Car insurance for a 23-year-old in the USA typically costs between $180 and $320 per month, depending on factors such as your driving record, location, vehicle type, and whether you’re on your own policy or a parent’s. While rates start to drop in your twenties, they’re still higher than the national average because insurers consider you a young and less experienced driver.
If you’re wondering how much you’ll pay for coverage at age 23 and what you can do to lower it, this guide covers everything you need to know.
In this blog, we’ll walk you through:
- The average monthly and yearly cost for 23-year-olds
- What affects your insurance premium
- Differences between male and female drivers
- Best insurance companies for 23-year-olds
- Tips to reduce your insurance costs
- Frequently asked questions
Average Monthly Cost of Car Insurance for a 23-Year-Old
At age 23, most drivers are past their teen years, but still considered higher risk than drivers over 25. That’s why premiums remain elevated but begin to decrease.
National Average:
- Minimum coverage: $180–$220 per month
- Full coverage: $250–$320 per month
Estimated Annual Costs:
- Minimum coverage: $2,160–$2,640
- Full coverage: $3,000–$3,840
Note: These are estimates. Your actual rate may vary depending on where you live, your car, and your personal driving history.
Sample Monthly Rates by State
Here’s what a 23-year-old might pay in different U.S. states for full coverage:
| State | Monthly Cost (Full Coverage) |
| California | $290 |
| Texas | $270 |
| Florida | $310 |
| Ohio | $190 |
| New York | $300 |
| Georgia | $260 |
| Illinois | $230 |
Source: 2024 data from Quadrant Information Services.
Cost by City in California
Where you live in California plays a big role in your insurance rate. Urban areas like Los Angeles and San Francisco have higher rates due to more traffic and theft.
| City | Average Monthly Cost (Full Coverage) |
| Los Angeles | $220 – $280 |
| San Francisco | $210 – $270 |
| San Diego | $170 – $230 |
| Fresno | $160 – $210 |
| Sacramento | $180 – $240 |
| San Jose | $170 – $230 |
| Bakersfield | $150 – $200 |
| Riverside | $160 – $210 |
Living in a smaller town or low-crime area usually means lower premiums.
What Affects Car Insurance Rates for 23-Year-Olds?
Insurance companies use many factors to calculate your monthly premium. Here’s what they consider:
1. Driving Record
A clean record will get you the best price. Tickets, accidents, or DUIs can raise your rate by 20% to 100%.
2. Coverage Type
- Minimum liability coverage is cheaper but less protective.
- Full coverage includes liability, collision, and comprehensive and costs more.
3. Location
States like California, New York, and Florida have higher average rates due to urban density, traffic, and theft risk.
4. Credit Score
In most states, insurers use your credit score to set rates. Better credit usually means lower premiums.
5. Gender
In some states, men pay slightly more than women at this age, though this practice is banned in states like California and Massachusetts.
6. Car Type
- New, luxury, or sports cars cost more to insure.
- Older, safer, and low-maintenance cars cost less.
7. Marital Status
Some companies offer lower rates for married drivers.
Cost Differences Between Male and Female Drivers at Age 23
On average:
- 23-year-old male drivers pay about $10 to $30 more per month than females.
- The gap narrows as you approach 25, and disappears completely in some states where gender cannot be used.
Tip: Shop around if you’re a male driver. Some insurers weigh gender more than others.
Should You Stay on a Parent’s Policy or Get Your Own?
Staying on a parent’s policy is usually cheaper—even at age 23—especially if:
- You still live at home
- Your parents are the primary drivers of the vehicle
- You’re attending school full time
However, you may need your own policy if:
- You own your own vehicle
- You have moved out permanently
- Your parents don’t want to share liability
Tip: Even if you have to get your own plan, compare quotes from at least 3–5 insurers before choosing one.
Best Car Insurance Companies for 23-Year-Olds
Some companies are better for younger drivers thanks to discount options, flexible coverage, and lower base rates.
| Insurance Provider | Best For | Discounts Offered |
| Geico | Budget-friendly coverage | Good driver, good student, multi-policy |
| State Farm | Student drivers | Drive Safe & Save, Steer Clear |
| Progressive | Customizable coverage | Snapshot usage-based program |
| Allstate | Safe driving rewards | Drivewise, multi-car |
| Nationwide | Telematics options | SmartRide, bundling |
How to Lower Car Insurance Costs at Age 23
1. Maintain a Clean Driving Record
Avoid tickets and accidents. They can raise your rate for 3–5 years.
2. Increase Your Deductible
Choosing a higher deductible (like $1,000 instead of $500) lowers your monthly rate. Just be sure you can afford it if you file a claim.
3. Take a Defensive Driving Course
Some insurers offer 5–15% discounts if you complete a certified driving course.
4. Drive Less
Low-mileage drivers may qualify for cheaper pay-per-mile insurance options.
5. Bundle Your Insurance
Get renters or home insurance from the same company to save up to 25%.
6. Use a Telematics Program
Usage-based apps track your driving habits. Safe drivers can save big.
Popular options:
- Drivewise (Allstate)
- Snapshot (Progressive)
- Drive Safe & Save (State Farm)
7. Choose the Right Vehicle
Stick with vehicles that have:
- High safety ratings
- Low repair costs
- Good theft protection
Best picks for affordable insurance:
- Honda Civic
- Toyota Corolla
- Mazda 3
- Subaru Impreza
Should You Get Full Coverage at Age 23?
| Coverage Type | What’s Covered | Ideal For |
| Liability Only | Damages to others you cause | Older cars (value under $2,000) |
| Full Coverage | Includes liability, collision, theft | New, leased, or financed vehicles |
Sample Quote Comparison
Here’s how your rate could change based on a few simple decisions:
| Scenario | Monthly Cost |
| Full coverage, new car, clean record | $280 |
| Liability only, older car | $190 |
| Added to parent’s policy | $140 |
| One speeding ticket | $330+ |
Frequently Asked Questions
Yes. At 23, most drivers pay about 10–15% less than at 21, assuming a clean driving record.
Yes, if you’re still enrolled full-time in college and maintain a GPA of 3.0 or higher.
Yes. Insurance typically becomes much more affordable after age 25.
If allowed, staying on a parent’s policy can save you hundreds per year.
You can still compare quotes and find affordable options. Be sure to provide accurate details about your new address and vehicle usage.
Final Thoughts
At age 23, car insurance rates are starting to improve, but they’re still higher than average. Expect to pay between $180 and $320 per month depending on your location, car, and coverage level. The good news is that you can lower your rate with smart decisions like safe driving, choosing a budget-friendly car, and comparing quotes.
At Alias Insurance, we help young drivers find the best car insurance quotes from top-rated companies. Whether you’re getting your own policy or looking to stay on a family plan, we make it easy to compare and save—fast, free, and online.
