Average cost of car insurance for 25-year-olds in 2022

The national average cost of car insurance for 25-year-old drivers is $1,931 per year in 2022. 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.

Andrew HurstAnna Swartz

By

Andrew Hurst

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

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

Anna Swartz

Senior Managing Editor & Auto Insurance Expert

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.

Updated|4 min read

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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.

A bar graph showing the cost of car insurance for 25-year-old drivers.

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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

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.

Age

Average monthly cost

Average yearly cost

16

$565

$6,779

17

$489

$5,868

18

$411

$4,931

19

$319

$3,822

21

$226

$2,708

25

$161

$1,931

30

$142

$1,706

35

$138

$1,654

45

$132

$1,583

55

$122

$1,463

60

$121

$1,449

65

$125

$1,494

70

$132

$1,585

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.

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State

Average monthly cost

Average annual cost

Alabama

$169

$2,028

Alaska

$129

$1,553

Arizona

$153

$1,838

Arkansas

$174

$2,093

California

$185

$2,223

Colorado

$168

$2,018

Connecticut

$177

$2,119

Delaware

$201

$2,414

District of Columbia

$175

$2,098

Florida

$275

$3,294

Georgia

$171

$2,057

Hawaii

$100

$1,200

Idaho

$112

$1,346

Illinois

$139

$1,671

Indiana

$118

$1,411

Iowa

$113

$1,350

Kansas

$155

$1,863

Kentucky

$213

$2,558

Louisiana

$285

$3,418

Maine

$116

$1,395

Maryland

$181

$2,166

Massachusetts

$151

$1,809

Michigan

$239

$2,873

Minnesota

$138

$1,655

Mississippi

$166

$1,997

Missouri

$158

$1,894

Montana

$182

$2,189

Nebraska

$167

$2,005

Nevada

$206

$2,470

New Hampshire

$138

$1,650

New Jersey

$216

$2,588

New Mexico

$138

$1,653

New York

$201

$2,415

North Carolina

$88

$1,060

North Dakota

$132

$1,578

Ohio

$103

$1,238

Oklahoma

$184

$2,209

Oregon

$140

$1,675

Pennsylvania

$163

$1,955

Rhode Island

$183

$2,195

South Carolina

$183

$2,201

South Dakota

$153

$1,836

Tennessee

$130

$1,563

Texas

$183

$2,199

Utah

$144

$1,729

Vermont

$112

$1,340

Virginia

$135

$1,615

Washington

$160

$1,925

West Virginia

$170

$2,045

Wisconsin

$102

$1,228

Wyoming

$133

$1,591

Cost of full-coverage car insurance for 25-year-olds, ordered alphabetically by state.

Best cheap car insurance for 25-year-olds: GEICO

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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 cheap car insurance for 25-year-olds: GEICO logo

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

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.

Authors

Senior Editor & Licensed Auto Insurance Expert

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

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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.

Senior Managing Editor & Auto Insurance Expert

Anna Swartz

Senior Managing Editor & Auto Insurance Expert

gray twitter icon linkgray linkedin icon link

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.

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