for discounts

There are many discounts that can help save money as a 23-year-old. Let’s break them down.

 

Defensive driver discount

This discount is offered to those taking a professional driving course. It's aimed at making you a smarter and better driver. Again, you would need to prove you have completed the course prior to receiving the discount.

 

Bundle your policies

If you rent a house or apartment, you should bundle your renter’s policy and your auto policy with the same company in order to earn a multi-policy discount. This is a great way to reduce the number of insurance companies you have to deal with and save a few bucks. For more information on renters insurance, see here.

Premiums by Bundle Status.png

 

Consider telematics

Telematics, or usage-based insurance, are in-vehicle devices that use the way you drive to determine your premium. In theory, if you’re a safe driver (no harsh braking, rapid acceleration, etc.), you can earn a discount on your premium. Below are some advertised discounts by popular insurers.

Program 
Average savings
Progressive SnapShotAverage of $130
GEICO DriveEasyVaries
Allstate DrivewiseAverage of 10-25%
State Farm Drive Safe & SaveUp to 15%
Esurance DriveSenseVaries
Nationwide SmartRideUp to 40%
Liberty Mutual RightTrackAverage of 5-30%
Root Car InsuranceVaries
MetromileVaries


For more information, see our in-depth guide on telematics programs here.

 

Car insurance for 23-year-olds: to summarize

At the end of the day, your best bet for finding affordable rates at this age is to compare car insurance quotes with as many companies as possible. Getting quotes will not impact your credit score nor will it affect your current rate. If you’re interested in seeing rates from local and national auto insurance companies, enter your zip code below to get started.

 

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Recent Questions:

Cheap Car Insurance for 23-Year-Olds

Will having historical plates on my car lower the cost of insurance?

If you are going to have historical or classic plates you are going to fall into special types of plans. Personal auto plans that most companies offer will not adequately cover what you need.

Can I limit to children to only drive the cheapest vehicle?

California operates under a "rated driver" pricing system in auto insurance. Basically, all drives must be "rate" to a particular vehicle.

If I'm on social security can that lower my car insurance

Unfortunately, your income isn't a rating factor for your car insurance. While there are some programs that can help you, outlined here, I don't know any based in Louisiana.

Cheapest car for 16 year old male

Car insurance is incredibly specific - it can change based on your zip code and the VIN of your vehicle. So, it's going to be near impossible for me to give the company or car that will be the cheapest.

Ava Lynch LinkedIn

Based in Austin, TX, Ava has been in the insurance industry as a licensed agent for 4-plus years. Ava is currently one of The Zebra’s resident property insurance experts and has been featured in publications such as US News Report, GasBuddy, and Yahoo! Finance.