car insurance rates for young drivers are often more expensive. If you have a birthday coming up, you may be wondering, does your car insurance go down at 25? According to Bankrate’s study of average premiums, it could be. To give you an idea of how much your premium could be, the average cost of car insurance at age 25 is $2,176 per year for full coverage and $654 per year for minimum coverage.
How much does car insurance go down at 25? it will likely depend on personal, household, and other characteristics, including your driving record and claims history. Understanding how age and other factors can affect the cost of your auto insurance can help you make informed decisions for affordable rates at any age.
Reading: How to review car insurance after turning 25
does your insurance go down at 25?
When comparing the average cost of auto insurance based on data from Quadrant Information Services, auto insurance for a 25-year-old tends to be more affordable than for younger drivers. however, each case is personalized, so while auto insurance may go down to 25 for some, that may not be the case for all 25-year-old drivers.
average rates for the largest auto insurance companies by market share support this trend. The table below shows the average cost of a full-coverage policy from these insurers for 25-year-olds and how the rates compare with 24-year-olds and 18-year-olds.
*Rates reflect a 25-year-old renter on their own policy, a 24-year-old renter on their own policy, and an 18-year-old renter on their parents’ policy.
how much do the rates for 25 year olds drop in each state?
based on bankrate sampling of average fees in the us. In the US, young adult drivers with clean driving records can expect reductions in auto insurance costs at age 25. The amount of premium savings will vary by state and by insurance carrier, and may depend on factors such as your coverage options, type of vehicle, and how much you drive.
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The five states below have the largest percentage reduction in average premiums among drivers ages 24-25.
- montana: -22%
- Vermont: -21%
- Wyoming: -20%
- Pennsylvania: -19%
- michigan: -19%
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average decreases by state
how gender affects auto insurance rates at age 25
Insurance companies may also consider gender when it comes to auto insurance rates, although in some states it is excluded as a rating factor. Statistically, female drivers tend to be less likely to engage in risky driving behaviors than male drivers, including fewer duis and less severe accidents. This means that auto insurance companies generally consider female drivers less likely to file a claim, as evidenced by the lower average premiums for 25-year-old female drivers compared to 25-year-old male drivers below:
ways to save on car insurance as a 25-year-old driver
While teen drivers can lower their auto insurance rates by staying on their parents’ policy, young adult drivers may not be able to stay on their parents’ policy if they move house. If you’re a 25-year-old driver, speaking with a licensed auto insurance agent can help you find the best auto insurance for your needs, including ways to save on auto insurance as a 25-year-old driver.
Discounts are a common way for drivers of any age to save on car insurance. If you have a clean driving record, you may be eligible for safe driving discounts and incentives, such as accident forgiveness. Purchasing a homeowner’s or renter’s insurance policy from the same company as your auto insurance company may also earn you a package discount. each operator may offer different discounts. speaking with a licensed insurance agent could help you identify discounts you may qualify for with a specific company.
Other savings strategies that may help include shopping around before your policy renews and making sure you have the right types of coverage and amounts for your needs. many insurance professionals recommend getting quotes from other companies before your policy renews to see if another insurer can offer a cheaper rate for your needs. This may also be a good time to make sure you’re not paying for any coverage options you don’t need. For example, if you have roadside assistance coverage but also pay for separate towing and labor service, you may be able to remove that option from your insurance. just be sure to review your changes with your agent first.
why you might not save on car insurance when you turn 25
Although average auto insurance premiums show that 25-year-old drivers typically receive lower auto insurance rates compared to 16-24-year-old drivers, this may not always be the case. some of the scenarios below could be attributed to why your rates have not decreased as expected.
- Your state does not take age into account. Some states have different regulatory restrictions on what information can be used to calculate auto insurance rates. Hawaii and Massachusetts are the two states that do not allow a driver’s age to be considered when determining their auto insurance premium.
- You have a few incidents on your driving record. Speeding tickets and at-fault accidents could result in a penalty on your auto insurance policy.
- You received your driver’s license most recently. When you get your driver’s license can influence how insurers rate you. drivers who start driving at age 16 have nearly a decade of driving experience by the time they turn 25. on the other hand, a driver licensed for the first time at age 20 has less driving experience and could see higher rates later.
- where do you live
- the make and model of your vehicle
- how often do you drive
- your credit history (in most states)
- your gender (in most states)
- your marital status (in most states)
- your driving record
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Will my auto insurance premium go up after an accident?
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When does your car insurance expire?
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How can I lower my car insurance premium before I turn 25?
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At what age does your car insurance go down?
methodology
bankrate uses dial information services to analyze 2022 rates for all zip codes and carriers in all 50 states and washington, d.c. the rates are weighted according to the population density of each geographic region. quoted rates are based on a 40 year old male and female driver with a clean driving record, good credit, and the following total coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- full $500 deductible
To determine the minimum coverage limits, bankrate used a minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week, and drive 12,000 miles a year.
These are sample rates and should only be used for comparison purposes.
Age: Rates were calculated by evaluating our base profile with ages 18-25 (base: 40 years) applied. depending on age, drivers may be renters or owners. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
gender: the following states do not use gender as a determining factor in calculating premiums: california, hawaii, massachusetts, michigan, north carolina, pennsylvania.
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other factors that may affect your premiums
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Age can be a critical factor in determining your auto insurance premium, but it’s only one part of the qualifying process. Other auto insurance rating factors may also play a role in your final premium estimate, including these factors below:
all of these elements can be weighed differently by each company, so auto insurance rates can vary depending on which insurance company you request a quote from.
frequently asked questions
