23-year-old drivers are in a unique spot in life. Most are either starting their career, looking for their first apartment or house, or planning out the next stage of their life. There is a lot of change happening, and auto insurance usually isn’t the first thing that comes to mind. However, there are multiple opportunities available for 23-year-old drivers to find cheap car insurance.

Many providers offer discounts targeting 23-year-olds and often offer lower rates. This is especially true if you don’t mind shopping around a bit. 

Insurify makes the process of comparing and finding the best auto insurance quotes easy. Simply by answering a couple of questions, you will be able to quickly review and decide on the best car insurance for your current situation. 

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How does age affect car insurance rates?

Age plays a big role in determining how auto insurance companies might set your rates. Besides driving history, age is one of the major factors that helps a carrier decide your risk factor. Most insurance providers will use data gathered from drivers in the same age group to get an idea of how likely you will be to file a claim or commit a violation.

As you get older and gain more experience behind the wheel, most auto insurance companies will drop your rate, as long as you don’t have any citations or accidents on your record.  

How does gender affect car insurance rates?

Many factors play a role in determining auto insurance rates, including gender. Often, female drivers have lower rates than their male counterparts, especially under the age of 25. The main reason for the difference is the data that insurance companies use. Statistically, 23-year-old male drivers will take more risks behind the wheel compared to females drivers.

Since they are more likely to receive driving violations or be involved in accidents that require filing a claim, males drivers pay an average of 7 percent more for coverage. While this is the case for most states, not all states have the same rules. There are certain states, like Montana and Hawaii, that don’t allow insurers to use gender as a determining factor in calculating rates. 

How does location affect car insurance rates?

Similar to other groups of drivers, location can have a large impact on the car insurance costs a 23-year-old might pay. For instance, a driver in Hawaii pays on average $126 a month for coverage. However, young drivers in New York, California, and Michigan can pay more than $600 a month for auto insurance

Find out how age, gender, and location impact your car insurance rates by checking out Insurify’s car insurance estimator.

Best Car Insurance Companies for 23-Year-Olds

There are many auto insurance companies that offer competitive rates for 23-year-old drivers. Here are just a few you should consider when shopping for quotes. 


USAA offers some of the most affordable auto insurance plans for 23-year-old drivers. But in order to purchase a policy with USAA, you or a parent must either be currently in the military or have served in the past. If you do meet that criteria, then you will want to discuss their discount options with an agent as well. 

A few of the discounts that USAA offers to 23-year-old drivers include:

  • Safe driving discount
  • Good student discount
  • Defensive driving discount
  • Multi-vehicle discount
  • Discounts for bundling home and auto
  • Vehicle storage discount

Erie Insurance

Even though enrollment in an Erie Insurance auto coverage plan is limited to 13 states, drivers who are in qualifying regions should consider getting a quote from the provider. Its low, affordable coverage comes with unique services, such as locksmith coverage and a slew of discounts aimed at making coverage affordable. 

A few of the discounts that Erie Insurance offers to 23-year-old drivers include:

  • Reduced usage discount
  • New driver discount
  • Student discount
  • First accident forgiveness
  • Multi-policy discount
  • Erie Rate Lock
  • Diminishing deductible options


Almost every driver has heard of GEICO. The reputation of the company is centered around providing affordable coverage and excellent customer service. Along with a driver-focused approach, the company also offers discounts that can save drivers as much as 25 percent on monthly premiums.

A few of the discounts that GEICO offers to 23-year-old drivers include:

  • Multi-car discount
  • Good grades discount
  • Driving course discount
  • Membership- and organization-based discounts
  • Good driver discount


Progressive insurance is a great option for 23-year-old drivers who are looking for comprehensive coverage and an affordable rate. One of the unique things about Progressive is its Snapshot program. The program allows you to track your driving through a mobile device. If it determines you are a safe driver, you may be eligible for lower rates. 

A few of the discounts that Progressive offers to 23-year-old drivers include:

  • Teen driver discount
  • Good student discount
  • Snapshot Program
  • Multi-vehicle discount


23-year-old drivers who are looking to get coverage through a reputable company should make sure Travelers insurance is on the list. With a long-standing history of competitive rates and high customer service ratings, the company is a great choice for auto insurance. They also offer an extensive list of discounts to young drivers

A few of the discounts that Travelers offers to 23-year-old drivers include:

  • Multi-policy discount
  • Multi-car discount
  • Safe driver discount
  • Continuous insurance discount
  • Hybrid/electric vehicle discount
  • New car discount
  • Early quote discount
  • Good student discount
  • Student away discount

Cheapest Car Insurance Quotes for 23-Year-Olds

Finding affordable coverage as a 23-year-old driver can be difficult if you don’t know where to begin. Often, comparing quotes from multiple insurance companies is the best way to find the cheapest coverage. Here is a list of carriers that have a reputation for affordable quotes for young adults

Insurance Carrier Monthly Rates
Farmers 21st Century $122
Amigo USA $173
Clearcover $182
USH&C $185
Freedom National $203
Metromile $203
TSC $207
Anchor Motor Club $209
Motion Auto $215
First Chicago $216

To compare quotes from the companies in the chart above and other reputable carriers, try the Insurify comparison tool, which provides tailored insurance quotes from multiple companies that are customized for your profile. 

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Best Auto Insurance Discounts for 23-Year-Olds

To stay competitive in the marketplace, insurance agencies often offer several discounts to 23-year-old drivers. Since each company has its own criteria that must be met to qualify for certain discounts, it is important to speak with an insurance agent about your options. Most places will offer discounts for students, safe driving, or multiple vehicles. 

Good Student Discount

For 23-year-old drivers still in college, the good student discount is often one of the best ways to save money on monthly premiums. Depending on who your carrier is, you might be able to save as much as 25 percent for maintaining at least a B average in school. The only thing that is usually required is a document to prove you are a full-time student. 

Distant Student Discount

Students away at a college that is more than 100 miles from home might be eligible for the distant student discount. It is a great way to save money on premiums if you leave your vehicle at home or only use it during breaks and holidays. Parents who have students on their plan may also benefit from this discount. 

Other Discounts for 23-Year-Olds

Most insurance providers offer a variety of discounts, and it is always important to speak with a representative to make sure you are taking advantage of all the ones you qualify for. To get you started, we have listed the most common discounts you might want to consider when speaking with your carrier. 

Common Car Insurance Discounts 
Good Student Discount
Distant Student Discount
Defensive Driving Discount
Anti-Theft Device Discount
Multi-Vehicle Discount
Membership and Employee Discount
Reduced Usage Discount
Youthful Driver Discount
Low Mileage Discount

If you’ve recently graduated from college, check out our page on car insurance discounts for recent college graduates!

Car Insurance Tips for 23-Year-Olds

Most 23-year-old drivers have enough experience behind the wheel that insurance companies will begin to look at other factors when setting rates. That is one of the reasons why it is important for drivers to do everything they can to save money on auto insurance. Here are a couple of tips that could help you save on your next policy. 

Shop Around for Car Insurance

No matter your age, shopping around is often one of the best ways to find affordable coverage. Most drivers just take the rate that their current provider offers without reviewing quotes from other agencies. Unfortunately, this can lead to paying hundreds of dollars more throughout the course of the year for an auto insurance policy

Take Advantage of Discounts

Nearly all insurance carriers will offer discounts to drivers to help lessen the cost of car insurance. The actual discounts that are available will vary from company to company, and you will want to discuss your options with an insurance agent. Most companies, such as Allstate, State Farm, and Nationwide, will offer discounts for safe driving, multiple vehicles, and if you’re a homeowner.

Remain on Your Parents’ Policy

In most states, you can remain on your parents’ auto insurance policy for as long as you live at home or are going to school full-time. This can be a great way to get coverage because it will often be less expensive for you and can even give your parents a discounted rate on the policy for having multiple vehicles. 

Drive a Safer Car

Most insurance companies base car insurance premiums on risk, which means driving a safer car might lead to a lower average car insurance rate. Vehicles such as sedans have a wonderful safety rating and often cost less to insure than a sports car. You can also add things to your vehicle to make it safer, like anti-theft devices, which may allow you to get cheaper rates as well. 

Drive an Older Car

Older vehicles can be a great option for 23-year-old drivers. Not only are they easier to maintain, but they can often be cheaper to insure than newer cars. Since most older cars are less valuable, you don’t need to carry as much insurance on them. Speaking with your local agent about dropping collision coverage could be another way to save money on your coverage. 

Select a High-Deductible Plan

High-deductible plans are a great alternative for motorists who don’t want to pay a high monthly premium. With these types of policies, drivers receive a lower monthly rate and in turn agree to pay more out of pocket for repairs that are needed from any accidents. 

Keep a Clean Driving Record

Keeping a clean driving record is often the best way to obtain a lower insurance rate. For 23-year-old drivers who have been driving since they were 16, a clean driving record proves to carriers that they drive safely. A clean driving record also means that an insurance company assumes less risk when extending a policy. 

Maintain a Good Credit Score

Many drivers don’t realize it, but a good credit score can go a long way to lowering insurance rates. By maintaining a good credit score, you may get a lower rate from insurance companies because you are more likely to make your payments on time and your policy won’t lapse. 

Most Expensive States for Car Insurance for 23-Year-Olds

On average, the following five states are the most expensive states for 23-year-olds to obtain auto insurance:

Least Expensive States for Car Insurance for 23-Year-Olds

Young drivers who live in the following states will enjoy the low car insurance rates that come with their location:

23-Year-Old Driver Car Insurance FAQ

How much is car insurance for a 23-year-old per month?

While insurance rates can vary based on several factors, including location, gender, and insurance provider, the typical 23-year-old driver pays an average cost of $373 per month for auto insurance coverage.

Where can I compare car insurance quotes online for free?

It is important to compare auto insurance quotes from multiple carriers. Not only does each insurance provider have its own criteria when it comes to setting rates, but each has its own set of discounts as well. Using a tool like Insurify is an easy way to quickly compare multiple quotes all on one screen.

How does safe driving keep car insurance rates low for a 23-year-old?

Auto insurance companies often look at many criteria when determining where to set premium rates. For a 23-year-old driver, keeping a clean record by practicing safe driving is one of the easiest ways to get lower rates. It shows the carrier that you are less likely to partake in high-risk behaviors behind the wheel and less likely to file a claim.

Does the car you drive make a difference for insurance rates?

The vehicle that you drive can make a difference in the insurance premium that you pay each month. Cars such as Mustangs and Chargers are considered sports cars and can sometimes cost more to insure compared to a sedan or vehicle with high safety ratings.

At what age do insurance companies stop using age as a factor for rates?

Age is typically used as a factor for many insurance companies until a driver turns 30. After that age, it is often driving history that plays the biggest role in deciding what rates you will pay for auto insurance coverage.

The Best Way for 23-year-olds to Save on Car Insurance

Finding cheap car insurance is important for everyone, no matter their age or location. However, younger drivers often have the hardest time finding coverage that is cheap and gives them proper coverage. Often, the only way to find a car insurance policy that fits within your desired budget is by shopping around.

To ensure the process of finding a proper auto insurance policy is an enjoyable experience, Insurify offers a comprehensive comparison tool. The platform allows shoppers to quickly compare quotes from more than 20 reputable carriers all on one screen. All it takes is a couple of minutes to answer a few questions, and the system will present any quotes you qualify for. 

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Updated May 23, 2021

Doug Shaffer is an insurance writer for Insurify. He has had the opportunity to write for several large, national insurance carriers in the past and brings with him over six years of experience working with both business and consumer products. Even though he enjoys writing for most product lines, he loves auto insurance the most. During the moments he manages to break away from the keyboard, he can be found spending time with his family.