Most young adults begin to hit their stride when they reach the age of 23. Many will have graduated college, begun careers and begun considering the next steps in their adult lives such as buying a house or getting married.
Each step of the journey will be taken into account by your insurance carrier and in most cases, lead to lower car insurance premiums.
“At this stage, carriers are starting to have a fuller profile of you as a driver,” says Jana Foster, owner of Nevada Insurance Agency Co., a full-service brokerage with offices in Carson City and Reno, Nevada. “If you have a good driving record, a good credit score and have graduated with a degree, the carrier will say great, we’re going to go ahead and lower your rates.”
The average national car insurance rate for a 23-year-old driver is about $2,226 per year or $186 per month, for their own full coverage policy. It represents a $178 drop from what a driver would expect to pay at age 22 and less than half of what they would have paid at age 18.
Read on to learn more about car insurance for 23-year-olds.
- For a full coverage policy, a 23-year-old driver pays an average of $2,226 per year or $186 monthly for car insurance.
- Male drivers are still assessed at higher rates than females at this age, but the difference is getting smaller.
- Males pay an annual average of $2,331 for a full coverage policy, while females pay $2,121.
- Car insurance for young adults: What’s the average cost for a 23-year-old?
- How much is car insurance for a 23-year-old male?
- How much is car insurance for a 23-year-old female?
- What’s the best car insurance for 23-year-old drivers?
- Car insurance discounts for 23-year-olds
- Final thoughts on car insurance for 23-year-olds
- Resources & Methodology
Car insurance for young adults: What’s the average cost for a 23-year-old?
The average car insurance rate for a 23-year-old who has their own policy is as follows per year:
- State minimum liability coverage: $662
- Liability coverage with limits of 50/100/50: $808
- 100/300/100 liability with a $500 comprehensive and collision deductible: $2,226
What you pay will vary depending on many factors, ranging from the insurance company you choose to where you live, coverage levels and the deductible you select.
See the table below to see how much car insurance costs for males vs. females at various coverage levels in each state.
- State Minimum: State Minimum Liability Only
- Liability Only: 50/100/50 Liability Only
- Full Coverage: 100/300/100 is liability with comp/collision and $500 deductible.
How much is car insurance for a 23-year-old each month?
The table below shows how much car insurance costs for a 23-year-old per month, on average.
How much is car insurance for a 23-year-old male?
At 23 years old, drivers particularly males, are still in the higher risk category. The Insurance Institute for Highway Safety reports that 20- to 24-year-old males were involved in 2,038 fatal accidents in 2020 or a rate of about 18.5 per 100,000 male drivers.
That’s even more than the fatal accident rate of 14.8 for 16- to 19-year-old male drivers.
But at this stage carriers are beginning to recognize that drivers are becoming more stable and with each step towards full adulthood – a home, a career and perhaps marriage – the profile looks less risky.
The average national full coverage insurance policy cost for a 23-year-old male with a $500 comprehensive/collision deductible is $2,331. That’s a savings of $202 from the $2,533 they would have paid at age 22.
Carriers may assess males substantially differently at this age, so it can pay to shop around.
How much is car insurance for a 23-year-old female?
Females are still deemed higher risk at 23, but most carriers recognize they are becoming less risky.
The amount their premiums decline will depend highly on their driving record and credit score. Yes, credit score.
It may not be immediately apparent what a credit rating has to do with a person’s driving, but it does play a significant role in how your premiums are set in the states that allow credit records to be used to determine premiums.
“Carriers have been able to show, to the satisfaction of various courts, that a person’s credit rating is indicative of their driving tendencies,” says Kevin Lynch, an assistant professor of insurance at The American College of Financial Services in Bryn Mawr, Penn.
So having a good credit rating will lead to lower insurance costs, for both females and males.
The average national cost of a full coverage insurance policy for a 23-year-old female with a $500 comprehensive/collision deductible is $2,121, a savings of about $153 from what they would have paid at age 22.
What’s the best car insurance for 23-year-old drivers?
Start with liability car insurance, which pays for others’ injuries and damage you cause to their property in an accident. Typically, the state-minimum coverage isn’t enough – medical costs can quickly escalate if there are significant injuries following an accident and property damages.
If you’re financing a vehicle, your lender might require comprehensive and collision coverage. If you paid off your car, you decide if you want these coverages, which cover your car following a crash and for damage due to fire, hail, vandalism and animal strikes.
Car insurance discounts for 23-year-olds
The three biggest favors any young adult can do for themselves to get the lowest insurance rates is to stay accident-free, have a clean driving record and maintain a good credit score.
After that, there are several other good strategies to employ.
If still in school, some car insurance companies offer discounts to students with good grades in college, generally a 3.0 or better grade-point average.
Other university discounts also might be available, such as student-away discounts and special rates for students and alumni.
Even if you’re not attending school, see what other discounts the carrier offers.
“Carriers will offer discounts for establishing paperless billing, paying your premium upfront, or bundling if you have other insurance, such as home or renter’s insurance,” notes Foster of Nevada Insurance Agency.
If you’re working in a trade, or have started a career at a new company, check to see if your trade association has a discount arranged with an insurance carrier or if your company has a partnership.
Foster notes that many professional associations, from doctors to lawyers, accountants, dentists and others, may be eligible for discounts from certain carriers.
Beyond discounts, be mindful of the type of car you buy. A practical, safe and reliable car will carry a much lower insurance rate than a sports car or luxury vehicle.
Compare rates for car models on CarInsurance.com, including a rundown of the top teen and young adult-ready cars that cost less than $15,000 with high safety ratings.
Final thoughts on car insurance for 23-year-olds
As you gain more experience driving, your auto insurance rates should fall. The even better news is it will continue to get cheaper as you advance towards 30.
The average full coverage insurance rate for a 30-year-old is $1,673, about $553 less than you’ll pay at 23.
Also, shop around and compare rates with several different insurers. This should help you get an excellent policy at the best price. You can easily do that with an online calculator or have a broker do the legwork.
Car Insurance for Teens:
- How much is car insurance for a 16-year-old?
- How much is car insurance for a 17-year-old?
- How much is car insurance for a 18-year-old?
- How much is car insurance for a 19-year-old?
Car Insurance for Young Adults:
- How much is car insurance for a 20-year-old?
- How much is car insurance for a 21-year-old?
- How much is car insurance for a 22-year-old?
- How much is car insurance for a 24-year-old?
- How much is car insurance for a 25-year-old?
Car Insurance for Adults:
- How much is car insurance for a 30-year-old?
- How much is car insurance for a 40-year-old?
- How much is car insurance for a 50-year-old?
Car Insurance for Seniors:
Resources & Methodology
Insurance Institute for Highway Safety, Highway Loss Data Institute. “Fatality Facts 2020, Males and Females.” Accessed April 2023.
CarInsurance.com commissioned Quadrant Information Services in 2023 to field rates for auto insurance for 23-year-olds at various coverage levels (state minimum, 50/100/50 liability and 100/300/100 full coverage) and for males and females in each state.