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

The average monthly cost of car insurance for 23-year-olds is $264 for liability-only insurance and $394 for full-coverage car insurance. The quotes you receive will depend on where you live, your driving history, and maybe even your credit score.

How much insurance do 23-year-olds need?

Every state has its own minimum insurance requirements, but most insurers and insurance brokers encourage drivers to purchase more than minimum requirements. Because young drivers are considered riskier, make sure to purchase enough insurance to fully protect and pay for medical bills should you get into an accident.

Can you be on your parents’ car insurance if the car is in your name?

It depends. Some states have car insurance rules and regulations that require you to buy your own car insurance if the car title is in your name. Check with your insurance company or insurance broker to see what your options are in your particular state.

Why do 23-year-olds pay so much for car insurance?

A 23-year-old driver is still considered an inexperienced driver. Data shows that drivers this age are prone to risky behaviors, which makes them more of a liability to insurance companies. For that reason, car insurance costs them more.

What age pays the most for car insurance?

Teenage drivers pay the most for car insurance. Drivers younger than 25 years old pay more than those older than 25 but less than teenagers.

Cheapest Car Insurance for 23-Year-Olds (2023)

Cheapest insurance
Gender and cost
Rates by state
Best discounts
How to save
FAQs

Cheapest insurance
Gender and cost
Rates by state
Best discounts
How to save
FAQs

Being 23 years old is a time of transition. You’re not a teenager anymore, and it’s likely you’ve graduated college or started your first serious job. If you’ve added buying car insurance to your list of adult responsibilities, you might have noticed your monthly premiums can be very expensive.

Drivers younger than 25 are still considered inexperienced drivers, so you’ll likely pay higher prices for car insurance than you will in the years ahead.^[1]But there are things you can to help control these expenses, so you can put more money toward all the joys of being a young adult and not just car insurance.

Quick Facts

While 23-year-olds pay lower average car insurance rates than teenagers, they still pay more expensive rates than they will upon reaching age 25.
On average, 23-year-old males pay more for car insurance than their female counterparts because insurers see males at this age as a larger incident risk.
Car insurance for 23-year-olds can be expensive, but you can reduce your rates by shopping around for insurance, maintaining a good driving record, and building a strong credit score.

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Who has the cheapest auto insurance for 23-year-olds?

The average monthly cost of car insurance for 23-year-olds is $264 for liability-only insurance and $394 for full coverage, according to Insurify data. Although you’ll pay more for car insurance as a 23-year-old than a driver age 25 and older, your insurance costs are less than you paid as a teenager. This is because insurance companies consider teenage drivers as more of a liability.^[1]

This table illustrates what you can expect to pay as a 23-year-old, with quotes from several national and regional insurers. Keep in mind that Mile Auto is a pay-per-mile company, Hugo is only available in 13 states, and USAA only serves active-duty military members, veterans, and their immediate family members.

Insurance Company	Average Monthly Quote: Liability Only	IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
Auto-Owners	$164	4.0
GEICO	$203	4.2
Hugo	$113	3.0
Mile Auto	$232	3.4
SafeAuto	$187	3.6
Safeco	$374	3.6
State Auto	$137	3.8
State Farm	$157	4.4
USAA	$130	4.3

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality (IQ) Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, third-party ratings, and more, to calculate a final score for a company.
Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings. With the IQ Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.

How gender affects the cost of your car insurance

In some states, car insurance companies factor your gender into the cost of your car insurance premium. Data shows men younger than 25 often have higher insurance rates than women younger than 25 because men statistically have more auto accident deaths and display riskier driving behavior.

A few states prohibit car insurance companies from using gender as criteria in determining premium costs: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania.

Below, you’ll see the data broken down by gender. Of the 10 cheapest car insurance companies for 23-year-olds, women pay less, on average, than men for their monthly premiums.

Cheapest car insurance for 23-year-old males

Many factors affect car insurance rates, so a company with cheap rates for one driver may charge more for another, based on each motorist’s individual situation. The following table illustrates average car insurance rates for 23-year-old males from national and regional insurance companies.

Insurance Company	Average Monthly Quote: Liability Only
SafeAuto	$108
Auto-Owners	$110
Mile Auto	$112
USAA	$134
State Auto	$142
Safeco	$144
GEICO	$156
State Farm	$162

Cheapest car insurance for 23-year-old females

Women get into significantly fewer accidents than male drivers, according to U.S. Department of Transportation data.^[2] Their insurance rates tend to reflect that data across all age groups. For 23-year-old women, the following table shows a sampling of quotes from top insurers.

Insurance Company	Average Monthly Quote: Liability Only
Auto-Owners	$103
GEICO	$146
Mile Auto	$105
SafeAuto	$102
Safeco	$135
State Auto	$133
State Farm	$152
USAA	$126

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Cheapest car insurance for 23-year-olds by state

Where you live affects your car insurance rates. Some states are more susceptible to severe weather and natural disasters, while others might have a higher incidence of crime and vehicle theft. Still more might simply have a higher cost of living that affects everything you pay for, including car insurance.

Here’s a breakdown of the average monthly liability-only quote from the cheapest insurer in each state.

State	Cheapest Insurance Company	Average Monthly Quote
Alabama	Auto-Owners	$59
Arizona	Auto-Owners	$77
Arkansas	State Farm	$51
California	Sun Coast	$106
Colorado	Sun Coast	$93
Connecticut	State Farm	$93
Delaware	State Farm	$115
Florida	State Farm	$154
Georgia	Auto-Owners	$127
Idaho	Dairyland	$108
Illinois	Auto-Owners	$60
Indiana	Auto-Owners	$33
Iowa	Safeco	$70
Kansas	Midvale Home & Auto	$81
Kentucky	Auto-Owners	$113
Louisiana	State Farm	$162
Maine	State Farm	$70
Maryland	Safeco	$149
Massachusetts	Midvale Home & Auto	$101
Michigan	Auto-Owners	$105
Minnesota	Safeco	$98
Mississippi	State Farm	$58
Missouri	State Farm	$66
Montana	The General	$163
Nebraska	Clearcover	$123
Nevada	Country	$73
New Hampshire	Liberty Mutual	$73
New Jersey	New Jersey Manufacturers	$102
New Mexico	Dairyland	$124
New York	Travelers	$180
North Carolina	Erie	$61
Ohio	State Farm	$45
Oklahoma	State Farm	$60
Oregon	National General	$93
Pennsylvania	Travelers	$74
Rhode Island	Liberty Mutual	$274
South Carolina	Auto-Owners	$85
South Dakota	Dairyland	$162
Tennessee	State Farm	$39
Texas	State Farm	$79
Utah	Auto-Owners	$58
Vermont	Dairyland	$122
Virginia	Auto-Owners	$57
Washington	State Farm	$95
Washington, D.C.	GEICO	$160
West Virginia	State Farm	$55
Wisconsin	Safeco	$77
Wyoming	Dairyland	$103

Best discounts for 23-year-old drivers

Many insurance companies offer discounts that can help 23-year-olds reduce their car insurance costs.

Discount for 23-Year-Olds	How to Qualify	Companies That Offer It
Good student discount	Maintaining good grades, like a B average in college	State Farm, Progressive, GEICO, Allstate, Farmers, Nationwide, AAA, Travelers, USAA, others
Distant student discount	Leaving your car at home while you’re away at college	Progressive, Allstate, Farmers, GEICO, State Farm
Safe driver discount	Not getting into accidents for a certain period of time (usually three to five years)	Travelers, Safeco, most other insurers
Bundling discount	Buying your car insurance from the same insurer you get renters insurance or other policies from	Nearly all major insurers
Defensive driver course discount	Complete an approved defensive driver course	Most leading insurance companies
Low-mileage discount	Drive at, or below, a predetermined amount	USAA, Safeco, American Family, and more

How to save money on car insurance as a 23-year-old

If you want to save money on car insurance as a 23-year-old driver, here are a few tips you can start to follow today.

Keep a clean driving record

Numerous car insurance companies give discounts for safe drivers, and getting a ticket or getting into an accident can increase the cost of your insurance. Maintaining a clean driving record can help you avoid rate hikes and may even lessen your insurance premium, depending on your insurer.

Shop around

By shopping around and getting at least three car insurance quotes, you can make sure you’re getting the best rate. Lots of factors affect the car insurance quote you get, including your age, driving history, deductible, location, ZIP code, and the year and type of car you drive. Shopping around helps you identify which insurance company offers the best price for your situation and needs.^[3]

Maintain a good credit score

Depending on which state you live in, insurers may be able to take your credit score into account when determining your quote. People with poor credit scores may be offered higher rates because insurers see them as being higher risk. Improving your credit score can improve the rates you receive.

Stay on your parents’ policy

Many insurers give a multi-car discount on a policy, so bundling your policy with your parents’ policy will likely cost you less than if you got a policy on your own.

Drive a car that’s cheaper to insure

The type of car you drive can affect the price you pay for insurance, as well. For example, a car with certain safety ratings could save you money over a car with high horsepower. Additionally, a larger vehicle that’s heavier could be considered safer, potentially saving you money over time. Lastly, more inexpensive vehicles will allow you to keep your rates lower because the cost to replace them won’t be as high.^[4]

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Car insurance for 23-year-olds FAQs

If you still have questions about how you can secure the best car insurance for you as a 23-year-old, you can find some helpful answers here.

How much is car insurance for a 23-year-old?
The average monthly cost of car insurance for 23-year-olds is $264 for liability-only insurance and $394 for full-coverage car insurance. The quotes you receive will depend on where you live, your driving history, and maybe even your credit score.
How much insurance do 23-year-olds need?
Every state has its own minimum insurance requirements, but most insurers and insurance brokers encourage drivers to purchase more than minimum requirements. Because young drivers are considered riskier, make sure to purchase enough insurance to fully protect and pay for medical bills should you get into an accident.
Can you be on your parents’ car insurance if the car is in your name?
It depends. Some states have car insurance rules and regulations that require you to buy your own car insurance if the car title is in your name. Check with your insurance company or insurance broker to see what your options are in your particular state.
Why do 23-year-olds pay so much for car insurance?
A 23-year-old driver is still considered an inexperienced driver. Data shows that drivers this age are prone to risky behaviors, which makes them more of a liability to insurance companies. For that reason, car insurance costs them more.^[1]
What age pays the most for car insurance?
Teenage drivers pay the most for car insurance. Drivers younger than 25 years old pay more than those older than 25 but less than teenagers.

Sources

Insurance Information Institute. "What determines the price of an auto insurance policy?." Accessed June 28, 2023
U.S. Department of Transportation, National Highway Traffic Safety Administration. "Fatality Analysis Reporting System." Accessed July 10, 2023
Insurance Information Institute. "Nine ways to lower your auto insurance costs." Accessed June 28, 2023
Insurance Information Institute. "Keep Your Teen—And Your Pocketbook—Safe By Making A Smart Shopping Choice: Picking The Right Car Can Reduce Auto Insurance Costs." Accessed June 28, 2023

Catherine Collins

Catherine Collins is a freelance financial writer and author based in Detroit. She's the co-founder of MillennialHomeowner.com and MomsGotMoney.com, and author of the book Mom’s Got Money: A millennial mom’s guide to managing money like a boss. She has written for US News, Huffington Post, Money, Business Insider, Investopedia, Entrepreneur, Go Banking Rates, and many other publications. She currently resides in Detroit, Michigan with her boy-girl twins and a rescue dog named Julep.

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Edited byChris SchaferSenior Editor

Chris SchaferSenior Editor

15+ years in content creation
7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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Data reviewed byKonstantin HalachevVice President of Engineering

Konstantin HalachevVice President of Engineering

7+ years experience in data analysis
Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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