key Takeaways
car choice is a big divisor when it comes to how much you ’ ll pay for insurance .
Premiums by and large tend to be more expensive for younger drivers .
A clean drive record and discounts can help 25-year-olds reduce their rates. Loading …
How Much Does Car Insurance Cost for a 25-Year-Old?
MoneyGeek found that cable car insurance costs an average of $ 1,402 per year for a 25-year-old driver. car policy costs depend on a assortment of factors, including your senesce, sex, the value of your car and your driving history. Shopping around and comparing quotes from different providers can help ensure that you get the best car insurance rates .
ANNUAL CAR INSURANCE PREMIUM FOR A 25-YEAR-OLD The modal annual premium for a 25-year-old driver is $1,402.
Cheapest Car Insurance Companies for 25-Year-Old Drivers
For 25-year-olds, GEICO offered the least expensive insurance coverage, with an average annual cost of $ 1,207 for comprehensive and collision coverage. On the other end of the spectrum, Progressive offered the most expensive coverage, with an average price of $ 1,564. To find the cheapest car indemnity possible, it ’ south all-important to compare different providers. indemnity companies take several factors into report when determining the cost of car insurance policies for individual drivers. These can include senesce, sex, driving history and more. Younger drivers normally end up paying higher premiums than older drivers. similarly, male drivers often pay slightly higher premiums than female drivers. If you have any accidents or driving violations in your driving history, you ’ ll probable besides face higher premiums.
Cheapest Companies for an Individual 25-Year-Old Policy
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- company premium
- 1. GEICO $ 1,207
- 2. submit grow $ 1,358
- 3. Allstate $ 1,436
- 4. countrywide $ 1,511
- 5. progressive $ 1,564
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Car Choice Matters When Insuring a Young Driver
car choice is a meaning factor when it comes to how much you ’ ll pay for policy as a young driver. expensive or high-performance cars will drive up rates, while less expensive or use vehicles will cost much less to insure. For model, a Toyota Camry costs an average of only $ 1,402 per year for a 25-year-old driver to insure, while a Ford Mustang costs an average of $ 2,243. That ’ s an $ 841 difference attributable to car choice ! Drivers looking to save money on insurance premiums should consider purchasing hardy, low-cost cars rather than lavishness vehicles.
Strategies to Save Money on Car Insurance for a 25-Year-Old
When it comes to saving money on car indemnity, there are a few simple strategies that can make a big dent when it comes to the monetary value of your monthly premiums. These include taking advantage of deals and discounts and shopping about to ensure you ’ re getting the best possible rates. Drivers should besides consider being added to a family insurance policy to reduce costs.
Compare Quotes for the Best Policy
According to MoneyGeek ’ s research, comparison shopping for cable car insurance can save 25-year-old drivers up to $ 357 per class. If you ’ re looking to secure the best possible rates, you should be certain to compare offers from competing companies. even if you have a specific insurance company already in heed, comparing rates can help you better understand what rates you qualify for.
Ensure a Clean Driving Record
Accidents and tickets will dramatically increase the monetary value of cable car insurance no matter your age, but they can be specially dearly-won for young drivers. To ensure that you qualify for the best rates possible, you should try to keep your drive record clean and loose of any accidents, tickets or moving violations.
Find Companies That Offer Discounts
While young people tend to pay more for car policy on average than older drivers, they ’ re besides eligible for some unique discounts. many insurers offer good student discounts for drivers who get commodity grades in school. For example, GEICO offers a good student rebate for students who maintain a B or better modal. Members of certain honor societies and alumni associations may besides qualify for a rebate. This means that even if you ’ ve recently graduated, you may still be eligible for savings on your monthly premiums. In addition, many policy companies offer discounts for drivers bequeath to complete a defensive driver naturally. Those who complete these courses benefit in two ways : defensive drive classes can save you money and can reduce the likelihood of an accident. So before you choose a car policy provider, check to see whether they offer this discount.
Lower the Coverage Amount
Reducing coverage amounts will reduce insurance costs. If you ’ rhenium struggling to afford your monthly car policy premiums and own an cheap car, you may want to consider liability-only car insurance. But while this will reduce your premiums, it could end up costing you extra if you get in an accident or if something happens to your vehicle. In general, you should try to purchase arsenic much insurance coverage as you can reasonably afford. You may besides try availing irregular car indemnity and choose for monthly payments.
Choose a Sedan Over a Sports Car
Certain cars cost more to insure for young drivers, most notably sports cars and expensive lavishness cars. If you ’ re trying to find ways to reduce your insurance costs, you should consider avoiding flashy cars and choosing a dependable sedan alternatively.
Why Is Car Insurance So Expensive for a 25-Year-Old?
cable car policy is typically much more expensive for first-time or new drivers than it is for older drivers. This is because younger drivers are statistically more likely to get into accidents and are, consequently, viewed as higher gamble by indemnity companies. As drivers mature, they ’ ll gradually become eligible for lower rates on car insurance. other factors, like an accident-free tug history, can besides help lower your rates.
Traffic Statistics for 25-Year-Old Drivers
While 25-year-old drivers are statistically safer drivers than their younger peers, they ’ re still more likely to get into accidents than older drivers. According to statistics from the AAA Foundation for Traffic Safety, drivers ages 25 to 29 pay back into an median of 526 crashes per 100 million miles drive, with 150 wound crashes and 1.99 fatal crashes. In contrast, drivers ages 30 to 39 get into an median of just 328 accidents, with 92 injury crashes and 1.2 fatal crashes.
Traffic Accidents Per 100 Million Miles Driven
| Driver Age | fatal Crashes | injury Crashes | All Crashes |
|---|---|---|---|
| 16-17 | 3.75 | 361 | 1,432 |
| 18-19 | 2.47 | 197 | 730 |
| 20-24 | 2.15 | 157 | 572 |
| 25-29 | 1.99 | 150 | 526 |
| 30-39 | 1.20 | 92 | 328 |
| 40-49 | 1.12 | 90 | 314 |
| 50-59 | 1.25 | 88 | 315 |
| 60-69 | 1.04 | 67 | 241 |
young drivers are besides more likely to be involved in black accidents : there are 5.3 driver deaths for every 100,000 drivers within the 25–29 age image. This is due, in partially, because they ‘re still learning how to drive safely. Some young drivers may besides be more prone to impulsive behavior while behind the wheel. evening younger drivers have a higher per caput pace, but the per head rate is notably lower for drivers between 30 and 59 years honest-to-god. Nevertheless, no matter your age, it ‘s constantly important to implement safe driving habits and practice defensive drive .
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Methodology
MoneyGeek collected data for 25-year-old drivers and a wide range of ages to determine the average cost of car policy. You can read more about MoneyGeek ‘s premium price methodology here.
Read More on Auto Insurance
About the generator
Margaret Wack is a freelancer writer who covers insurance, saving, investing, banking, and more. Margaret earned a bachelor ‘s degree in classics, comparative literature, and poetry from Smith College and a master ‘s degree from St. John ‘s College.
Read more: The 7 Best Car Insurance Companies (2022)
sources
- AAA Foundation for Traffic Safety. “Rates of Motor Vehicle Crashes, Injuries and Deaths in Relation to Driver Age, United States, 2014-2015.” Accessed February 1, 2021 .