Average cost of car insurance for 25-year-olds in 2023
The national average cost of car insurance for 25-year-old drivers is $1,931 per year in 2023. Of major carriers, USAA has the cheapest average rates for 25-year-olds, at $1,255 per year. GEICO followed closely behind at $1,333 a year.
By
Andrew HurstAndrew 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.&Anna SwartzAnna SwartzSenior Managing Editor & Auto Insurance ExpertAnna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.
Auto insurance costs 25-year-olds an average of $161 each month, or $1,931 per year. Coverage is about $108 more per year for male drivers than for female drivers of the same age, though that difference can vary depending on the state and company.
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USAA has the cheapest car insurance rates for 25-year-olds, but only drivers affiliated with the military can get covered. The cheapest auto insurance coverage for most 25-year-olds is GEICO, where the average rate for a full-coverage policy is.
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.
How much is auto insurance for 25-year-olds?
On average, auto insurance for 25-year-olds costs $161 per month, or $1,931 each year. Car insurance coverage for 25-year-olds is 17% more expensive than the overall average adults in the U.S. — about $279 more per year.
The average monthly cost of car insurance for 25-year-olds is $161 per month, but many companies offer cheaper coverage. USAA has the lowest car insurance rates for 25-year-olds, but since it’s only for military families, GEICO is the cheapest company available to the general public.
Compare rates and shop affordable car insurance today
Car insurance costs for 25-year-olds can vary by a lot depending on the company. We found a difference of $3,096 per year in the cost of auto insurance from the cheapest and most expensive companies for 25-year-olds.
This difference shows the importance of shopping around for quotes before buying, to ensure that you don’t pay more than you have to.
Company
Average monthly cost
Average annual cost
USAA
$105
$1,255
GEICO
$111
$1,333
Erie
$113
$1,355
State Farm
$114
$1,367
American Family
$129
$1,551
Auto-Owners Insurance
$131
$1,571
Travelers
$136
$1,630
Nationwide
$144
$1,727
Farm Bureau
$144
$1,730
NJ Manufacturers
$145
$1,741
COUNTRY Financial
$148
$1,775
Amica
$159
$1,904
Kemper
$161
$1,934
National General
$162
$1,940
Progressive
$162
$1,949
Farmers
$180
$2,154
Allstate
$182
$2,189
Shelter Insurance
$191
$2,294
The Hartford
$199
$2,391
CSAA
$234
$2,811
Mercury Insurance
$240
$2,881
MAPFRE
$245
$2,936
Auto Club Group
$259
$3,111
Sentry Insurance
$338
$4,055
Hanover
$363
$4,351
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Monthly and annual costs of full coverage car insurance for 25-year-olds, ordered from least to most expensive.
How the cost of auto insurance for 25 year old compares to other ages
While 25-year-olds pay more for car insurance than the average adult driver, their rates are far cheaper than for drivers under 25. Car insurance costs 25-year-olds $2,890 less per year than those under 25, but just $369 more than older drivers.
It’s common for your car insurance rates to get significantly cheaper when you turn 25, since that’s the age when younger drivers “age out” of the highest-risk age group.
But this is only true for drivers who’ve kept up a clean driving record — if you turn 25 with an accident or claim on your record, you probably won’t see your rates drop.
Cost of car insurance for 25-year-old male vs. female drivers
Car insurance costs depend on the driver’s gender in addition to age. We found that auto insurance typically costs 25-year-old male drivers slightly more than their female counterparts.
On average, car insurance rates for 25-year-old men are just $9 more expensive per month, or $108 per year. However, the difference between insurance costs for men and women varies by company and location.
Driver's gender
Monthly cost
Annual cost
Male
$165
$1,983
Female
$156
$1,875
Difference
$9
$108
Cost of full-coverage car insurance for 25-year-olds.
Cost of car insurance for 25-year-olds in every state
On average, auto insurance for a typical 25-year-old driver costs $1,931 per year, but cost depends on their location. We found that the annual cost of auto insurance for 25-year-olds varies by as much as $2,358 depending on the state.
The cheapest state for car insurance for 25-year-olds is North Carolina, where average rates for that age group are $1,060 per year. In Louisiana, auto insurance costs 25-year-olds $3,418 per year.
Compare rates and shop affordable car insurance today
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
Best for 25-year-olds
At $111 per month, GEICO has the cheapest car insurance rates for 25-year-olds of any widely-available company.
GEICO is the best and cheapest auto insurance company for most 25-year-old drivers. On average, GEICO rates for this age group are just $111 per month, or $1,333 per year — 19% cheaper than the average cost for 25-year-olds.
Aside from its cheap rates, GEICO is a solid choice for 25-year-olds thanks to its range of coverage options, including mechanical breakdown coverage, which covers brake replacement, new transmissions, and other potentially expensive repairs not typically covered by car insurance.
GEICO isn’t the cheapest option overall — that’s USAA, which is only available to people in the military and their families. But due to GEICO’s wider availability, it’s a better choice for more 25-year-olds.
Best cheap car insurance for 25-year-olds in every state
In addition to being the cheapest overall companies for 25-year-old car insurance, USAA and GEICO are the cheapest options in 30 states, including the District of Columbia.
State Farm is the most affordable option in 10 states. The wide availability of these large insurance companies mean that many 25-year-olds have at least a couple of options for getting cheap coverage.
State
Cheapest company
Average monthly cost
Average annual cost
Alabama
GEICO
$93
$1,115
Alaska
State Farm
$89
$1,073
Arizona
GEICO
$84
1012.76
Arkansas
USAA
$93
$1,114
California
Wawanesa
$101
$1,210
Colorado
American National
$75
$897
Connecticut
GEICO
$68
$816
Delaware
State Farm
$114
$1,366
District of Columbia
GEICO
$110
$1,322
Florida
GEICO
$148
$1,779
Georgia
Auto-Owners Insurance
$102
$1,223
Hawaii
GEICO
$65
$785
Idaho
American National
$47
$562
Illinois
Pekin
$65
$785
Indiana
GEICO
$71
$849
Iowa
State Farm
$70
$839
Kansas
USAA
$88
$1,058
Kentucky
GEICO
$99
$1,185
Louisiana
USAA
$145
$1,744
Maine
GEICO
$56
$674
Maryland
USAA
$75
$905
Massachusetts
GEICO
$97
$1,170
Michigan
GEICO
$90
$1,082
Minnesota
Farm Bureau
$87
$1,045
Mississippi
USAA
$89
$1,065
Missouri
USAA
$73
$874
Montana
USAA
$87
$1,045
Nebraska
Nationwide
$101
$1,209
Nevada
GEICO
$94
$1,132
New Hampshire
State Farm
$73
$874
New Jersey
GEICO
$108
$1,299
New Mexico
USAA
$88
$1,062
New York
Progressive
$94
$1,130
North Carolina
GEICO
$55
$657
North Dakota
USAA
$89
$1,064
Ohio
USAA
$75
$903
Oklahoma
USAA
$92
$1,106
Oregon
State Farm
$78
$942
Pennsylvania
State Farm
$99
$1,185
Rhode Island
State Farm
$94
$1,132
South Carolina
American National
$63
$751
South Dakota
State Farm
$110
$1,321
Tennessee
State Farm
$75
$898
Texas
Farm Bureau
$103
$1,240
Utah
GEICO
$76
$910
Vermont
State Farm
$67
$798
Virginia
USAA
$82
$978
Washington
USAA
$101
$1,207
West Virginia
USAA
$90
$1,082
Wisconsin
GEICO
$69
$827
Wyoming
American National
$74
$884
Collapse table
Cheapest car insurance companies in each state for 25-year-olds.
How to save money on car insurance as a 25-year-old
The cost of auto insurance for 25-year-olds isn’t significantly higher than average, but if you’re 25 you can still take a few steps to lower your rates.
You can get the best auto insurance by comparing quotes from at least a few companies when you shop for coverage, but you could also save by:
Avoiding accidents and tickets: Our data shows that high-risk drivers with a history of accidents, tickets, or DUIs can pay thousands more per year than those with clean driving records.
Bundling your car and home insurance: Most insurance companies offer discounts to drivers who get their auto insurance along with a homeowners or renters insurance policy.
Searching for discounts: Nearly every insurance company offers at least a few insurance discounts that can help you get lower rates. Keep an eye out for discounts you already qualify for — or ones that would be easy to qualify for — while shopping.
Raising your deductibles: Your insurance deductible is the amount of money that comes out of any comprehensive or collision claims settlement you receive. By making this amount larger, you can lower your rates without sacrificing coverage (just keep in mind you might have to actually pay it someday).
Frequently Asked Questions
Does your car insurance go down at 25?
Yes, your car insurance at 25 years old is typically much cheaper than it was when you were younger. Newer drivers face higher insurance premiums due to their inexperience. As long as you avoid accidents and tickets, your rates will be cheaper at 25, which is the point at which you’ll no longer be considered part of the highest-risk age group.
How much is car insurance for a 25-year-old driver?
On average, the cost of car insurance for a 25-year-old is $161 per month, or an annual rate of $1,931 per year. This means that 25-year-olds have higher insurance costs than older drivers, but their rates are significantly cheaper than younger people.
Is insurance more expensive for 25-year-old men or women?
The cost of car insurance for 25-year-old men is slightly more expensive than for women of the same age. We found that the cost of coverage for male drivers is $108 more expensive per year than female drivers.
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.
Anna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.
