key Takeaways
Comparing insurance quotes and keeping your repel record clean are the two most significant steps a young driver can take to keep their policy rates first gear.
You may be able to take advantage of discounts, such as ones offered for taking defensive drive courses, to help lower your policy rate .
The character of cable car you drive can importantly impact your indemnity rates, so choosing a sedan over a sports car can help keep your car policy low-cost.
How Much Does Car Insurance Cost for a 23-Year-Old?
A 23-year-old buying an individual indemnity policy will often have very high gear indemnity rates, but that rate can vary wildly from ship’s company to company. In fact, it isn ’ t strange for the same driver to get quotes that change by hundreds of dollars or more each class. Getting multiple quotes is a vital depart of finding the best car insurance and keeping indemnity costs low for young drivers .
ANNUAL CAR INSURANCE PREMIUM FOR A 23-YEAR-OLD The average annual agio for a 23-year-old driver in the U.S. is $1,648.
Cheapest Car Insurance Companies for 23-Year-Old Drivers
Every car indemnity ship’s company has its own formula for determining its rates each year. Your age, travel rapidly code, sex, driving history and many other factors contribute to your overall pace. however, because each company ’ randomness formula is slightly unlike, it is park for a driver to be quoted vastly different rates from company to company. MoneyGeek did the research and found that, for average 23-year-old drivers, the lowest annual premium quoted was $ 1,369, while the highest was $ 1,898 for comprehensive examination and collision coverage, showing that comparing quotes between companies can save you hundreds of dollars each year.
Cheapest Companies for an Individual 23-Year-Old Policy
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- company premium
- 1. GEICO $ 1,369
- 2. Allstate $ 1,613
- 3. express farm $ 1,620
- 4. countrywide $ 1,861
- 5. progressive $ 1,898
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Car Choice Matters When Insuring a Young Driver
One of the factors that impact your insurance costs is the type of car you drive. A sports car or a lavishness vehicle can drive up your insurance costs, whereas a sensible sedan can help keep your insurance costs moo. Choosing to drive a Toyota Corolla or a Honda Accord can go a retentive way toward a cheap car insurance rate.
Strategies to Save Money on Car Insurance for a 23-Year-Old
One of the easiest ways to get cheap car indemnity for a 23-year-old is to add them to a family policy policy. This gives them access to all of the discounts that typically go along with a class policy, including a multiple vehicle deduction and a bunch policy dismiss.
Compare Quotes for the Best Policy
While there are respective discounts and policy options to help keep your premiums humble, they may or may not be a good burst for your position. fortunately, comparing quotes for car policy is an easy step that everyone can take to find the best coverage for their needs. MoneyGeek ’ s research shows that comparing policies can save you up to 32 % on your cable car indemnity premiums each year.
Ensure a Clean Driving Record
A one ticket or fender bender can cause your indemnity rates to increase, while a DUI or a serious accident can result in a significant derail in your premium. So keeping your force record clean is another way to keep your insurance costs gloomy — and one of the few ways to reduce your premium that is entirely within your control. Paying extra attention to speed limits, school zones and red lights are some of the actions you can take to help you maintain a good force record.
Find Companies That Offer Discounts
many 23-year-olds who are still in school can take advantage of their indemnity company ’ s good-student discount. For exemplar, GEICO offers a 15 % dismiss to any full-time student maintaining a bel average or higher. Taking a defensive drive course can besides help reduce your indemnity bounty, but you will need to check with your insurance company to ensure they offer this discount rate. Some companies offer a share discount for anyone who takes the class, while others allow you to take the course to keep a ticket or an accident off your drive record. Either way, taking the course can help reduce accident rates, which can save your family money over time.
Lower the Coverage Amount
For some people, lowering the sum of coverage you have can be a good way to reduce your policy premiums. If you can afford to replace your car out of pocket, a driver with an older, more cheap car may want to consider dropping comprehensive and collision coverage and carrying liability merely. Be certain you can afford to replace your fomite before you make this choice. differently, you may not be financially prepared in the event of an accident.
Choose a Sedan Over a Sports Car
Sports cars and lavishness vehicles can significantly drive up the cost of your insurance. Both cars are expensive to repair and more probable to be stolen, which means your insurance costs will be higher to compensate for likely claims. For model, the average 23-year-old who has been added to their class policy and drives a Toyota Camry will spend an average of $ 1,648 on insurance each year. In comparison, driving a Ford Mustang would cost an estimate $ 2,674 annually. In this exemplify, choosing a sports car over a sedan adds more than $ 1,000 to your annual insurance agio.
Why Is Car Insurance So Expensive for a 23-Year-Old?
When it comes depressed to it, car policy is more expensive for a 23-year-old because they have less have repel and are more prone to dangerous behavior behind the wheel. indemnity companies charge more to account for these factors.
Traffic Statistics for 23-Year-Old Drivers
New drivers or first-time drivers traditionally have the highest indemnity rates because they are overrepresented in tickets received and fatal crashes. As drivers mature, they about always find that their insurance rates drop significantly, which is discernible in accident injury and fatality statistics. According to the AAA Foundation for Traffic Safety, 16-year-old drivers are 78 % more probably to be injured in a crash and 56 % more likely to die in a traffic fatality than 23-year-old drivers, likely because driving know and the maturity that comes with age both play a large character in developing safe drive habits.
Traffic Accidents Per 100 Million Miles Driven
| Driver Age | fatal Crashes | injury Crashes | All Crashes |
|---|---|---|---|
| 16–17 | 3.75 | 361 | 1,432 |
| 18–19 | 2.47 | 197 | 730 |
| 20–24 | 2.15 | 157 | 572 |
adolescent drivers and young adults have a greater risk of getting into an accident than older drivers do — and the fatality rate is higher. When examining the number of driver deaths per head, there are 6.3 driver deaths for every 100,000 drivers within the 20–24 long time range. In contrast, the number of deaths drops to 5.3 for drivers aged 25–29 and to 3.9 for drivers aged 30–59 .
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Methodology
MoneyGeek analyzed car policy quotes for 23-year-old drivers across all 50 states to determine the car insurance companies with the cheapest rates. The cheapest premiums were determined by gathering quotes for comprehensive and collision coverage of 100/300/100 with a $ 1,000 deductible.
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About the generator
Rachael Brennan is a professional freelance writer. She has been published on a count of websites, including Adweek, Glamour and Cracked. She has besides worked in the policy industry for more than a ten, earning her P & C license in all 50 states and her Life, Health, and AD & D license in New York and the surrounding states. You can follow her on Twitter @ rachaelbwriter.