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The cheapest auto insurance for 25 year olds can be found for $108 per month or $1,292 per year with USAA for full coverage auto insurance
Cheap Car Insurance New Drivers Over 25
We at Guides Auto have compared the costs of dozens of car insurance policies for 25-year-olds. We detail which companies offer the cheapest rates for 25-year-olds and which are worth considering when buying car insurance.
Car Insurance Groups
Why trust our team? The Guides Auto team is committed to providing reliable information to help you make the best possible decision about your car insurance. Our researchers, writers and editors are dedicated to researching providers and analyzing customer feedback and insights so you can choose with confidence.
Drivers in their mid-twenties typically pay more for car insurance than older drivers because they have less experience and are more at risk to insure. Where can you find the cheapest car insurance for 25-year-olds? No two people have exactly the same driving profile, but some companies are cheaper on average than others.
Considering price, availability, coverage, reputation, and customer experience, Geico is our recommendation for the best auto insurance for 25-year-olds. We'll break down our top five picks below.
The average 25-year-old pays about $2,019 a year or $168 a month for full coverage auto insurance. That's about 13 percent more than the national average for 35-year-old drivers, which is $1,785 a year.
Cheap Car Insurance For Drivers Under 25
If you're looking for the lowest rates, USAA offers the best car insurance for 25-year-olds, with rates starting at $1,292 per year or $108 per month on average. However, USAA is only available to military members and their immediate families. Geico is another low-cost option with average rates of $1,420 per year or $118 per month.
Below you can see how 11 popular car insurance policies score on price for 25-year-olds. Many supplemental companies -- such as Erie Insurance, Nationwide, Auto-Owners Insurance, and State Farm -- offer below-average costs for their monthly and annual premiums.
*Auto insurance estimates are based on full coverage policies with $50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage per accident, and $500 deductible for comprehensive and collision coverage.
Auto insurance companies set rates based on the risk of a claim being made, and young adults are viewed as high-risk drivers. While 25-year-olds are no longer teen drivers, they still don't have as much experience behind the wheel as older drivers.
Inflated Car Insurance Premiums Deflating Young Drivers
According to the AAA Foundation for Traffic Safety, drivers ages 25 to 29 had 526 crashes per 100 million miles in 2014 and 2015, while the next age group, 30- to 39-year-olds, had 328 crashes. Even if a 25-year-old has never had a traffic violation or accident, he is still considered a higher risk to insure than a 35 or 45-year-old.
The average number of accidents plays a major role in car insurance rates. The following shows how the cost of car insurance reflects the number of accidents by age group of the driver.
The best cheap car insurance for 25-year-olds depends on your situation. We've included details of our best recommendations below.
Geico's average rates for 25-year-olds are about 30% cheaper than the national average, which translates to savings of $50 per month. The company offers a wide variety of auto insurance coverage options and a highly rated mobile app, plus discounts with its usage-based DriveEasy program. Geico's A+ rating from the Better Business Bureau (BBB) reflects its reputation for affordability and great customer service.
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USAA earns a spot among the top auto insurance companies for 25-year-olds for its low rates and reliable customer service. Average rates with USAA are about 36% cheaper than the national average for 25-year-olds. Like Geico, USAA offers numerous discounts, including a safe driving program called SafePilotTM. In addition, the company consistently achieves top scores in J.D. surveys. Power, such as the 2022 US Auto Insurance Survey and the 2021 US Auto Claims Satisfaction Survey.
State Farm often has some of the best rates for younger drivers. Our estimates show that 25-year-olds tend to pay about 16% less at State Farm than the national average. And if you're a good driver, you can save up to 30% with the usage-based Drive Safe & Save™ program. If you are a safe driver you can also earn accident free and good driver discounts from the company.
Nationwide makes our list of the best car insurance policies for 25-year-olds, as average rates are 23% below average for the age group. Nationwide also offers several discounts, including two telematics insurance programs: SmartRide® and SmartMiles®. You can save up to 40% with SmartRide by practicing safe driving habits. If you don't drive much at all, you can purchase pay-per-mile insurance with SmartMiles.
Available in 12 states and Washington, D.C., Erie Insurance offers very affordable rates for 25-year-olds. Our estimates show that this age group pays, on average, about 25% less with Erie than the national average for full auto insurance. In addition to standard auto insurance, Erie offers pet coverage, personal effects coverage, auto windshield repair, and more.
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Just because you're young doesn't mean you're destined to pay outrageous prices for auto insurance. There are several things you can do to find better insurance premiums and save money.
Each company has its own formula for determining auto insurance rates based on many factors. By comparing companies, you can find prices that are better than what you are paying now.
By increasing your deductible, you lower your premium because you pay more out of pocket if you damage your car. As you take on more risk, the insurance company lowers your rate. Make sure you can afford the deductible, of course.
Think about what kind of protection you would want if you had an accident. The cheapest option would be to get the minimum required coverage in your state. But when making this decision, keep in mind the financial consequences of insufficient coverage.
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Auto insurance premiums are already high for young drivers with good driving habits. If you get a speeding ticket or cause an accident, you can say goodbye to affordable prices for years to come. That's why it's so important to have a clean driving record as a young adult. If you have a clean record, you also get discounts for accident-free and safe driving.
Auto insurance companies offer discounts that can make a big difference to your insurance bill, and each provider offers a different list of them. This means that the best auto insurance company for one driver may not be the best for another. Take the time to find the car insurance discounts that best suit your situation. These can be:
If you combine your contents or household contents insurance with your car insurance, you can qualify for a discount with most insurance companies. If you have good grades or if you are taking a defensive driving course, most providers also have a discount on that. Sometimes you can get discounts just by being a new driver or by adding special safety features to your car.
While 25-year-olds generally pay more for coverage than older drivers, there are still low-cost companies out there. Comparing car insurance policies is one of the easiest ways to find cheap car insurance. We recommend comparing at least three quotes each time your car insurance is due for renewal.
How Age Affects Car Insurance Costs
Auto insurance is not a one-size-fits-all solution. You can purchase higher or lower limits, optional cover types and enhanced policy features. When determining how much coverage you need, think about your situation and the amount of insurance you need to carry in the state where you live.
According to our research, State Farm is the best auto insurance company. The company received high marks in our list of the best auto insurance companies and performed well in consumer surveys.
Auto insurance tends to be cheaper after you turn 25 than car insurance for drivers in their teens or early 20s. On average, 25-year-olds pay about 28% less for full insurance than 21-year-olds. Rates usually continue to fall until you turn 35 if you maintain a clean driving record.
Our estimates show that the average 25-year-old spends about $2,019 a year on comprehensive car insurance, which is about 13% more than what 35-year-olds pay. That's because insurance companies view 25-year-olds as high-risk drivers.
Study: Women Now Pay More Than Men For Car Insurance In 25 States (even Though Men Are Riskier Drivers)
Most states require auto insurance, so yes, you can insure a 25 year old car. Auto insurance for a 25-year-old vehicle is usually inexpensive, as you'll probably only need the basic liability coverage required by your state. But if it is a classic car with value, you need special classic car insurance.
Because consumers trust us to provide objective and accurate information, we've developed an extensive rating system to formulate our ranking of the best auto insurance companies. We've collected data from dozens of auto insurers to rank companies on a wide variety of ranking factors. The final result was a total score per supplier,
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