Do you have concerns about affording auto insurance because of your high-risk category? Even as a safe driver, you can pay high premiums for car insurance 23-year-old male.
Average Auto Insurance Costs for 23-Year-Old Males
CarInsurance.com reports that 23-year-old drivers pay an annual nationwide average of:
- $772 for state minimum insurance.
- $868 for a 50/100/50 policy.
- $2321 for a 300/100/300 policy.
These are the average monthly and six-month premiums by insurance company for 24-year-old male drivers:
- USAA: $112/$672
- GEICO: $123/$737
- State Farm: $150/$899
- Nationwide: $168/$1008
- Progressive: $170/$1018
- Liberty Mutual: $172/$1030
- Farmers: $183/$1096
- Allstate: $211/$1267
By contrast, female drivers in the same age group with similar characteristics pay these average monthly/six-month rates:
- USAA: $103/$618
- GEICO: $119/$712
- State Farm: $130/$783
- Nationwide: $148/$886
- Liberty Mutual: $161/$965
- Farmers: $161/$965
- Progressive: $164/$982
- Allstate: $192/$1152
You’ll find the most affordable car insurance for this age group from these companies in the 10 states with the highest populations:
- North Carolina: GEICO, $570/year
- Pennsylvania: Erie, $1533/year
- Ohio: GEICO, $1548/year
- Illinois: State Farm, $1665/year
- California: Mercury Insurance, $1847/year
- Texas: State Farm, $2011/year
- Georgia: Georgia Farm Bureau, $2133/year
- New York: GEICO, $2602/year
- Florida: State Farm, $2955/year
- Michigan: Progressive, $3904/year
The survey did not include USAA, since this company only offers auto policies to military families. USAA does, however, offer the most affordable policies for young adult drivers in several states.
Other Factors in Auto Insurance Pricing
In addition to your age, CarInsurance.com reports that auto insurance agents will review these factors when determining your insurance policy premium rates:
- Your residential address.
- How many miles you drive each year on average.
- Whether you have a history of auto accidents and claims.
- Whether you’re married.
- What type of car you drive.
- Your credit history depending on what state you live in.
- The type of coverage and coverage limits you select.
Money Under 30 reports that you will receive dramatically different rate quotes from different auto insurance companies. Each firm has its own algorithm to assess customer risk, which informs your premium cost. In fact, you can potentially save thousands of dollars from one insurance company to the next, so it pays to shop around.
Insurance adjusters will also look at your zip code when providing you an insurance quote. For example, you will pay higher auto insurance costs if you live in a high-crime area, high-traffic area, or flood zone.
Residents of some states pay higher costs than residents in other states depending on minimum auto insurance laws. The most expensive states for auto insurance on average include Rhode Island, Kentucky, Florida, Louisiana, and Michigan.
Most Affordable Cars To Insure
ValuePenguin notes that young drivers can often save on insurance by choosing one of these vehicles that tend to have affordable premiums:
- If you need a pickup, try the Toyota Tacoma. The 2019 model is one of the most popular compact trucks and costs an average of $1405 to insure.
- The Ford Explorer is a good SUV choice that has a strong reputation for reliability. You’ll pay about $1320 to insure this vehicle.
- Every Subaru model is relatively cheap to insure because these cars are so long-lasting and safe. You’ll pay an average of $1327 for Subaru auto insurance.
- The Jeep Compass, along with other Jeep models, also gets high marks for safety and reliability. The average Compass policy costs about $1349 per year.
- The Nissan Sentra is a no-frills compact that offers very cheap insurance. Drivers pay an annual average of $934 for premiums on the Sentra.
- The Honda CR-V offers one of the lowest insurance rates in the compact crossover class. You’ll pay about $1333 for annual insurance on this SUV.
- The Hyundai Elantra is one of the best-selling sedans of 2019. If you prefer a larger car, it has a competitive average insurance rate of $1680 per year.
The Zebra reports that purchasing a luxury car can result in much higher insurance premiums, especially for young drivers. The higher the MSRP, the more you’ll likely pay for coverage. Generally, the average cost to insure a van for six months is $844, compared to $865 for a truck, $967 for an SUV, $1045 for a luxury car, $1055 for a hybrid, or $1137 for a sedan.
Lowering Your Insurance Rate
Do you have homeowner’s insurance, renter’s insurance, or life insurance? Bundling one or more of those policies with your auto insurance policy could reduce your rates significantly. Many popular national insurance firms, including GEICO, Liberty Mutual, and Allstate, offer discounts for purchasing more than one policy.
At least once a year, shop around to see if you can save on your auto insurance. As you get older, you will qualify for more discounts based on driving and insurance history. You can use an app such as Policygenius to save time by getting multiple quotes from local and national insurance companies simultaneously.
Have you thought about continuing your education? You could qualify for lower insurance rates with a higher degree because driver education correlates with a reduced risk for claims. However, the savings are relatively small. On average, you’ll pay about $798 for a six-month insurance policy if you have no high school diploma compared to $770 for someone with a bachelor’s degree.
In many states, your credit score affects the amount you pay for auto insurance. Insurers speculate that drivers with excellent credit (a score at or above 823) have fewer and less expensive claims than drivers with poor credit of less than 524. The average six-month cost for insurance is $674 for exceptional credit, $812 for very good, $966 for good, $1159 for fair, and $144 for poor. Certain states, including Massachusetts, Hawaii, and California, prohibit insurance companies from reviewing credit history as a pricing factor.
You can also reduce your amount of coverage to the minimum in your state. In most states, that means you must purchase liability coverage, which pays the costs of injury and property damage experienced by others if you cause an accident.
Don’t despair if you’re a young man shopping for auto insurance you can afford. By seeking multiple quotes and taking advantage of the strategies above, you’ll be able to reduce your premium costs over time.
Sources:
https://www.carinsurance.com/average-rates-by-age.aspx
https://www.moneyunder30.com/best-car-insurance-for-young-adults
https://www.valuepenguin.com/24-year-old-car-insurance
https://www.thezebra.com/car-insurance-24-year-olds/
https://www.caranddriver.com/jeep
https://www.caranddriver.com/subaru
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