While car insurance tends to be tied more expensive for adolescent drivers, many young adults have trouble finding low-cost rates well into their 20s. even though drivers aged 20–25 typically have some have behind the steering wheel, their car policy premiums are still higher than older drivers. fortunately, respective strategies can help you find the best rates for car policy under 25. Loading …

How Much Is Car Insurance for Someone Under 25?

A 25-year-old buy cable car policy normally pays higher rates than person old, but premiums can vary dramatically between companies. It international relations and security network ’ triiodothyronine unusual for the same driver to find sample rates that differ by several hundred dollars. Comparing quotes is crucial to finding cheap full coverage policy for drivers under 25. According to MoneyGeek ’ s inquiry, an average full coverage policy for a 20-year-old driver is $ 2,465 per year, while the same insurance design costs a 25-year-old driver $ 1,402 per class.

Average Cost of Car Insurance for Drivers Under 25

MoneyGeek analyzed car indemnity quotes for drivers under 25 and older than 20 across all 50 states to determine modal rates.

Car Insurance Costs By State for Drivers Under 25

local laws and regulations can have a boastful impact on car insurance rates, mean that rates are different across states. Population density, the act of accidents in a given area, access to street park, and early factors can besides affect rates from express to state or even ZIP code to ZIP code. For exercise, a 20-year-old may pay angstrom much as $ 7,576 per class for cable car policy in Michigan and arsenic fiddling as $ 1,022 for the lapp policy in Hawaii.

Average Annual Insurance Premiums By State and Age

Which Company Has the Cheapest Car Insurance for Drivers Under 25?

According to our inquiry, GEICO by and large has the cheapest car policy rates for drivers under 25, with one noteworthy exception — Allstate has lower average rates for 20-year-old drivers. Companies set their rates to attract particular aim markets, which is why State farm, Allstate and GEICO all charge different rates.

Cheapest Car Insurance Companies By Age

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  • age company premium
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  • 25



notice that the rates in the chart above are for a fully coverage policy policy, which includes indebtedness, comprehensive, and collision coverages. Liability-only coverage is less expensive than broad coverage indemnity, but it does not provide any fiscal protection if your vehicle is stolen or damaged.

What Is the Best Car Insurance for New Drivers Under 25?

A driver under 25 who isn ’ triiodothyronine still paying off their car may consider purchasing liability-only indemnity to keep costs low. Choosing liability coverage means you avoid paying for comprehensive examination or collision insurance. however, keep in mind that you ’ ll have to cover repairs to your cable car out-of-pocket if you ’ re at defect in an accident. If you buy liability-only indemnity, consider signing up for extra coverages to protect your finances, such as uninsured or underinsured motorist ( UI/UIM ) coverage or personal injury security ( PIP ) indemnity .tip icon MONEYGEEK EXPERT TIP If you don ’ t have the money on hand to replace your car tomorrow or if you ’ re placid making payments on your vehicle, MoneyGeek recommends purchasing wax coverage indemnity. New drivers may besides benefit from using a driver tracking app offered by their indemnity caller. These apps allow providers to track your driving behavior and wages dependable driving with lower rates.

What Is the Cost of Car Insurance for Females and Males Under 25?

insurance companies use statistics to calculate premiums, meaning that each driver ’ randomness rates are affected by markers like senesce and sex. Women tend to have lower rates than men — particularly for drivers under 25 — because women are statistically in fewer accidents and receive fewer dealings tickets than men. Keep in heed that respective states have made it illegal for policy providers to use sex to determine policy rates, including California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania. Drivers in these seven states won ’ metric ton see a deviation in premiums based on sex.

Average Cost of Car Insurance By Gender

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  • 25-Year-Old




There are multiple ways to lower your indemnity rates, careless of your gender :

  • Utilize student discounts, which helps student drivers with good grades save on their rates
  • Find other savings opportunities, such as bundling discounts or group affiliation discounts
  • Stay on your parent’s policy
  • Keep a clean driving record

Why Is Car Insurance so Expensive for Drivers Under 25?

Each insurance party has its own unique denounce system, which is why premiums can vary by hundreds of dollars or more each year for the lapp driver. however, they all have some basic factors they consider when determining your rates, including senesce, placement and driving history .

key Takeaways

female Age : Younger drivers have less experience on the road and are statistically more probable to be in an accident. This risk is why younger drivers pay more for indemnity .house Location : local laws, state regulations, weather, crime rates and population concentration are all affected by location and impact your premiums .carInsurance Driving history : If you ’ ve been in an accident or gotten a tag in the past few years, your policy rates will likely be high gear relative to person with a houseclean drive phonograph record.

Is Cheap Full Coverage Insurance Available for Drivers Under 25?

Full coverage policy is about always required by lenders, meaning drivers making payments on their vehicles should expect to carry a full moon coverage policy. While these plans may seem expensive, there are ways to find low-cost rates. a lot of what impacts your insurance rate is within your restraint, such as your drive record and car model. Staying accident-free and purchasing a car that ’ s cheap to insure can lead to significant savings. several discounts are besides available to young drivers, such as bundling discounts, dear student discounts and away-from-home discounts for college students. Confirm that all available discounts are applied to your policy when you sign up for a plan.


For this psychoanalysis, MoneyGeek used sample insurance data for drivers between 20–25 years of historic period. You can read more about MoneyGeek ‘s premium price methodology here.

Learn More About Auto Insurance

About the writerexpert-profileexpert-profile Rachael Brennan is a professional freelance writer who has worked in the insurance diligence for more than a decade, earning her P & C license in all 50 states and her Life, Health and AD & D license in New York and the surrounding states. Her writing has been published on websites like Adweek, Glamour and Cracked. You can follow her on Twitter @ rachaelbwriter.

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