Cheapest Car Insurance for 25-Year-Olds

GEICO offers the cheapest car insurance for 25-year-olds at $120 monthly—17% below the national average of $147. Auto-Owners and Travelers are nearly identical in price at $134 and $138 monthly. Auto-Owners works best if you want local agent support in the Midwest, while Travelers operates nationwide and offers the IntelliDrive usage-based program that can lower rates further for safe drivers. These rates reflect 25-year-olds added to family policies, which saves 40% to 60% compared to standalone policies for young adults.

GEICO provides the most affordable minimum liability car insurance for 25-year-olds at $75 per month. Where available, Auto-Owners offers competitive rates at $86 monthly. Nationally, Travelers is the second best option with premiums averaging $93 per month, with State Farm and Progressive rounding out our top five.

Rates are for a family policy for both male and female drivers with clean records and good credit insuring a 2012 Toyota Camry.

GEICO offers the most affordable comprehensive coverage for 25-year-old drivers at $164 monthly. Auto-Owners ranks second at $182 per month. Auto-Owners and Travelers are nearly identical in price at $182 and $184 monthly. Travelers offers more comprehensive full coverage options including gap insurance, accident forgiveness and new car replacement—valuable protections for young adults financing vehicles.

Rates are for a family policy for both male and female drivers with clean records and good credit insuring a 2012 Toyota Camry.

Car insurance premiums for 25-year-olds vary by state, with monthly costs ranging from $68 to $395. GEICO offers the cheapest rates in 36 states, while State Farm, Progressive, Allstate and Nationwide lead in the remaining markets.

Rates are for male drivers with clean driving records and good credit insuring a 2012 Toyota Camry with minimum coverage.

Due to their elevated accident risk, 25-year-old male drivers face higher insurance premiums than women. Below, we highlight the most cost-effective national insurance providers for both men and women in this age group.

GEICO offers the most budget-friendly minimum liability coverage for 25-year-old women at only $78 per month, with yearly costs that are $168 lower than State Farm's $92 monthly rate.

Rates are for female drivers with clean driving records and good credit insuring a 2012 Toyota Camry.

GEICO provides the lowest car insurance rates for 25-year-old male drivers at just $73 monthly for minimum liability coverage saving young men nearly $24 per month. Auto-Owners offers competitive coverage at $83 per month while State Farm  is just $97 monthly.

Rates are for male drivers with clean driving records and good credit insuring a 2012 Toyota Camry.

The MINI Cooper is the most affordable to insure for 25-year-olds at just $51 monthly compared to a Tesla Model X at $82 monthly, saving young drivers up to $372 annually. When purchasing a vehicle at this age, choose one that balances safety, reliability and insurance affordability. Below you'll find the most budget-friendly vehicles for 25-year-old drivers.

Luxury Compact vehicles offer the most affordable minimum coverage for 25-year-olds at just $57 monthly, while Minivans follow closely at $58 per month. Luxury Electric vehicles cost $71 monthly, just $14 more than the cheapest vehicle type we analyzed. The difference between the cheapest and most expensive vehicle types is small.

Rates are for drivers with clean driving records and good credit.

Twenty-five-year-olds pay an average of $1,254 annually ($105 monthly) for minimum coverage and $2,505 annually ($209 monthly) for full coverage. These figures reflect drivers with clean records and good credit. Your rates will differ based on your driving history.

Men $107 monthly for minimum liability coverage while women pay $108. For full coverage, men pay $216 and women pay $217. Below are average costs for adding 25-year-old drivers to a family policy by coverage type.

Liability limits expressed above (e.g., 100/300/100) refer to bodily injury liability per person, bodily injury liability per accident and property damage liability per accident, respectively. Numbers expressed after these limits are deductible amounts for both collision and comprehensive coverage.

Average car insurance rates for 25-year-old drivers range from $68 to $395 monthly depending on state. Crime rates, weather patterns, claim frequency, state minimums, population density and regional economics drive these differences. The state breakdown below shows what you'll pay in your area.

Car insurance for 25-year-olds costs more than for older drivers, though less than for teens. Insurers classify this age group as high-risk because they're involved in more accidents and traffic violations. Fatal crashes happen nearly three times more often than among older drivers.

Speeding, distractions, nighttime driving and not wearing seat belts drive these risks. These behaviors decline with experience, but male drivers exhibit them more often, leading to higher premiums.

Car insurance costs for 25-year-olds are high, but ways exist to make it more affordable. Shopping around for quotes, staying on a family policy and taking advantage of discounts reduces premiums. Insurers like GEICO, State Farm and Travelers often provide competitive rates for drivers in this age group, but comparing options from different providers helps you secure the best deal.

Although 25-year-olds often pay high car insurance premiums, it's possible to find affordable coverage. To help, we’ve answered some frequently asked questions on the subject:

Twenty-five-year-olds transitioning off their parents' policies need insurers that balance competitive rates with the flexibility to add coverage as life changes. We analyzed pricing patterns for this age group to identify companies offering the lowest premiums without sacrificing essential protection.

We pulled 4,284 price estimates from 100 ZIP codes across all states using data from state insurance departments and Quadrant Information Services, covering six major auto insurance providers. Our sample driver (a 25-year-old with a clean record driving a Toyota Camry LE 12,000 miles annually) represents the typical young adult establishing independent insurance.

For minimum coverage, we used state-required liability limits to identify the most affordable provider in each state. For full coverage comparison, we used 100/300/100 liability limits ($100,000 per person for injuries, $300,000 per accident for injuries, $100,000 for property damage) with $1,000 deductibles for comprehensive and collision.

This approach shows which insurers offer 25-year-olds the steepest discounts as they age out of higher-risk categories, helping young adults find affordable rates whether they're buying minimum coverage or investing in full protection.