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You're transitioning into adulthood, which means more benefits from your car insurance company.
Finding affordable car insurance under 25 years old can be difficult – especially if you’re a young male driver. The average 23-year-old male pays $1,053 for a 6-month car insurance policy in the US. Compared to the average rate, this is $318 more expensive. Let’s explore some cheap car insurance companies for 23-year-olds as well as some additional ways to save and discounts.
Using a profile outlined here, we discovered USAA and GEICO are the cheapest companies for a 23-year-old male. USAA will set you back $684 for a 6-month policy or $108 per month. If you do not qualify for USAA (you must be a military member or family), GEICO costs an average of $739 for a 6-month policy - $15 more per month.
|Car Insurance Provider||6-Month Premium|
If you’re a 23-year-old female, your rates 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.
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 quote, enter your zip code in below!
The best way to save is to follow our suggestion above and shop around as much as possible. Discounts and changing your coverage can only save you so much 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.
Most insurance companies will charge you for 3-5 years after you’ve filed a claim. Depending on the value of the damage, the surcharge could be greater simply paying for the damage yourself. If you’ve damaged your own vehicle, follow our steps before contacting your insurance company.
For example, you’ve backed into a pole and cause $1,000 worth of damage to your vehicle. You have a collision deductible of $500 and the average rate increase for an at-fault accident is $606 annually. Factoring in a 3-year accident surcharge and your deductible, you would end up paying $2,318 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.
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 coverage you do not need. Get an estimate for your vehicle by using Kelley Blue Book and NADA online.
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 would decrease your premium of 50%. Just another reason to keep your credit score high!
Car insurance with bad credit isn't a death sentence, see here for our guide.
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 of drivers and thus better clients. Often grouped together with a Defensive Driver Discount, you can expect an average savings of $119!
If you’re a student and would like more information on car insurance, see here.
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 a moderate vehicle and the same driver.
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 put your renter’s policy and your auto policy within the 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.
Telematics, or usage-based insurance, are in-vehicle devices which 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 insures.
|Progressive SnapShot||Average of $130|
|Allstate Drivewise||Average of 10-25%|
|State Farm Drive Safe & Save||Up to 15%|
|Nationwide SmartRide||Up to 40%|
|Liberty Mutual RightTrack||Average of 5-30%|
|Root Car Insurance||Varies|
For more information, see our in-depth guide here.
At the end of the day, your best bet for finding affordable car insurance at this age is to get quotes with as many companies as possible. A quote will not impact your credit score nor will it increase your current rate. If you’re interested in seeing rates from local and national companies, enter your zip code below to get started.
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