Best Cheap Car Insurance Companies for 23-Year-Olds (2024)

FAQs

Best Cheap Car Insurance Companies for 23-Year-Olds? ›

GEICO stands out as the best car insurance company for 23-year-olds, offering excellent coverage options and reliable service. It is also the cheapest for those seeking the most affordable car insurance, providing a full coverage policy at just $138 per month. Free. Simple.

At the national level, the cheapest car insurance company is Auto-Owners, with average rate estimates of $39 per month for minimum coverage and $142 per month for full coverage, substantially cheaper than the national averages of $78 and $210 per month, respectively.

Our picks for the best car insurance for new drivers are Geico and State Farm. Both of these companies offer policyholders ways to save with student discounts and savings for insuring multiple cars.

Age and car insurance

The price usually declines gradually between the ages of 25 and 60. For most, car insurance is more expensive the younger you are, with the price going down as you enter a new decade. People in their 30s often pay more than those in their 40s, who in turn fork out more than those in their 50s.

Rather than only covering your older car up to its depreciated value, classic car insurance provides coverage up to an "agreed value," which can factor in any restoration work completed and market demand for the vehicle.

Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico's rates are typically lower overall, but Progressive tends to offer better prices to high-risk drivers. High-risk drivers are those with a recent DUI, at-fault accident or speeding ticket on their driving record.

Comparing Allstate vs. Geico, we found that Geico offers cheaper auto insurance on average. We gave Geico 9.1 out of 10.0 points in the cost category in our industry-wide insurance review, while Allstate earned 7.4 points. But Geico doesn't just offer lower rates than Allstate.

State Farm is the best car insurance company for new drivers due to its reliable customer service and affordable quotes. It's important for first-time drivers to compare insurance quotes to find the cheapest auto rates.

Our top five recommendations for the best car insurance for 21-year-old drivers are Geico, USAA, State Farm, Nationwide and Auto-Owners Insurance. Even with our top picks in mind, we recommend that you compare car insurance quotes from multiple companies to find the best option.

Group 1 insurance cars can be a great option for younger drivers as they're usually the cheapest to insure and are among the cheapest to buy and repair. They also tend to have less powerful engines. If you have a large family, you might need something bigger, as group 1 cars tend to be small hatchbacks.

What age pays the most for car insurance? ›

Based on our research, car insurance costs the most for 16-year-olds. Young drivers can pay thousands of dollars more than older, more experienced drivers. Car insurance rates decrease in your 20s and can continue to go down into your 50s.

But a black box policy could still save you a lot of money if you are under 30. The British Insurance Brokers' Association said that young drivers typically save 30 per cent by opting for a telematics policy.

Driving Record: Young drivers may lack experience on the road, leading to more accidents or traffic violations. As a result, they can be considered higher risk and have higher premiums charged by insurance providers.

USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.

Between 10 and 15 years after a vehicle's model year, full coverage is a poor investment. While the cost of full coverage by itself likely won't be more than what a car is worth, the cost of insurance is more likely to be higher than the value of the car after an accident.

Which type of car insurance is cheapest? Typically, fully comprehensive insurance is the least expensive, though prices are influenced by individual circ*mstances.

So it's important to understand insurance groups – after all, there are 50 of them in total. Cars in group 1 are the least risky from an underwriter's perspective and the cheapest to insure. Those in group 50 are the riskiest and most expensive – usually higher performance models and luxury SUVs.

Based on our research, Geico offers the best car insurance in California. Progressive, USAA, State Farm and Allstate are also reliable options for most drivers. *Our research team considers nationwide factors when rating providers. The ranking order of providers in this table is specific to car insurance in California.