A 23-year-old driver is often charged more for car insurance than an older driver because auto insurers deem these more-inexperienced drivers higher risk. But young drivers shouldn't have to break the bank to insure their cars.
Insurance.com gathered insurance rates from various companies to help you find affordable car insurance.
The cheapest car insurance for 23-year-olds is available from American National Finance, which offers insurance rates for this age group at about $99 a month, according to a 2022 Insurance.com analysis.
Young drivers can find affordable car insurance rates by shopping around and comparing quotes from different insurance companies. In fact, you can save up hundreds on your auto insurance by comparison shopping.
To help educate 23-year-old drivers on what insurance costs, Insurance.com analyzed price quotes from multiple carriers and put together this guide to help them find quality car insurance at affordable rates.
Key takeaways
- A 23-year-old driver pays about $2,520 per year for a full coverage car insurance policy, based on the profile of a 23-year-old male driver.
- As per the Insurance.com rate analysis, American National Finance has the cheapest car insurance rates at about $1,186 per year for 23-year-olds.
- At $1,058 a year and $1,315 annually, American National Finance offers the cheapest car insurance for a 23-year-old female and male drivers, respectively.
- 23-year-old drivers can lower their car insurance rates by maintaining a clean driving record, shopping around, and taking advantage of any available discounts.
- How much is car insurance for 23-year-olds?
- Cheap car insurance for 23-year-olds
- Cheapest car insurance for 23-year-old: male vs female
- Why do 23-year-olds pay so much for car insurance?
- How to save money on car insurance as a 23-year-old?
- Final thoughts: car insurance for 23-year-olds
- Methodology
- Related articles
How much is car insurance for 23-year-olds?
A 23-year-old driver pays about $2,520 per year for a full coverage car insurance policy, based on the profile of a 23-year-old male driver. Whereas liability-only coverage costs $914 a year for a 23-year-old male driver, according to Insurance.com research.
However, rates can vary significantly depending on where you live, your driving record, the type of car you drive, and your coverage level. Therefore, it's important to compare rates from multiple insurers to make sure you're getting the best deal possible.
Cheap car insurance for 23-year-olds
Based on Insurance.com rate analysis, American National Finance has the cheapest car insurance rates at about $1,186 per year for 23-year-olds.
Geico is second on our list with an average annual rate of $1,670 a year and Nationwide comes in third at an average annual insurance cost of $1,715 for a 23-year-old driver.
Below is a list of insurance companies and the average premium they charge 23-year-old drivers.
| Company | Average Annual Premium |
|---|---|
| American National Finance | $1,186 |
| Geico | $1,670 |
| Nationwide | $1,715 |
| American Family | $1,840 |
| Erie Insurance | $1,957 |
| Travelers | $2,007 |
| State Farm | $2,048 |
| Auto Owners | $2,108 |
| Western National Mutual | $2,388 |
| Vermont Mutual | $2,398 |
| Progressive | $2,428 |
| Farmers | $2,615 |
| Allstate | $2,749 |
| Shelter Insurance | $2,999 |
| Country Insurance | $3,015 |
| National General Insurance | $3,021 |
| Auto Club | $3,152 |
| CSAA Insurance | $3,260 |
| Mercury Insurance | $3,301 |
| The Hartford | $3,423 |
| Westfield Insurance | $3,672 |
| Mapfre Insurance | $3,721 |
| Chubb Ltd | $3,793 |
| Safeway Insurance | $3,836 |
| The Hanover Insurance | $6,785 |
Cheapest car insurance for 23-year-old: male vs female
When it comes to car insurance, 23-year-olds face higher insurance rates than adult drivers. Also, there's a difference between what male and female drivers pay.
For instance, American National Finance has the cheapest rates for both 23-year-old male and female drivers. The insurance rate for a 23-year-old is $1,058 a year for female drivers, but male drivers pay $1,315 per year on average for the same coverage.
Some states forbid car insurance companies to use gender to calculate insurance rates. However, young male drivers across the country still end up paying slightly higher insurance premiums than females.
A male 23-year-old pays 8% more than female drivers for car insurance on average. This is because male drivers are seen as a greater risk by insurers. Men usually drive more miles than women and are more likely to not wear seat belts, drive impaired and speed, according to the Insurance Institute for Highway Safety.
The table below shows a list of companies that offer cheap auto insurance rates to 23-year-old males and females.
| Company | Average Annual Rate for Female Drivers | Average Annual Rate for Male Drivers |
|---|---|---|
| American National Finance | $1,058 | $1,315 |
| Geico | $1,640 | $1,699 |
| Nationwide | $1,646 | $1,783 |
| American Family | $1,792 | $1,888 |
| Erie Insurance | $1,849 | $2,065 |
| State Farm | $1,928 | $2,168 |
| Travelers | $1,940 | $2,074 |
| Auto Owners | $2,046 | $2,170 |
| Western National Mutual | $2,235 | $2,542 |
| Vermot Mutual | $2,241 | $2,555 |
| Progressive | $2,347 | $2,509 |
| Farmers | $2,523 | $2,706 |
| Allstate | $2,623 | $2,876 |
| Shelter Insurance | $2,878 | $3,119 |
| Auto Club | $2,937 | $3,366 |
| Country Insurance | $2,978 | $3,052 |
| Chubb Ltd | $2,984 | $4,601 |
| National General Insurance | $2,994 | $3,047 |
| Mercury Insurance | $3,097 | $3,505 |
| Westfield Insurance | $3,161 | $4,183 |
| CSAA Insurance | $3,214 | $3,306 |
| The Hartford | $3,377 | $3,469 |
| Mapfre Insurance | $3,407 | $4,035 |
| Safeway Insurance | $3,499 | $4,172 |
| The Hanover Insurance | $6,301 | $7,269 |
Why do 23-year-olds pay so much for car insurance?
You can expect your car insurance rates to go down as you get older and gain more experience behind the wheel. However, 23-year-olds are still considered relatively inexperienced or rookie drivers, so they tend to pay more for coverage than older drivers.
But if you're looking to save money on your car insurance, you can do a few things, such as taking a defensive driving course or bundling your policy with other types of insurance.
How to save money on car insurance as a 23-year-old?
Many insurance companies are now offering discounts to young drivers who maintain good grades and have no accidents or moving violations on their records. However, there are a few other things that 23-year-olds can do to get even cheaper rates:
- Shop around: The best way to save money on car insurance is by shopping around and comparing rates from different companies.
- Enroll in a driving course: Young drivers can lower their car insurance rates by taking a defensive driving course.
- Take advantage of any discounts: Most car insurance companies offer discounts to students who get good grades.
- Keep your driving record clean: Avoiding traffic tickets or accidents and keeping your driving record clean in your 20s is an easy way to get lower insurance rates and save on your policy.
- Drive a safe and reliable vehicle: Young drivers are inexperienced and should avoid driving fancy sports cars. It costs more to insure a high-end car, such as a Mercedes or BMW, than it does to cover an average sedan.
Final thoughts: car insurance for 23-year-olds
It's not easy to find car insurance for a 23-year-old. After all, most young drivers might be still in college or working low-paying jobs. Seeing rates near $2,520 can be jarring.
Shopping around can help 23-year-old drivers find affordable insurance for their cars. American National Finance Insurance provides the cheapest car insurance rates for male and female drivers. However, depending on your location, car's make and model, driver profile, and other factors, it may not always be the cheapest option. That's why comparison shopping is necessary.
Methodology
Insurance.com collected data from Quadrant Information Services for multiple insurance companies across the U.S. We used full coverage rates based on the sample profile of a 23-year-old driver with a clean driving record and for the coverage limit of 100/300/100, which represents $100,000 for bodily injury per person, $300,000 for bodily injury per accident and $100,000 for personal property damage.
To be on the list, the company must provide its services in at least ten states. You can use these averages to compare companies based on price, but your insurance rates may vary.
Sources:
- Insurance Information Institute "How to save money on car insurance." Accessed June 2022
Related articles
Insurance.com has prepared in-depth car insurance guides for drivers of different ages. You will learn how much you expect to pay for insurance based on your age and how you can save on premiums each year. Check out the guides below:
- Car insurance rates for 16-year-old drivers
- Car insurance rates for 18-year-old drivers
- Car insurance rates for 20-year-old drivers
- Car insurance rates for 21-year-old drivers
- Car insurance rates for 22-year-old drivers
- Car insurance rates for 24-year-old drivers
- Car insurance rates for 25-year-old drivers
