Best Cheap Car Insurance Companies for 25-Year-Olds


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ByMargaret Wack
Reviewed byMark Friedlander
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ByMargaret Wack
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Reviewed byMark Friedlander
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Updated: May 28, 2024

Advertising & Editorial Disclosure

For 25-year-old drivers seeking affordable car insurance, GEICO is the cheapest option at just $1,448 per year. This premium is significantly less than the average annual rate for this age group, which is $2,716

Car insurance premiums for 25-year-olds tend to be more affordable than rates for younger drivers because they are seen as more experienced and less risky. However, rates for this age group are still higher than they are for older drivers, who often benefit from long, clean driving records and potential discounts for additional years of driving experience.

Key Takeaways

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Find affordable and reliable coverage with GEICO, the provider offering the cheapest coverage at $121 per month for 25-year-olds.

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Your car's make and model can significantly impact how much you’ll pay for insurance.

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A clean driving record and discounts can help 25-year-olds reduce their rates.

Why Trust MoneyGeek? To calculate car insurance premiums for 25-year-old drivers, MoneyGeek used several driver profiles and data acquired from state insurance departments and Quadrant Information Services. The cost of auto insurance can vary dramatically amongst individuals based on a variety of factors, even those within the same age group. These include the driver's gender, driving record, credit history and type of coverage required.

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These rates reflect the average cost of car insurance for 25-year-old drivers as of 2024.

1,904Quotes Analyzed
 
6Companies Compared
 
100ZIP Codes

Cheapest Car Insurance Companies for 25-Year-Old Drivers

For 25-year-olds seeking affordable car insurance, the two cheapest car insurance companies are:

  • GEICO: $121 per month, $1,448 per year
  • State Farm: $129 per month, $1,554 per year

These rates reflect the cost of an individual policy. Twenty-five-year-olds typically choose individual policies because they have more driving experience than younger drivers and often live independently, which may preclude them from qualifying for a family plan.

Despite their better driving experience, those in their mid-twenties are still considered to be high-risk drivers, leading to higher premiums compared to older age groups. To help manage these costs, 25-year-old drivers can explore various discounts available to them, including student discounts on car insurance.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
GEICOAnnual Premium$1,448Monthly Premium$121
State FarmAnnual Premium$1,554Monthly Premium$129
TravelersAnnual Premium$1,661Monthly Premium$138
AllstateAnnual Premium$1,661Monthly Premium$138
NationwideAnnual Premium$1,690Monthly Premium$141
ProgressiveAnnual Premium$1,717Monthly Premium$143
FarmersAnnual Premium$1,983Monthly Premium$165
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    Younger drivers pay more for car insurance

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    Easy quotes

    It's simple to get multiple quotes for young drivers.

Cheapest Car Insurance for 25-Year-Olds by State

Massachusetts has the cheapest car insurance for 25-year-olds at $332 annually from State Farm. Idaho follows with an annual premium of $421, also from State Farm.

Car insurance for a 25-year-old can vary significantly in price from one state to another. Factors like different state mandatory car insurance requirements, frequency of accidents and rates of car thefts can all impact premiums. A plan that's affordable in one state might not provide enough coverage in another state with higher minimum insurance requirements. Make sure to compare car insurance quotes and consider these details when picking a policy.

AlabamaCompanyGEICOAnnual Premium$905Monthly Premium$75
AlaskaCompanyGEICOAnnual Premium$728Monthly Premium$61
ArizonaCompanyState FarmAnnual Premium$821Monthly Premium$68
ArkansasCompanyState FarmAnnual Premium$743Monthly Premium$62
CaliforniaCompanyGEICOAnnual Premium$896Monthly Premium$75
ColoradoCompanyGEICOAnnual Premium$666Monthly Premium$56
ConnecticutCompanyGEICOAnnual Premium$569Monthly Premium$47
DelawareCompanyState FarmAnnual Premium$873Monthly Premium$73

Cheapest Car Insurance for 25-Year-Olds by Gender

State Farm and GEICO are the most affordable car insurance providers for 25-year-old female and male drivers, respectively.

  • For females: State Farm, $106 per month, $1,270 per year
  • For males: GEICO, $111 per month, $1,334 per year

Car insurance for a 25-year-old male driver costs more than for a female driver. This is because male drivers are often seen as higher risk due to their driving behavior and accident statistics.

Annual Car Insurance Rates for Males and Females

female
25-Year-Old Female

Annual Premium

$1,270
male
25-Year-Old Male

Annual Premium

$1,334
Rates for males are:$64 more

This is 5% more expensive.

Data filtered by:Results filtered by:
Gender:
Gender:Male
GEICOAnnual Premium$1,334Monthly Premium$111
State FarmAnnual Premium$1,452Monthly Premium$121
AllstateAnnual Premium$1,533Monthly Premium$128
TravelersAnnual Premium$1,548Monthly Premium$129
NationwideAnnual Premium$1,594Monthly Premium$133
ProgressiveAnnual Premium$1,603Monthly Premium$134
FarmersAnnual Premium$1,973Monthly Premium$164

Cheapest Cars to Insure for 25-Year-Olds

For 25-year-old drivers, the Subaru Forester and Subaru Outback are the cheapest cars to insure, offering substantial savings.

  • Subaru Forester: $100 per month, $1,199 per year
  • Subaru Outback: $102 per month, $1,224 per year

Choosing the safest and most affordable car can help save money on insurance costs. Look for older, dependable models with good safety ratings.

Subaru ForesterCategoryCompact SUVCompanyGEICOAnnual Premium$1,199
Subaru OutbackCategorySedanCompanyNationwideAnnual Premium$1,224
Acura MDXCategoryLuxury SUVCompanyTravelersAnnual Premium$1,310
Toyota TacomaCategoryPickup TruckCompanyGEICOAnnual Premium$1,316
Ford ExpeditionCategorySUVCompanyNationwideAnnual Premium$1,375
MINI ElectricCategoryCompactCompanyNationwideAnnual Premium$1,378
Honda OdysseyCategoryMinivanCompanyState FarmAnnual Premium$1,405
Nissan LEAFCategoryElectricCompanyTravelersAnnual Premium$1,426

Best Car Insurance for 25-Year-Old Drivers

GEICO stands out as the best car insurance company for 25-year-old drivers, with a monthly premium of around $121 and an annual premium of $1,448. This provider is MoneyGeek's pick for the best car insurance company for 25-year-olds because it offers superior customer service, stronger financial stability and better claim satisfaction.

Company logo for GEICO
Best OverallGEICO
MoneyGeek Score:
85/ of 100

Overview

GEICO stands out because it focuses on customer satisfaction and comprehensive coverage, which is crucial for 25-year-old drivers. It also offers protections like accident forgiveness, which can keep rates from increasing after a driver's first at-fault accident.

GEICO also offers benefits like:

  • Good student discounts for maintaining a "B" average
  • Driver's education discounts for completing a driving course
  • Multi-car discount when insuring multiple vehicles

Average Car Insurance Cost for a 25-Year-Old

MoneyGeek found that the average full coverage car insurance cost for a 25-year-old is $2,716 per year.

Car insurance costs may depend on a variety of factors, including your age, gender, car make, model and value, credit history and driving record. Shopping around and comparing quotes from different providers can help ensure you get coverage from the best auto insurance provider for your needs.

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ANNUAL CAR INSURANCE PREMIUM FOR A 25-YEAR-OLD

The average annual full coverage premium for a 25-year-old driver is $2,716.

How to Save on Car Insurance for 25-Year-Olds

When it comes to saving money on car insurance, a few simple strategies can significantly reduce your premium. MoneyGeek explored some of these in the list below to help you save on your premiums.

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    Compare quotes for the best policy

    According to MoneyGeek’s research, comparing car insurance quotes can save 25-year-old drivers up to $357 annually. If you’re looking to secure the best possible rate, compare offers from competing companies. Even if you have a specific insurer already in mind, comparing rates can help you better understand what rates you qualify for.

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    Ensure a clean driving record

    At-fault accidents and tickets will dramatically increase the cost of car insurance no matter your age, but they can be especially costly for young drivers. To ensure you qualify for the best rates possible, keep your driving record clean and free of any moving violations.

    You should also consider adding accident forgiveness to your car insurance policy or choosing a company that awards it for maintaining a clean driving record. That way, should you get into an at-fault accident, your premium won't increase as long as it is the first one you experience.

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    Find companies that offer discounts

    While young adults tend to pay more for car insurance on average than older drivers, they’re also eligible for some unique discounts.

    Many insurers offer good student discounts for drivers who get good grades in school. For example, GEICO offers a good student discount for students who maintain a B or better average. Members of certain honor societies and alumni associations may also qualify for a discount. This means that even if you’ve recently graduated, you may still be eligible for savings on your premium.

    In addition, many insurance companies offer discounts for drivers willing to complete a defensive driver course. Those who complete these courses benefit in two ways: defensive driving classes can save you money and reduce the likelihood of an accident.

    Other discounts insurers may offer include bundling (auto and renters or homeowners), safe driver, anti-theft device and low-mileage discounts.

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    Lower the coverage amount

    Reducing coverage will reduce insurance costs. If you can't afford your monthly car insurance premium and own an inexpensive car, you may want to consider liability-only car insurance. However, while this will reduce your premium, it could cost you extra if you get into an at-fault accident.

    In general, you should try to purchase as much insurance coverage as you can reasonably afford. So, if you choose liability-only, select limits that are higher than the minimum coverage required. Choosing minimum coverage provides you with the least amount of financial protection and can leave you in a dire situation after an at-fault accident.

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    Choose a sedan over a sports car

    Certain cars, most notably sports cars and expensive luxury cars, cost more to insure for young adults. If you’re looking for ways to reduce your insurance costs, consider avoiding flashy cars and choosing a reliable sedan instead.

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Why Car Insurance Is So Expensive for 25-Year-Olds

Car insurance 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, therefore, viewed as higher risk by insurance companies. As drivers mature, they’ll gradually become eligible for lower rates on car insurance. Other factors, like an accident-free driving history, can also help lower your rates.

FAQ: Best Cheap Car Insurance Companies for 25-Year-Olds

The challenge for 25-year-olds often lies in finding affordable car insurance that doesn't sacrifice quality. MoneyGeek answered some of the most commonly asked questions to help connect you to low-cost coverage.

What is the cheapest car insurance for a 25-year-old?
What is the best insurance company for a 25-year-old?
Why is car insurance expensive for 25-year-old drivers?
Is car insurance more expensive for 25-year-old males?

About Margaret Wack


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Margaret Wack is a freelance 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.