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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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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Reviewed by Jeffrey Johnson
Insurance Lawyer

UPDATED: Jul 14, 2021

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In a Nutshell

  • Car insurance for new drivers over 25-years-old will likely cost more due to inexperience. It can rival what teenagers pay in rates.
  • Using Virginia as an example, the average car insurance rate for a 25-year-old male is $153 a month, and $146 a month for a 25-year-old female.
  • New drivers can take advantage of discounts, like bundling policies or anti-theft devices, to save money.

How much is car insurance for a 25-year-old? Car insurance for new drivers over 25 is no different than teen drivers. Usually, 25-year-old drivers are less likely than teens to encounter an accident. However, first-time drivers over 25 may have higher premiums because they’re inexperienced drivers.

You may ask yourself if you’re at risk of being taken advantage of by car insurance companies because you’re less experienced in driving than your peers. Understanding how car insurance companies calculate premiums can be tricky, especially for a new driver. This guide will tell you everything you need to know about finding the best car insurance companies for new drivers over 25.

An essential step in finding the best insurance for new drivers over 25 is shopping around. Begin your search by entering your ZIP code into our free car insurance comparison tool for the best insurance for new drivers over 25.

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

For many, 16 years old is the age at which first-time drivers are getting their driving privileges such as a learner’s permit or driver’s license. Given how young they are and their lack of experience, car insurance rates for teenage drivers will be expensive.

But what about first-time drivers over the age of 25? Do they automatically start out with higher rates? Or, does the fact that they are older give them an advantage? Keep reading to learn more about car insurance by age.

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How does car insurance rates for new drivers over 25 differ between males and females?

When it’s all said and done, what a new driver pays in car insurance rates is often a reflection of how long he or she has been driving. Given this rationale, you can begin to see why the cost of car insurance for new drivers over 25 may, in fact, be higher. To give you a better idea of what those rates might look like, we’re breaking down average monthly rates for drivers of differing ages, using Virginia as an example:

Average Annual Car Insurance Rates by Marital Status, Age, & Gender
Driver Marital Status, Age, & GenderUSAAProgressiveState FarmNationwideGeicoAllstate
Married 60-Year-Old Female$87$94$105$106$117$169
Married 60-Year-Old Male$88$95$105$109$117$169
Married 35-Year-Old Male$92$99$116$120$123$161
Married 35-Year-Old Female$93$104$116$120$123$170
Single 25-Year-Old Female$120$127$131$132$143$221
Single 25-Year-Old Male$132$129$151$144$141$222
Single 17-Year-Old Female$287$479$350$285$262$533
Single 17-Year-Old Male$342$538$440$367$350$612
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As you can see, the top one and two spots for the highest rates go to “single 17-year-old males” and “single 17-year-old females,” respectively. In other words, the drivers with the least amount of experience are paying higher premiums. With rates as high as $533 and $612 a month (both from Allstate), you can see why many teens experience sticker shock.

It’s also noteworthy that women, in many cases, will pay lower rates than men. According to the Insurance Information Institute (III), statistics prove that women tend to get in fewer accidents than men.

However, those same drivers will often see much lower rates once they hit the age of 25. You can see that most companies have an average monthly rate in the hundred-dollar range for 25-year-old drivers, except Allstate, which is in the $200 range.

All of these numbers help provide important context for car insurance rates for new drivers over 25.

The longer you drive and the longer you keep a clean driving record, the more you’ll see your car insurance rates will drop as you get older. You’ll start to qualify for additional money-saving discounts.

Statistically, the lowest rates one ever pays usually comes around age 60. In fact, our data demonstrate that 60-year-olds are paying the lowest monthly average rates. USAA has the lowest average rates for this age group, at $87 for women and $88 for men.

What car insurance discounts are available for new drivers over 25?

Just because you’re a first-time driver over 25 doesn’t mean you can’t get discounts. Sure, some will take time to earn, but there are also some car insurance discounts you can work toward making right now. Some include:

  • Anti-Theft Discount: Having a car equipped with anti-theft devices often result in discounts on your car insurance premiums.
  • Bundling Discounts: Getting multiple policies from one provider – like car insurance and renters insurance – usually comes with discounted rates.
  • “Green” Car Discounts: Some car insurance companies will reward you for having a more energy-efficient car.
  • Low-Mileage Discounts: If you can prove that you have a lower-than-normal daily commute, you may be entitled to pay lower premiums.
  • Occupation Discounts: Some insurers offer lower rates depending upon your profession. For example, teachers and government employees may be offered special discounts.

After you’ve been driving for a while and your renewal comes up, you should look for all of these car insurance discounts and policy endorsements:

  • Good Driver Discount: This is applied when you have no more than one ticket or accident within the last three years.
  • Safe Driver or Accident-Free Discount: This is used when you’ve gone three years without having an at-fault accident.
  • Accident Forgiveness: You may be eligible for accident forgiveness after going a specified number of years without an accident while insured through some carriers.
  • Disappearing Deductible: You may qualify for a lowered deductible as you go years without filing a claim through your car insurance provider.

Whether you’re a first-time driver or a veteran, you’ll want to have a conversation with your agent to ensure you’re getting every discount possible.

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What are ways to save money on car insurance for new drivers over 25?

There may be some discounts and other conditions that can lower your car insurance rates. Car insurance companies have a few situations where you can reduce car insurance by meeting specific requirements. Read through this section to learn what you can do to get the best auto insurance for new drivers over 25.

#1 – Increase Your Deductible

Your car insurance deductible is the amount of money you pay before your car insurance decided to pay anything toward car repairs. If you increase your deductible, your car insurance company may give you a cheaper car insurance rate.

#2 – Choose How Much Coverage You Need

When you get car insurance, you’ll need to get the minimum requirements for car insurance. However, collision and comprehensive coverage are optional. If you have a new car, a financed car, or you’re leasing a vehicle, you’ll be required to have collision and comprehensive coverage. Most of the time, collision and comprehensive coverages come with other perks such as roadside assistance or accident forgiveness.

#3 – Get Rid of Extra Car Insurance

Make sure you have the coverage you need. If your car is ten years or older, you may not need collision and comprehensive coverage. Vehicles that have been on the road for a long time have low fair market values. Therefore, the claim check may not be able to pay out the original cost of the car.

#4 – Take A Defensive Driving Course

If you have a questionable driving record, you can take a defensive driving course or accident course to lower your car insurance. This will ultimately show the car insurance company that you’re rolling toward safer driving methods.

#5 – Bundle Your Car Insurance

Do you own a home? Or perhaps you need to insure your personal property? Car insurance companies often connect their services and other insurance products like homeowner’s insurance and renters insurance. You can save more money when you bundle other insurance products with your car insurance.

#6 – Participate In Car Insurance Telematics Programs

In recent years, car insurance companies have issued telematics to customers so they can monitor their driving habits. According to the Insurance Information Institute (III), telematics is a device or technology car insurance businesses use in usage-based insurance to monitor customers’ patterns.

The better the driving behavior, the better the savings for customers that participate in telematics programs. Here’s an overview of popular telematics programs in the United States.

Popular Usage-Based Car Insurance Programs
Company Telematics ProgramsEstimated Savings
Progressive SnapShotAverage of $130
Allstate DrivewiseAverage of 10% to 25%
State Farm Drive Safe & SaveUp to 15%
Esurance DriveSenseVaries
Nationwide SmartRideUp to 40%
Liberty Mutual RightTrackAverage of 5% to 30%
Root Car InsuranceVaries
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When you combine the savings from the discounts, you can save hundreds on car insurance for new drivers over 25.

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Which companies offer the best car insurance for new drivers over 25?

Not everyone jumps at the opportunity to get their driver’s license when they turn 16. Many people think that rates for teens are high solely because they’re young and are more likely to be negatively influenced while they are driving.

While young minds tend to be more impressionable, and this does have some bearing on insurance rates, that’s not the only reason why teens’ insurance rates are high.

Insurance rates for teens and other new drivers are primarily high because they are all inexperienced.

In fact, in some states like California, age can’t even be considered when rating any driver. It’s the fact that teens have just learned to drive and just earned their license that they’re such a risk.

But what drivers of any age should remember is this: car insurance rates aren’t solely based on age. Insurance underwriters consider a variety of factors, ranging from your credit scores to your driving record.

Let’s a look at how your driving record can affect your rate. The following table contains information for top insurance companies.

Average Monthly Car Insurance Rates by Driving Record
CompaniesClean Driving RecordOne Speeding CitationOne AccidentOne DUI
Liberty Mutual$265.00$287.00$318.00$337.00
State Farm$332.00$365.00$398.00$365.00
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As you can see, each company’s average rates are affected by a blemish on one’s driving records, particularly when it comes to having a DUI. Those with a clean record stand to pay some of the lowest monthly rates with Geico and USAA. But once you factor in accidents, tickets, and DUIs, things change. In some cases, drivers pay an average of $530 a month (Progressive, one car accident).

As a side note: if you’re wondering just how long how long a car accident stays on your insurance, remember that it’s all about extended periods of safe driving.

Let’s now take a look at how your credit score can affect your rate. This table shows rates in Virginia for the sake of simplicity.

Average Monthly Car Insurance Rates by Credit History in Virginia
CompaniesGood Credit HistoryFair Credit HistoryPoor Credit History
State Farm$132.00$167.00$269.00
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As you can see, a poor credit score can make your rates skyrocket. According to Experian, a poor credit score is under 579.

Here, we see that someone driving with USAA with a good credit score pays an average of $116 a month. However, a driver with poor credit and insured with Allstate pays $344 a month — an increase of more than $200 over someone with good credit.

Beyond your credit score and your driving record, insurers will still look to various other factors in determining rates. This will include the kind of car you drive, how many miles you tend to drive in a year, where you live, and whether your community is prone to more crime like car thefts or home break-ins.

Marital status is also a significant factor for the insurer. The reason why they look at marital status is relatively simple — it boils down to perceived responsibility.

A married person has more to lose in an accident: financial stability, the ability to support their spouse, or, goodness forbid, having their spouse actually in the vehicle during an accident.

Despite all of these variables, it’s still undeniable: cheap car insurance for new drivers can be hard to come by. In many respects, car insurance for new drivers over 25 may be the same as those who begin driving at age 16.

The key is experience. That is how one lowers the insurance for new drivers over 25.

Insurers are looking for responsibility and the ability to build up a clean driving record. It is predetermined that their experience is limited at this stage, thus making them “high-risk.”

You may be asking yourself, “I’ve done nothing wrong. How am I high-risk?” We’ve got the answer below. Enter your ZIP to find the best car insurance for new drivers over 25 in your local area.

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Are new drivers over 25 considered high-risk by car insurance companies?

Insurance companies use the term “high-risk driver” to describe someone who pays more for coverage than the average individual. When that term is used, it refers to someone who is statistically more likely than other drivers to get into an accident because of their experience, history, or demographic. What does that ultimately mean?

High-risk drivers pay more than standard or preferred drivers.

So, what does being a high-risk driver have to do with car insurance for new drivers over 25? The answer, again, is experience. While there is no set car insurance rate for new drivers over 25, car insurance for a first-time driver will be relatively inflated.

As you continue your car insurance policy, you will see your rates decrease. This shows how experience is a more significant factor than age.

A lot of studies have been conducted that focus on licensing experience and accident trends. When you are first issued a license, you’re not as confident of a driver as you are after commuting for years.

This lack of confidence is reflected in the fact that new drivers have more accidents than experienced drivers.

Another factor that justifies inexperienced drivers automatically falling into a high-risk class is that there is nothing an insurer can reference to effectively prove the person is a safe driver. In particular, those with a DUI on their record will be considered a high-risk driver for longer.

Experienced drivers have a licensing history and claim history insurers can reference. The driver must prove themselves by establishing a good history. On a related note, you may be wondering if car insurance companies do background checks. In short, yes.

Every driver has this period of high-risk. They must exhibit extra caution during their early time as a driver. Keep in mind that insurance companies analyze risk. When there is no information available in regards to driving history, they too must exhibit caution. Hence, the higher rates.

Something else to keep in mind: if you’re considered a high-risk driver, not all insurance companies will be willing to insure you. Do your homework and find out what car insurance companies offer high-risk insurance to ensure you get the coverage you need.

What are tips for buying your first car as a new driver over 25?

If you’ve been licensed but have yet to own a car, it could affect your premiums as well. You’ll get the driving experience credits, but you won’t get credits for having insurance in your own name. This means that you won’t get money-saving insurance history discounts.

Getting a driver’s license as an adult is a lot easier than getting a license as a teen, but that doesn’t mean that you should assume you’ll pay less for insurance.

A simple way to offset the above-average insurance rate is to look into purchasing a used car.

Utilizing information from the Insurance Institute for Highway Safety (IIHS), there are a few safe and popular vehicles you could choose from. What car offers the best insurance for new drivers that is also safe?

The Honda Civic, for one, is a notoriously safe vehicle. Because insurance companies are in the business of analyzing risk, and they see new drivers logistically as risks, having a safe vehicle may become a financial ally. Plus, there’s a fine chance that you can get one for $7,000 to $10,000 or so.

Another option would be the Toyota RAV4, which can be purchased used for around $12,000. Keep in mind, too, that even safe vehicles can be upgraded. Meaning, insurance companies look for car safety features that will help you save on car insurance.

Being older doesn’t always mean you’re wiser. Age usually equates to life experience, but not always. If you’ve waited to get your license, you could wind up paying similar rates as young adults for your first insurance policy.

It is also important to obtain all of your prospective vehicle’s history. Has it had many previous owners? Has it been involved in an accident? If so, how severe?

Just make sure the vehicle you plan on buying is safe and has a fair vehicle history. Chances are your insurance company will take note of your desire for safety, and before long, you’ll be on the road, rightly seen as a low-risk driver.

And, as long as you maintain good habits and safe driving behaviors, you should see your rates begin to decrease in time. In the meantime, compare car insurance quotes for new drivers over 25 from multiple companies to find the best rate.

How can you find cheap car insurance for new drivers over 25?

The best way to find car insurance rates and companies, in general, is to compare multiple companies and their rates. Doing this allows you to find the best insurance company and policy for your needs, and ensures that you don’t purchase more than what is necessary.

It’s also a good idea to search for the different discounts that are available to you, as discounts can make a huge difference in how much you pay each month in car insurance premiums.

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Compare quotes from the top car insurance companies and save!

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FREE Car Insurance Comparison

Compare quotes from the top car insurance companies and save!

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Frequently Asked Questions: Car Insurance for New Drivers Over 25

We hope we’ve answered all your questions, but if you have more before you buy car insurance for new drivers over 25, see below for some frequently asked questions regarding insurance for new drivers over 25.

#1 – Do car insurance rates go down when you turn 25?

At what age does car insurance get cheaper? If you began driving as a teenager, you’ve probably heard a car insurance agent, or even your parents, tell you that your rates will go down at the age of 25. But here’s what you need to know — that logic isn’t what it seems.

If you began driving at 16 and your car insurance rates drop at 25, it’s not because you’ve hit a magic number. Rather, it’s because the biggest drop occurs after you have had nine years of driving experience.

#2 – How much is car insurance for a 25-year-old?

Our analysis above discovered that the average car insurance rate for a 25-year-old male in Virginia is $153 a month and $146 a month for a 25-year-old female. Of course, these figures may not consider other important factors, such as where you live, credit history, and your experience.

#3 – What insurance is best for new drivers?

A recent study identified Erie Insurance as the best overall car insurance for teens & young adults in 2020. Our analysis shows that USAA and Geico tend to have the lowest overall average monthly rates in terms of price.

#4 – What is the cheapest way to insure a new driver?

One of the best ways to cut costs will be to look for discounts. Some of the easiest ones for new drivers to take advantage of will include the use of anti-theft devices and bundling policies. There are, of course, many discounts drivers will be able to take advantage of. The key will be talking about your options with an agent.

Aside from discounts, new drivers can look into driving an older or a used car, as well as participating in a usage-based insurance program that rewards safe driving behaviors.

Finally, you can never underestimate the value of shopping rates. Compare rates annually to ensure you’re getting the best insurance for new drivers.

#5 – Will experience driving in another country count?

If you’re an older first-time driver in the United States, but you’ve been licensed before in other states, the experience could carry over. It all depends on where you’re buying insurance and where you were licensed. Some countries will give translated records, which are helpful.

If you can provide a driving abstract that shows when the license was issued and if you’ve had infractions, there’s a good chance that you’ll be given experience credit. You have to ask your agent, but you may be able to find lower-cost rates as a new driver.

Whether you’re 25, 30, 50, or 60, inexperience comes at a price. As a result, if you’re a new driver over the age of 25, you may end up paying higher-than-normal rates simply because you haven’t been driving for a long period.

Fortunately, new drivers can look for ways to save, as they will still be eligible for several discounts.

To find the best insurance for new drivers over 25, you’ll need to comparison shop. Start now by entering your ZIP code into our free car insurance comparison tool to find affordable car insurance for new drivers over 25.