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.
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.
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.
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 | |
|---|---|---|
$106 | $1,266 | |
$110 | $1,324 | |
$111 | $1,329 | |
$120 | $1,442 | |
$122 | $1,461 | |
$126 | $1,517 | |
$127 | $1,518 | |
$135 | $1,622 | |
$144 | $1,729 | |
$145 | $1,744 | |
National average | $159 | $1,909 |
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 |
|---|---|---|---|
USAA | $107 | $168 | |
GEICO | $86 | $133 | |
GEICO | $101 | $155 | |
USAA | $93 | $176 | |
Wawanesa | $90 | $183 | |
American National | $77 | $176 | |
GEICO | $73 | $183 | |
Travelers | $114 | $206 | |
GEICO | $110 | $175 | |
State Farm | $152 | $262 | |
USAA | $111 | $160 | |
GEICO | $65 | $101 | |
American National | $46 | $111 | |
Pekin Insurance | $61 | $132 | |
USAA | $72 | $117 | |
State Farm | $69 | $114 | |
USAA | $88 | $148 | |
GEICO | $113 | $214 | |
USAA | $145 | $246 | |
USAA | $59 | $110 | |
USAA | $75 | $178 | |
USAA | $94 | $145 | |
GEICO | $91 | $246 | |
Farm Bureau | $91 | $139 | |
USAA | $94 | $165 | |
USAA | $73 | $160 | |
USAA | $87 | $185 | |
Nationwide | $100 | $158 | |
GEICO | $105 | $213 | |
USAA | $74 | $143 | |
GEICO | $102 | $209 | |
USAA | $83 | $136 | |
Kemper | $95 | $190 | |
Erie | $63 | $95 | |
USAA | $87 | $133 | |
State Farm | $72 | $100 | |
USAA | $92 | $165 | |
State Farm | $79 | $136 | |
State Farm | $92 | $166 | |
State Farm | $91 | $179 | |
American National | $63 | $198 | |
State Farm | $107 | $141 | |
State Farm | $84 | $130 | |
State Farm | $103 | $179 | |
GEICO | $87 | $149 | |
State Farm | $83 | $136 | |
State Farm | $63 | $106 | |
PEMCO | $91 | $167 | |
GEICO | $69 | $107 | |
USAA | $90 | $164 | |
American National | $72 | $132 |
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 | |
|---|---|---|
5.0 | $1,266 | |
4.9 | $1,442 | |
4.8 | $1,324 | |
4.8 | $1,329 | |
4.7 | $1,461 | |
4.7 | $1,517 | |
4.7 | $1,518 | |
4.7 | $1,744 | |
4.7 | $1,781 | |
4.3 | $1,622 | |
4.3 | $1,729 |
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.
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.
