Car Insurance Costs for 25-Year-Old Males and Females

Car Insurance Costs for 25-Year-Old Males and Females

Find Cheap 25-Year-Old Auto Insurance Quotes

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The average cost of car insurance for 25-year-olds is $279 per month, or $3,348 per year. Erie offers the cheapest car insurance for 25-year-olds, but drivers should still shop around as rates may vary based on factors such as driving history, location and gender.

The averages in this study are based on thousands of rates we collected across nine states. We used these rates to analyze the cost of insurance for 25-year-olds across a variety of factors, including age, gender, company and location. To get the best rate, compare car insurance quotes from multiple insurers.

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Which companies offer 25-year-olds the best cheap car insurance?

Erie offers the cheapest rates for 25-year olds, according to our research, with an average rate of $127 per month.

The second-cheapest insurer is USAA, with an average rate of $147 per month.

This graph ranks car insurance quotes for 25-year-olds across varying insurers

Find Cheap 25-Year-Old Auto Insurance Quotes

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While Erie is the cheapest option, it's only available in 13 states. Additionally, USAA is only available to current or former military members and their families. Among insurers with widespread availability, Geico has the most affordable rates for 25-year-olds, an average $165 per month.

Insurer
Average monthly rate
Erie$127
USAA$147
Geico$165
Nationwide$174
Progressive$208
State Farm$234
Farmers$258
Allstate$480

You should always shop around for quotes from multiple insurers, as you never know which could offer you your best rate. One insurer could be the cheapest if you want bare-minimum coverage, while another could be the most affordable for those seeking a cheap full-coverage policy.

How do insurance costs for 25-year-old male and female drivers differ?

The difference in the average cost of car insurance for 25-year-old male and female drivers was only 3%.

For younger drivers, there is a noticeable difference in the cost of car insurance between male and female drivers. However, at age 25 that difference begins to narrow, though 25-year-old males pay slightly more for car insurance than 25-year-old females.

Age
Monthly rate, male
Monthly rate, female
Difference
23$344$3266%
24$321$3065%
25$283$2753%

Young male drivers pay more for car insurance because they tend to get into more accidents compared to female drivers.

In certain states, you won't see any difference between car insurance costs for male and female drivers. This means that, all else being equal, 25-year-old male and female drivers should pay the same amount for car insurance in the states below. These states have fully or partially banned using gender as a variable in setting rates:

  • California
  • Hawaii
  • Massachusetts
  • Parts of Michigan
  • Montana
  • North Carolina
  • Pennsylvania

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

The average cost of car insurance for a 25-year-old is approximately $279 per month. This is $337 cheaper per month than the average 18-year-old.

Young drivers pay disproportionately more for car insurance than older drivers. However, as they gain experience, their rates begin to drop.

Age
Average monthly rate
18$616
19$515
20$460
21$384
22$359
23$335
24$314
25$279

Do car insurance rates go down at age 25?

Yes, the average cost of car insurance went down by 11% — from $314 per month to $279 — when our driver turned 25. However, our sample driver saw similar or even larger drops in costs in one-year differences for other ages between 18 to 25.

Young drivers should also note that insurers calculate your rates based on driving experience, not just age. Car insurance for a new 25-year-old driver will likely cost more than car insurance for a 25-year-old with nine years of driving experience.

Best car insurance companies for 25-year-olds by state

We found that Geico is the cheapest option in four out of our nine sample states.

Although our quotes represent an average — and thus not necessarily indicative of the best insurer 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 with other states. Its rates are approximately three times the overall average.

Insurance is regulated at the state level, and car insurance prices fluctuate from state to state. Below are the average costs of car insurance for 25-year-olds in nine of the most populous states.

State
Average monthly rate
North Carolina$134
Ohio$146
California$172
Illinois$203
Georgia$231
Texas$228
New York$254
Florida$301
Michigan$819
Average$279

How to find cheap car insurance when you turn 25

The keys to getting cheaper car insurance as a 25-year-old include:

Shop multiple insurers to get similar coverage at a lower price

As our data shows, the exact same driver profile can get a variety of rates for equivalent coverage. The savings could even be upwards of 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.

Insurer
Average monthly rate
Progressive$171
USAA$210
Home-Owners$322
Frankenmuth Mutual$337
State Farm$444
AAA$1,093
Allstate$1,784
Citizens$2,188

The easiest way to start your search is to shop for car insurance quotes online. When browsing, make sure to select the same coverage limits and features for each insurer so that you know you're getting prices for comparable policies.

Check with insurers to see which discounts are available

Twenty-five-year-olds have likely aged out of ways younger people can save, such as remaining on their parents' policy or good student discounts, but insurers still offer them plenty of ways to lower their premium.

You should always check if an insurer offers discounts for:

  • Defensive driving: Insurers may reward you for taking a safe or defensive driving course.
  • Bundling: If you're also buying renters or homeowners insurance, you could bundle the two policies with the same insurer for savings.
  • Safety features: If your car has anti-lock brakes or anti-theft devices, you may qualify for savings.
  • Payment: You're often able to get some minor savings if you pay your policy in full for its entire term, or if you opt for paperless billing.

Don't buy unnecessary coverage

Our advice is to buy as much coverage as necessary to ensure financial protection from costly events, but not all elements of auto insurance may be appropriate for every person. For example:

  • Purchase appropriate liability coverage: Liability coverage protects you against the costs of property damage or bodily injury in a crash for which you are at fault. Make sure you have liability limits that cover your total net worth. But if higher limits beyond your worth are an unreasonable expense, stick to what you can afford.
  • Only buy comprehensive and collision coverage if your vehicle is worth it: Comprehensive and collision insurance can be invaluable if you have a high-value car. But if your car is worth a few thousand dollars or less, you could be paying too much money to protect an asset that has little value.

Methodology

We gathered auto insurance quotes for thousands of ZIP codes across nine of the most populated states in the country. 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 collected full-coverage rates with the following limits:

Coverage
Limits
Bodily injury liability$50,000 per person/$100,000 per accident
Property damage liability$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Comprehensive and collision$500 deductible
Personal injury protection (PIP)Minimum, when required by state

While our analysis collected 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 publicly sourced from insurer filings and should only be referenced for comparative purposes.

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.