Cheap Car Insurance for 23-Year-Olds

You're transitioning into adulthood, which means more benefits from your car insurance company.

Location pin icon
Your information is secure.

Car insurance for 23-year-olds

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.

  1. Cheap car insurance companies for a 23-year-old
  2. Additional ways to save
  3. Related content

 

Cheapest companies for 23-year-old males

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 Provider6-Month Premium
Allstate$1,375
Farmers$1,033
GEICO$739
Liberty Mutual$1,383
Nationwide$820
Progressive$1,156
State Farm$1,271
USAA$648

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!

 

Compare over 200 insurance companies at once!

Location pin icon

 

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. 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.

 

Avoid claims

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.

  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 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 that.

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.

 

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 coverage you do not need. 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 would decrease your premium of 50%. Just another reason to keep your credit score high!

chart of credit score

Car insurance with bad credit isn't a death sentence, see 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 of 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


If you’re a student and would like more information on car insurance, see here.

 

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 a moderate vehicle and the same driver.

Vehicle-Type6-Month Premium
Hybrid$727
Luxury Car$809
SUV$630
Truck$681
Van$612
Cars$685

 

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 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.

chart by bundle status

Consider telematics

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.

Program 
Average Savings
Progressive SnapShotAverage of $130
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 here.

 

Car insurance for 23-year-olds

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.

 

Compare over 200 insurance companies at once!

Location pin icon

Recent Questions:

Cheap Car Insurance for 23-Year-Olds

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

Dec 14, 2018
Location pin iconRedwood City, CA

I have 3 cars and 2 children 18and 16, can I limit the car insurance to just one car and ...

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

Jun 17, 2018
Location pin iconMatairie, LA

If I get social security check every month is there help with getting car insurance?...

Cheapest car for 16 year old male

May 19, 2018
Location pin iconVancouver, WA

What would the cheapest insurance be for me? I’m a 16 year old male, decent grades, mostly A’s and B’s. ...

What’s the cheapest company for a 60 year old man with a DUI

Mar 06, 2018
Location pin iconPhiladelphia, Pennsylvania

I’m looking for a cheap company for my recent DUI conviction as well as a company that I can bundle ...