erie offers the cheapest car insurance for 25-year-olds, but rates can vary based on factors like driving history, location and gender. Geico, Nationwide, and USAA also offer rates that are cheaper than average, based on our analysis of rates for 25-year-old drivers across the country. To get the best rate, compare auto insurance quotes from multiple companies.
Which companies offer 25-year-olds the best cheap car insurance?
erie offers the lowest rates for 25 year olds with an average rate of $127 per month. The second cheapest insurer is usaa, with an average rate of $147 per month.
While erie is the cheapest option, it is only available in 13 states. Additionally, USAA is only available to current or former military members and their families. Among insurers with wide availability, geico has the most affordable rates for 25-year-olds, averaging $165 per month.
You should always look for quotes from multiple insurers, as you never know which one might offer you the best rate. One insurer might be the cheapest if you want minimal coverage, while another might be the most affordable for those looking for a cheap full coverage policy.
How are insurance costs different for 25 year old male and female drivers?
The difference in the average cost of car insurance for 25-year-old male and female drivers was just 3%.
For younger drivers, there is a noticeable difference in the cost of car insurance between men and women. however, at age 25 that gap begins to narrow, although 25-year-old men pay slightly more for car insurance than 25-year-old women.
Young male drivers pay more for car insurance because they tend to have more accidents compared to female drivers.
In certain states, you won’t notice any difference between car insurance costs for male and female drivers. This means that, all other things being equal, 25-year-old male and female drivers should pay the same amount for car insurance in the states below. these states have totally or partially prohibited the use of gender as a variable when setting rates:
how much does car insurance cost for a 25 year old?
The average cost of car insurance for a 25-year-old is about $279 per month. this is $337 cheaper per month than the 18-year average.
Young drivers pay disproportionately more for car insurance than older drivers. however, as they gain experience, their rates begin to drop.
Do car insurance rates drop at age 25?
Yes, the average cost of auto insurance dropped 11%, from $314 per month to $279, when our driver turned 25. however, our sample driver saw similar or even greater reductions in costs across one-year differences between ages 18 and 25.
Young drivers should also keep in mind that insurers calculate their rates based on driving experience, not just age. Car insurance for a 25-year-old new driver will likely cost more than car insurance for a 25-year-old with nine years of driving experience.
best auto insurance companies for 25 year olds by state
geico is the cheapest option in four of our nine sample states.
Although our quotes represent an average, and therefore don’t necessarily indicate which insurer is best for you, we compiled recommendations for the cheapest insurance companies in our nine sample states.
With an average monthly rate of $134, North Carolina is the cheapest state for 25-year-olds, with rates less than half the overall average.
michigan, on the other hand, is extremely expensive for 25-year-olds (and most ages) compared to other states. their rates are about three times the overall average.
Insurance is regulated at the state level and auto insurance prices fluctuate from state to state. Below are the average car insurance costs for 25-year-olds in nine of the most populous states.
how to find cheap car insurance when you turn 25
Keys to getting cheaper car insurance at age 25 include:
shop multiple insurers to get similar coverage at a lower price
As our data shows, the exact same driver profile can earn a variety of rates for equivalent coverage. the savings could even exceed thousands of dollars. For example, there is a difference of $2,017 per month between the cheapest and most expensive insurers in Michigan, as the table below shows.
The easiest way to start your search is to purchase auto insurance quotes online. When browsing, be sure to select the same coverage limits and features for each insurer so you know you’re getting comparable policy prices.
You can also use our car insurance estimator to get an idea of how much your car insurance will cost.
check with insurers to see what discounts are available
Twenty-five-year-olds may no longer be aware of the ways young people can save, like staying on their parents’ policy or good student discounts, but insurers still offer them plenty of ways to lower their premium.
You should always check to see if an insurer offers discounts for:
don’t buy unnecessary coverage
Our advice is to buy as much coverage as you need to ensure financial protection against costly events, but not every element of auto insurance may be right for everyone. for example:
We collect auto insurance quotes for thousands of zip codes in nine of the nation’s most populous states. our sample profiles were 25 year old male and female drivers with a 2015 honda civic ex. our sample drivers had clean driving records.
We collect full coverage rates with the following limits:
While our analysis compiled rates from 29 insurance companies, insurers were only added to our list of average prices and recommendations if their policies were available in at least three of the nine states.
Our analysis used insurance rate data from Quadrant Information Services to calculate the average cost of insurance for a 25-year-old. these rates were obtained publicly from insurer filings and should be quoted for comparison purposes only.