Car insurance for 25-year-olds

In most states, your age is one of the most important factors influencing your car insurance premium. Age is commonly used to predict how experienced you will be behind the wheel of a car and what driving habits you will exhibit. Younger drivers, for example, are more likely to cause accidents than older drivers because they have less behind-the-wheel experience.

When you reach the age of 25, most insurers no longer consider you a "youthful driver," so your auto insurance premiums may decrease. Although 25-year-olds continue to pay higher premiums than older drivers, you can usually expect lower average premiums as you get older, as long as you have no accidents or tickets on your record.

How much is car insurance for a 25-year-old?

The average full coverage car insurance premium for 25-year-olds is $2,108 per year, which is significantly higher than the $1,674 annual full coverage premium for the entire United States. Minimum coverage costs $615 per year on average for 25-year-olds, while the national average is $565 per year.

You may have more experience than teen drivers at 25 years old and, as a result, pay lower average rates than when you were younger. You will, however, have significantly less experience than a 40-year-old driver. While your rates should continue to fall as you age, you may still have to pay higher-than-average premiums for a few years.

Average cost of males vs. females

When rating policies, most states take gender into account. Males tend to drive more recklessly than females, which can lead to more frequent or serious accidents. As a result, the average male driver has higher premiums than the average female driver.

Cheapest car insurance companies for 25-year-olds

Although you will most likely pay less for insurance than you did as a teen or in your early 20s, your budget may still be a top priority for you in your mid-20s. Many drivers in this age group are starting new jobs, leaving their parents' homes, and starting their own lives. If finding low-cost car insurance is your top priority, StrongInsurance research may be able to assist you in finding coverage that fits your budget.

Quadrant Information Services provided our insurance editorial team with premium information on the largest car insurance companies by market share. The rates shown below are the average full and minimum coverage rates for a 25-year-old driver who lives in a rented home. If you are looking for the cheapest car insurance for 25-year-old drivers, you should get a quote from one of the following companies:

Amica

The full and minimum coverage premiums for Amica are the second-highest on our list, but they are still lower than the national average for 25-year-olds. Amica provides auto insurance coverage options and discounts that may assist you in customizing your coverage. You may be able to add features such as full glass coverage, roadside assistance, rental car reimbursement, and accident forgiveness in addition to the standard coverage types. You may also be eligible for a variety of discounts. In J.D. Power's 2021 U.S. Auto Claims Satisfaction Study, Amica scored well above the industry average, indicating that customers are generally pleased with its claims service.

Erie

If you're looking for cheap full coverage, Erie has the lowest average full coverage rate on our list. In addition to the low average rate, Erie offers a variety of discounts that could help you save even more money. Among other things, the company offers discounts for paying in full, vehicle safety features, and insuring more than one policy with Erie. Erie's Rate Lock option may be the company's most distinguishing feature. Unless you make changes to your policy, such as adding a car or driver, your rate will remain the same with this feature. However, before deciding on Erie, keep in mind that the company only serves 12 states.

State Farm

State Farm is the largest auto insurance company in the country, accounting for more than 16 percent of the market. State Farm may be a good option if you prefer to handle your insurance in person rather than over the phone or online. The company has a nationwide network of insurance agents who can assist you with your insurance needs. Although State Farm does not provide as many optional coverage options or discounts as some of the other carriers on our list, there are still ways to customize your coverage and save money. You could, for example, choose to participate in State Farm's Drive Safe & Save program, which tracks your driving habits and rewards drivers with savings for safe driving habits.

Travelers

While Travelers has the highest average full coverage premium on our list, the company offers a variety of discounts, such as multi-policy and student discounts, that may help you save money on insurance. The company provides a variety of coverage options, such as new car replacement, ridesharing coverage, loan/lease gap insurance, and rental reimbursement coverage. You can save money by insuring multiple cars or policies with Travelers, having continuous insurance, insuring a hybrid or electric vehicle, paying in full, or owning a home even if you do not insure it with Travelers.

USAA

USAA only sells insurance to current and former military personnel, as well as their immediate family members. If you qualify, you should get a quote from USAA. Despite the fact that the company is not eligible for official J.D. Power customer satisfaction rankings due to eligibility requirements, it consistently receives high ratings for both claims service and overall customer satisfaction. You may be eligible for a discount if you are a safe driver, insure a new car, garage your vehicle on a military base, or store your vehicle while you are deployed.

How to save on car insurance for 25-year-olds

When you are 25, car insurance may be more expensive than the average, but there are still ways to save. Following the steps outlined below may assist you in obtaining the coverage you require at a price that is within your budget.

Shop around

Because each company has its own pricing algorithm, companies may weigh your personal characteristics differently. For example, one company may take your occupation into account, whereas another may not. Furthermore, when it comes to car insurance, each driver has a unique set of preferences and needs. Determining what you want from a company, such as specific coverage options or digital tools, may assist you in locating the best company for you. Once you've narrowed down the companies that offer the best policy options for you, you can compare quotes from multiple providers to find the best rates.

Compare discounts

Most auto insurance companies offer discounts, but some may have more that apply to you. If you can combine several discounts, you could save a lot of money. Discounts are frequently available on a company's website, but you can also speak with a representative or visit a local agency to discuss your options and see if you qualify.

Increase your deductibles

Full coverage auto insurance policies have two deductibles: one for collision coverage and one for comprehensive coverage. Your deductible is the amount of money you will have to pay if you file a claim for vehicle damage. Because collision claims are typically more expensive, your collision deductible has a greater impact on your premium than your comprehensive deductible. Increasing one or both of your deductibles usually results in a lower premium, but you will have to pay more out of pocket if your vehicle is damaged.

Reconsider the car you drive.

Cars are rated differently, similar to how insurance companies rate each driver based on their individual rating factors. Because of the cost of parts and standard safety features, some cars may be less expensive to insure than others. Before trading in or selling your car, you should get an insurance quote for the vehicle you intend to buy.

Improve your credit score

Some states prohibit insurance companies from using your credit score as a rating factor, but most do. Drivers with poor credit are statistically more likely to file claims, so insurance companies charge a higher premium to compensate for this risk. If you can improve your credit score, you may be able to lower your car insurance premium.

How to get the best insurance for a 25-year-old

The cheapest insurance isn't always the best insurance. If you're looking for a new car insurance policy, the steps below can help you find the right coverage and company for you:

• Determine what you require: Do you require a company with a local agency, or do you prefer to manage your policy online? Do you require or desire complete coverage? Are you looking for something specific, such as ridesharing coverage? Determining what you require may assist you in narrowing down which companies are suitable for your situation.
• Comparing companies and quotes: Obtaining quotes from multiple companies allows you to compare prices, discounts, coverage options, and customer service.
• Examine third-party rankings: Organizations such as J.D. Power examine overall customer satisfaction and claims satisfaction ratings of various insurance providers. AM Best evaluates a company's financial strength, which indicates its historical ability to pay claims. Examining these ratings and selecting a company with a high rating may help you feel more at ease with your insurance carrier.

If you are unsure where to begin, consulting with a licensed insurance agent may be beneficial. Insurance agents may be able to assess your situation and recommend coverage options and policy features that are appropriate for your needs.

Frequently asked questions

What is the best car insurance company?

The best car insurance company for you is determined by your personal preferences, policy requirements, and personal characteristics. Although some companies stand out for their available coverage options, discounts, low average rates, and high third-party rankings, everyone's needs are different. Working with an independent insurance agent to determine your needs and obtaining quotes from the best car insurance companies may assist you in determining the best option for you.

How do I know how much car insurance I need?

Car insurance does not come in a one-size-fits-all package. Higher or lower limits, optional coverage types, and enhanced policy features are all available. Consider your situation to determine how much coverage you require. You must obtain at least your state's minimum required coverage, and if you have a loan or lease, your lender will almost certainly require you to have full coverage.

When deciding on a liability limit, it's a good idea to get enough coverage to protect your finances and assets in the event of an accident. When deciding on deductible levels for your full coverage, make sure you can afford to pay your deductible if you file a claim for damage to your own vehicle. If you are unsure how much coverage you require, speaking with an agent can be beneficial.

Will my car insurance bill go down when I turn 25?

Your car insurance premium may decrease when you reach the age of 25, but not on your actual birthday. Car insurance companies typically assess rates when you renew your policy. Your policy renewal marks the end of your current policy term and the beginning of a new one. Generally, the first renewal after you turn 25 will result in a decrease in premium. This means that, unless your renewal date coincides with your birthday, you may need to wait a little longer to see the savings. Keep in mind that premiums are influenced by a variety of factors, so your own premium may not change much or may even increase, depending on your specific situation.

Methodology

StrongInsurance analyzes 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. using Quadrant Information Services. Rates are based on male and female drivers aged 25 with a clean driving record, good credit, and the following full coverage limits:

• Liability for bodily harm of $100,000 per person
• Liability for bodily injury of $300,000 per accident
• Property damage liability per accident is $50,000.
• Uninsured motorist bodily injury per person: $100,000
• Uninsured motorist bodily injury per accident: $300,000
• The collision deductible is $500.
• The total deductible is $500.

StrongInsurance used minimum coverage limits that meet each state's requirements to determine minimum coverage limits. Our typical driver owns a 2019 Toyota Camry, commutes five days a week, and drives 12,000 miles per year.

Age: Rates were calculated by evaluating our base profile at the age of 25 (base: 40 years). The driver could be a renter or a homeowner. In Hawaii and Massachusetts, age is not a rating factor.

Gender: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania do not use gender as a determining factor in calculating premiums.

These are sample rates that should only be used for comparison.