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 $1,306 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 – $291 more than the insurance cost for a 24-year-old driver.
In New York, the yearly cost for the same coverage is $2,170 for 25-year-olds.
Keep reading to learn more about car insurance for 25-year-olds in New York.
Cheapest car insurance for 25-year-olds in New York
In New York, a 25-year-old driver spends $2,170 annually on full coverage car insurance. Below, see the average full coverage rates from major insurance providers in New York for 25-year-old male and female drivers.
| Company | 25-year-old female | 25-year-old male |
|---|---|---|
| Progressive | $1,112 | $1,195 |
| NYCM Insurance | $1,686 | $1,782 |
| Geico | $1,822 | $1,906 |
| Erie Insurance | $2,207 | $2,122 |
| State Farm | $2,168 | $2,254 |
| Allstate | $2,320 | $2,332 |
| The Hanover | $2,518 | $2,485 |
| Travelers | $2,878 | $2,960 |
| Chubb | $3,556 | $3,755 |
| USAA* | $2,017 | $1,830 |
How much is car insurance for a 25-year-old in New York each month?
As a 25-year-old in New York, 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 New York.
| 25-year-old policy | Average annual rates | Average monthly rates |
|---|---|---|
| State Minimum Liability Only | $833 | $69 |
| 50/100/50 Liability Only | $927 | $77 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,170 | $181 |
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How do rates for 25-year-olds compare to rates for other ages in New York?
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 New York.
| Age | Average annual rates | Average monthly rates |
|---|---|---|
| 16 | $6,552 | $546 |
| 20 | $3,476 | $290 |
| 25 | $2,170 | $181 |
| 40 | $1,870 | $156 |
| 65 | $1,764 | $147 |
| 70 | $1,889 | $157 |
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 New York?
The average full coverage car insurance policy for a 25-year-old male with a $500 comprehensive/collision deductible in New York is $2,182, according to CarInsurance.com data.
| Coverage level | Average annual rates for male |
|---|---|
| State Minimum Liability Only | $823 |
| 50/100/50 Liability Only | $918 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,182 |
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 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.
How much is car insurance for a 25-year-old female in New York?
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 $2,224. In New York, the average annual cost for a full coverage policy is $2,157, $67 less than the national rate for 25-year-old females.
See other rates in the table below.
| Coverage level | Average annual rates for female |
|---|---|
| State Minimum Liability Only | $843 |
| 50/100/50 Liability Only | $937 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,157 |
Average car insurance rates by state for a 25-year-old
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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 New York
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 New York
As you gain more driving experience, your auto insurance rates will decrease. The even better news is that your rates will keep decreasing as you age. It’s crucial to compare quotes from multiple insurers in New York to find the best rate and coverage options tailored to your needs.
Resources & Methodology
Sources
- Insurance Institute for Highway Safety, Highway Loss Data Institute. “Fatality Facts 2020, Males and Females.” Accessed October 2024.
- National Association of Insurance Commissioners. “NAIC Score” Accessed October 2024.
- J.D. Power. “2022 U.S. Auto Claims Satisfaction Study” Accessed October 2024.
- 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.
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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.
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John McCormick
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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.
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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.
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Nupur Gambhir
Managing Editor
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.
Guide to car insurance (with rates) in cities of New York