Of major carriers, USAA has the lowest average rates for 25-year-olds, at $1,255 per year. GEICO followed closely behind at $1,333 a year.
Published November 12, 20213 min read
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The younger you are, the more expensive your car insurance tends to be. That’s because car insurance companies see younger, more inexperienced drivers as riskier to insure. But rates gradually decrease as younger drivers age, and by 25, they generally level out.
At age 25, you are no longer considered a high-risk driver because of your age, so as long as you don’t have any violations or accidents on your record, you'll be able to find affordable coverage.
Out of 10 major car insurance companies, USAA had the cheapest average rate for 25-year-old drivers
GEICO had the second cheapest average rate for 25-year-old drivers, at $1,333 a year
You can save on car insurance as a 25-year-old by shopping around and comparing quotes, taking advantage of discounts, and bundling policies
Your age plays a big factor in how your premiums are calculated — the younger you are, the more you’ll pay for car insurance — but some insurance companies offer cheaper coverage than others.
Here is what car insurance for 25-year-olds costs at the 10 biggest car insurance companies in the U.S.:
|Company name||Average annual premium|
Smaller, regional carriers sometimes offer more affordable coverage than major car insurance companies, so you should shop around to find the best price for the coverage you need.
Younger drivers generally see the highest premiums, but once you reach 25 years old, your age no longer puts you in a high-risk category. Assuming you’ve kept a clean driving record, your rates should go down.
|Age||Gender||Average annual cost|
There are a few simple steps you can take to lower the costs of car insurance, no matter your age:
Car insurance companies offer discounts for everything from completing a defensive driving course to installing certain safety features in your car. You can also find discounts for going paperless or being affiliated with certain groups, like fraternities, sororities, and some professions.
Getting into a car accident can cause your car insurance rates to go up, sometimes even if you weren’t at-fault. Moving violations like speeding tickets can also raise your rates, but drive safely and you could earn a discount for being accident or claims-free.
Getting quotes from multiple companies and comparing options before you buy can help you find the cheapest policy for you. You may be able to save a lot more money at one company than another for the same coverage.
Most major insurers will give you a discount for buying multiple policies. Bundling your car insurance with another property insurance, like home, renters, or even motorcycle insurance, can help you save on your premiums.
You can consider dropping comprehensive and collision coverage if you drive an old car that isn’t worth repairing or replacing if it’s damaged (as long as you’re not financing or leasing your vehicle). You can usually drop both coverages if your comprehensive and collision premiums equal 10% or more of your car’s actual cash value.
Your age isn’t the only factor that affects your premiums, although it is a big one. But in many cases, your rates will go down every year until you turn 25. Some drivers won’t see a decrease at all, though, if they’re a new driver or if they have accidents and violations on their record.
Car insurance policies tend to be more expensive for single people than married people. According to our analysis, across the U.S., single people pay an average of $1,721 for a full coverage policy, while married people pay $1,591 for the same coverage — that’s a difference of $130.
Due to their lack of driving experience, teens tend to pay the most for car insurance. The average annual premium for full coverage car insurance for a 16-year-old is $6,799, while a policy for an 18-year old costs an average of $4,931.
Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:
Bodily injury liability: 50/100
Property damage liability: $50,000
Uninsured/underinsured motorist: 50/100
Comprehensive: $500 deductible
Collision: $500 deductible
In some cases, additional coverages were added where required by state or insurer. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.