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Cheapest Car Insurance Companies That Lower Their Rates After Drivers Turn 25 (2021)

Enter your zip code below to view companies that have cheap auto insurance rates.

Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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UPDATED: Nov 22, 2021

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Key Takeaways

  • Drivers who are 25 and older are less likely to file a car insurance claim
  • Progressive is one of the most affordable companies for 25-year-old drivers
  • Married 25-year-old drivers could pay at least $50 less for car insurance

Are you looking for auto insurance companies that lower their rates after drivers turn 25? Most car insurance companies decrease rates when you turn 25.

But which insurance companies lower rates after 25? And does car insurance automatically go down at 25?

Don’t worry — we’re here to help. Our guide explains which auto insurance companies decrease rates when you turn 25. Also, we’ll compare car insurance by state.

After you learn more about car insurance companies that lower their rates after drivers turn 25, enter your ZIP code in the free online quote tool above to compare multiple companies in your area.

What are the best car insurance companies that lower their rates after drivers turn 25?

Auto insurance for drivers in their early 20s can be more expensive than people who are 30 and older.

You may have wondered, “How much does car insurance go down after 21?”

If you’re looking for the best auto insurance after you turn 25, start with the best insurance companies in the United States.

Here’s a list of the top companies and how much they charge 21 and 25-year-old drivers for car insurance:

Comparing Monthly Car Insurance Rates by Company of Driver Aged 21 and 25
CompaniesMonthly Car Insurance Rates for 21-Year-Old DriverMonthly Car Insurance Rates for 25-Year-Old Driver
Allstate$321$246
Farmers$261$189
GEICO$251$193
Liberty Mutual$424$256
Nationwide$260$187
Progressive$250$167
State Farm$220$150
USAA$161$130
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Allstate and Liberty Mutual are the most expensive auto insurance companies for drivers between 21 and 25. Meanwhile, USAA, Progressive, and State Farm are most affordable.

USAA is only available to military veterans and their immediate families. But other car insurance companies provide cheap car insurance.

Why won’t some car insurance companies lower rates after I turn 25?

Car insurance companies that don’t lower their rates after drivers turn 25 are usually high-risk car insurance companies.

High-risk auto insurance is more expensive than standard auto insurance. And any driver with SR-22, SR-50, or FR-44 may not see any decreases when they turn 25.

Do car insurance rates decrease as I get older?

Yes, they do. Age is one of the factors that impact monthly auto insurance rates.

Several other personal characteristics also determine whether affordable car insurance is available to you, such as:

  • Coverage level
  • Gender
  • Credit history
  • Driving record
  • Coverage type
  • Vehicle make, model, and year
  • Where you live
  • Commute mileage (the miles you drive per year)

We’ve seen how auto insurance companies affect the cost of monthly rates. Let’s look at how age-based car insurance varies in multiple states:

Average Monthly Full Coverage Rates of 22 and 25-Year-Old Drivers by State
StateMonthly Full Coverage Rates for 22-Year-Old DriversMonthly Full Coverage Rates for 25-Year-Old Drivers
Alabama$235$183
Alaska$215$171
Arizona$210$163
Arkansas$249$206
California$269$222
Colorado$258$204
Connecticut$223$173
Delaware$228$181
District of Columbia$243$187
Florida$330$280
Georgia$282$213
Hawaii$101$106
Idaho$154$122
Illinois$206$159
Indiana$178$140
Iowa$164$129
Kansas$224$179
Kentucky$306$238
Louisiana$356$286
Maine$119$92
Maryland$244$184
Massachusetts$143$121
Michigan$342$253
Minnesota$220$168
Mississippi$227$179
Missouri$227$176
Montana$245$175
Nebraska$195$153
Nevada$294$236
New Hampshire$159$126
New Jersey$231$191
New Mexico$189$155
New York$288$232
North Carolina$130$123
North Dakota$165$131
Ohio$160$122
Oklahoma$233$192
Oregon$178$143
Pennsylvania$225$163
Rhode Island$248$194
South Carolina$203$160
South Dakota$208$169
Tennessee$194$149
Texas$254$196
Utah$182$138
Vermont$166$118
Virginia$180$148
Washington$165$129
West Virginia$209$159
Wisconsin$157$126
Wyoming$195$143
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Maine, Hawaii, and Vermont have the most affordable auto insurance rates for 25-year-old drivers. Overall, 22-year-old drivers pay more for car insurance.

These factors affect male and female drivers. However, female drivers pay less for car insurance per month. But some states don’t allow gender-based auto insurance rates.

When does insurance go down for new drivers?

New drivers are treated as high-risk drivers. Therefore, auto insurance rates for new drivers are more expensive than average.

A car insurance company may lower your rates after you’ve had your policy for more than six months.

New drivers usually don’t have an auto insurance history. Insurance companies see a lack of an insurance history as a high risk.

But once you’ve established an insurance history with no incidents (accidents, traffic violations, or car insurance claims), your car insurance rates will decrease.

Why are car insurance rates so expensive for young drivers?

According to the Centers for Disease Control (CDC), drivers between 16 and 24 have the highest fatality and severe injury rates among licensed drivers.

Therefore, statistics show that drivers under 25 take more risks behind the wheel. These risks are magnified in specific areas, which generate higher auto insurance rates.

How can 25-year-old drivers reduce car insurance rates?

Any driver that wants to lower auto insurance rates should focus on acquiring discounts. When you qualify for more than one discount, you can stack car insurance deals and save hundreds of dollars.

Here’s a list of bargains that can help you save:

  • Multi-Policy Discount
  • Good Student Discount
  • Usage-Based Insurance Discount
  • Good Credit Discount
  • Distant Student Discount
  • Defensive Driver Discount
  • Anti-Theft Device Discount

If you’ve managed to keep a clean driving record and good credit, you can save over 40% on auto insurance at the best insurance companies. People who are still attending college can save even more with student discounts.

Car Insurance Companies That Lower Their Rates After Drivers Turn 25: The Bottom Line

When you turn 25, auto insurance companies recognize that you’re statistically less risky than younger drivers. And most states in the nation charge women less.

Ultimately, drivers that turn 25 can decrease auto insurance rates when they qualify for discounts.

Now that you know more about car insurance companies that lower their rates after drivers turn 25, use our free comparison tool below to compare multiple insurance companies near you.

Frequently Asked Questions: Car Insurance Companies That Lower Their Rates After Drivers Turn 25

Do you want to know more about how auto insurance affects 25-year-old drivers? Then read these answers to frequently asked questions to learn more.

#1 – How much does car insurance decrease after drivers turn 25?

On average, auto insurance rates for 25-year-olds are 27% cheaper than drivers younger than 25.

#2 – Do 25-year-old male drivers pay more for car insurance?

Yes, they do. Male drivers statistically take more risks than female drivers.

#3 – Which states don’t allow gender-based car insurance?

California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania have banned gender-based auto insurance policies.

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