How To Get Cheap Car Insurance for Under-25 Drivers

When you get a car under 25, the main question is: “How much will the insurance cost?” But there’s no need to worry. You have every chance to get the best auto insurance for young adults, which requires little effort. The main thing is to take into account several factors, take the issue seriously and revise the conditions of car insurance for those under 25 in all insurance companies. Today we will go over all the details to help you obtain the most beneficial insurance.

Car Insurance for Young Drivers Under 25

The first thing you need to understand when getting a young driver’s car insurance is that age will not affect the types of insurance. All companies use similar systems for people looking to take out insurance. However, age is considered when calculating the cost of the insurance premium.

Car Insurance for Under-25 Drivers

Source: AutoInsurance.org

Therefore, the question “Does car insurance go down at 25?” can be answered confidently – yes. Therefore, by choosing even the coolest insurance at the age of 23-25, you will get it cheaper than a person who has yet to reach 20.

Second, the amount of mandatory young driver insurance coverage varies slightly across states. Many considerations must be made, including what needs to be insured, what kind of conditions are right for the car, and the use it will see. Here are some examples:

  • If you plan to rent a car, you will need full insurance and accident protection.
  • If you plan to work on your car, your company may partially cover the insurance, but this is unlikely to be a complete package.
  • If you live with your parents and you are under 25 years old, you can even register for your parents’ insurance.
  • If you do not plan to drive a car to school, college, or university, you have more opportunities to get cheap young driver insurance.

If you’re under 25, taking care of maximum insurance coverage is best because the risk of accidents increases. You can save much more if an accident or other mishap occurs even if you are not happy with the size of the down payment.

How Much Does Car Insurance Cost for a 25-Year-Old?

The price of classic auto insurance for drivers under 25 varies depending on several factors. For example, driving history, location, vehicle type, and coverage option.

For an average driver with regular driving experience, insurance costs $1,500 to $2,000 a year. But this is provided that the car’s insurance coverage will be complete.

However, a bad driving history, living in a high crime area, or harsh weather will never result in the cheapest car insurance for young drivers. The insurance premium, on the contrary, can be much higher.

On top of that, the type of insured vehicle largely affects the cost of auto insurance. A newer or more expensive vehicle will generally have higher insurance premiums. And the old and less expensive car is smaller. For example, no one will give cheap insurance for young adults for a sports car, even if its owner is under.

But the most important thing that car insurance quotes for young drivers depend on is the insurance company’s conditions. Some large insurance companies can afford to provide more affordable car insurance for young adults. It’s useful to view and compare offers from several insurance companies, and this will help you find the best coverage and rates for your specific situation.

What Is the Cheapest Car Insurance for a 25-Year-Old Driver?

Let’s look at 5 top insurance companies with the best car insurance for young adults:

GEICO How much is car insurance for those under 25 in Geico? That’s right, 30% below the market average. The company has a great reputation and many perks for students. There are also many options for car insurance for those under 25, so everyone can find something for themselves.
USAA Here the stakes are often even lower than at Geico. There are also many options for getting the best insurance for young drivers. The company has a large audience and a huge flow of positive feedback.
State Farm That’s a great option for young drivers. Drive Safe & Save will save even more. If you are for safe driving and can prove it, you will be thanked for this with cheap insurance for young drivers.
Nationwide The company provides an opportunity to save up to 40% through internal loyalty programs. If you drive quite a bit and practice safe driving, good car insurance for young adults will please you.
Progressive That’s a reliable partner in the world of favorable insurance conditions that will not let you down in difficult times. It also indulges with the best car insurance for under 25 drivers who study well and drive well.

How To Save Money on Car Insurance When You’re 25

You need to be very organized about the issue of insurance to get the best car insurance for drivers under 25 and save as much money as possible. Here are some workflows that will enable you to do this.

Step 1. Use Parent’s Insurance

The possibility of car insurance going down for males is because they live with their parents or guardians. You can simply register a young person in the parents’ existing insurance and save a lot of money. Some insurance companies even oblige their clients to register their children for their insurance.

In addition to including the young man himself in the insurance, it is possible to insure an additional car, which will also lead to more favorable insurance conditions. But if the parent/guardian has had a lot of traffic accidents and mishaps in the past, taking out your car insurance will be a more profitable solution in case of car insurance for those under 25.

Step 2. Expand Your Franchise

Auto insurance has its concept of a franchise. That’s the amount you pay yourself before an accident or mishap occurs. But after this action, and you file a claim, this amount is deducted from your payment. Therefore, the higher your deductible, the lower your monthly rate and the lower the insurance premium.

It’s enough to choose an amount you don’t  mind paying out of your pocket in case of an accident to get the best car insurance for young drivers.

Step 3. Look for Discounts for Good Students

Many insurance companies offer cheap car insurance for young drivers who do well in school or college. For some, an average score is important; for example, an average score of B and above is most often required. As you can see, good study always brings a worthy reward.

Step 4. Take Out Multiple Policies

You can combine it with other types of insurance if you do not live with your parents and want to take out under-25 car insurance. For example, insure your car and home by combining the two policies and save a fortune.

Step 5. Take a Safe Driving Course

The cheapest car insurance for young drivers is for students who have taken a course in safe driving. That’s a great opportunity to also socialize with the young person and make his driving journey more interesting.

Step 6. Be Responsible on the Road

Safe driving guarantees the life and health of all road users. In addition, this is a chance to save on insurance premiums. If your car is equipped with all security systems, and there were no fines and accidents in the past, you will likely get cheap car insurance under 25.

Step 7. Pay Close Attention to Bills

Even when it comes to utility bills or loans, getting cheap young driver’s car insurance is also very important. In principle, there’s a high risk of not getting car insurance if you do not pay your bills on time. The insurance company will review your credit history before granting you any conditions. Therefore, you shouldn’t count on cheap car insurance for young adults if you have a low credit rating.

Cheap Automobile Insurance for 25-Year-Olds for Women and Men

Here’s the thing: the cost of the insurance premium changes with age. It decreases by 12% for men by 25, and for women by 9%. But, simultaneously, it costs 2.5% more for men than women. If you think of when car insurance goes down for females, then this happens as early as the girl reaches 18 years old. Since men tend to drive more aggressively, they get into more accidents. But gender is not always considered when calculating rates for car insurance for young people. For instance, California, Montana, Hawaii, and some other states do not affect the amount.

Companies That Offer the Cheapest Car Insurance for 25-Year-Olds

Check out the table below showing cheap car insurance for young female drivers and male drivers aged 25 from different companies:

Company Single Girl, 25 Years Old Single Man, 25 Years Old
USAA 1,219 USD 1,280 USD
Geico 1,346 USD 1,357 USD
State Farm 1,381 USD 1,537 USD
Travelers 1,456 USD 1,512 USD
American Family 1,617 USD 1,663 USD
Nationwide 1,728 USD 1,852 USD
Progressive 1,883 USD 1,927 USD
AAA 2,201 USD 2,457 USD
Allstate 2,351 USD 2,423 USD
Farmers 2,398 USD 2,591 USD

Source: U.S.News

Why Is Car Insurance for a 25-Year-Old So Expensive?

It’s all about the high risk of accidents on the road among young people. Most road accidents happen to people under the age of 20. You can see the data from the National Highway Traffic Safety Administration.

Age group Accidents per 100 million miles driven
16–17 1432
18–19 730
20–24 572
25–29 526
30–39 328
40–49 314
50–59 315
60–69 241
70–79 301
80+ 432

Source: MarketWatch

The problem lies both at a young age and with little driving experience. In addition, teenagers are more distracted on the road and may often consume alcohol before driving.

Insurance companies do not want to take risks and are not ready to cover the lack of experience and “troubles” of young drivers. In light of this, young adults are likely to pay a large amount for auto insurance.

In general, such an order of prices and the difference in young driver car insurance premiums has a positive impact. Thus, when the number of accidents rises, the insurance company pays out compensation from the money paid by less experienced young drivers in the form of an annual auto insurance premium.

The Bottom Line on Auto Insurance for 25-Year-Olds

Young adults typically need more expensive insurance than those older than them. But you can still get cheap car insurance for those under 25. Here are the main ways to save:

  • Searching for the most optimal conditions in one of the insurance companies
  • Seeking benefits for students
  • Reviewing insurance coverage in your case
  • Getting your parents’ insurance if you continue to live with them
  • Increased driving experience
  • Careful and safe driving
  • Installation in the car of all details for safety
  • Franchise increase
  • Providing documentation on the completion of safe driving courses

As you can see, cheap car insurance for young drivers is real. The main thing is to have the right approach to obtaining insurance.

Frequently Asked Questions

How do I figure out how much car insurance I require?

As you already understand, getting insurance quotes for young drivers is easy, but many factors affect the final amount of the insurance premium. First, you must determine what coverage you need based on where you live. You should also clarify what needs to be covered to ensure complete security.

For example, you often need to take out auto liability insurance. It is necessary so that you can pay the expenses of the second party to the accident if you are the culprit. There may also be other required types of injury insurance for uninsured drivers and so on.

You may also be required to have full insurance or at least accident insurance, provided that you plan to drive a rental car.

In addition, to determine what kind of car insurance you need, it’s important to consider several factors, namely:

  1. Estimate the value of your car: If you have a new or expensive car, consider comprehensive insurance and accident insurance. That’s to protect it from damage or theft. If you have an older car with a lower value, you can opt out of these insurance coverages and get the best car insurance for young drivers.
  2. Assess your financial situation: High coverage limits provide more financial protection but require high insurance premiums. Choose coverage limits that fit your budget and risk tolerance.
  3. Consider your driving habits: You will most likely need full coverage to protect you from possible accidents if you drive long distances or in high-traffic areas. But this will exclude the possibility of applying for the best car insurance for new drivers under 25.

It never hurts to consult with an insurance agent. He will give individual advice depending on your specific situation. They will tell you about the different options and recommend applicable coverage limits based on your needs.

Remember that having proper car insurance coverage is essential for financial protection and peace of mind. Therefore, sometimes you should not run for cheap auto insurance for young drivers but rather find a reliable option and try to get it on favorable terms.

What is the best automobile insurance company?

It is impossible to call a particular insurance company “the best.” After all, everything will depend on your specific needs and preferences. We’ve already discussed the best deals from the US’s most reputed auto insurance companies, including State Farm, GEICO, Allstate, Progressive, and Farmers. They are all very good and provide the best car insurance for young drivers. But many other reputable insurance companies may be more favorable to you.

Consider comparing policies and prices from different insurance companies before taking this step to find the one that best fits your budget and coverage needs. It’s also worth reading reviews and checking each company’s financial strength ratings before deciding. Then there is a big chance to find the best car insurance for those under 25.

Is car insurance cheaper when you’re 25?

For many, the question “Does car insurance drop at 25?”  remains. Age directly affects the price of car insurance for young adults, and the older they are, the lower the insurance rate.

Most often, by 25, the driver has sufficient driving experience. In other words, drivers are less risky at this age and tend to have fewer accidents. That explains why they can get cheap car insurance for young drivers.

You can contact the insurance company and ask for cheap insurance for those under 25 if your driving experience has grown and you have been practicing safe driving for several years.

You can get acquainted with the following chart illustrating how age affects the cost of annual insurance:

Car Insurance for Under-25 Drivers 1

Source: MarketWatch

What does the average 25-year-old pay for auto insurance each year?

Auto insurance for young drivers will depend on location, insurance company, vehicle, driving experience, type of coverage, driving history, and other factors.

You can find a table of the average cost of the annual insurance premium for 25-year-olds in the best insurance companies for young drivers below.

Auto insurance company The annual amount of the insurance premium
USAA 1,292 USD
Geico 1,420 USD
Erie Insurance 1,523 USD
Nationwide 1,556 USD
Auto-Owners Insurance 1,590 USD
State Farm 1,686 USD
American Family Insurance 1,762 USD
Travelers 1,763 USD
Progressive 1,934 USD
Market Average 2,019 USD
Allstate 2,382 USD
Farmers 2,451 USD

Source: MarketWatch

* Average annual premium cost based on full coverage policies. It includes Personal Injury Risk with $50,000 compensation per person, Accident Risk with $100,000 compensation, Property Damage Risk for Accident with $50,000 compensation, and a deductible of $500 for all-around coverage and collision coverage.

Victoria Berezhetska

Victoria Berezhetska is a Content Lead at Phonexa.com and an expert contributor to American REIA. She has a Bachelor of Science degree in Business Administration, with extensive working experience as a PR specialist and content writer. At American REIA, she helps customers find the right educational material through easily digestible blog posts and buying guides backing their insurance coverage choice. Victoria covers diverse topics around digital and insurance marketing, including auto, home, health, and life insurance.

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