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Updated June 15, 2022
Your twenties are likely to be some of the best times of your life. You’ll want to hang on to the memories you make, but you could do without the higher auto insurance premiums. Drivers under 25 pay some of the highest car insurance premiums in the country. Why? Because car insurance providers use risk to determine your auto insurance rates
Age is a big part of determining your risk. But that doesn’t mean you can’t get a great deal on your auto insurance policy. It just means you have to look harder, compare different companies, and make sure you’re eligible for discounts. The best way to ensure that you are getting the cheapest car insurance is to use a quote-comparison tool like Insurify.
The average cost of car insurance for a 25-year-old is $285 per month.
Drivers under the age of 25 will typically see the highest car insurance rates when compared to other age groups.
Young drivers should always take advantage of all available discounts to lower their cost of car insurance.
Cheap Car Insurance Companies for Drivers Under 25
Some car insurance companies have cheaper policies for younger drivers than others. If you’re looking for auto coverage, consider the insurance companies in this list of the top five most affordable car insurance companies for drivers under 25:
|Insurance Company||Cheapest Monthly Quote|
See More: Best Car Insurance Companies
Average Car Insurance Rates by Age and Gender
For many people, auto insurance is one of the biggest monthly expenses they have. Depending on the type of coverage you have, drivers under 25 pay an average monthly premium of $285, with males generally paying more than females. When analyzing car insurance rates by age, young drivers pay more on average, regardless of gender.
The main reason that male drivers tend to pay more than female drivers is due to statistics. Data shows that a male driver is more likely to participate in risky driving behaviors than a female driver, meaning their rates will be higher. The practice of using gender as a rating factor is outlawed in a few states, including California, Massachusetts, and North Carolina.
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How much does car insurance cost drivers under 25?
How much is car insurance for drivers under 25?
Drivers 25-years-old and younger typically pay the highest auto insurance premiums. The average cost of car insurance for drivers under 25-years-old is $285 per month.
Whether it’s a full-coverage car insurance policy or minimum coverage, young drivers tend to pay more than drivers with more experience. The main reason for this has to do with the number of years behind the wheel. Younger drivers haven’t been driving for as long and are more likely to have an accident.
Factors such as location, coverage type, driving history, and vehicle will also play a role in determining the final rate. Young drivers may be eligible for various discounts to help decrease their monthly costs, like good student discounts or bundling with renters insurance. Drivers over the age of 25 will have generally lower rates from each of these companies.
Farmers is Insurify’s top pick for the cheapest car insurance for drivers under 25. At $89 per month on average, young drivers can get excellent coverage from a reputable company. Farmers also has motorcycle, renters, homeowners, and condo policies available.
A few of the discounts that Farmers offers to young drivers include:
Good student discount
Anti-theft device discount
Automatic payment discount
United Security Health and Casualty (USH&C) is a regional insurer. You can get a policy from them only if you live in Arizona, Arkansas, Illinois, Indiana, Missouri, Nebraska, Oklahoma, and Texas. The company specializes in personalized service and competitive pricing.
A few of the discounts that USH&C offers to young drivers include:
Safe driver discount
Drivers under 25 can get a great rate from Kemper. Their auto policies include 24/7 roadside assistance as a standard coverage option. The company also offers auto, home, life, and health insurance for one-stop-shopping.
A few of the discounts that Kemper offers to 25-year-old drivers include:
Good student discount
Defensive driving course discount
Specializing in car insurance, Novo streamlines the process to get you the coverage you need. The company rounds out Insurify’s top five cheapest auto insurance companies for drivers under 25 with rates that average $184 per month.
Novo doesn’t offer policy discounts – they have built-in savings that provide affordable coverage for everyone. However, you can get special savings for multi-vehicle and multi-driver policies.
Best Auto Insurance Discounts for Drivers Under 25
Remember that the cheapest car insurance quotes for drivers under 25 might not be the best deal available. Many companies offer hefty car insurance discounts and bundling options that could reduce your monthly payments considerably.
|Discounts for Under 25||How to Get It||Companies That Offer It|
|Good Student Discount||Be a high school or college student with good grades (typically a B average or better) to get 5 to 15 percent off your monthly premium.||State Farm, Progressive, Liberty Mutual, Esurance, GEICO, Allstate, American Family, USAA, Amica, Nationwide, The General, Farmers, Travelers, Mercury|
|Defensive Driver Discount||Take a defensive driving course from an accredited institution to get up to 15 percent off your monthly premium.||Liberty Mutual, State Farm, Esurance, GEICO, Travelers, Amica, The General, Nationwide, American Family, Travelers|
|Safety Features Discount||Insure a car with certain safety features or anti-theft devices like anti-lock brakes, airbags, daytime running lights, and electronic stability control.||Farmers, State Farm, Liberty Mutual, Allstate, Esurance, GEICO, Amica, The General, Nationwide, American Family, Mercury|
|Distant Student Discount||Attend college away from your parent’s home and leave your car behind to knock off a decent chunk from your premium.||Farmers, Progressive, Liberty Mutual, USAA, Amica, American Family, Mercury|
|Multi-Policy Discount||Bundle your renter’s insurance with your car insurance to get cheaper premiums than buying each policy separately.||Most major car insurance providers.|
|Multi-Car Discount||Add a trusted roommate (who has a clean driving record) to cash in on a multi-car discount.||Most major car insurance providers.|
|Telematics Discount||If you drive more safely or drive fewer miles than the average driver (and let your insurance company track your driving) you can save.||Progressive, Allstate, Esurance, Farmers, American Family, Nationwide, Liberty Mutual, USAA, GEICO, State Farm, Metromile|
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Tips for Cheaper Car Insurance
If you’re under 25, finding the cheapest car insurance might seem like an impossible task. Follow these tips to save money on insurance and cut your premiums.
Shop Around for Car Insurance
The best way to save money on your car insurance is to shop around. When you’re under 25, many insurers will charge an extra premium just because of your age. It’s smart to get quotes from several different companies. Free online quote-comparison tools like Insurify make this process easy.
Remain on Your Parents’ Policy
Since most of us want to keep our costs down, remaining on mom and dad’s policy until we can afford our own is a quick way to save money on car insurance. You’ll need to have the same permanent address as your parents to make this work. Staying on a parents car insurance policy helps young drivers keep rates reasonable.
Drive an Older, Safer Car
Convertibles and flashy sports cars are tempting to buy, but don’t do it. Instead, drive an older, safer car, they’re much cheaper to insure.
Select a High Deductible Plan
If you’re looking for cheap car insurance, choosing a higher deductible policy could be your best bet. Generally, the higher your deductible, the lower your premium.
Keep a Clean Driving Record
Maintaining good driving habits and keeping a clean driving record will save you money on your car insurance policy, no matter your age. If you rack up points on your license for careless driving (e.g., speeding, running red lights), auto insurers consider you riskier and charge accordingly. It’s not worth it. Save yourself some cash by being a good driver.
Maintain a Good Credit Score
Many insurers use your credit score as an indicator of your overall trustworthiness. A poor credit score can end up costing you more for car insurance coverage. Work on building up your credit rating to lower your premiums and increase your peace of mind. Drivers with a good credit score benefit from lower average rates.
Take Advantage of Discounts
Cash in on all the car insurance discounts you might be eligible for. Some might include:
See More: Cheap Car Insurance
Cheapest States for Car Insurance for Drivers Under 25
According to Insurify's proprietary research, the average monthly cost of car insurance for drivers under 25 is $285. But in other states, young drivers can score much lower monthly rates for car insurance.
|State||Insurance Company||Cheapest Monthly Premium|
|North Carolina||Direct Auto||$69|
The Best Way to Compare and Get Cheaper Car Insurance
Usually, auto insurance companies consider young adults, especially those under 25 years old, “high risk” and charge higher rates to drivers in this group. But don’t worry, cheap car insurance quotes aren’t impossible to find, if you know where to look, that is.
Comparing car insurance quotes will always guarantee you have the cheapest car insurance. If you use a car insurance quotes comparison website like Insurify, the process only takes a few minutes, and you could compare many companies at a time.
Frequently Asked Questions
A typical 25-year-old will pay $285 per month on average for car insurance. Premiums can be higher or lower depending on gender, location, type of car, driving record, credit history, and past insurance claims.
If you’re a 25-year-old driver, there are ways to save money on your insurance coverage. The easiest way to lower your costs is to shop around for car insurance. Use Insurify to compare coverages and rates quickly.
Car insurance premiums are all about risk - the higher risk you are to the insurance company, the more you’ll pay for premiums. Keeping a clean driving record shows insurers that you’re a reliable and safe driver. And safe drivers typically pay less for car insurance.
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Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.