Among national providers, GEICO offers the cheapest minimum liability car insurance for 25-year-old drivers, with an annual premium of around $600 — about 14% less than the average for family policies. In regions they serve, Concord Group and Auto-Owners may have even more competitive rates.
Cheapest Car Insurance for 25-Year-Olds
Updated: December 6, 2024
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Key Takeaways
Twenty-five-year-old drivers may find some of the lowest car insurance rates from Concord Group, Auto-Owners, GEICO, State Farm and Travelers.
GEICO provides the lowest average monthly auto insurance rates for 25-year-olds across the country, averaging $50 per month for minimum coverage and $110 per month for full coverage. In some states, rates can drop to as low as $40 per month.
For 25-year-old drivers, the typical monthly car insurance expense is $51 per month for minimum coverage and $107 per month for full coverage.
Cheapest Minimum Liability Car Insurance for 25-Year-Olds
| Concord Group | $39 | $19 |
| Auto-Owners Insurance Co | $44 | $14 |
| GEICO | $50 | $8 |
| State Farm | $51 | $7 |
| Travelers | $54 | $4 |
| Progressive | $58 | $0 |
Rates are for a family policy for both male and female drivers with clean records and good credit insuring a 2012 Toyota Camry.
Cheapest Full Coverage Car Insurance for 25-Year-Olds
For 25-year-old drivers on a family policy, Concord Group provides the most affordable full coverage car insurance, averaging $876 per year, though it is not widely available. On a national level, GEICO, State Farm and Nationwide are among the top budget-friendly providers.
| Concord Group | $73 | $51 |
| Auto-Owners Insurance Co | $105 | $19 |
| GEICO | $110 | $14 |
| State Farm | $111 | $13 |
| Nationwide | $113 | $11 |
| Travelers | $117 | $7 |
| Allstate | $119 | $5 |
Rates are for a family policy for both male and female drivers with clean records and good credit insuring a 2012 Toyota Camry.
Cheapest Car Insurance for 25-Year-Olds by State
For 25-year-olds on a family policy, car insurance rates differ greatly depending on the state, with monthly premiums ranging from $40 to $194. We’ve outlined the top insurance companies offering the most budget-friendly plans for this age group across various states.
| Massachusetts | State Farm | $40 |
| Idaho | State Farm | $50 |
| Ohio | Nationwide | $50 |
| Mississippi | Progressive | $51 |
| Maine | Concord Group | $53 |
| Hawaii | GEICO | $54 |
| Indiana | GEICO | $56 |
| Pennsylvania | Travelers | $57 |
| Vermont | State Farm | $58 |
| Connecticut | GEICO | $58 |
| Wisconsin | GEICO | $58 |
| New Hampshire | Concord Group | $59 |
| Kansas | Nationwide | $62 |
| Virginia | Nationwide | $62 |
| North Dakota | Nationwide | $63 |
| South Dakota | Allstate | $64 |
| Missouri | GEICO | $64 |
| Iowa | State Farm | $66 |
| Utah | Nationwide | $68 |
| Montana | Progressive | $69 |
| North Carolina | Nationwide | $70 |
| Tennessee | State Farm | $73 |
| Oregon | Nationwide | $73 |
| District of Columbia | GEICO | $77 |
| New York | Kemper | $78 |
| Wyoming | Allstate | $79 |
| Arizona | Travelers | $79 |
| Illinois | Travelers | $80 |
| Arkansas | Nationwide | $80 |
| Michigan | GEICO | $80 |
| Nebraska | Auto-Owners Insurance Co | $81 |
| Maryland | GEICO | $85 |
| West Virginia | GEICO | $85 |
| Alabama | GEICO | $89 |
| Texas | State Farm | $90 |
| Minnesota | GEICO | $92 |
| Kentucky | Travelers | $93 |
| Washington | Travelers | $93 |
| Georgia | Allstate | $93 |
| Colorado | GEICO | $95 |
| Alaska | GEICO | $95 |
| Rhode Island | State Farm | $96 |
| New Mexico | Allstate | $99 |
| Oklahoma | State Farm | $100 |
| South Carolina | Travelers | $102 |
| Delaware | GEICO | $103 |
| New Jersey | Travelers | $108 |
| California | GEICO | $111 |
| Nevada | Nationwide | $136 |
| Florida | Travelers | $153 |
| Louisiana | State Farm | $194 |
Rates are for male drivers with clean driving records and good credit insuring a 2012 Toyota Camry with minimum coverage.
Cheapest Car Insurance for 25-Year-Olds by Gender
Because of a higher likelihood of accidents, 25-year-old male drivers often face steeper insurance premiums than females. Below, we present the most cost-effective national insurance options for both men and women in this age group.
Cheapest Car Insurance for 25-Year-Old Female Drivers
State Farm is the most affordable car insurance option nationwide for 25-year-old female drivers, offering rates approximately 10% lower than the average for minimum coverage. Women in this age group generally pay less than men due to a lower statistical likelihood of accidents.
| Concord Group | $37 | $20 | $70 | $50 |
| Auto-Owners Insurance Co | $45 | $12 | $103 | $17 |
| State Farm | $49 | $8 | $104 | $16 |
| GEICO | $51 | $6 | $109 | $11 |
| Travelers | $53 | $4 | $113 | $6 |
| Nationwide | $56 | $1 | $107 | $13 |
Rates are for female drivers with clean driving records and good credit insuring a 2012 Toyota Camry.
Cheapest Car Insurance for 25-Year-Old Male Drivers
GEICO provides the most affordable monthly rate for 25-year-old male drivers added to a family policy at $49. Qualifying drivers might find even lower rates with Concord Group or Auto-Owners. Male drivers typically pay more than females due to a greater risk of accidents.
| Concord Group | $42 | $18 | $77 | $51 |
| Auto-Owners Insurance Co | $43 | $17 | $106 | $22 |
| GEICO | $49 | $10 | $111 | $18 |
| State Farm | $54 | $6 | $117 | $11 |
| Travelers | $54 | $5 | $120 | $8 |
| Progressive | $58 | $1 | $137 | $-9 |
Rates are for male drivers with clean driving records and good credit insuring a 2012 Toyota Camry.
Cheapest Cars to Insure for 25-Year-Olds
When purchasing a car for a young driver, it’s smart to add them to your policy with a vehicle that is both safe and most affordable to insure. Below, we’ve listed the most cost-effective models by vehicle type for 25-year-old drivers.
Data filtered by:Results filtered by:
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Coverage:Full Coverage
| Subaru Forester | Compact SUV | GEICO | $1,279 |
| Subaru Outback | Sedan | Nationwide | $1,368 |
| Toyota Tacoma | Pickup Truck | GEICO | $1,405 |
| Audi Q5 | Luxury SUV | GEICO | $1,413 |
| Honda Passport | SUV | GEICO | $1,486 |
| Toyota Corolla | Compact | GEICO | $1,507 |
| Ford Mustang Mach E | Sports Car | GEICO | $1,538 |
| Honda Odyssey | Minivan | State Farm | $1,560 |
| Tesla Model Y | Luxury Electric | GEICO | $1,564 |
| Nissan LEAF | Electric | GEICO | $1,566 |
| BMW 1 Series | Luxury Compact | GEICO | $1,611 |
| Porsche Taycan | Luxury Sports Car | GEICO | $1,626 |
| Mercedes GLA 250 | Luxury Compact SUV | GEICO | $1,713 |
| BMW 3 Series | Luxury Sedan | State Farm | $1,955 |
Rates are for drivers with clean driving records and good credit.
Average Cost of Car Insurance for 25-Year-Olds
For 25-year-olds, the average annual car insurance cost is $612 for minimum coverage and $1,284 for full coverage. These figures are based on drivers with clean records and good credit, though actual rates may differ depending on your individual driving history.
Car Insurance Cost for 25-Year-Olds by Coverage and Gender
Below, we outline the average expenses for including 25-year-old male and female drivers on a family policy, categorized by coverage type.
| State Min - No comp_coll | $52 | $50 |
| State Min - 500 comp_coll | $110 | $105 |
| State Min - 1500 comp_coll | $96 | $92 |
| State Min - 1000 comp_coll | $99 | $95 |
| 300/500/300,000 - No comp_coll | $75 | $74 |
| 300/500/300,000 - 500 comp_coll | $131 | $125 |
| 300/500/300,000 - 1500 comp_coll | $117 | $112 |
| 300/500/300,000 - 1000 comp_coll | $56 | $53 |
| 100/300/100,000 - No comp_coll | $64 | $62 |
| 100/300/100,000 - 500 comp_coll | $124 | $120 |
| 100/300/100,000 - 1500 comp_coll | $117 | $112 |
| 100/300/100,000 - 1000 comp_coll | $110 | $105 |
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 Cost of Car Insurance for 25-Year-Olds by State
The average car insurance rate for 25-year-old drivers varies greatly by state, with monthly premiums ranging from $32 to $383. These differences are influenced by factors such as crime rates, weather patterns and population density. Check the table below to see the average car insurance cost in your state and estimate your expenses.
| Oklahoma | $32 | $150 | $29 | $133 |
| North Carolina | $25 | $98 | $24 | $93 |
| Colorado | $40 | $171 | $33 | $142 |
| Mississippi | $26 | $118 | $27 | $124 |
| Florida | $68 | $310 | $52 | $240 |
| Vermont | $18 | $88 | $19 | $91 |
| Delaware | $41 | $158 | $35 | $136 |
| Nevada | $56 | $224 | $50 | $196 |
| Louisiana | $68 | $383 | $55 | $307 |
| New York | $43 | $154 | $41 | $145 |
| West Virginia | $30 | $129 | $26 | $114 |
| South Carolina | $50 | $190 | $46 | $172 |
| New Jersey | $60 | $232 | $50 | $193 |
| New Mexico | $32 | $146 | $29 | $131 |
| Hawaii | $20 | $85 | $19 | $80 |
| Arkansas | $26 | $122 | $23 | $106 |
| Missouri | $34 | $168 | $35 | $170 |
| Connecticut | $37 | $145 | $37 | $143 |
| South Dakota | $19 | $122 | $18 | $117 |
| District of Columbia | $37 | $156 | $33 | $139 |
| Iowa | $19 | $103 | $17 | $90 |
| Indiana | $24 | $102 | $23 | $96 |
| Massachusetts | $24 | $99 | $28 | $116 |
| Rhode Island | $45 | $170 | $43 | $158 |
| Ohio | $42 | $156 | $36 | $134 |
| Michigan | $72 | $267 | $50 | $194 |
| Minnesota | $28 | $121 | $29 | $123 |
| Pennsylvania | $26 | $136 | $23 | $122 |
| Washington | $42 | $145 | $42 | $138 |
| Wisconsin | $23 | $109 | $22 | $103 |
| Montana | $24 | $135 | $21 | $122 |
| Kentucky | $36 | $152 | $36 | $151 |
| Arizona | $37 | $148 | $34 | $137 |
| Illinois | $24 | $108 | $22 | $96 |
| Virginia | $35 | $138 | $33 | $127 |
| Maryland | $40 | $140 | $41 | $144 |
| Georgia | $34 | $143 | $33 | $143 |
| Wyoming | $17 | $123 | $18 | $124 |
| Utah | $46 | $182 | $35 | $134 |
| New Hampshire | $26 | $98 | $25 | $92 |
| North Dakota | $20 | $99 | $18 | $90 |
| Nebraska | $25 | $136 | $22 | $122 |
| Maine | $26 | $100 | $25 | $97 |
| California | $36 | $172 | $36 | $168 |
| Tennessee | $24 | $112 | $23 | $106 |
| Kansas | $24 | $124 | $21 | $108 |
| Texas | $38 | $166 | $36 | $153 |
| Oregon | $32 | $122 | $33 | $124 |
| Idaho | $19 | $79 | $19 | $80 |
| Alaska | $29 | $132 | $25 | $114 |
| Alabama | $32 | $147 | $27 | $124 |
Why Car Insurance Is Expensive for 25-Year-Olds
Car insurance for 25-year-olds can remain fairly costly, though their rates are generally lower than those for younger drivers. Teen drivers, particularly those between 16 and 19, are considered high-risk due to their higher involvement in accidents and traffic violations, with fatal crashes occurring nearly three times more often than among older drivers. Behaviors like speeding, distractions, driving at night and not wearing seat belts significantly contribute to these risks. While these tendencies tend to decline with experience, male drivers are statistically more likely to exhibit such behaviors, often resulting in higher insurance premiums.
How to Save Money on Car Insurance for 25-Year-Olds
Twenty-five-year-old drivers may encounter higher car insurance premiums than those in older age groups. Fortunately, there are effective methods for 25-year-olds and their families to lower these expenses. Below are some practical tips for finding cost-effective coverage:
- 1
Stay on a parent's policy
Remaining on a parent's insurance policy is an excellent way for 25-year-olds to save on car insurance. By leveraging the parent's established policy and multi-car discounts, premiums can be significantly reduced. Many insurers permit 25-year-olds to stay on a family policy if they reside at home and use a family vehicle.
- 2
Shop around as much as possible
Shopping around and comparing quotes from multiple auto insurance companies is a highly effective way to lower car insurance expenses. According to MoneyGeek's research, teen drivers can see premium differences of up to 30% between the least and most expensive policies.
- 3
Find discounts you qualify for
Twenty-five-year-old drivers can take advantage of a variety of common car insurance discounts. These may include student discounts, lower rates for completing driver education programs and savings from usage-based insurance plans, which could reduce premiums by up to 40%.
- 4
Choose a safe, older car
Twenty-five-year-old drivers can take advantage of a variety of common car insurance discounts. These may include student discounts, lower rates for completing driver education programs, and savings from usage-based insurance plans, which could reduce premiums by up to 40%.
- 5
Adjust your coverage amount
If you're able to cover the cost of replacing your vehicle yourself, opting for liability-only auto insurance policy can be a budget-friendly option. Alternatively, raising your deductibles is an effective way to reduce premiums for full coverage policies.
KEY CONSIDERATIONS WHEN SHOPPING: EXPERT TIP
Obtaining quotes from multiple insurance companies is a good idea to see which comes out as the best and cheapest for your specific profile. You also want to ensure the company has optional coverages that are good for a teen driver or any driver to have on their policy. They include roadside assistance and rental car coverage.
— Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheap Car Insurance for 25-Year-Olds: Bottom Line
Car insurance costs for 25-year-olds can be high, but there are ways to make it more affordable. Shopping around for quotes, staying on a family policy and taking advantage of discounts can help reduce premiums. Insurers like GEICO, State Farm and Travelers often provide competitive rates for drivers in this age group, but comparing options from different providers is key to securing the best deal.
Car Insurance for 25-Year-Olds: FAQ
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:
What is the cheapest car insurance for an 25-year-old?
GEICO ranks among the top budget-friendly car insurance options for 25-year-old drivers nationwide. Minimum coverage averages $50 per month, while full coverage costs around $110 per month when added to a family policy.
How much is car insurance for an 25-year-old per month?
The average monthly cost of car insurance for 25-year-olds is about $51 for minimum coverage and $107 for full coverage. Rates can differ significantly depending on the state, with averages ranging from $40 to $194 per month. These figures are based on drivers with good credit, clean driving records and coverage under a family policy.
Why is car insurance expensive for 25-year-old drivers?
Car insurance rates for 25-year-old drivers tend to be higher as they are still considered moderately high-risk due to their limited driving history. The greater chance of accidents leads insurers to set higher premiums to mitigate potential claims and losses.
Is car insurance more expensive for 25-year-old males?
Yes, car insurance is generally more expensive for 25-year-old males. Data indicates that men in this age range are involved in accidents more often than women, leading insurers to charge higher premiums to reflect the increased risk.
Auto Insurance for 25-Year-Olds: Our Methodology
MoneyGeek used a sample driver profile to determine national and state averages for vehicle insurance for 25-year-old drivers. Using this information, we assist readers in selecting the best policy at the lowest price possible.
Data Sources and Depth
We collected data from each state's insurance department and Quadrant Information Services. The data consists of 4,284 price estimates from 100 different ZIP codes and six auto insurance providers.
Sample Driver Profile
MoneyGeek calculates yearly car insurance policy estimates based on a policyholder with the following characteristics:
- Toyota Camry LE
- Clean driving record
- 12,000 miles driven every year
To determine which companies provide the most affordable policies, MoneyGeek compared rates for 25-year-old drivers across different states. We made adjustments to this profile to reflect the differences in age, location and driving behavior.
Coverage Levels and Deductibles Explained
A deductible is the money you have to pay out of your own pocket before your insurance company will pay for your claim. Most drivers would benefit from purchasing full coverage vehicle insurance, which covers both collision and comprehensive damage.
For minimum liability coverages, we used state-required limits to judge which provider was most affordable. For full coverage, we used 100/300/100 liability limits with a $1,000 deductible for comprehensive and collision coverage when researching the cheapest providers. Liability limits of 100/300/100 stand for:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability per accident
Learn more about MoneyGeek's car insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
sources
- Centers for Disease Control and Prevention. "Risk Factors for Teen Drivers." Accessed December 6, 2024.