Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent Rachael Brennan

UPDATED: May 6, 2022

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In a Nutshell

  • Experience is one of the biggest contributing factors to car insurance rates
  • Typically, drivers start paying lower rates around the age of 25
  • New drivers pay higher rates regardless of their age

You may have heard that car insurance rates start getting cheaper at age 25. That is usually true, but it isn’t always the case. If you are a new driver over 25, you may experience sticker shock when getting your first car insurance quote. Why are rates so high for new drivers over 25?

Experience is a big factor in determining your car insurance rates. Most drivers hit the road at around 16 years old, which is the legal age for getting your license in most of the United States. Still, no matter your age, rates will be higher if you’re new to driving.

If you want to save money on car insurance for new drivers over 25, we have a few tips for you. This article will help you understand which discounts you can take advantage of and how to get your rates lower over time. The essential first step in finding affordable rates for new drivers over 25 is comparison shopping. You can find the right coverage at affordable rates by comparing quotes.

What are the average rates on car insurance for new drivers over 25?

The average annual car insurance rates for a new driver over 25 range from $1,200-$2,000 or more. 

The exact rates you will pay for car insurance vary significantly based on several other factors, including where you live (urban vs. suburban or rural), your driving history, and the type of car you drive. But here is a sample of what new adult drivers could expect to pay annually with some of the largest insurers in the country:

  • USAA: $1,210
  • GEICO: $1,360
  • State Farm: $1,450
  • Progressive: $1,770
  • Liberty Mutual: $1,775
  • Farmers: $1,840

So, why are rates so high for adult new drivers? Typically, you think of new drivers as teenagers. The teenage years are when most Americans start learning the rules of the road. It can come as a surprise that the expensive rates for teen drivers apply to new drivers of any age.

Age has less impact on car insurance rates than most believe. Younger drivers are indeed prone to more irresponsible behavior. Teenagers and young adults sometimes think they are invincible. Still, decision-making skills aren’t the primary reason younger drivers are considered a higher risk to insure.

Car insurance companies look at a driver’s history to determine rates. That’s why it’s a gamble when an insurance company decides to take on an inexperienced driver. The company must assume a higher risk if there is no driving record to analyze.

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What other factors impact car insurance rates for new drivers?

Car insurance companies consider many factors when determining insurance rates for drivers. Your rates will vary significantly across different companies and locations. If you are a new driver over 25, then there is more to the equation than just your age and experience.

The most common factors that contribute to car insurance rates include:

  • Age
  • Gender
  • Driving history
  • Vehicle
  • Location
  • Marital status
  • Credit score

Not all states allow marital status and credit score to impact car insurance rates. In your situation, there may be other things in your history that affect your rates as well. 

The best way to get accurate rates for car insurance is by filling out an online car insurance application. You can get instant quotes from top car insurance companies near you by using a comparison shopping tool.

Which discounts are available on auto insurance for new drivers over 25?

You shouldn’t be discouraged when you get quoted high rates for car insurance. While it’s true that your rates won’t come down until you have around nine years of driving experience, there are other ways to save money.

Car insurance companies offer many discounts that drivers can take advantage of, and most of these discounts are stackable. If you qualify, you can save money on your car insurance rates in many ways. 

Take time to explore some of the great car insurance discounts available.

Safe Driver Discounts

Safe or good driver discounts rely on telematics devices to relay driving behavior information to the insurance company. Usually, the insurance company only has to monitor your driving for around six months, and then you send the telematics device back. An insurance professional will analyze your driving behavior and possibly grant you discounts on your car insurance. 

What kind of behavior should you avoid to be a safe driver? Actions that may deem you an unsafe driver include abrupt stops, speeding, fast acceleration, and driving at night. You should read your policy documents to understand other driving behavior you should avoid.

Safe driving discounts can save you up to 30% on your car insurance rates on average. This discount is available through most car insurance companies.

Low-Mileage Discounts

Did you know you can save money on car insurance if you don’t drive very often? Low-mileage car insurance policies allow you to save on your rates by only paying for the miles you drive. If you’re a new driver who doesn’t take your car out often, you should consider a low-mileage policy.

Low-mileage car insurance policies may also rely on telematics devices. Instead of tracking your driving behavior, the car insurance company uses telematics to track your mileage. You may also look into a usage-based car insurance policy, which can combine the benefits of safe driving and low mileage.

Leading Low-Mileage Car Insurance Companies:

 MetromileAllstate MilewiseNationwide SmartMiles
ArkansasNoNoYes
ArizonaYesYesYes
CaliforniaYesNoNo
ColoradoNoNoYes
ConnecticutNoNoYes
DelewareNoYesNo
FloridaNoYesYes
GeorgiaNoNoYes
IdahoNoYesYes
IllinoisYesYesYes
IndianaNoYesYes
IowaNoNoYes
KansasNoNoYes
KentuckyNoNoYes
MaineNoNoYes
MarylandNoYesYes
MassachusettsNoYesNo
MichiganNoNoYes
MinnesotaNoYesYes
MississippiNoNoYes
MontanaNoNoYes
MossouriNoYesYes
NebraskaNoNoYes
NevadaNoNoYes
New HampshireNoNoYes
New JerseyYesYesNo
New MexicoNoNoYes
North DakotaNoNoYes
OhioNoYesYes
OklahomaNoYesNo
OregonYesYesYes
PennsylvaniaYesYesYes
Rhode IslandNoNoYes
South CarolinaNoYesYes
South DakotaNoNoYes
TennesseeNoNoYes
TexasNoYesYes
UtahNoNoYes
VirginiaYesYesYes
VermontNoNoYes
WashingtonYesYesYes
Washington D.C.NoYesYes
West VirginiaNoYesYes
WisconsinNoYesYes
WyomingNoNoYes
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In order to qualify for the savings that a low-mileage car insurance policy offers, you shouldn’t drive very often. Generally, low mileage means driving less than 10,000 miles per year. If you’re just getting your license, you have likely relied on other transportation options until now. If you can, continue to use public transit or walk your commute. This way, a low-mileage car insurance policy can save you tons of money.

Bundling Discounts

Almost all car insurance companies offer some type of discount for bundling your policies. If you purchase other insurance coverage through the same company as your car insurance, you can save money.

The amount you can save depends on the company you’re working with and which policies you select. You may have the option to bundle renters, homeowners, boat, RV, or other insurance coverages.

Billing and Administrative Discounts

Most car insurance companies are getting more tech-savvy in our digital world. Companies save money by relying on technology to handle more menial tasks. Fortunately, these companies often pass on the savings to their customers.

You can get discounts on your rates by using technology to handle many aspects of your policy. 

Technology-based billing and administrative discounts include:

  • Auto-pay discounts
  • Paperless billing
  • Online quotes

These vary significantly based on which company provides your policy. Larger companies have more access to technology platforms for saving money. Furthermore, some car insurance companies specialize in tech-savvy policies.

Which company offers the best car insurance for new drivers over 25?

There is no one best car insurance company for new drivers over 25. Choosing a car insurance company takes careful consideration. You need to look at the full picture, not just your age and experience.

Do you qualify for some of the discounts listed above? You might look into a car insurance company that specializes in those discounts. Furthermore, you should explore the auto insurance companies available in your area. By comparing quotes from national and local car insurance companies, you will be able to find the best deal for you.

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How do you find cheap auto insurance for new drivers over 25?

If you are new to the road and over the age of 25, you might be disappointed to learn that you will pay more for car insurance than other drivers your age. Fortunately, with a little bit of research and comparison shopping, you can find affordable car insurance at any experience level.

To get the best rates on car insurance, you just need to compare quotes from companies in your area. By seeing quotes side by side from a handful of car insurance companies, you can explore a range of rates to fit your budget.