How Much Is Car Insurance for a 23-Year-Old in 2024?


The average cost of full coverage car insurance for 23-year-olds varies by gender in most states. On average, men pay about $3,348 annually, while women pay around $3,149 for a full coverage policy. This difference is because male young drivers are more likely to engage in risky driving behavior.

Maintaining a clean driving record, bundling policies and exploring available discounts such as safe driving programs, student discounts or multi-car insurance discounts can help them secure more affordable coverage that aligns with their financial goals and driving habits.

Key Takeaways

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The average cost of car insurance for 23-year-olds is around $3,249 per year and $271 per month.

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Gender plays a role in car insurance rates for drivers below 25 in most states. On average, male 23-year-old drivers will pay 6% more for the same coverage because they are more likely to engage in risky driving behavior.

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GEICO offers the cheapest full coverage policy at $1,655 per year.

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These rates reflect the average cost of car insurance for 23-year-old teens as of 2024.

Average Cost of Car Insurance for 23-Year-Olds

The average cost of car insurance for 23-year-olds is:

  • For liability-only: $476 per year, $40 per month
  • For full coverage: $3,249 per year, $271 per month

Liability-only coverage provides basic protection, covering damages you cause to others. Full coverage car insurance includes additional protection for your vehicle, covering damages from accidents and non-collision events.

While liability-only is cheaper, 23-year-olds with valuable or newer cars may opt for full coverage to safeguard their assets and ensure comprehensive protection. Additionally, full coverage is typically required if you have an auto loan or lease.

State Minimum Liability Only$40$476
100/300/100 Full Cov. w/$1,000 Ded.$271$3,249
300/500/300 Full Cov. w/$1,000 Ded.$297$3,566

Average Cost of Car Insurance for 23-Year-Olds by Gender

The average cost of car insurance for 23-year-olds varies by gender:

  • For females: $3,149 per year, $262 per month
  • For males: $3,348 per year, $279 per month

Car insurance rates for young drivers under 25 vary significantly by age and gender in most states. Statistical data shows that young males tend to have a higher likelihood of accidents and claims, resulting in higher premiums compared to their female counterparts.

However, gender becomes less of a determining factor after the age of 25. Six states prohibit insurers from using gender as a rating factor: California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania. Instead, insurers focus on an individual's driving history and other relevant factors to determine premiums.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
Female$3,149$262
Male$3,348$279

Average Cost of Car Insurance for 23-Year-Olds by State

For 23-year-olds, car insurance premiums vary widely across the U.S., with Louisiana and Florida leading the pack in terms of high costs. In Louisiana, young drivers can expect an average annual premium of approximately $3,854. Florida follows closely, with an average cost of around $3,017. These high costs are due, in part, to the high rates of accidents and litigation costs in these states.

In stark contrast, Hawaii offers the most affordable rates for this age group, with an average yearly expense of just about $964. Age is prohibited as a rating factor in Hawaii, which is the primary reason why rates for 23-year-old drivers are so low in the state.

The difference in these rates underscores how location-specific factors such as traffic congestion, vehicle theft and vandalism rates, the frequency of accidents and state insurance laws significantly impact insurance premiums. Areas with higher risks and costs associated with claims typically see more expensive insurance rates for their residents.

Alabama$1,542$129
Alaska$1,399$117
Arizona$1,688$141
Arkansas$1,314$110
California$2,099$175
Colorado$1,751$146
Connecticut$1,782$149
Delaware$1,739$145
District of Columbia$1,738$145
Florida$3,017$251
Georgia$1,747$146
Hawaii$964$80
Idaho$984$82
Illinois$1,234$103
Indiana$1,198$100
Iowa$1,130$94
Kansas$1,332$111
Kentucky$1,905$159
Louisiana$3,854$321
Maine$1,191$99
Maryland$1,768$147
Massachusetts$1,633$136
Michigan$2,449$204
Minnesota$1,489$124
Mississippi$1,539$128
Missouri$2,087$174
Montana$1,583$132
Nebraska$1,499$125
Nevada$2,428$202
New Hampshire$1,154$96
New Jersey$2,352$196
New Mexico$1,594$133
New York$1,770$148
North Carolina$1,137$95
North Dakota$1,119$93
Ohio$1,676$140
Oklahoma$1,648$137
Oregon$1,553$129
Pennsylvania$1,571$131
Rhode Island$1,963$164
South Carolina$2,111$176
South Dakota$1,401$117
Tennessee$1,311$109
Texas$1,885$157
Utah$1,673$139
Vermont$1,096$91
Virginia$1,557$130
Washington$1,715$143
West Virginia$1,442$120
Wisconsin$1,265$105
Wyoming$1,374$114

Why Car Insurance Is Expensive for 23-Year-Olds

Age is a crucial factor in determining car insurance costs. For a 23-year-old driver, insurance rates are typically higher due to the risk associated with younger, less experienced drivers. However, their insurance rates gradually decrease as drivers age and accumulate more driving experience, proving themselves responsible on the road. This decrease is most significant between ages 19 and 25.

Young drivers, particularly those under 25, typically pay the most for car insurance. With years of driving experience and fewer accidents on average, middle-aged drivers have the least expensive rates. However, after age 70, insurance rates start to climb again due to increased accident risks associated with older drivers.

Cheapest Car Insurance Companies for 23-Year-Olds

The cheapest car insurance companies for 23-year-olds are:

  • GEICO: $1,655 per year, $138 per month for full coverage
  • State Farm: $1,862 per year, $155 per month for full coverage

Comparing car insurance quotes from at least three providers helps you find lower rates, potentially saving you hundreds of dollars annually.

GEICO$1,655$138
State Farm$1,862$155
Allstate$1,969$164
Travelers$1,974$164
Nationwide$2,017$168
Progressive$2,136$178
Farmers$2,313$193

What Affects the Cost of Car Insurance for 23-Year-Olds

Factors like driving history, vehicle type and credit history influence car insurance rates for 23-year-olds. And at 23, gender doesn’t have as much influence on insurance premiums.

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    Driving history

    A clean driving record without accidents or violations suggests responsible driving, leading to lower insurance rates.

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    Type of vehicle

    Insurance costs vary depending on the car's make and model. Luxury and high-performance vehicles typically incur higher premiums.

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    Credit history

    Insurers consider credit history — of which a good credit score (above 670) — to create a proprietary credit-based insurance score as a rating factor. Credit is prohibited from being used as a rating factor in four states: California, Hawaii, Massachusetts and Michigan.

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    Location

    The area where a driver lives affects rates. High-traffic urban areas with higher accident rates generally have higher premiums.

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    Annual mileage

    The more a person drives, the higher the risk of accidents. Lower annual mileage can lead to reduced insurance costs.

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    Coverage level

    The extent of coverage chosen, including liability-only insurance, collision insurance and comprehensive insurance, directly influences the premium. More coverage equals higher costs.

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    Marital status

    Married drivers often see lower rates as they're statistically considered to be safer drivers. Car insurance for married drivers vs. single drivers costs $427 less on average.

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    Gender

    While its impact is lessening, gender can still influence rates, with young male drivers typically paying slightly more. Six states prohibit insurers from using gender as a rating factor: California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania

How to Get Cheap 23-Year-Old Car Insurance

Car insurance for 23-year-olds may be relatively expensive compared to rates for older drivers, but here are some strategies to help you find the best cheap car insurance under 25.

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    Compare insurance quotes

    Actively seek and compare quotes from multiple insurers. Prices can vary significantly, so shopping around is key to finding the most affordable option for your needs.

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    Choose a practical vehicle

    To find cheap car insurance for young drivers, opt for a model with a good safety record and low maintenance costs. High-performance or luxury cars typically have higher insurance rates, making them less ideal for young drivers.

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    Increase your deductibles

    Opting for higher deductibles can lower your premium. Just ensure they're amounts you can afford in case of a claim. Optional collision and comprehensive coverages are subject to separate deductibles, but liability coverages do not have deductibles.

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    Look for discounts

    Many insurers offer discounts for things like good driving, being a student, or completing a defensive driving course. Always ask for available discounts. Many insurers also offer good student discounts and student away at school discounts.

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    Maintain a good credit score

    Work on building a solid credit score. A higher score and strong credit history can lead to lower insurance rates as insurers consider credit history in their rating process

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    Drive responsibly

    Safe driving over time leads to a clean driving record, which significantly reduces insurance costs. Avoid speeding and distracted driving.

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    Consider usage-based insurance

    If you're a low-mileage driver, usage-based insurance programs can offer significant savings. These programs base premiums on how much and how well you drive. State Farm's Steer Clear program, for example, is specifically targeted to drivers under age 25.

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    Review and adjust coverage as needed

    Periodically review your insurance needs. As you age and your circumstances change, you might find opportunities to adjust your coverage and save money.

How to Find the Best Car Insurance Coverage for 23-Year-Olds

First-time policy buyers should start with their state's minimum car insurance requirements, then consider raising limits or opting for full coverage car insurance for greater protection.

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    Understand your coverage needs

    Evaluate your personal circumstances, such as driving habits, vehicle type and financial situation. This helps determine the right balance between comprehensive and liability coverage that suits your specific needs.

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    Consider higher liability limits

    Given the potential costs of accidents, opting for liability limits higher than the state minimum can provide better financial protection, especially if you have significant assets or savings.

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    Explore comprehensive and collision coverage

    If you own a newer or higher-value vehicle, comprehensive and collision coverage can protect against non-collision and at-fault accident damages, respectively. These coverages are typically required if you have an auto loan or lease

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    Evaluate additional coverage options

    Look into additional coverages like uninsured motorist protection, especially in areas with high rates of uninsured drivers. This can offer extra security in case of an accident with an uninsured party. Several states require drivers to carry uninsured/underinsured motorist coverage.

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    Research insurance providers

    Investigate insurers' customer service records, claims processes and financial stability. Opting for a provider with a strong reputation and reliable service can be more beneficial in the long term.

    Policies typically come in 6- or 12-month periods. If you’re unsure about a provider, sign up for a 6-month policy that will serve as a test run. You can also switch car insurance companies if you’re not satisfied with your current one or find a better deal elsewhere.

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    Regularly review and update your policy

    As your life changes, so do your insurance needs. Regularly reviewing your policy ensures your coverage continues to align with your current situation and offers the best protection.

FAQ About Car Insurance for 23-Year-Olds

Whether you're a recent graduate seeking your first policy or a young adult comparing plans, we delve into numerous topics to assist you in understanding the nuances of car insurance for 23-year-olds.

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

Why is your insurance so high at 23?

What does the average 23-year-old spend on car insurance a year?

What’s the cheapest car insurance provider for a 23-year-old?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.