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

Find Cheap 23-Year-Old Auto Insurance Quotes

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On average, car insurance costs $3,840 annually for a 23-year-old, or approximately $320 per month. A 23-year-old will pay about $300 less than a 22-year-old ($4,128) and about $250 more than the average 24-year-old ($3,597). Twenty-three-year-olds, and generally all drivers under 25 tend to pay disproportionately more for car insurance compared to older drivers. For 23-year-olds looking for cheap car insurance, we recommend USAA, Erie and GEICO.

This analysis explores how the average cost of car insurance varies for 23-year-olds by gender, insurer and state of residency. Young drivers, however, should only use this analysis as a general guide when shopping for auto insurance. To find the cheapest car insurance, it's always a good idea to compare multiple quotes and search for potential discounts from multiple insurance companies.

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

The price of auto insurance can vary substantially depending on which insurance company underwrites your policy. For 23-year-olds, Erie offers the cheapest average car insurance rates at $1,594, or $133 per month. USAA offers car insurance to 23-year-olds at a similar price of $1,626, or approximately $136 per month.

In comparison, both Erie and USAA's annual premiums are almost $4,500 cheaper than the costliest insurance company in our sample, Allstate, which charges $5,993.

This graph ranks car insurance quotes for 23-year-olds across varying insurers.
This graph ranks car insurance quotes for 23-year-olds across varying insurers.

Find Cheap 23-Year-Old Auto Insurance Quotes

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The widespread difference in premiums charged by insurance companies highlights why young drivers under 25 should always compare car insurance quotes from multiple insurers before deciding on a policy.

InsurerAnnual premium
Erie$1,594
USAA$1,626
GEICO$2,445
Nationwide$2,586
Progressive$3,244
State Farm$3,337
Allstate$5,993

While Erie and USAA offer the cheapest car insurance rates for 23-year-olds, their policies are not as widely available as other large national insurers. Erie only underwrites policies in 13 states, and USAA's insurance is only available to current and former members of the military and their families. Among the largest national insurers in our sample, GEICO offered the cheapest car insurance rates.

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

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

Male drivers frequently pay more for car insurance than female drivers, especially at younger ages. For example, 23-year-old males, in addition to males of surrounding ages, frequently pay as much as 7% more on auto insurance than 23-year-old females.

AgeAnnual premium - maleAnnual premium - femalePercent difference
22$4,274$39837%
23$3,965$3,7167%
24$3,702$3,4936%

While the average cost of car insurance tends to be cheaper for women compared to men, some states have banned insurers from using gender to determine rates. California, Hawaii, Massachusetts, Montana, North Carolina and Pennsylvania, as well as parts of Michigan, prohibit this practice, and as a result, males and females of any age should pay the same amount for auto insurance in these areas.

Average cost of auto insurance by age

For 23-year-olds, average annual car insurance costs are $3,840, or $320 monthly. Car insurance rates for drivers under 25 are typically more expensive relative to older drivers

Indeed, the average cost of car insurance for a 23-year-old is almost $3,500 cheaper than rates for an 18-year-old, but just about $600 more expensive than that of a 25-year-old.

AgeAverage annual premium
18$7,179
19$6,021
20$5,333
21$4,453
22$4,128
23$3,840
24$3,597
25$3,207

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

Auto insurance costs vary substantially from state to state. Below, we identify the average cost of car insurance for the 10 largest U.S. states by population and identify the insurance company offering the cheapest auto insurance policy in each.

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

StateAverage 23-year-old annual premium
North Carolina$1,679
Ohio$2,410
Pennsylvania$2,517
California$2,629
Illinois$3,034
Texas$3,216
New York$3,456
Georgia$3,721
Average cost of car insurance$3,840
Florida$4,591
Michigan$11,149

For each of the 10 most populated U.S. states, we recommend the cheapest car insurance company for 23-year-olds.

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

StateInsurerAverage annual premium
CaliforniaProgressive$2,227
FloridaState Farm$3,191
GeorgiaGeorgia Farm Bureau$2,133
IllinoisState Farm$1,803
MichiganProgressive$4,175
New YorkGEICO$2,632
North CarolinaGEICO$579
OhioGEICO$1,655
PennsylvaniaErie$1,929
TexasState Farm$2,161
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 several insurance companies is a great strategy to find cheap car insurance at any age. Insurers charge customers different rates based on many factors, from your driving record and accident history to the type of car you drive. Because so many variables impact auto insurance rates, the carrier that offers you the cheapest rate may be very different than for somebody who drives a sports car or highly customized vehicle.

Twenty-three-year-olds and other young drivers may be able to find cheap car insurance by staying on their parents' policy. A single family policy usually costs less than paying for two separate policies.

Additionally, auto insurance discounts commonly available to 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 it's always a good idea to compare quotes from multiple insurers.

Methodology

This analysis used auto insurance quotes from thousands of ZIP codes across the 10 most populated states in the U.S. Sample drivers were 23-year-old males and females driving a 2015 Honda Civic EX. All other variables affecting car insurance costs were consistent, including that drivers were single and had a clean driving record. Coverage limits in the full coverage car insurance policy, including liability insurance, are listed below. These coverage levels are slightly higher than any individual state's minimum coverage requirements:

Coverage TypeStudy Limits
Bodily Liability$50,000 per person/ $100,000 per accident
Property Damage$25,000 per accident
Uninsured/Underinsured Motorist BI$50,000 per person/ $100,000 per accident
Comprehensive & Collision$500 Deductible
Personal Injury Protection (PIP)Min. When Required by State

The study included 23 insurance companies, though auto insurance premiums were only included in the study if their policies were available in at least three of the 10 states analyzed.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Michael Hoffmann is a Senior Research Analyst focused on insurance. He was previously a Technology Editor at The Economist Intelligence Unit and has had prior roles as an ETF and Equity Analyst focused on emerging technologies like artificial intelligence, cybersecurity and cloud computing.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.