What is the best car insurance for a 25 year old woman?
If you're looking for the lowest rates, Nationwide offers the best car insurance for 25-year-olds, with rates of $1,663 per year or $139 per month on average. Travelers is another cheap option, with average rates of $1,694 year or $141 per month.
Car insurance does get more affordable at 25. The average price of car insurance for a 25-year-old is $3,207 for an annual policy. By contrast, drivers pay an average of $7,179 at 18 and $4,453 at 21, which demonstrates that car insurance does go down as you age.
Key Takeaways
The average annual cost of car insurance for 25-year-olds is around $1,555 for full coverage and $360 for liability-only. This marks a significant decrease in rates compared with younger drivers. GEICO and State Farm offer the most competitive rates for 25-year-olds.
The 5 Best Car Insurance Providers for New Drivers. Of the nation's leading insurance providers, we found that State Farm, USAA, Geico, Erie Insurance and Liberty Mutual offer the best insurance options for new drivers.
| Car Insurance Provider | National Market Share | Overall Rating Out of 10.0* |
|---|---|---|
| 1. State Farm | 16.84% | 9.4 |
| 2. Geico | 14.05% | 9.1 |
| 3. Progressive | 13.76% | 9 |
| 4. Allstate | 10.69% | 8.8 |
| Best Health Insurance Plans | Entry Age (Min-Max) |
|---|---|
| Star Smart Health Pro Plan | Adult: 18-50 years Child: 91 days 25 years |
| Tata AIG MediCare Plus Plan | Adult: 18-65 years Child: 91 days 25 years |
| United India Individual Health Insurance Plan | Adult: 18-65 years Child: 91 days 18 years |
Yes, car insurance goes down at 25 with Geico, since 25-year-olds are no longer considered as high-risk as younger drivers. Turning 25 years old saves drivers an average of 8.53% on a Geico policy, based on quotes for ZIP codes across the country.
The top 10 cheapest car insurance companies are Nationwide, Geico, State Farm, Travelers, Progressive, AAA, Allstate, Chubb, Farmers and USAA.
Best Car Insurance Companies for 20-Year-Olds. Our top picks for the best car insurance for 20-year-olds are State Farm, USAA, Geico, Erie Insurance and Liberty Mutual. We've found these companies to be affordable on average for young drivers.
GEICO offers the best and cheapest car insurance for 24-year-olds at $131 monthly with solid customer satisfaction ratings. Drivers should shop around to get the best possible rates. Choose higher deductibles to lower the premium for a 24-year-old's car insurance.
Which insurance is best for new drivers?
The Zebra's experts consider State Farm, USAA, and Nationwide the best insurance companies for new drivers thanks to their cheap rates, wide availability, and relevant discounts and programs.
The cheapest car insurance companies for first-time drivers are Travelers, USAA, and Geico, according to WalletHub's analysis.
| Company | Forbes Advisor Rating | Our expert take |
|---|---|---|
| Nationwide | 5.0 | Best overall |
| USAA | 4.8 | Best for military members and veterans |
| Travelers | 4.7 | Great for drivers with speeding tickets |
| Erie | 4.6 | Best for drivers who caused an accident |
The auto insurance company with the most complaints is United Automobile Insurance, which receives roughly 40 times more complaints than the average insurer its size, according to the latest NAIC complaint index.
- State Farm.
- Geico.
- Progressive.
- Allstate.
- USAA.
- Liberty Mutual.
- Farmers.
- Nationwide.
Insurance companies often see young drivers as a greater risk because they are more prone to accidents and poor decision-making — both of which raise the potential cost of claims that need to be paid out by insurers. As a result, these added risks lead to higher premiums when insuring teen drivers.
Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.
Young Drivers and Accident Rates
The primary reason automobile coverage for teenagers is so expensive is that young people get into more car accidents than older drivers. As drivers mature and get used to handling vehicles, they become far less likely to get into a wreck.
According to our cost research, USAA provides the cheapest young driver insurance for 21-year-olds, costing $134 per month or $1,609 per year. Geico, Auto-Owners and Erie Insurance are also affordable options for drivers.
Geico is cheap because it offers a wide range of discounts that apply to a variety of situations. Geico also covers millions of drivers across the country, so it spreads out financial risk, which helps it offer cheap car insurance quotes.
Why is AAA insurance so expensive?
AAA insurance premiums tend to be more expensive than the national average because AAA doesn't write its own policies. Each regional club operates independently and sells insurance policies underwritten by different agencies.
On average, the premium for a new auto insurance policy is cheaper for a 25-year-old than for a 24-year-old—at Progressive, for instance, rates on new policies drop by a whopping 9%. That's because drivers under the age of 25 are statistically more likely to cause an accident and file an insurance claim.
Cheapest car insurance for parents plus a 20-year-old driver
If you're shopping for a new policy that includes both parents and a 20-year-old driver, USAA is the cheapest but has limited eligibility. Other cheap car companies for 20-year-olds are Travelers, Geico and Erie, which all have rates below $4,000 a year.
Car insurance may go down for a variety of reasons, but the most common reasons are that you are getting older or infractions have fallen off your driving record. If you already have a good driving record, compare car insurance quotes from different companies to see if you can find a better deal.
Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico's rates are typically lower overall, but Progressive tends to offer better prices to high-risk drivers. High-risk drivers are those with a recent DUI, at-fault accident or speeding ticket on their driving record.
