Best Cheap Car Insurance Companies for 23-Year-Olds

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Updated: May 20, 2024

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For 23-year-old drivers, GEICO offers the most affordable car insurance with an average yearly rate of $1,655. This cost is considerably lower than the average annual premium of $3,249 for the same age group.

Premiums for 23-year-old drivers are less expensive than for younger drivers due to their growing driving experience and reduced risk profile. However, rates are higher compared to older age groups, who typically have more years of driving experience and proven safe driving records, leading to lower perceived risk and subsequently lower insurance costs.

Key Takeaways

GEICO offers the best car insurance at $1,655 a year and has high customer satisfaction.

You may be able to take advantage of discounts, such as for taking a defensive driving course, to help lower your insurance rate.

The type of car you drive can significantly impact your insurance rates, so choosing a sedan over a sports car can help keep your auto insurance affordable.

Why Trust MoneyGeek? MoneyGeek analyzed 1,904 quotes from six companies in 100 ZIP codes obtained from Quadrant Information Services and state insurance departments to assist you in choosing the most affordable auto insurance based on your individual circumstances. Rates for the same individual profile can vary greatly across insurance companies, so it’s important to compare rates from multiple providers.

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

1,904Quotes Analyzed
6Companies Compared
100ZIP Codes

Cheapest Car Insurance Companies for 23-Year-Old Drivers

For 23-year-olds seeking affordable car insurance, the two cheapest car insurance options are:

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

These rates reflect the cost of an individual policy. At the age of 23, drivers have more experience behind the wheel than younger individuals, and many choose to live on their own, which often makes them ineligible for family policies.

While 23-year-olds have better driving experience, they are still considered high-risk drivers, leading to higher premiums than those for older adults. To help manage these costs, you can take advantage of student discounts on car insurance, catering particularly to young students seeking to save money.

Data filtered by:Results filtered by:
Coverage:100/300/100 w/ $1000 Deductible
GEICOAnnual Premium$1,655Monthly Premium$138
State FarmAnnual Premium$1,862Monthly Premium$155
AllstateAnnual Premium$1,969Monthly Premium$164
TravelersAnnual Premium$1,974Monthly Premium$164
NationwideAnnual Premium$2,017Monthly Premium$168
ProgressiveAnnual Premium$2,136Monthly Premium$178
FarmersAnnual Premium$2,313Monthly Premium$193
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    Drivers in their early 20s pay more for car insurance

    But you can save by comparing multiple quotes.

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    Find a plan for you or your family

    Young drivers may pay less if they're added to their parents' plan, even in their 20s.

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Cheapest Car Insurance for 23-Year-Olds by State

Massachusetts is the cheapest for 23-year-old drivers, with an annual premium of $332 from State Farm. Idaho follows with a $507 annual premium from State Farm.

Car insurance costs for 23-year-old drivers can vary depending on where they live. Some states have stricter laws on state minimum car insurance requirements, or they might have more car crashes or thefts. All of these things can make insurance prices go up. For a young driver, the cheapest insurance in one state may not be as good in another state with more risks. Parents should look at different quotes and consider what's unique to their state when choosing insurance for a 23-year-old driver.

AlabamaCompanyGEICOAnnual Premium$982Monthly Premium$82
AlaskaCompanyGEICOAnnual Premium$757Monthly Premium$63
ArizonaCompanyGEICOAnnual Premium$942Monthly Premium$79
ArkansasCompanyState FarmAnnual Premium$897Monthly Premium$75
CaliforniaCompanyGEICOAnnual Premium$939Monthly Premium$78
ColoradoCompanyGEICOAnnual Premium$739Monthly Premium$62
ConnecticutCompanyGEICOAnnual Premium$740Monthly Premium$62
DelawareCompanyGEICOAnnual Premium$1,058Monthly Premium$88

Cheapest Car Insurance for 23-Year-Olds by Gender

The rate for a 23-year-old man is slightly higher than for a woman driver of the same age. GEICO is the most affordable car insurance provider for both men and women.

  • For men: GEICO, $128 per month, $1,538 per year
  • For women: GEICO, $123 per month, $1,476 per year

Car insurance for a 23-year-old man tends to be more expensive than for a woman. This is often because men are statistically seen as higher risk due to their driving behavior.

Annual Car Insurance Rates for Males and Females

23-Year-Old Female

Annual Premium

23-Year-Old Male

Annual Premiumf

Rates for males are:$62 more

This is 4% more expensive.

Data filtered by:Results filtered by:
GEICOAnnual Premium$1,538Monthly Premium$128
State FarmAnnual Premium$1,748Monthly Premium$146
AllstateAnnual Premium$1,837Monthly Premium$153
TravelersAnnual Premium$1,853Monthly Premium$154
NationwideAnnual Premium$1,913Monthly Premium$159
ProgressiveAnnual Premium$2,024Monthly Premium$169
FarmersAnnual Premium$2,322Monthly Premium$194

Cheapest Cars to Insure for 23-Year-Olds

Here are the two cheapest cars to insure for 23-year-old drivers, ensuring they stay on budget while driving safely. For cost-conscious young adults, the Subaru Forester and Subaru Outback rank as the most affordable options:

  • Subaru Forester: $112 per month, $1,348 per year
  • Subaru Outback: $121 per month, $1,449 per year

It's wise to pick the safest and most affordable car. Choosing older, dependable models with strong safety ratings can help cut insurance costs. These cars often offer significant savings without compromising on necessary safety features, making them a smart choice for 23-year-old drivers.

Subaru ForesterCategoryCompact SUVCompanyGEICOAnnual Premium$1,348
Subaru OutbackCategorySedanCompanyNationwideAnnual Premium$1,449
Toyota TacomaCategoryPickup TruckCompanyGEICOAnnual Premium$1,482
Audi Q5CategoryLuxury SUVCompanyGEICOAnnual Premium$1,489
Honda PassportCategorySUVCompanyGEICOAnnual Premium$1,567
Toyota CorollaCategoryCompactCompanyGEICOAnnual Premium$1,589
Ford Mustang Mach ECategorySports CarCompanyGEICOAnnual Premium$1,621
Tesla Model YCategoryLuxury ElectricCompanyGEICOAnnual Premium$1,649

Best Car Insurance for 23-Year-Old Drivers

For 23-year-olds, the best car insurance comes from GEICO, with an individual monthly premium of $138 and an annual cost of $1,655.

Company logo for GEICO
MoneyGeek Score:
85/ of 100

Financial Stability5
Customer Satisfaction4
Claims Satisfaction2

GEICO leads the car insurance market by consistently providing top-notch customer service, a main factor that is especially important for a 23-year-old driver who may require more guidance and support. This strength ensures that young drivers can navigate their policies and file claims smoothly, which can be crucial after an incident. GEICO offers:

  • Good student discount rewards high academic performance with lower premiums.
  • Driver's education discount encourages young drivers to learn safe driving habits.
  • Multiple-car discount, which can reduce costs for families with more than one vehicle.

For a 23-year-old, GEICO stands out as the best car insurance company because of its blend of comprehensive coverage options, opportunities for savings through various discounts and exceptional customer experience. Young drivers can take advantage of the tailored discounts, gain protection from unforeseen accidents without paying excessive premiums and have peace of mind knowing they are backed by reliable service.

How Much Does Car Insurance Cost for a 23-Year-Old?

A solo car insurance policy for 23-year-olds is often more expensive, but rates can vary wildly from company to company. It isn’t unusual for the same driver to get quotes that vary by hundreds of dollars or more each year. Getting multiple quotes is vital to finding the best car insurance and keeping insurance costs low for young drivers.

Any full coverage policy will include liability, comprehensive and collision coverage, but you may want to add roadside assistance, rental car coverage or rideshare insurance. These will increase the policy cost, but comparing the price of the desired policy with multiple insurance companies helps you find the lowest cost without having to give up these beneficial additional coverages.

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The average annual full coverage premium for a 23-year-old driver in the U.S. is $3,249.

How to Save on Car Insurance for 23-Year-Olds

One of the easiest ways to get cheap car insurance for a 23-year-old who still lives at home is to have them on the family insurance policy. This gives them access to all of the discounts of a family policy, including a multiple-vehicle discount and a bundled policy discount.

But, if you have your own apartment or home as your permanent residence, you won't be able to be on the family policy. You could qualify for a bundled policy discount if you have renters or homeowners insurance with the same company as your auto insurance.

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    Compare Quotes for the Best Policy

    While there are various discounts and policy options to help keep your premiums low, they may or may not be a good fit for your situation. Luckily, comparing quotes for car insurance is an easy step that everyone can take to find the best coverage for their needs. MoneyGeek’s research shows that comparing policies can save you up to 32% on your car insurance premiums each year.

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    Ensure a Clean Driving Record

    A single ticket or fender bender can cause your insurance rates to increase, while a DUI or a serious at-fault accident can result in a significant jump in your premium for three to five years, depending upon the insurer. Keeping your driving record clean is another way to keep your insurance costs low — and one of the few ways to reduce your premium that is entirely within your control. Paying extra attention to speed limits, school zones and red lights can help you maintain a good driving record.

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    Find Companies That Offer Discounts

    Many 23-year-olds who are still in college can take advantage of their insurance company’s good student discount. For example, GEICO offers a 15% discount to full-time students maintaining a B average or higher. There is also a common away-at-school discount, where you save if you still have your family's home as your permanent residence while living at school without a car.

    Taking a defensive driving course can help reduce your insurance premium, but you will need to check with your insurance company to ensure they offer this discount. Some companies offer a percentage discount for anyone who takes the course, while others allow you to take the course to keep a ticket or an at-fault accident off your driving record. Either way, taking the course can help reduce accident rates, which can save money over time.

    Telematics-based safe driving programs such as State Farm's Steer Clear are also available. A driver under 25 who completes the program may be eligible for a discount. Other discounts you may qualify for include bundling, anti-theft device, safe driver, airbags and automatic payments.

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    Lower the Coverage Amount

    Lowering the amount of coverage you have can be a good way to reduce your insurance premium. If you can afford to replace your car out of pocket, a driver with an older, more inexpensive car may want to consider dropping comprehensive and collision coverage and carrying liability only. Be certain you can afford to repair or replace your vehicle before you make this choice. Otherwise, you may not be financially prepared if an at-fault accident or non-collision event occurs.

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    Choose a Sedan Over a Sports Car

    Sports cars and luxury vehicles can significantly increase insurance costs. Both cars are expensive to repair and more likely to be stolen, which means your insurance costs will be higher to compensate for potential claims.

    For example, the average 23-year-old who has been added to their family policy and drives a Toyota Camry will spend an average of $1,648 on insurance each year. Driving a Ford Mustang would cost an estimated $2,674 annually. In this instance, choosing a sports car over a sedan adds more than $1,000 to your annual insurance premium.

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If you are considering a liability-only policy, wherein you only have coverage for bodily injury to others and property damage, make sure to get more than the minimum required where you live. Purchasing a liability-only minimum coverage policy could leave you financially vulnerable to a major loss in the event of an at-fault accident. The recommended amount of coverage is $100,000 bodily injury liability per person, $300,000 bodily injury liability per accident and $100,000 property damage liability per accident. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute

Why Is Car Insurance So Expensive for a 23-Year-Old?

Auto insurance is more expensive for a 23-year-old because they have less experience driving and are more prone to dangerous behavior behind the wheel, leading to more at-fault accidents. Insurance companies charge more to account for these factors.

FAQ: Best Cheap Car Insurance Companies for 23-Year-Olds

Young drivers often face high insurance premiums due to perceived risks. Uncover cost-effective car insurance options tailored for 23-year-olds that combine value and coverage.

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What is the best insurance company for a 23-year-old?
Why is car insurance expensive for 23-year-old drivers?
Is car insurance more expensive for 23-year-old males?

About Rachael Brennan

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Rachael Brennan is a professional freelance writer. She has been published on a number of websites, including Adweek, Glamour and Cracked. She has also worked in the insurance industry for more than a decade, earning her P&C license in all 50 states and her Life, Health, and AD&D license in New York and the surrounding states. You can follow her on Twitter @rachaelbwriter.