Car Insurance Costs for 25-Year-Old Drivers
At age 25, drivers pay $221 per month for full coverage or $159 per month for minimum coverage, on average.
State Farm has the cheapest car insurance for most 25-year-olds.
Progressive and Travelers also have cheap rates for 25-year-olds, while Farmers and Allstate tend to be expensive. You'll pay more for full coverage than for minimum coverage, but you'll also get protection for damage to your own car.
Find Cheap 25-Year-Old Auto Insurance Quotes
How much is car insurance for a 25-year-old per month?
A 25-year-old pays $221 per month, on average, for full coverage car insurance.
State Farm has the cheapest rates for 25-year-old drivers for both full coverage and minimum coverage. USAA can be cheaper, but you can only get it if you're a military member, veteran or a qualifying family member.
Full coverage
Minimum coverage
Full coverage
Minimum coverage
Find Cheap 25-Year-Old Auto Insurance Quotes
While some companies tend to be cheaper overall, you should always shop around and get several quotes. Just because a company is cheap for one person doesn't mean it'll be cheap for everyone. Comparing quotes is one of the best ways to save money on car insurance.
Cheapest car insurance companies for 25-year-old drivers
Full coverage
Minimum coverage
Company | Editor's rating | Monthly rate | |
|---|---|---|---|
| State Farm | $159 | |
| Travelers | $183 | |
| Progressive | $194 | |
| Geico | $221 | |
| Farmers | $337 | |
*USAA is only available to military members, veterans and their families.
Full coverage
Company | Editor's rating | Monthly rate | |
|---|---|---|---|
|
| State Farm | $159 | |
|
| Travelers | $183 | |
|
| Progressive | $194 | |
|
| Geico | $221 | |
|
| Farmers | $337 | |
*USAA is only available to military members, veterans and their families.
Minimum coverage
Company | Editor's rating | Monthly rate | |
|---|---|---|---|
|
| State Farm | $69 | |
|
| Progressive | $74 | |
|
| Travelers | $87 | |
|
| Geico | $93 | |
|
| Farmers | $142 | |
*USAA is only available to military members, veterans and their families.
How much is car insurance for a 25-year-old vs. other ages?
On average, 25-year-olds pay $132 less per month for full coverage compared to 20-year-olds.
Most 25-year-old drivers have nearly a decade of driving experience. Insurance companies view them as less likely to get into accidents than drivers who are younger. This makes car insurance less expensive for 25-year-olds than it is for younger drivers.
Does car insurance go down at 25?
Car insurance is cheaper for 25-year-old drivers than it is for younger drivers. On average, 25-year-old drivers pay about 10% less for full coverage compared to a 24-year-old.
But there's nothing magic about turning 25 that makes your car insurance rates lower. Your rates usually start out higher when you're young and get lower as you get more experience behind the wheel. Rates continue to drop until your mid-60s, when they start to rise again.
How much is insurance for new drivers over 25?
You'll pay less for car insurance if you've had your license for a longer amount of time. Drivers who get their license and insurance for the first time at age 25 pay 53% more for a full coverage policy compared to 25-year-old drivers who have had their license since age 16.
That's because car insurance companies use your driving experience alongside your age to rate your policy. Regardless of when you get your license, you'll still pay lower rates for car insurance in your 20s compared to in your teens. But the longer you have had a license and the more driving experience you have, the lower your rates will be.
Car insurance rates for 25-year-old males vs. females
Men who are 25 pay an average of 2% more each month for car insurance compared to 25-year-old women.
Men are more likely to be risky drivers compared to women. That means they're more likely to get into accidents, so insurance companies charge them higher rates.
For younger drivers, there is a noticeable difference in the cost of car insurance between men and women, with men paying more. However, that gap begins to narrow at age 25.
Age | Male monthly rate | Female monthly rate | Difference |
|---|---|---|---|
| 23 | $264 | $254 | 4% |
| 24 | $250 | $241 | 4% |
| 25 | $223 | $219 | 2% |
But in some states, insurance companies aren't allowed to use your gender to rate your car insurance.
- California
- Hawaii
- Massachusetts
- Michigan
- Montana
- North Carolina
- Pennsylvania
Your rate will likely still change based on your age, the type of car you drive, your driving history and the amount of coverage you need.
Best car insurance companies for 25-year-olds by state
Where you live affects how much you pay for car insurance no matter how old you are.
In Pennsylvania, for example, a 25-year-old pays an average of $193 per month for full coverage. But in Texas, the average rate is $254 per month. That's a difference of $61 per month, or $732 per year.
State | Average rate |
|---|---|
| Illinois | $205 |
| New York | $232 |
| Pennsylvania | $193 |
| Texas | $254 |
Average monthly rates for a 25-year-old.
Find the Cheapest Insurers for Young Drivers in Your State
How to find cheap car insurance when you turn 25
Car insurance rates are lower at 25 than they are at younger ages, but you can probably still get a cheaper policy with a few strategies.
Shop around
Comparing car insurance quotes helps you find the coverage you need at the cheapest price. Insurance companies all charge different rates, which means the same coverage can be hundreds of dollars cheaper each month depending on the company you pick.
It's a good idea to compare customer satisfaction ratings too, so you choose a company that has good service. You can also review the different extra coverage options, although these don't vary too much between companies, and discounts.
Review potential discounts
Most car insurance companies offer discounts to help you get a lower rate. Opting for a company that has several discounts you can get might help you get a cheaper policy.
Some common discounts for 25-year-olds include:
- Bundling: If you get your car insurance along with a renters or homeowners insurance policy from the same company, you could save on both.
- Full payment: Many companies give you a lower rate if you can pay your full six-month or annual rate in one installment. This also helps you avoid monthly billing fees.
- Safety features: If your car has antilock brakes or anti-theft devices, you may qualify for savings.
- Defensive-driving classes: Companies may reward you for taking a safe- or defensive-driving course.
Drive safely
Although safe driving won't lower your rate immediately, it can help you keep your costs down over time. When you cause accidents or get tickets, your car insurance rate goes up. Practicing safe driving habits helps you avoid these rate increases, which keeps your rates down in the long run.
Frequently asked questions
What is the cheapest car insurance for a 25-year-old?
State Farm has the cheapest average car insurance rates for most 25-year-olds. Full coverage from State Farm costs $159 per month and minimum coverage costs $69 per month, on average. USAA might be cheaper, but you can only get it if you're associated with the military.
Does car insurance actually go down at 25?
Car insurance rates do go down at age 25, but they're also steadily lower every year that you have your license. There's nothing special about turning 25 that makes your rates lower. And if you're a new driver at age 25, you'll still pay more than if you'd had your license since 16.
What does the average 25-year-old spend on car insurance a year?
On average, 25-year-olds spend $221 per month on full coverage car insurance or $159 per month for minimum coverage. Men usually pay more than women. Your rate will depend on where you live, the company you choose, the coverage you pick and your driving history.
Methodology
ValuePenguin got quotes from four of the most populated states in the U.S. to find the average cost for full coverage and minimum coverage car insurance for 25-year-olds. The rates shown here are for 25-year-old men and women who own a 2015 Honda Civic EX, have no accidents or tickets, and have good credit scores.
Rates for minimum coverage are for policies with only the state-required coverage and limits. Full coverage rates have higher liability limits, comprehensive and collision coverage.:
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Personal injury protection (PIP): Minimum, when required by state
- Medical payments: $5,000
- Comprehensive and collision deductible: $500 deductible
ValuePenguin reviewed seven major insurance companies for this analysis. Some of the companies were not available in all four states.
The rates used in this article are averages calculated from Quadrant Information Services data. Rates are sourced from publicly available insurance company filings. Your own rates will differ from what is shown in this article.
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.