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Does car insurance go down at 25?

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Young adults have the highest car insurance premiums of all drivers. If you spend more on vehicle insurance each month than on your auto loan payment, you are probably wondering at what age you will finally get relief. Every year of driving experience means your rates are gradually declining. The general thinking is that once you reach age 25, you are probably paying a comparatively lower premium versus what you previously paid. How much does car insurance go down at 25? It depends on several factors.

Does your insurance go down at 25?

Many drivers think auto insurance goes down at age 25 but that is not always the case. However, age is a major factor in the rate you will pay for insurance. “Generally, once you turn 25, your rates are going to be a little better,” said Robert Passmore, assistant vice president of personal line policies for the American Property Casualty Insurance Association. Passmore added that when you turn 30, insurance companies consider you an adult and your rates will improve again if you maintain a clean driving record.

How much does car insurance go down at 25? The table below shows the average annual rates by state of full coverage and minimum coverage for drivers age 22 and age 25, respectively. As you can see, auto insurance goes down substantially between 22 and 25.

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State Average annual full coverage premium for a 22-year-old Average annual minimum coverage premium for a 25-year-old
Alabama $2,824 $2,191
Alaska $2,579 $2,050
Arizona $2,515 $1,953
Arkansas $2,987 $2,470
California $3,225 $2,668
Colorado $3,093 $2,442
Connecticut $2,672 $2,074
Delaware $2,737 $2,175
District of Columbia $2,921 $2,246
Florida $3,964 $3,359
Georgia $3,385 $2,561
Hawaii $1,216 $1,272
Idaho $1,843 $1,460
Illinois $2,473 $1,909
Indiana $2,137 $1,681
Iowa $1,973 $1,551
Kansas $2,691 $2,153
Kentucky $3,667 $2,852
Louisiana $4,276 $3,426
Maine $1,426 $1,107
Maryland $2,925 $2,209
Massachusetts $1,716 $1,451
Michigan $4,106 $3,031
Minnesota $2,644 $2,011
Mississippi $2,719 $2,144
Missouri $2,727 $2,109
Montana $2,940 $2,094
Nebraska $2,342 $1,837
Nevada $3,530 $2,836
New Hampshire $1,913 $1,512
New Jersey $2,774 $2,294
New Mexico $2,262 $1,862
New York $3,459 $2,779
North Carolina $1,554 $1,481
North Dakota $1,984 $1,576
Ohio $1,920 $1,462
Oklahoma $2,800 $2,300
Oregon $2,133 $1,720
Pennsylvania $2,700 $1,961
Rhode Island $2,979 $2,324
South Carolina $2,441 $1,920
South Dakota $2,496 $2,029
Tennessee $2,330 $1,792
Texas $3,048 $2,350
Utah $2,180 $1,651
Vermont $1,997 $1,413
Virginia $2,164 $1,770
Washington $1,985 $1,544
West Virginia $2,506 $1,907
Wisconsin $1,887 $1,506
Wyoming $2,343 $1,720

Almost always, teen drivers can get better insurance rates if their parents add them to their policies instead of having standalone coverage. However, rates vary among insurance carriers. Some providers offer better standalone rates when drivers turn 19. If your household includes teen drivers, ask your insurance agent how adding them to your policy will affect your rate and theirs and when it is beneficial to get a standalone policy.

If you avoid accidents and traffic violations from ages 16 to 24, most likely you will get a better insurance rate when you turn 25. When you hit age 25, ask your insurer to review your policy, said Amy Bach, executive director of insurance consumer group United Policyholders. “You always should ask. Do not wait to be offered a discount or a rate reduction,” she said.

How gender affects car insurance rates at 25

Insurance providers are big on data. They use analytics to model the price of auto insurance based on more than a dozen rating factors. That being said, female drivers tend to experience fewer problems behind the wheel than male drivers. Women are known to have fewer DUIs, as well as less serious accidents, according to the Insurance Information Institute.

All of this is backed up by statistics, which insurers use to decide the price of coverage based on their proprietary modeling. So women will typically pay less for their auto insurance, based on statistics showing them to be safer drivers.

The table below shows the difference in the average annual premium cost for male and female drivers at age 25.

Full coverage
25-year-old male $2,181
25-year-old female $2,036

Why are premiums for young drivers so expensive?

Young drivers aged 16 to 25 pay more for car insurance than older drivers because, statistically, they cause more accidents. The high rate of youth driver accidents increases insurers’ risk, which they mitigate by charging higher premiums.

Among teens, male drivers are more than twice as likely to die in a traffic accident than females. In fact, recently licensed 16-year-olds have 150% greater chance of dying in a traffic accident compared to teens aged 18 to 19.

Unfortunately, statistics do not get better when drivers reach their early 20s. According to the Insurance Information Institute, drivers aged 16-20 died in automobile crashes at a higher rate than any other age group, based on 2018 data (the latest available).

Numerous factors play a role in the high incidents of teen and young adult accidents, including inexperience, alcohol use, failing to wear seatbelts, speeding and driving during peak accident periods, particularly weekends and from 9p.m. to 6 a.m. Distracted driving, like texting or talking on a cell phone while driving, also leads to higher auto fatalities among young drivers. According to the National Highway Traffic Safety Administration, 2,121 people were killed in crashes involving teen drivers in 2018.

How much does car insurance go down at 25?

Based on Bankrate’s findings on auto insurance costs at age 25, a sampling of average rates across the U.S. shows significant reductions are in store when you reach the quarter century mark:

  • California: 17%
  • Florida: 15%
  • Georgia: 24%
  • Illinois: 23%
  • Michigan: 26%
  • New York: 20%
  • Texas: 23%
  • Washington: 22%

Typically, drivers in their mid-20s are more experienced and mature. By that age, many have graduated from college and started a career. Some young adults even buy a home in their mid-20s. Coupled with a good driving record, these factors can earn you a reduced auto insurance rate.

To earn the best car insurance rate when you turn 25:

  • Maintain a good driving record
  • Avoid speeding and obey traffic laws
  • Turn off distractions like cellphones and music
  • Never drive under the influence of alcohol or drugs
  • Drive defensively

By following these simple rules, your record will prove you are a responsible driver and your insurer should reward you with a more reasonable premium.

To showcase your driving performance, consider signing up for a usage-based insurance program, like Progressive’s Snapshot or Allstate’s Drivewise. Both programs monitor driving habits, like acceleration, braking, speed and the time of day you drive. You will also get trip reports that can help you assess your performance. These programs may also qualify you for premium discounts if you maintain good driving habits.

Why you might not save on car insurance when you turn 25

If your teen driving record includes multiple violations and/or at-fault accidents, your rates will not go down when you turn 25. If you have a particularly poor driving record, your rates may even increase in your mid-twenties.

Also, if you got your license when you were older, for example in your early 20s, your rates probably will not decrease just because you turn 25 as your insurer may still consider you an inexperienced driver. Buying a new vehicle can also affect your rates because driving a late-model vehicle will cost more to insure than an older model.

To find out how turning 25 will affect your premium, contact your insurance agent. Underwriting guidelines vary among insurers. Some carriers offer better rates for teens and young adults than others. If you are not satisfied with your rate, shop around. Get quotes from several insurance companies and compare coverages, deductibles and rates.

Always inquire about discounts. Your vehicle may qualify for safety and security features, and you may earn even greater savings if you are a student with good grades. If you rent an apartment or own a home, you may also qualify for a multi-policy discount if you bundle your property and auto insurance policies.

Other factors that may affect your premiums

While your age plays a significant role in the cost of your auto insurance premium, other factors may impact the rate you pay, including:

  • Where you live
  • Your vehicle’s make and model
  • How frequently you drive
  • Your credit history
  • Your gender
  • Your marital status
  • Your driving record

Each of these factors may increase or decrease your premiums, regardless of your age. For example, a new sports car will cost more to insure than a five-year-old Honda Civic. If you live in a neighborhood prone to car theft and vandalism, you will pay higher rates than drivers who live in safer areas.

Most state insurance regulations allow auto insurers to use your credit history as a premium rating factor. If you have poor credit, you can expect to pay a higher insurance rate. If you live behind the wheel and drive extensively, you pay more for auto insurance than your friend who only drives a few miles per day.

Insurers like policyholders that don’t pose much risk. Besides your age, driving record and credit rating, life events that signify maturity, like getting married and buying a house, can earn a reduced auto insurance rate.

So does your insurance go down at 25? It depends. Drive safe, avoid accidents, maintain a good credit score and forgo a fancy sports car, you should experience an insurance rate drop at age 25.

Frequently asked questions

Will my car insurance premium go up after one accident?

Although most vehicle accidents usually result in higher premiums for all parties involved, this isn’t always the case. Some insurance policies feature “accident forgiveness,” which allows the policyholder to keep the same premium after an accident. For example, Liberty Mutual provides this coverage to some drivers if they have been accident-free for five years.

What is the best car insurance provider?

The best car insurance provider depends on the needs of the individual. To find the best policy for your needs, it is smart to shop around and get quotes from a few different insurers to compare. Make sure to carefully review how much coverage each quote represents.

When does your car insurance go down?

At 25, premium costs are reduced by many insurers. But there is no set schedule for when the cost of your policy will decrease. If you can maintain a clean driving record, you should be able to find a good rate on auto insurance.

How can I lower my car insurance premium before age 25?

It is expensive to buy auto insurance; age 25 and younger drivers know this well. But many insurers offer discounts to reduce the cost of auto premiums. Check with your insurer to see what you qualify for. For example, Nationwide offers a “good student discount” for drivers aged 16 to 24 who are full-time students and maintain a ‘B’ average or higher in school.


Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 25-year-old male and female drivers with a clean driving record, good credit and the following full 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
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Written by
Julian Dossett
Insurance Contributor
Julian Dossett is a former insurance contributor for Bankrate. Dossett has a couple of years of experience writing for insurance domains including Bankrate, NextAdvisor with TIME, The Simple Dollar,, and He writes about auto, home, and life insurance.
Edited by
Insurance Editor
Reviewed by
Director of corporate communications, Insurance Information Institute