Is car insurance cheaper when you turn 25?

While 25-year-olds tend to pay higher premiums than drivers in their 40s and 50s, you can generally expect lower average premiums than those of teens and young adults. In general, premiums will drop on the first renewal, once you turn 25. On average, car insurance rates for 25-year-olds are cheaper than those for younger drivers. Car insurance premiums tend to decrease as you age, until about age 75, when they start to increase again. However, your age is just one of the many factors that insurers consider when setting the rates.

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. Ways to save on car insurance when you drive at 25. While teen drivers often receive more competitive car insurance rates if they keep their family's policy instead of buying their own separate coverage, young adult drivers may not be able to keep their parents' policy if they move home. Car insurance is usually cheaper after your 25th birthday compared to car insurance for teens and early 20s drivers. Many other companies, such as Erie Insurance, USAA, Auto-Owners Insurance, and State Farm, offer below-average costs in their monthly and annual premiums.

So where to find the cheapest car insurance for 25-year-olds? No two people have exactly the same driving profile, but some companies are cheaper than others on average. If you combine your home or renters insurance with your car insurance policy, you may qualify for a discount from most insurance companies. Some of the following situations could be attributed to your rates not dropping as expected, but the most accurate information will be provided by your insurance agent. Insurance rates are often the lowest for middle-aged drivers, but car insurance costs for older people can increase, even for those with a good driving record.

Insurance providers consider several factors when determining your rate, and you may need to contact your company before renewing your policy or switching to a different insurer to take advantage of the savings. Auto insurance companies offer discounts that can make a big difference to your insurance bill, and each provider offers a different list of them. We collected data on dozens of auto insurance providers to classify them based on a wide range of classification factors. Despite years of driving experience, older drivers may be more prone to car accidents due to physical, cognitive or visual disabilities, which can translate into higher rates.

This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation or exclusion expressly stated in any insurance policy. Daniel is an expert on the MarketWatch Guides team on auto insurance, loans, warranty options, automotive services and more.

Elizabeth Unch
Elizabeth Unch

Amateur social media expert. Extreme pop culture lover. Proud coffee lover. Certified coffeeaholic. Lifelong food ninja. Hipster-friendly food specialist.