How much is car insurance for 25-year-olds?
Fact-checked with HomeInsurance.com
Getting car insurance for a 25-year-old comes with a lot of factors impacting the cost. While age has a major impact, so do other things, like where you live and what carrier you choose. While the average cost of car insurance in the United States is $1,555, your rate could be significantly higher or lower. Keep reading to find out the average cost of insurance for a 25-year-old and how that number may vary based on other details.
Car insurance for 25-year-olds
If you’re wondering how much is car insurance for 25-year-olds, we’ve got some good news for you. The average annual cost is $2,036. While is well above the national average of $1,555 per year, it’s significantly lower than what a teen driver pays. The average male teen is charged $4,048 while the average female teen pays $3,819 annually.
Age is one of the primary factors influencing your car insurance rate. That’s why car insurance for a 25-year-old is so much cheaper than a teenager but still high compared to the average American.
25-year-old car insurance rates: male vs. female
At age 25, there’s little difference between females and males when it comes to car insurance rates. Women pay $1,994 a year on average, while men pay $2,078. That’s only a difference of $84 a year, or $7 a month.
Teenage drivers, on the other hand, have a much larger rate discrepancy between genders. Male teens can expect a 30 percent higher premium compared to females in the same age group. The reason for this is because, according to the CDC, male teens are twice as likely to die in a car accident than anyone else. Because they’re more likely to drive recklessly, their premiums cost more. The gender gap begins to lessen around age 30.
Annual rate for 25-year-olds
|Gender||Average annual rate for 25-year-olds|
Quadrant information services, 2020
How much is car insurance for 25-year-olds in my state?
The cost of car insurance also varies depending on where you live. States that have lesser insurance requirements may have more expensive policies. You also may be charged more if your area is prone to things like floods, fire or high crime rates.
The table below compares average rates for 25-year-olds by gender and state average.
Average cost of insurance by state for 25-year-olds
|State||Average annual rate for 25-year-old female||Average annual rate for 25-year-old male||State average|
Quadrant information services, 2020
Most expensive states for car insurance for 25-year-olds
New York, Michigan, Florida, Louisiana and New Jersey rank as the five most expensive states for car insurance for 25-year-olds. The reasons vary across these unique locales. Population plays a large role, with Florida and New York taking third and fourth places out of all 50 states. Michigan is also densely populated, ranking 10th.
Data on car crashes also impact how much carriers charge in each state. Louisiana has one of the highest rates of car crash fatalities, with 16.5 deaths per 100,000 population every year. Similarly, both Louisiana and New Jersey face a large percentage of drunk drivers killed with known blood alcohol concentrations, at 86 and 81 percent respectively.
The five most expensive states are:
- New York: $3,456
- Michigan: $3,367
- Florida: $2,897
- Louisiana: $2,736
- New Jersey: $2,543
Least expensive states for car insurance for 25-year-olds
People of this age in Maine, Vermont, Hawaii, Ohio and Idaho enjoy the least expensive auto insurance premiums. Populations are more sparse in these areas, with all but Ohio ranking in the top 15 least populated states.
Additionally, fatal crashes are significantly lower, which likely impacts the cost of insurance. Hawaii, for example, had just 8.2 fatal crashes per 100,000 people, compared to Louisiana’s 16.5. Ohio also has a lower fatality rate of just 9.1 deaths for the same population.
The five least expensive states are:
- Maine: $794
- Vermont: $989
- Hawaii: $1,072
- Ohio: $1,117
- Idaho: $1,144
Car insurance rates by insurance carrier for 25-year-olds
The carrier you choose can also have a major impact on what you’ll pay as a 25-year-old. Erie Insurance has the lowest average rate for this age group at just $1,234. Plus, the company’s plans come with perks like pet coverage in case your pet gets hurt in a car accident.
USAA comes in close behind Eerie with an average annual premium of $1,512. The company caters to military service members and their families. You can receive discounts for things like how long you’ve been a member and for being a safe driver.
State Farm, Farmers and The Hanover have the highest rates for 25-year-olds, making them less appealing for younger drivers. Explore other options in the chart below, which compares the average premiums for male and female 25-year-olds by provider.
Average rates by carrier
|Company||Average annual rate for 25-year-olds|
Quadrant data services, 2020
How car insurance rates could go down at age 25
As you become a more experienced driver, expect to see your insurance rates go down. According to Progressive, your rate can drop as much as 18 percent when you reach 25 years old. But you might not receive as significant savings if you recently got into an accident or bought a brand new car.
Remember that age isn’t the sole factor in determining your auto insurance rate. Your driving history and credit profile are just as important. Keep driving safely and pay attention to your credit score to save the most money when you turn 25.
How to get cheap car insurance for 25-year-olds
As a 25-year-old, there are several ways you can save money on car insurance without having to wait to get older. Here are four strategies to consider as you shop for a policy.
Pick a carrier with relevant discounts
Different insurance companies offer different discounts, so find one with options that make sense for you. Perhaps you can save by bundling with other policies, like your renters or homeowners insurance. If you’ve been with the same carrier for at least a year, you could also get a loyalty discount.
Improve your credit score
Insurers check your credit when offering you a quote, because they believe there’s a correlation between lower credit scores and filing more auto claims. Regardless of how you feel about that generalization, it’s still important to keep your credit score up. Pay your bills on time, and avoid maxing out credit cards. Also, try to take care of any delinquent accounts or bills in collections, because those items can cause a major drop in your score.
Get a higher deductible
Your deductible is the amount you pay before the insurance company pays out on a claim. If you have a higher deductible, you’ll enjoy a lower premium, but you will have to pay more if you get into a car accident. For example, if you have a $1,000 deductible and $1,500 worth of damage, you’d only receive $500 from your insurer.
Compare multiple quotes
As you’ve seen above, not all insurance companies charge the same amounts. Shop around and find one that caters to younger drivers to make sure you get the best deal.
- Car insurance costs less for 25-year-olds than teenagers
- Price varies by state and insurer but not gender
Understand what impacts your auto insurance premium to make sure you pay the least amount possible when you’re 25. Shop around, work to improve your credit score and search for discounts that apply to you.
Coverage utilizes Quadrant Information Services to analyze quoted rates from thousands of zip codes across all 50 states including Washington D.C. Quoted rates are based on the profiles of a 25-year-old male and female, each with a clean record driving a 2016 Honda Civic. The drivers had the following coverage details:
- $50k bodily injury liability per person
- $100k bodily injury liability coverage per crash
- $50k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
To look at the effect of a good driver discount, we analyzed rates for the profile both with and without the discount applied. These rates should be used to inform your car insurance shopping process, but note that your actual rates will differ.