Generally, car insurance goes down at age 25 by an average of 20% as the claims risk associated with that age group is statistically lower. However, this isn't a hard rule. New drivers and drivers with violations on their records still pay higher premiums, regardless if they're 25 or older.
Why does my insurance rate drop at 25?
Drivers age 16-24 make 3x more claims than drivers age 25 and older. At age 25, you're no longer apart of this high-risk age group and are eligible for a lower insurance premium. However, this decrease isn't guaranteed.
Other factors aside from age influence your auto insurance premiums, including:
- Driving history
- Level of experience
How to save even more money on my insurance policy
- Discounts: Most auto insurance providers offer discounts. Opt for as many as possible, including good driver discounts. Liberty Mutual offers safe drivers up to 30% off. Contact Liberty Mutual to see how much you can save, today!
- Merge two policies: Merge your auto policy with your home insurance. Most insurance companies offer a discount for bundling multiple policies.
- Shop around: The best way to make sure you're saving money is to compare as many rates as possible. Start by filling in our form below and comparing free quotes.
Companies with the best insurance rates for 25-year-olds
- Progressive: On average, coverage with Progressive costs $302 per month for 25-year-olds. Contact Progressive to get an easy quote, today!
- State Farm: State Farm offers competitive insurance coverage, with premiums costing an average of $468 per month. Apply for a 15% Steer Clear auto discount if you have a clean driving record.
- Allstate: Allstate provides full coverage for 25-year-olds at an average rate of $1,397 per year. You're able to save with Passive Restraint Systems, Anti-Lock Brakes, and Anti-Theft Devices. Contact Allstate to get an easy quote, today!
Get the best coverage at 25, now!
Finding the perfect policy for you starts by shopping around. Need help? Get instant quotes tailored to your needs - fill out our short form, today!