Insurance premiums for car insurance are calculated using many factors. Age is one of them. Your age can often be used to determine how experienced you are behind a wheel and which driving habits you are more likely to follow. Younger drivers, for example, are less experienced than older drivers and may be more likely to cause accidents.
Your insurance rates will begin to drop once you turn 25. Your age does not mean you will pay less than an average driver. However, your premiums will start to drop each year you get older as long as there are no accidents or tickets.
What is the cost of car insurance for a 25 year-old?
The average car insurance premium paid by 25-year-olds to insure their cars is $2,108 per annum. This is considerably more than the average U.S. annual full coverage premium, which averages $1,674 per annum. On average, minimum coverage costs for 25-year olds are $616 per annum, while the national average is $565.
You may have more experience at 25 than teens and therefore pay lower average rates. You still have significantly less experience than a 40 year-old. Although your rates will decrease with age, premiums may remain higher than average for many years.
Average male cost vs. average female cost
When rating policies are developed, most states consider gender. Riskier driving behaviors are more common among males than those of females. This can cause more accidents and more serious injuries. Men tend to pay more for car insurance than women.
Cheapest car insurance for 25-year olds
Insurance costs are lower than they were when you were young or in your 20s. However, your budget can still be a major concern in your 20s. This age group is full of young drivers who are starting new jobs, moving away and creating their own lives. Bankrate’s research might be able help you find coverage that suits your budget if budget is a primary concern.
Quadrant Information Services provided premium information to our insurance editorial team. The data was then analyzed based on the largest car insurance companies market share. These companies may be able to provide you with a quote if you’re looking for the best car insurance for 25-year old drivers.
Amica
Amica’s premiums for full and minimal coverage are higher than average, but still lower that the national average of 25-year-olds. Amica provides auto insurance coverage options, as well as discounts to help you tailor your coverage. You may be able add additional features to your standard coverages such as full glass coverage, roadside help, rental car reimbursement, and accident forgiveness.
Amica offers many ways to save money. Bundling multiple policies, not having an accident, certain vehicle safety features, or paying full may be eligible for discounts. J.D. ranked Amica second. The 2020 U.S. Auto Claims Satisfaction Study ranked Amica second, which indicates that its customers are highly satisfied with the claims service.
Erie
Erie has the lowest average full coverage rate on our list, making it a great choice if you’re looking for affordable full coverage. Erie offers many discounts that can help you save more than the average rate. Erie offers discounts on paying in full, vehicle safety features, and multiple policies.
Erie offers many coverages to their standard auto policy. These include locksmith coverage and pet injuries coverage that some other companies don’t offer. Erie’s Rate Lock feature may be the best. This feature will lock your rate at the current rate unless you change your policy, such as adding a driver or car to your policy. Erie also received an above-industry-average ranking from J.D. Power for claims service.
Travelers
Travelers provides affordable coverage for 25 year-olds with the lowest minimum coverage premium. Travelers could be the right company for you if you’re looking for an insurance company that offers a wide range of coverage options and discounts, which will help you manage your insurance costs and keep you on track.
There are many optional coverages available, such as new car replacement, ridesharing coverage and loan/lease gap insurance. It is possible to save money by purchasing multiple policies or cars with Travelers, continuing insurance, insuring hybrid or electric cars, or paying in full for your home even if it is not insured with Travelers.
State Farm
State Farm has more 16% market share and is the largest auto insurance provider in the country. State Farm is a great choice if you prefer to deal with your insurance personally, and not by phone or online. State Farm has an extensive network of agents that can assist you with all your insurance needs.
State Farm doesn’t offer the same discounts or coverages that other carriers, but there are still options to customize your coverage to suit your needs and save. Your policy may allow you to add ridesharing, emergency roadside assistance and rental car coverage. You may be able to save money if you have more than one vehicle or a policy with State Farm. To track your driving habits, and possibly qualify for a discount, you might also consider State Farm’s Drive Safe & Save Program.
USAA
USAA does not service current and former military personnel, nor their immediate families. USAA may be able to provide a quote if you are eligible. The company is not eligible to be ranked by J.D. Power is not eligible for J.D.’s official ranking, but it has consistently achieved high scores in both customer service and claims service.
USAA claims that switching to a new car can save drivers over $700. You may also save if your car is insured, your car is stored on a military base, or your vehicle is being stored while you are deployed.
How to get car insurance at a discount for 25-year olds
Although car insurance can be more costly than the average for those over 25, there are still ways you can save. These steps can help you get the coverage that you want at a price that suits your budget.
Take a look around
Each company has its own pricing system. One company might consider your credit score important while another company might not. Every driver is different and has different needs in regards to car insurance. You can find the right policy for you by determining what you need from a company.
Compare discounts
Although most insurance companies offer discounts to their customers, some may offer more than others. You may be able to take advantage of multiple discounts. This could lead to significant savings. While discounts can be found on the company website, you may also find out if you are eligible by calling a representative or visiting a local agency.
Your deductibles should be increased
Two deductibles are required for full coverage auto insurance policies. One for collision and one to cover comprehensive. Your deductible is the amount you pay for any damage you cause to your vehicle. Your collision deductible will have a greater impact on your premium than the comprehensive deductible. Collision claims are more costly. You will usually pay a lower premium if you increase one or both your collision deductibles, but you will be responsible for more if your vehicle is damaged.
Think about the car that you drive.
Cars are also rated differently, just as insurance companies assign drivers a rating based on individual factors. Because of the cost of parts and labor, as well as standard safety features, some cars might be less expensive to insure than others. However, before you sell or trade your car, make sure to get a quote on the car that you are interested in purchasing.
Credit score improvement
Some states prohibit insurance companies from using credit score as a rating factor. However, most states allow it. Low credit scores are more likely to file more claims. Insurance companies will charge a higher premium to offset this risk. You might see a decrease in your premium if you improve your credit score.
How to get the best 25-year-old insurance
Cheap insurance doesn’t always mean the best. There are steps that you can take to find the best coverage and company for your car insurance.
- What do you need? Are you looking for a local company or prefer to manage your policy online. Are you looking for full coverage or just part of it? Do you need ridesharing coverage or more general coverage? Identifying your needs can help you narrow down the companies that might be able to meet your needs.
- Compare companies and get quotes: Comparing quotes from multiple companies allows you to compare prices, discounts and coverages, as well as customer service.
- Third-party rankings can be reviewed by companies like J.D. Power reviews the claims and customer satisfaction ratings for various companies. AM Best evaluates a company’s financial strength. This may indicate whether they are able to pay claims. These ratings can help you feel more comfortable about your insurance company by helping you choose a highly rated company.
A licensed agent can help you navigate the process if you’re not sure where to begin. Agents can help you evaluate your situation and recommend policies and features that will best suit your needs.
Questions frequently asked
Which is the best auto insurance company?
The best car insurance company may not be the right one for you. While some companies are more popular for their coverages, discounts, low average rates, and high third party rankings, each person has different needs. It might be beneficial to get quotes from multiple companies in order to find the best deal for you.
How can I determine how much car insurance I need
Car insurance isn’t a one-size fits all purchase. You can choose to purchase lower or higher limits, additional coverages, and more advanced policy features. First, consider your circumstances to determine the coverage you require. Your state will require that you purchase the minimum coverages. If you have a loan, or lease, your lender may require you to have complete coverage. You should ensure that you have enough coverage to cover your assets and finances in the event of an accident. If you have to file a claim for damage done to your car, you should consider your deductible. Talking to an agent can help you determine the coverage you require.
What age is the best time to get car insurance?
Although every car insurance company works differently, the average driver is no longer considered “youthful”, once they turn 25 years old. Your premiums will begin to drop after this age. Car insurance premiums are not determined solely by age. Your driving record, gender, and state of residence all play into the cost of your car insurance premiums.