Cost of Car Insurance for 23-Year-Old Males and Females

For a 23-year-old, car insurance costs $3,840 per year, or about $320 per month. A 23-year-old will pay approximately $300 less than a 22-year-old ($4,128) but approximately $250 more than the average 24-year-old ($3,597). Twenty-three-year-olds, and all drivers under the age of 25, pay disproportionately more for car insurance than older drivers. We recommend USAA, Erie, and Geico to 23-year-olds looking for low-cost car insurance.

This study looks at how the average cost of car insurance varies by gender, insurer, and state of residence for 23-year-olds. However, young drivers should only use this analysis as a general guideline when shopping for auto insurance. It's always a good idea to compare multiple quotes and look for potential discounts from multiple insurance companies when looking for the cheapest car insurance.

How much does car insurance cost for 23-year-olds?

The cost of auto insurance can vary greatly depending on the insurance company that underwrites your policy. Erie has the lowest average car insurance rates for 23-year-olds, at $1,594, or $133 per month. Car insurance for 23-year-olds is available from USAA for a similar price of $1,626, or approximately $136 per month.

In comparison, the annual premiums for Erie and USAA are nearly $4,500 less than the most expensive insurance company in our sample, Allstate, which charges $5,993.

Because of the wide variation in premiums charged by insurance companies, young drivers under the age of 25 should always compare car insurance quotes from multiple insurers before deciding on a policy.

While Erie and USAA have the most affordable car insurance rates for 23-year-olds, their policies are not as widely available as those of other large national insurers. Erie only underwrites policies in 13 states, and USAA's insurance is only available to current and former military members, as well as their families. Geico had the lowest car insurance rates among the large national insurers in our sample.

How the average cost of car insurance for 23-year-olds varies by gender

Car insurance premiums for a 23-year-old male cost $3,965 on average, and $3,716 for a 23-year-old female.

Male drivers frequently pay more for car insurance than female drivers, particularly when they are younger. For example, 23-year-old males, as well as males of similar ages, frequently pay up to 7% more on auto insurance than 23-year-old females.

While the average cost of car insurance is lower for women than men, some states have prohibited insurers from using gender to determine rates. This practice is prohibited in California, Hawaii, Massachusetts, Montana, North Carolina, and Pennsylvania, as well as parts of Michigan, and as a result, males and females of any age should pay the same amount for auto insurance in these states.

Average cost of auto insurance by age

The average annual car insurance cost for a 23-year-old is $3,840, or $320 per month. Car insurance rates for drivers under the age of 25 are typically higher than for older drivers.

Indeed, the average cost of car insurance for a 23-year-old is nearly $3,500 less than for an 18-year-old, but only about $600 more than for a 25-year-old.

The average cost of car insurance for 23-year-olds by state

The cost of auto insurance varies greatly from state to state. In the table below, we identify the average cost of car insurance for the ten most populous states in the United States, as well as the insurance company offering the cheapest auto insurance policy in each.

North Carolina has the cheapest car insurance for 23-year-olds, with an average annual premium of $1,679, which is slightly less than half the national average. With an average annual premium of $11,149, Michigan has the most expensive car insurance policies for 23-year-olds in our sample.

We recommend the cheapest car insurance company for 23-year-olds in each of the ten most populated states in the United States.

The cheapest auto insurance company for 23-year-olds in the 10 largest states by population

USAA was excluded, as policies are only available for current or former military members and their families. Without its exclusion, it offers the cheapest car insurance for 23-year-olds in Georgia, Illinois, Michigan, New York, Pennsylvania and Texas.

How to find the best cheap car insurance as a 23-year-old

Shopping around for quotes from multiple insurance companies is an excellent way to find low-cost car insurance at any age. Insurers charge different rates to customers based on a variety of factors, including your driving record and accident history, as well as the type of vehicle you drive. Because so many factors influence auto insurance rates, the carrier that offers you the lowest rate may be very different from the carrier that offers the lowest rate to someone who drives a sports car or a highly customized vehicle.

Staying on their parents' policy may allow twenty-three-year-olds and other young drivers to find cheap car insurance. A single family policy is usually less expensive than two separate policies.

Furthermore, common car insurance discounts for 23-year-olds and other young drivers include: being a good student, passing a defensive driving course, and maintaining a clean driving record. Different insurers will apply different discounts with varying eligibility requirements, so comparing quotes from multiple insurers is always a good idea.

Methodology

This study analyzed auto insurance quotes from thousands of ZIP codes in the ten most populous states in the United States. Drivers in the sample were 23-year-old males and females driving a 2015 Honda Civic EX. All other factors influencing car insurance costs were consistent, including the fact that drivers were single and had a clean driving record. The following are the coverage limits in a full coverage car insurance policy, including liability insurance. These coverage levels are slightly higher than the minimum coverage requirements of any individual state:

The study included 23 insurance companies, but auto insurance premiums were only included if they were available in at least three of the ten states studied.

The insurance rate data used in LowCostInsurance analysis came from Quadrant Information Services. These rates were obtained publicly from insurer filings and should only be used for comparison purposes — your own quotes may differ.