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Best car insurance for 25-year-olds

Although 25 is the age when car insurance rates usually go down, 25-year-olds still pay more for car insurance than many other age groups.

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By

Andrew HurstSenior Editor & Licensed Auto Insurance ExpertAndrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Edited by

Anna SwartzAnna SwartzSenior Managing EditorAnna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.

Updated|2 min read

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The good news is that 25-year-old drivers don’t have the high rates of someone in their teens or early 20s, but you may pay more for car insurance as a 25-year-old than someone with your same profile would pay at age 30 or 35.

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That doesn’t mean you can’t find cheap car insurance as a 25-year-old driver. Lots of companies have affordable car insurance for 25-year-olds, especially if you have a clean driving record. We recommend comparing rates in your area to get the best rates for your age.

How much is auto insurance for 25-year-olds?

On average, auto insurance for 25-year-olds costs $159 a month ($1,909 a year). That’s 17% more expensive than the national average for drivers ages 30 to 45, but it’s nowhere near as expensive as what drivers under 25 pay.

We found that car insurance for drivers under 25 costs an average of $4,648 a year — thousands of dollars more than someone who’s 25.

That’s because 25 is generally the point at which drivers are no longer considered part of the highest-risk age group, so rates tend to drop around then.

Age

Average monthly cost

Average yearly cost

16

$538

$6,450

17

$469

$5,631

18

$401

$4,813

19

$312

$3,746

21

$223

$2,680

25

$159

$1,909

30

$141

$1,691

35

$137

$1,640

45

$131

$1,568

55

$121

$1,450

60

$120

$1,437

65

$124

$1,487

70

$132

$1,579

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Rates for full-coverage car insurance.

How we found the cost of auto insurance for 25-year-olds

Policygenius found the cost of car insurance for 25-year-olds using rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. These were for a 2017 Toyota Camry LE driven 10,000 miles per year, carried the following limits:

  • Bodily injury liability: $50,000 per person, $100,000 per accident

  • Property damage liability: $50,000 per accident

  • Uninsured/underinsured motorist: $50,000 per person, $100,000 per accident

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In our data, some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

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We don't sell your information to third parties.

Why is car insurance for 25-year-olds so expensive?

Car insurance can cost more when you’re 25 than it does for older drivers because you’re still more likely to get into accidents and make claims than someone with more experience. But continuing to drive safely and avoid accidents and claims will help keep your rates low over time.

Cost of car insurance for 25-year-old male vs. female drivers

Age isn’t the only thing that affects your car insurance rates, gender can also have a small impact. We found that 25-year-old male drivers pay slightly more than female drivers of the same age.

But California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania all have rules that mean insurance companies can’t set rates based on gender, so there’s no difference between what male and female drivers pay in those states.

Average monthly rate

Average yearly rate

Female

$155

$1,857

Male

$163

$1,961

Difference

$9

$104

Cheapest car insurance companies for 25-year-olds

The cheapest car insurance company for 25-year-olds is USAA, where coverage costs $106 a month or $1,266 a year — though USAA is only available to drivers who are veterans, members of the military, or a part of a military family.

GEICO and State Farm are the cheapest car insurance companies for 25-year-olds who don’t qualify for coverage from USAA.

Monthly cost

Annual cost

USAA

$106

$1,266

GEICO

$110

$1,324

State Farm

$111

$1,329

Erie

$120

$1,442

Travelers

$122

$1,461

Auto-Owners Insurance

$126

$1,517

NJM

$127

$1,518

American Family

$135

$1,622

Nationwide

$144

$1,729

Amica

$145

$1,744

National average

$159

$1,909

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Rates for full-coverage car insurance.

Cheapest car insurance for 25-year-olds in every state

The average cost of car insurance for 25-year-olds is different in every state (and even across ZIP codes). The cheapest car insurance company for 25-year-olds varies too.

State

Cheapest insurance for 25-year-olds 

Monthly rate

Statewide average

Alabama

USAA

$107

$168

Alaska

GEICO

$86

$133

Arizona

GEICO

$101

$155

Arkansas

USAA

$93

$176

California

Wawanesa

$90

$183

Colorado

American National

$77

$176

Connecticut

GEICO

$73

$183

Delaware

Travelers

$114

$206

District of Columbia

GEICO

$110

$175

Florida

State Farm

$152

$262

Georgia

USAA

$111

$160

Hawaii

GEICO

$65

$101

Idaho

American National

$46

$111

Illinois

Pekin Insurance

$61

$132

Indiana

USAA

$72

$117

Iowa

State Farm

$69

$114

Kansas

USAA

$88

$148

Kentucky

GEICO

$113

$214

Louisiana

USAA

$145

$246

Maine

USAA

$59

$110

Maryland

USAA

$75

$178

Massachusetts

USAA

$94

$145

Michigan

GEICO

$91

$246

Minnesota

Farm Bureau

$91

$139

Mississippi

USAA

$94

$165

Missouri

USAA

$73

$160

Montana

USAA

$87

$185

Nebraska

Nationwide

$100

$158

Nevada

GEICO

$105

$213

New Hampshire

USAA

$74

$143

New Jersey

GEICO

$102

$209

New Mexico

USAA

$83

$136

New York

Kemper

$95

$190

North Carolina

Erie

$63

$95

North Dakota

USAA

$87

$133

Ohio

State Farm

$72

$100

Oklahoma

USAA

$92

$165

Oregon

State Farm

$79

$136

Pennsylvania

State Farm

$92

$166

Rhode Island

State Farm

$91

$179

South Carolina

American National

$63

$198

South Dakota

State Farm

$107

$141

Tennessee

State Farm

$84

$130

Texas

State Farm

$103

$179

Utah

GEICO

$87

$149

Vermont

State Farm

$83

$136

Virginia

State Farm

$63

$106

Washington

PEMCO

$91

$167

West Virginia

GEICO

$69

$107

Wisconsin

USAA

$90

$164

Wyoming

American National

$72

$132

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Best car insurance for 25-year-olds

We found that USAA is the best car insurance company for 25-year-olds, followed by Erie and GEICO.

Rates aren’t the only thing to consider when you’re picking a car insurance company — our expert reviews consider things like customer service scores and coverage offerings.

Policygenius rating

Annual cost

USAA

5.0

$1,266

Erie

4.9

$1,442

GEICO

4.8

$1,324

State Farm

4.8

$1,329

Travelers

4.7

$1,461

Auto-Owners Insurance

4.7

$1,517

NJM

4.7

$1,518

Amica

4.7

$1,744

COUNTRY Financial

4.7

$1,781

American Family

4.3

$1,622

Nationwide

4.3

$1,729

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Companies are ordered by Policygenius rating. These are the 10 cheapest auto insurance companies for 25-year-olds.

How 25-year-olds can lower their insurance costs

You can find cheaper car insurance rates as a 25-year-old driver by:

  • Avoiding accidents and tickets: A history of accidents, tickets, or DUIs will make your rates much more expensive than average for a 25-year-old.

  • Bundling your car insurance: You can get a discount from most insurance companies by bundling your auto insurance with another policy, like home or renters insurance.

  • Comparing quotes: Be sure to compare quotes from multiple car insurance companies before picking a policy.

  • Getting the right amount of coverage: If your car is an older model with a lot of miles and you own it outright, consider dropping full coverage to save on car insurance.

  • Re-shopping before you renew: Compare rates again before you renew and switch insurance companies if you find a cheaper option.

  • Trying out usage-based insurance: Most companies offer savings for sharing data about your driving through an app or plug-in device.

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We don't sell your information to third parties.

Frequently asked questions

Does your car insurance go down at 25?

Your car insurance rates usually go down or level-out around age 25, but you may still pay more for car insurance than older drivers.

How expensive is car insurance for new 25-year-old drivers?

New drivers who are 25 years old face even higher rates than a 25-year-old who’s been driving for almost 10 years. New drivers have much less experience, and are more likely to get into accidents and make claims

Where is car insurance most expensive for 25-year-olds?

Florida is the most expensive state for car insurance for 25-year-olds. The average cost of car insurance in Florida is $262 a month for 25-year-old drivers, or $3,084 a year — significantly higher than the national average rate for 25-year-olds, $1,909.

Author

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Editor

Anna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.

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