How Much Is Car Insurance for a 25-Year-Old?

While your rates have already decreased significantly, they will continue to go down for several more years as long as you keep up with good driving habits. Keep reading to learn about the best and cheapest car insurance for 25-year-olds, young drivers under 25, and new drivers over 25.

The average cost of insurance for a 25-year-old is about $1,600 annually or $133 per month. This amount applies to 25-year-olds with full coverage insurance on their own policy. Changing your coverage type or joining a parent or guardian’s existing policy may lower your rates.

If you’ve been driving since you were a teen and have maintained a clean driving record and safe driving habits, your rate should rest at or around the national average. However, if you have to file a claim with your insurance company or you have several tickets for traffic violations, your insurance premiums may be higher than the national average.

When determining your premiums, car insurance companies consider your age, gender, where you live, the type of car you drive, and several other factors. Some states prohibit using gender as a determinant for car insurance rates, but where it is permitted, it plays a heavy role in deciding your premiums. 

Young male drivers have statistically proven they’re risky to insure. According to the IIHS, they engage in more risk-taking behaviors when behind the wheel, such as driving without a seatbelt, speeding, and using alcohol. As teens and into early adulthood, young men pay more in car insurance premiums than young women.

When you turn 25, the gender disparity between car insurance costs has already diminished considerably. Once you reach your late 20s or early 30s, men and women begin to pay a nearly equal rate. 

The best car insurance for drivers under 25 will be a policy with full coverage and low premiums. When searching for the best car insurance policy for you, you will find you have two coverage options: liability coverage and full coverage.

Liability coverage covers only the victim in an accident where the policyholder is deemed at fault, up to your policy’s maximum amount. Liability coverage is the minimum legally required coverage in most states. This essentially means you aren’t covered by your own insurance in an accident.

Full coverage covers the victim and the policyholder, up to your policy’s maximum amount, in an accident where the policyholder is deemed at fault. Full coverage is more expensive because it is essentially double the amount of coverage you would have with liability coverage. 

Full coverage is the best option for drivers under 25 because it is safer than liability coverage. Since young drivers are more likely to be involved in car accidents, it is best to have more insurance than you may need than not enough. 

The best car insurance for new drivers under 25 will be a plan with full coverage and low premiums. While full coverage may be expensive for new drivers under 25, it is better to be safe than sorry.

Some insurance companies, like Progressive, Geico, and State Farm, have low premiums on their full coverage policies for young people. To get a full coverage policy with low premiums, we recommend asking your provider or agent about any discounts for which you may be eligible. 

Many car insurance providers have discounts geared toward young or new drivers. Several providers offer a good student discount if you meet the age requirement, are enrolled as a full-time student, and have a 3.0 GPA. Several car insurance providers also offer safe driving training programs for new drivers that will apply a discount to your premium upon completing the course.

The cheapest car insurance for drivers under 25 will be a plan with liability coverage and low premiums. Liability coverage only covers a victim in an accident where the policyholder (you) is deemed at fault. Since liability coverage only covers half of what full coverage covers, the cost is also about half of what full coverage costs. 

Keep in mind what’s cheapest may not always be what’s best. Drivers under 25 pay more on their insurance premiums because they’re risky to insure. Just remember that if you’re injured or your vehicle is damaged in an accident deemed your fault, and you only have liability coverage, the cost of repairs and medical expenses will come out of your pocket. 

The cheapest car insurance for first-time drivers under 25 will be a policy with liability coverage and low premiums. Some of the best providers with low-premium policies for young, first-time drivers are Progressive, Geico, and State Farm. Each of these providers offers low rates on their premiums and has excellent discounts that, when combined, may save you up to 50% on your premiums.

While car insurance costs are lower for 25-year-olds than for 16-year-olds, it is essential to note that this is partly due to 25-year-olds having an established driving record. If you’re a first-time driver in your 20s, the national average car insurance rate for your age group may not apply because these averages assume you have been driving since you were 16. 

New drivers are risky for insurance providers to insure because they don’t yet have a driving record. While you may pay more than your experienced counterparts, there are ways to reduce the cost of your car insurance premiums.

Most car insurance providers offer a new driver training program that, when completed, will take a discount off your premiums. If you’re a new driver and plan to be a safe driver, we highly recommend finding a car insurance provider that offers one of these programs. 

If you’ve been driving since you were a teenager and have maintained a good driving record with safe driving habits, your car insurance will become cheaper at 25. Car insurance rates decrease for 25-year-olds for a variety of reasons.

One of these reasons rates decrease at 25 is that 25 marks the full development of the adult brain. Young adults pay more for car insurance because they’re riskier to insure. At 25, however, young adults’ brains are nearing the end of development, and they don’t as frequently engage in the risky behaviors that cause car insurance providers to drive up rates for young adults.

Another reason rates decrease at 25 is that 25-year-olds have typically been driving for nearly 10 years and have had adequate time to build a driving record. Insurance providers consider several factors when determining your car insurance rates, and one of the main factors is your driving record. If you’ve been a safe driver since you were a teenager and have had minimal or no claims filed with your car insurance provider, your rates will likely decrease when you turn 25.

While car insurance rates typically decrease when you turn 25 toward the national average for adults, this may not be the case for first-time drivers. First-time drivers are risky to insure regardless of age, so you will likely pay more than the average $1,600 annual car insurance rate for 25-year-olds.

The average rate 25-year-olds pay in car insurance premiums only applies to those who have been driving for nearly ten years, accident-free. If you’re a new driver at 25, your rates may not be this low, as you don’t yet have a driving record. When car insurance providers determine your premiums, they consider several things. One of the main factors insurance providers consider when determining your insurance rate is your driving record. 

If you don’t have a driving record, insurance providers will defer to your age, gender, where you live, car type, credit score, and other factors to determine your premiums. This means you may pay more during your first few years of driving until you build a driving record and trust with your insurer.

It is essential to shop around online and get quotes from several agents or providers to find the best car insurance rates for drivers under 25 or over 25. Get a free quote from Clovered by submitting your information with this form, and one of our agents will be in touch with you shortly.

If you have any questions regarding car insurance for a 25-year-old, you can also contact us by calling 833-255-4117 or email us at agent@clovered.com.