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.

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.

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.

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.

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.

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.

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.

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.

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.

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.