Once a driver reaches 25, they are no longer considered to be in the riskiest age categories and their car insurance rates will begin to reflect that noticeably.
When combined with a good driving record and few or no traffic tickets, a 25-year-old can expect to pay about $1,400 less than they did at age 20 for a full coverage policy.
And there’s one other thing that plays a significant factor in the states that allow it to be used: a good credit score. The connection between a good credit score and good driving habits may not seem transparent, but carriers place considerable weight on it.
“Carriers will actually put you in tiers based on your credit rating,” says Jana Foster, owner of Nevada Insurance Agency Co., a full-service brokerage with offices in Carson City and Reno. “The credit score is also looked at as a factor in your being able to continuously make those monthly (insurance) payments.”
The average national car insurance rate for a 25-year-old driver is about $1,873 per year or $156 per month, for their own full coverage policy. It represents a $200 drop from the average at age 24.
Read on to learn more about car insurance for 25-year-olds.
- For a full coverage policy, a 25-year-old driver pays an average of $1,873 per year or $156 monthly for car insurance.
- Male drivers are still assessed at higher rates than females at this age, but the gap is much smaller than in their teens and early 20s.
- Males pay an average of $1,924 for a full coverage policy, while females pay $1,822.
- Car insurance for young adults: What’s the average cost for a 25-year-old?
- How much is car insurance for a 25-year-old male?
- How much is car insurance for a 25-year-old female?
- What’s the best car insurance for 25-year-old drivers?
- Car insurance discounts for 25-year-olds
- Final thoughts on car insurance for 25-year-olds
- Resources & Methodology
Car insurance for young adults: What’s the average cost for a 25-year-old?
The average annual car insurance rate for a 25-year-old who has their own policy :
- State minimum liability coverage: $554
- Liability coverage with limits of 50/100/50: $684
- 100/300/100 liability with a $500 comprehensive and collision deductible: $1,873
What you pay will vary depending on many factors, ranging from the insurance company you choose to where you live, coverage levels and the deductible you select.
See the table below to see how much car insurance costs for males vs. females at various coverage levels in each state.
- State Minimum: State Minimum Liability Only
- Liability Only: 50/100/50 Liability Only
- Full Coverage: 100/300/100 is liability with comp/collision and $500 deductible.
How much is car insurance for a 25-year-old each month?
The table below shows how much car insurance costs for a 25-year-old per month, on average.
How much is car insurance for a 25-year-old male?
At 25 years old, drivers are no longer in the riskiest category for driving. That distinction goes to young adults in the 20-24 age range.
The Insurance Institute for Highway Safety reports that 25 to 30-year-old males were involved in 1,848 fatal accidents in 2020 – a rate of about 15.6 per 100,000 male drivers. That’s still pretty high compared to the accident rates for males in their 30s and 40s, but it is trending down from the fatality rates for those in their early 20s.
The average national full coverage insurance policy cost for a 25-year-old male with a $500 comprehensive/collision deductible is $1,924. That’s down from the average of $2,180 at age 24.
Carriers may assess males substantially differently at this age, so it can pay to shop around.
How much is car insurance for a 25-year-old female?
With a good driving record and credit score, female drivers will notice their insurance rates have dropped substantially at age 25.
The average national cost of a full coverage insurance policy for a 25-year-old female with a $500 comprehensive/collision deductible is $1,822, a savings of $188 from what they would have paid at age 24.
What’s the best car insurance for 25-year-old drivers?
Start with liability car insurance, which pays for others’ injuries and damage you cause to their property in an accident. Typically, the state-minimum coverage isn’t enough – medical costs can quickly escalate if significant injuries occur in an accident.
If you’re financing a vehicle, lenders usually require comprehensive and collision coverage. If you paid off your car, you decide if you want these coverages, which cover your car following a crash and for damage due to fire, hail, vandalism and animal strikes.
As young adults gain more disposable income, they will also want comprehensive insurance and collision coverage. If you have a higher deductible, you can lower your rate, but you’ll be responsible for the deductible if you make a claim.
Car insurance discounts for 25-year-olds
Kevin Lynch, an assistant professor of insurance at The American College of Financial Services in Bryn Mawr, Penn., stresses that the three biggest favors any young adult can do for themselves in terms of getting the lowest insurance rates are to stay accident-free, have a clean driving record and maintain a good credit score.
“They’re the essentials of getting affordable insurance,” he says. “After that, you can look at a variety of other things such as affiliated discounts, bundling insurance policies and perhaps an in-car monitoring device.”
Take advantage of discounts for establishing paperless billing, paying your premium upfront and bundling auto with policies like home and renter’s insurance.
If you’re working in a trade, or have started a career at a new company, check to see if your trade association has a discount arranged with an insurance carrier or if your company has a partnership. Many professional associations, from doctors to lawyers, accountants to dentists – and others – may be eligible for discounts from certain carriers.
While you may be out of college at this age, your school alumni may have a discount arranged with a carrier.
Beyond discounts, be mindful of the type of car you buy. A practical, safe and reliable car will have a much lower insurance rate than a sports or luxury vehicle. Compare rates on car models like the top teen and young adult-ready cars that cost less than $15,000 with high safety ratings.
Final thoughts on car insurance for 25-year-olds
As you gain more experience driving, your auto insurance rates will fall. The even better news is it will continue to get cheaper as you age toward 30.
The average full coverage insurance rate for a 30-year-old is $1,673, about $200 less than you expect to pay at 25.
Also, shop around and compare rates with several different insurers. This should help you get an excellent policy at the best price with an online calculator.
Car Insurance for Teens:
- How much is car insurance for a 16-year-old?
- How much is car insurance for a 17-year-old?
- How much is car insurance for a 18-year-old?
- How much is car insurance for a 19-year-old?
Car Insurance for Young Adults:
- How much is car insurance for a 20-year-old?
- How much is car insurance for a 21-year-old?
- How much is car insurance for a 22-year-old?
- How much is car insurance for a 23-year-old?
- How much is car insurance for a 24-year-old?
Car Insurance for Adults:
- How much is car insurance for a 30-year-old?
- How much is car insurance for a 40-year-old?
- How much is car insurance for a 50-year-old?
Car Insurance for Seniors:
Resources & Methodology
Insurance Institute for Highway Safety, Highway Loss Data Institute. “Fatality Facts 2020, Males and Females.” Accessed April 2023.
CarInsurance.com commissioned Quadrant Information Services in 2023 to field rates for auto insurance for 25-year-olds at various coverage levels (state minimum, 50/100/50 liability and 100/300/100 full coverage) and for males and females in each state.