Car insurance for a 23-year-old costs $1,053 per year, on average, or $88 per month. Twenty-three-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
The exact cost of car insurance for a 23-year-old depends on a few factors, including their driving record, gender, location, vehicle, and car insurance company. Some of the best insurance companies for 23-year-old drivers are USAA, Travelers and Progressive.
Cost of Car Insurance for a 23-Year-Old by Company
You cannot be on your parents’ car insurance if the car is in your name and you are listed as the sole owner. Your parents can’t insure your car unless they are listed as owners. So if you are thinking about buying your own car, it is a good idea to ask for quotes from several … read full answerinsurance companies first. Your parents’ insurance company may not offer you the best rates when you’re alone on a policy.
When You Can and Cannot Be on Your Parents' Car Insurance
Can you be on your parents' insurance?
Your parents own your car and you live with them
Your parents own your car and you're away for college
You own your car and you live with your parents
You own your car and moved out
If you are not listed as the sole owner of the car, you might be able to get even cheaper insurance. Living in your parents’ home allows you to list them as the owners of the car you’re driving, in which case you can remain on their policy and save money.
Additionally, If you are a college student who uses your parents’ address as your permanent place of residence, and you drive a car owned by your parents, you can remain on their policy. If you do not bring that car to college with you, you might be able to qualify for additional discounts.
The average cost of car insurance for a teenager is $215 per month, or $2,580 annually. Younger teens typically pay the most for car insurance coverage, with 16-year-olds paying an average of 85% more than 19-year-olds.
Average Cost of Car Insurance for Teenagers by Age
Teenagers are more expensive to insure than older, more mature drivers because they’re more likely to be involved in an accident, which makes them high-risk. In fact, teen drivers are nearly three times as likely to be involved in a fatal car accident as drivers over the age of 20, according to the CDC. Teenage boys are even more expensive to insure than teenage girls, paying an average of 10% more for coverage.
How to Lower the Cost of Teenage Car Insurance
Even though car insurance is typically expensive for teenagers, there are still ways to lower the cost of covering a young driver. One of the best ways to reduce the cost of teen car insurance is to add them to an existing policy rather than have them purchase their own policy. Adding a teen to a policy raises rates by an average of $1,461 per year, but it’s still cheaper than the cost of a separate policy. Also, look for discounts that are specifically for young drivers, like good-student and student-away-at-school discounts.
If your teen does need to purchase their own policy, they should compare quotes from at least three different insurers in order to find the best deal. The cheapest car insurance companies for teens are Travelers, USAA, and Progressive, according to WalletHub’s analysis.
The best way to lower your teenager’s car insurance rate is to add them to your existing insurance policy if they currently have their own and then look for discounts to further lower the cost. Other notable ways to lower the cost of teenage car insurance include reducing your teen’s coverage and getting multiple quotes.… read full answer
Teen drivers typically pay more for car insurance than mature drivers because insurers consider them high-risk. Rates don’t usually drop until age 25, unless you intervene with these strategies.
Four Ways To Lower Teenage Car Insurance Costs
Add your teen to an existing policy
Sharing an insurance policy with a teen driver is usually the most cost-effective option for a family. For example, car insurance for a 16-year-old with their own policy costs an average of $3,343 per year. By comparison, adding a teen to an existing policy raises the premium by about $1,400, on average.
Look for applicable discounts
Most major insurers offer several discounts designed to help lower the cost of insuring a teen driver. The two most common types of discounts that apply specifically to teens are good student discounts and resident student discounts. Good student discounts apply to high school or college students who maintain a certain GPA, while a resident student discount reduces premiums for college students who go to school more than 100 miles away from their vehicle.
Teens can still qualify for some general discounts, too. For example, they may be able to receive a discount if they take an approved defensive driving course or stay accident-free for a certain period of time.
Considering how expensive car insurance is for young drivers, your teen could save on their premium by limiting the amount of coverage they include on their policy. However, they still need to be in compliance with state law and avoid driving uninsured.
Get multiple quotes
The best way to lower teen car insurance is to shop around for quotes from at least three different providers, especially if your teenager is getting their own policy. Every insurer uses their own methods to calculate premiums, so the rate that you get from one company might not be the same as another. As a result, simply shopping around could save a teen driver hundreds of dollars per year on car insurance.
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