Once a driver turns 25, they move out of the highest-risk age category, resulting in a significant reduction in their car insurance rates. With a good driving record, a 25-year-old pays $1,052 more than for a full coverage policy compared to what they paid at age 20.

A 25-year-old driver typically pays an average of $2,259 annually or $188 monthly for full coverage car insurance across the nation, which is $263 more than the cost for a 24-year-old.

In Iowa, the average annual rate for a full-coverage policy for 25-year-olds is $2,002.

Keep reading to learn more about car insurance for 25-year-olds in Iowa

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Written by:
Shivani Gite
Contributing Writer
Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions. When not writing, you can find her reading a book or watching anime.
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Reviewed by:
Laura Longero
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Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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Cheapest car insurance for 25-year-olds in Iowa

An average 25-year-old driver in Iowa pays $2,002 per year for full coverage car insurance. The chart below shows the average rates for full coverage from major insurance companies in Iowa for male and female drivers at age 25.

Company25-year-old female25-year-old male
West Bend Insurance Company$1,427$1,495
Travelers$1,431$1,510
State Farm$1,442$1,636
Auto-Owners$1,826$1,949
IMT Insurance$1,812$1,981
Iowa Farm Bureau$1,898$1,970
Progressive$2,014$2,095
Geico$2,115$2,104
Allstate$2,765$2,765
Grinnell Mutual$3,244$3,442
USAA*$1,530$1,588

How much is car insurance for a 25-year-old in Iowa each month?

As a 25-year-old in Iowa, your car insurance premiums will vary depending on your location, coverage options, credit score, driving record and deductible amount.

The table below highlights the average monthly and annual car insurance premiums for a 25-year-old in Iowa.

25-year-old policyAverage annual ratesAverage monthly rates
State Minimum Liability Only$316$26
50/100/50 Liability Only$383$32
100/300/100 Liability with $500 Comp/Coll Deductible$2,002$167

How do rates for 25-year-olds compare to rates for other ages in Iowa?

The cost of car insurance will peak in your teens and decrease yearly until age 65 when rates start to increase again. See the chart below to see how rates change at various ages, from your teens to age 70.

AgeAverage annual ratesAverage monthly rates
16$6,184$515
20$3,053$254
25$2,002$167
40$1,630$136
65$1,404$117
70$1,446$121

Check out our detailed guide on the average car insurance rates by age

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

Based on CarInsurance.com’s data analysis, a 25-year-old male in Iowa with $500 comprehensive/collision deductibles pays $2,049 for a full coverage insurance policy.

Coverage levelAverage annual rates for male
State Minimum Liability Only$319
50/100/50 Liability Only$385
100/300/100 Liability with $500 Comp/Coll Deductible$2,049

The Insurance Institute for Highway Safety reports that in 2020, 25- to 30-year-old males were involved in 1,848 fatal accidents – a rate of around 15.6 per 100,000 male drivers. While this rate remains high compared to males in their 30s and 40s, it is lower than the fatality rates for males in their early 20s.

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

At age 25, female drivers with a clean driving record and good credit score will find that their insurance rates have dropped considerably.

A 25-year-old female driver pays $2,224 per year nationwide for a full coverage policy with $500 comprehensive/collision deductibles. The average annual cost of a full coverage policy in Iowa is $1,955 that’s $269 less than the national average cost for 25-year-old female drivers.

The table below shows car insurance rates for different coverage limits.

Coverage levelAverage annual rates for female
State Minimum Liability Only$314
50/100/50 Liability Only$380
100/300/100 Liability with $500 Comp/Coll Deductible$1,955

What’s the best car insurance for 25-year-old drivers in Iowa?

By the age of 25, many young adults begin to build their finances and can afford more than liability car insurance, which covers injuries and damage inflicted on others in an accident up to your policy’s limits. However, state-mandated minimum coverage often falls short, particularly as medical costs can add up significantly in case of a severe accident.

As young adults start to have more disposable income, it’s wise to consider adding comprehensive and collision coverage, especially if they’re financing a car. Opting for a higher deductible can reduce your insurance premium, but remember, you’ll need to cover the deductible if you file a claim.

Ultimately, the best car insurance for a 25-year-old driver is the one that fits their specific needs. CarInsurance.com’s Best Insurance Companies survey found that the American Family is the best insurance company for young drivers and teens.

To make an informed choice, consider a company’s National Association of Insurance Commissioners (NAIC) score, which ranks an insurer based on the number of customer complaints it receives, its J.D. Power auto claims satisfaction rating and AM Best data, which evaluates financial stability.

Car insurance discounts for 25-year-olds in Iowa

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, maintain a clean driving record and 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.”

Other car insurance discounts that might be available:

  • Good driver/safe driver: Up to 30%
  • Multi-policy discounts: Up to 13%
  • Lower annual mileage/driving less: Up to 9%
  • Usage-based discount programs/telematics: Up to 10%
  • Paperless discount/autopay: Up to 4%
  • Loyalty discount: Up to 11%
  • Anti-theft devices: Up to 2%

In addition to discounts, consider the kind of car you choose. Practical, safe and reliable cars are cheaper to insure than sports or luxury vehicles.

Compare rates on car models like the top teen and young adult-ready cars that cost less than $15,000 with high safety ratings.

Guide: How to lower car insurance costs

Final thoughts on car insurance for 25-year-olds in Iowa

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.

Resources & Methodology

Sources

  1. Insurance Institute for Highway Safety, Highway Loss Data Institute. “Fatality Facts 2020, Males and Females.” Accessed October 2024.
  2. National Association of Insurance Commissioners. “NAIC Score” Accessed October 2024.
  3. J.D. Power. “2022 U.S. Auto Claims Satisfaction Study” Accessed October 2024.
  4. AM Best. “AM Best Ratings” Accessed October 2024.

Methodology

CarInsurance.com gathered auto insurance rates from Quadrant Information Services for 25-year-old male and female drivers across various coverage levels: state minimum, 50/100/50 liability, and 100/300/100 full coverage with a $500 deductible.

The rates were obtained using a sample profile of a 25-year-old individual driving a Honda Accord LX with no history of traffic violations and a good insurance score. To evaluate the rates, we compared 53,409,632 insurance quotes from 170 regional and national insurance companies, encompassing 34,588 ZIP codes across the United States.

Note: USAA is only available to military community members and their families.

Laura Longero

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Laura Longero

Executive Editor

Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.

John McCormick

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John McCormick

Editorial Director

John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

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Leslie Kasperowicz

Executive Editor

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

Nupur Gambhir

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Nupur Gambhir

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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions. When not writing, you can find her reading a book or watching anime.