Which companies offer 25-year-olds the best cheap car insurance?
The average cost of cable car policy for 25-year-olds is $ 279 per calendar month, or $ 3,348 per year .
Erie offers the cheap rates for 25-year olds, according to our inquiry, with an average rate of $ 127 per month. The second-cheapest insurance company is USAA, with an average rate of $ 147 per month .
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While Erie is the cheapest option, it ‘s alone available in 13 states. additionally, USAA is only available to current or former military members and their families. Among insurers with widespread handiness, Geico has the most affordable rates for 25-year-olds, an average $ 165 per calendar month .
You should always shop around for quotes from multiple insurers, as you never know which could offer you your best rate. One insurance company could be the cheapest if you want bare-minimum coverage, while another could be the most low-cost for those seeking a brassy full-coverage policy .
How do insurance costs for 25-year-old male and female drivers differ?
The difference in the average cost of car insurance for 25-year-old male and female drivers was only 3% .
For younger drivers, there is a detectable remainder in the cost of car insurance between male and female drivers. however, at old age 25 that deviation begins to narrow, though 25-year-old males pay slenderly more for car policy than 25-year-old females .
|
Age |
Monthly rate, male |
Monthly rate, female |
Difference |
|---|---|---|---|
| 23 | $344 | $326 | 6% |
| 24 | $321 | $306 | 5% |
| 25 | $283 | $275 | 3% |
Compare rates Young male drivers pay more for car indemnity because they tend to get into more accidents compared to female drivers .
In certain states, you wo n’t see any difference between car insurance costs for male and female drivers. This means that, all else being adequate, 25-year-old male and female drivers should pay the lapp amount for car policy in the states below. These states have amply or partially banned using sex as a variable star in setting rates :
- California
- Hawaii
- Massachusetts
- Parts of Michigan
- Montana
- North Carolina
- Pennsylvania
How much is car insurance for a 25-year-old?
The average cost of car policy for a 25-year-old is approximately $ 279 per calendar month. This is $ 337 cheaper per calendar month than the average 18-year-old .
Young drivers pay disproportionately more for car indemnity than older drivers. however, as they gain experience, their rates begin to drop .
|
Age |
Average monthly rate |
|---|---|
| 18 | $616 |
| 19 | $515 |
| 20 | $460 |
| 21 | $384 |
| 22 | $359 |
| 23 | $335 |
| 24 | $314 |
| 25 | $279 |
Do car insurance rates go down at age 25?
Yes, the average cost of cable car indemnity went toss off by 11 % — from $ 314 per month to $ 279 — when our driver turned 25. however, our sample driver saw exchangeable or even larger drops in costs in annual differences for other ages between 18 to 25 .
new drivers should besides note that insurers calculate your rates based on driving have, not barely historic period. Car insurance for a new 25-year-old driver will likely cost more than car indemnity for a 25-year-old with nine years of driving experience .
Best car insurance companies for 25-year-olds by state
We found that Geico is the cheapest option in four out of our nine sample states .
Although our quotes represent an average — and thus not inevitably indicative of the best insurance company for you — we compiled recommendations for the cheapest insurance companies in our nine sample distribution states .
With an average monthly rate of $ 134, North Carolina is the cheapest department of state for 25-year-olds, with rates less than half the overall average .
Michigan, on the other hand, is highly expensive for 25-year-olds ( and most ages ) compared with other states. Its rates are approximately three times the overall average .
policy is regulated at the state horizontal surface, and car policy prices fluctuate from state to submit. Below are the average costs of car insurance for 25-year-olds in nine of the most populous states .
|
State |
Average monthly rate |
|---|---|
| North Carolina | $134 |
| Ohio | $146 |
| California | $172 |
| Illinois | $203 |
| Georgia | $231 |
| Texas | $228 |
| New York | $254 |
| Florida | $301 |
| Michigan | $819 |
| Average | $279 |
How to find cheap car insurance when you turn 25
The keys to getting cheaper car insurance as a 25-year-old include :
Shop multiple insurers to get similar coverage at a lower price
As our data shows, the exact same driver profile can get a variety show of rates for equivalent coverage. The savings could even be upwards of thousands of dollars. For case, there is a difference of $ 2,017 per month between the cheapest and most expensive insurers in Michigan, as the table below shows .
|
Insurer |
Average monthly rate |
|---|---|
| Progressive | $171 |
| USAA | $210 |
| Home-Owners | $322 |
| Frankenmuth Mutual | $337 |
| State Farm | $444 |
| AAA | $1,093 |
| Allstate | $1,784 |
| Citizens | $2,188 |
The easiest means to start your search is to shop for car policy quotes online. When shop, make certain to select the lapp coverage limits and features for each insurance company so that you know you ‘re getting prices for comparable policies .
Check with insurers to see which discounts are available
Twenty-five-year-olds have probably aged out of ways younger people can save, such as remaining on their parents ‘ policy or good scholar discounts, but insurers still offer them enough of ways to lower their premium .
You should always check if an insurance company offers discounts for :
- Defensive driving: Insurers may reward you for taking a safe or defensive driving course.
- Bundling: If you’re also buying renters or homeowners insurance, you could bundle the two policies with the same insurer for savings.
- Safety features: If your car has anti-lock brakes or anti-theft devices, you may qualify for savings.
- Payment: You’re often able to get some minor savings if you pay your policy in full for its entire term, or if you opt for paperless billing.
Don’t buy unnecessary coverage
Our advice is to buy as a lot coverage as necessary to ensure fiscal protective covering from costly events, but not all elements of car insurance may be allow for every person. For example :
- Purchase appropriate liability coverage: Liability coverage protects you against the costs of property damage or bodily injury in a crash for which you are at fault. Make sure you have liability limits that cover your total net worth. But if higher limits beyond your worth are an unreasonable expense, stick to what you can afford.
- Only buy comprehensive and collision coverage if your vehicle is worth it: Comprehensive and collision insurance can be invaluable if you have a high-value car. But if your car is worth a few thousand dollars or less, you could be paying too much money to protect an asset that has little value.
Methodology
We gathered car policy quotes for thousands of ZIP codes across nine of the most populated states in the nation. Our sample distribution profiles were 25-year-old male and female drivers with a 2015 Honda Civic EX. Our sample drivers had clean drive records .
We collected full-coverage rates with the following limits :
|
Coverage |
Limits |
|---|---|
| Bodily injury liability | $50,000 per person/$100,000 per accident |
| Property damage liability | $25,000 per accident |
| Uninsured/underinsured motorist bodily injury | $50,000 per person/$100,000 per accident |
| Comprehensive and collision | $500 deductible |
| Personal injury protection (PIP) | Minimum, when required by state |
While our analysis collected rates from 29 policy companies, insurers were merely added to our list of average prices and recommendations if their policies were available in at least three of the nine states .
Our analysis used insurance rate data from Quadrant Information Services to calculate the average cost of indemnity for a 25-year-old. These rates were publicly sourced from insurance company filings and should alone be referenced for comparative purposes .