Cheapest Car Insurance for Drivers Under 25 (2025)
COUNTRY Financial, Auto-Owners, and USAA offer affordable rates for drivers younger than 25.
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Drivers younger than 25 often pay the highest rates for car insurance. Statistically, young adults are more likely to be involved in serious crashes than any other age group.1
Younger drivers can still find cheaper car insurance since each company has different rates and standards for weighing risks. To help narrow down your search, Insurify analyzed quotes for younger drivers to find the cheapest car insurance for drivers younger than 25.
Cheap car insurance quotes for drivers under 25
Drivers younger than 25 pay an average of $258 per month for full-coverage insurance and $127 per month for liability-only insurance. Despite the expensive average premiums, plenty of insurers offer more affordable rates.
The table below shows the overall monthly averages for companies offering the cheapest car insurance to drivers younger than 25.
The best car insurance companies for drivers under 25
Due to less experience, young adults have a higher probability of being in an accident. As a result, insurers charge higher premiums to younger drivers for liability-only and full-coverage car insurance.
While it may seem like companies are penalizing you for your age, insurance premiums are mainly based on the level of risk insurers take on by insuring you and on your likelihood of filing a claim. As a result, if you pose a higher risk, you’ll pay a higher rate.
Insurers also consider other factors like credit, the type of vehicle you drive, where you live, past driving history, and your claims history.2 This means you can still save money on insurance premiums as a young driver. Check out the best car insurance companies for drivers younger than 25, according to Insurify.
Best for cheap coverage: Farmers
Best for coverage options: Travelers
Best for discounts: State Farm
How much does car insurance cost for drivers under 25?
Even though drivers younger than 25 pay higher car insurance premiums than older drivers, rates still vary depending on your specific age. A 16-year-old driver may not get the same rate as a 23-year-old driver. In fact, your monthly car insurance premiums could fluctuate by $50–$60 or more each year leading up to age 25.
Age 18 is typically the most expensive age for car insurance, but discounts from your insurance company and staying on your parents’ insurance could help lower costs. The following table shows average car insurance rates by age.
Car insurance discounts for drivers under 25
Paying for car insurance as a young adult can be expensive, even if you can find lower quotes from an insurance company. Many insurers understand this and try to offer discounts to help you save a little more money on your monthly payments.
Here are some common car insurance discounts for drivers younger than 25 and how to get them.
Tips for getting cheaper car insurance
When you’re younger than 25, finding cheap car insurance that fits your budget isn’t impossible. Here are some ways to help you get lower rates as a young driver:3
Shop around for car insurance. Shopping around for car insurance helps you understand all your options, lets you compare rates, and can save you up to 30%. No two auto insurance companies are the same, and some insurers offer better rates to younger drivers despite their age and lack of experience, so comparing multiple companies is an important step in saving money.
Stay on your parents’ policy. When you started driving, your parents likely added you to their existing policy. It’s typically cheaper to add another driver — even a teen driver — to an existing policy than it is to initiate a solo one for the new driver. On average, young drivers save $89 monthly by staying on their parents’ policy. This is especially true if your parents have clean driving records and credit history. But your parent’s name will have to be on the registration for your car in order to add it to their insurance policy.
Choose a higher deductible. If you can choose your deductible, consider setting a higher deductible to save on your premium. But understand that this means you’ll need to pay more out of pocket if you do need to file a claim. You’ll save money on premiums long term if you don’t get into any accidents, which may be a worthwhile risk.
Drive safely and take a defensive driver class. Defensive driver classes help you learn how to drive safely to avoid accidents and follow the law. These classes are beneficial, and many insurers give you a discount between 5% and 10% on car insurance if you provide proof that you completed a course. In addition to the discount, the fact that you’re a safe driver will lower your risk and help you get more savings in the future. Plus, what you learn in the class could help you avoid accidents that typically increase your insurance premium.
Consider driving an older but reliable car. Car insurance rates also depend on the type of car you drive. A newer car or a high-performance car like a sports car will cost more to insure, especially if the type of vehicle is commonly involved in accidents or theft. When a car costs more to repair or replace, insurers charge a higher premium, so consider driving an older but reliable car.
How car insurance works
Car insurance financially protects drivers in the event of an accident and is required by law in all states except New Hampshire. Every state has different minimum liability coverage requirements, but it most commonly includes:
Other common coverages you may see include:
You can elect to get more than just the minimum liability insurance and add on a collision or comprehensive policy, which are included in full-coverage insurance.
Collision insurance covers repairs to your vehicle due to hitting an object, like a light pole, fence, or another car, regardless of fault. Comprehensive coverage pays for vehicle repairs due to unexpected damage from hail, vandalism, animals, and other events outside your control.
While not required, it’s recommended that you select these optional coverages if you can afford them to protect yourself fully.
Car insurance for drivers under 25 FAQs
While younger drivers pay more for car insurance than other age groups, once you pass age 25, your car insurance rates can begin to decline — provided you’ve maintained a clean driving record. Here are answers to some commonly asked questions about car insurance for young drivers.
What is the cheapest car insurance for drivers under 25?
The cheapest car insurance companies for drivers younger than 25 include COUNTRY Financial, Auto-Owners, and USAA. All three companies offer liability rates lower than the $127-per-month average that young drivers pay. These companies also offer several discounts for young drivers and students.
How much does car insurance cost for a 25-year-old driver?
The overall average car insurance cost for a 25-year-old driver is $127 per month for liability insurance and $258 for full coverage. Younger drivers generally pay higher premiums since insurers consider them a higher risk.
Drivers younger than 25 have less experience on the road and tend to have more accidents, which leads to more insurance claims. A good driving record, a good credit history, and no accidents for a few years could help lower your car insurance costs.
What is the cost difference for males and females under 25?
Males pay 5% more on average than women for car insurance. Statistically, women get into fewer accidents than men and engage in less risky driving behaviors, so insurers consider male drivers riskier to insure.
When do car insurance rates go down?
Drivers usually begin to see rates decrease past age 25. Rates generally decrease as you get older, but only up to a certain point. Around age 70, drivers may see their premiums increase due to health-related risk factors.
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