When drivers turn 25, they move out of the highest-risk age category, resulting in a substantial decrease in car insurance rates. A 25-year-old with a clean driving record and no traffic tickets typically pays $2,117 more than for a full coverage policy than they did at age 20.
The average annual cost of a full coverage car insurance policy for a 25-year-old is $2,259 a year or $188 per month – $566 more than the insurance cost for a 24-year-old driver.
In Michigan, the yearly cost for the same coverage is $2,793 for 25-year-olds.
Keep reading to learn more about car insurance for 25-year-olds in Michigan.
How much is car insurance in Michigan per month for a 25-year-old?
How much you pay for car insurance as a 25-year-old in Michigan will vary depending on where you live, coverage levels, credit score, driving record and the deductible you select.
The table below shows how much car insurance costs for a 25-year-old per month and per year, on average, in Michigan.
| 25-year-old policy | Average annual rates | Average monthly rates |
|---|---|---|
| State Minimum Liability Only | $727 | $61 |
| 50/100/50 Liability Only | $769 | $64 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,793 | $233 |
Cheapest car insurance for 25-year-olds in Michigan
In Michigan, a 25-year-old driver generally pays $2,793 per year for full coverage car insurance. Michigan law prohibits insurance companies from using gender as a factor to calculate car insurance premiums. The table below shows the average full coverage rates from major insurance companies in California for 25-year-old drivers.
| Company | Average annual rates |
|---|---|
| GEICO | $1,572 |
| Travelers | $2,057 |
| Auto-Owners | $2,218 |
| Progressive | $2,411 |
| Auto Club Group – ACG (AAA) | $2,845 |
| Pioneer State Mutual | $3,314 |
| Michigan Farm Bureau | $3,641 |
| Frankenmuth Insurance | $3,751 |
| State Farm | $4,326 |
| USAA* | $2,000 |
How do rates for 25-year-olds compare to rates for other ages in Michigan?
Car insurance premiums are typically highest during your teenage years and gradually decrease every year until you reach age 65, after which rates begin to increase again. See the chart below to understand how rates vary from your teens to age 70 in Michigan.
| Age | Average annual rates | Average monthly rates |
|---|---|---|
| 16 | $7,539 | $628 |
| 20 | $4,910 | $409 |
| 25 | $2,793 | $233 |
| 40 | $2,352 | $196 |
| 65 | $2,102 | $175 |
| 70 | $2,299 | $192 |
Check out our detailed guide on the average car insurance rates by age
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What’s the best car insurance for 25-year-old drivers in Michigan?
At 25, young adults are beginning to build their finances, so they can afford more than liability car insurance. Liability insurance only covers injuries and damage you cause to others in an accident up to the policy’s limits. However, the minimum coverage required by the state is often insufficient because medical expenses can quickly add up if someone is seriously injured in a crash.
As young adults earn more disposable income, they should think about getting comprehensive and collision coverage, especially if they’re financing a vehicle (in which case, full coverage will be required by the lender). Choosing a higher deductible can lower your insurance rate, but remember that you’ll have to pay the deductible if you need to file a claim.
Ultimately, the best car insurance for 25-year-olds is the one that suits their individual needs. According to CarInsurance.com’s Best Insurance Companies survey, American Family is the top choice for young drivers and teens. When evaluating an insurance company, consider its National Association of Insurance Commissioners (NAIC) score, which ranks companies based on the number of customer complaints it receives, its J.D. Power auto claims satisfaction score and AM Best rating, which assesses financial strength.
Car insurance discounts for 25-year-olds in Michigan
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 Michigan
As you gain more driving experience, you’ll see a drop in your auto insurance rates. The even better news is that this decrease continues as you get older. Each state has its own insurance regulations and minimum coverage requirements, so ensure you’re meeting legal obligations while also getting adequate protection.
Resources & Methodology
Sources
- Insurance Institute for Highway Safety, Highway Loss Data Institute. “Fatality Facts 2020, Males and Females.” Accessed March 2025.
- National Association of Insurance Commissioners. “NAIC Score” Accessed March 2025.
- J.D. Power. “2022 U.S. Auto Claims Satisfaction Study” Accessed March 2025.
- AM Best. “AM Best Ratings” Accessed March 2025.
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.
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