Best Affordable Auto Insurance Providers That Lower Their Rates After Drivers Turn 25
The best affordable auto insurance companies that lower their rates after drivers turn 25 are GEICO and USAA. Affordable auto insurance companies that don’t lower rates after drivers turn 25 as significantly are Liberty Mutual and Allstate. Young drivers who need coverage should buy auto insurance from companies that lower rates after drivers turn 25 to secure the lowest possible prices.
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UPDATED: Sep 29, 2021
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- The most affordable auto insurance companies that lower rates after drivers turn 25 are GEICO and USAA
- Affordable auto insurance companies that don’t lower rates after drivers turn 25 as significantly include Liberty Mutual and Allstate
- Auto insurance costs the average 25-year-old driver $201 per month or $2,417 annually
Age impacts auto insurance rates because young drivers lack comprehensive driving histories and cause a higher rate of accidents than older drivers.
Fortunately, the best auto insurance companies that lower their rates after drivers turn 25 are GEICO and USAA.
Keep reading to learn how to buy auto insurance from companies that lower rates after drivers turn 25 and discover tips for keeping your insurance costs down.
After reading about auto insurance quotes from companies that lower rates after drivers turn 25, remember to enter your ZIP code into our free tool above to compare accurate quotes from reliable companies near you.
What are the best auto insurance companies that lower their rates after drivers turn 25?
Age impacts auto insurance rates because young drivers don’t have enough driving history for companies to evaluate their risk levels accurately.
Plus, statistically, younger drivers cause more accidents per year than their older, more experienced counterparts.
Fortunately, insurance rates typically decrease at age 25. But exactly how much does auto insurance drop when you turn 25?
The average 25-year-old pays $201 per month or $2,417 annually for auto insurance. In contrast, the average 17-year-old pays $553 per month or $6,644 annually.
Compare how average annual auto insurance rates drop once drivers turn 25 from the leading providers in the table below:
|Companies||25-Year-Old Female Average Annual Auto Insurance Rates||25-Year-Old Male Average Annual Auto Insurance Rates||17-Year-Old Female Average Annual Auto Insurance Rates||17-Year-Old Male Average Annual Auto Insurance Rates|
In our research, GEICO Auto Insurance Company is the best car insurance company that lowers rates after drivers turn 25. Known for writing lower base quotes for teens and young drivers, GEICO is available in all 50 states.
The provider also offers the following discounts that can help drivers aged 25 or younger save even more on auto insurance:
- Distant student discount
- Driver’s ed discount
- Family legacy discount
- Emergency deployment discount
- Good student discount
- Group/membership discounts
- Safe driver discount
USAA Auto Insurance Company is our next recommended provider for drivers age 25 or younger. However, only military personnel can use its services.
For those who do qualify, USAA rates are typically the cheapest out there. Plus, the company also offers similar discounts as GEICO.
An auto insurance company that doesn’t lower rates after drivers turn 25 as largely as GEICO and USAA is Liberty Mutual Auto Insurance Company.
Despite offering the same discounts as the top two providers, Liberty Mutual often underwrites unreasonably high quotes for young drivers, even those aged 25.
Allstate Auto Insurance Company is also not highly recommended for young drivers. Besides higher base quotes, there’s also no further education or group and membership discounts.
Ultimately, the best auto insurance company for you depends on many different variables. For example, your age, driving record, ZIP code, credit score, and vehicle make and model impact your total premiums.
Plus, not every provider is active or available in every state, and you’re subject to regional auto insurance laws.
So if the companies above don’t work out for you, check out our honorable mentions below:
- State Farm Auto Insurance Company
- Progressive Auto Insurance Company
- Nationwide Auto Insurance Company
To truly secure your best auto insurance rates as a 25-year-old, compare quotes online from multiple providers.
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At what age does auto insurance decrease?
Fortunately, once you turn 25, you’ll likely see a significant drop in your auto insurance rates. But technically, the most considerable reduction happens for both men and women at age 18.
How do insurance costs for 25-year-old male and female drivers differ? Usually, drivers of both genders earn rate reductions, but the cost differences between men and women at that age shrinks.
People often mistakenly assume women pay less for auto insurance than men, but it’s only 3% cheaper for women if differences exist.
Besides, using non-driving factors, like gender, is illegal when calculating auto insurance costs in the following states:
- Michigan (regionally)
- North Carolina
Does auto insurance automatically go down at 25? Usually, the decrease in rates happens during your policy renewal period. So you likely won’t see any reduction on your actual birthday unless it aligns with your policy renewal date.
Does auto insurance go down at 21? Yes, typically, from ages 16 up through 25, you see a slight rate reduction each year, even at 21.
Why didn’t my auto insurance go down when I turned 25?
You already had your birthday, so why do you keep receiving auto insurance quotes from companies that don’t lower rates after drivers turn 25?
In truth, all companies decrease rates at that age because the risk level associated with covering you lowers. So if you’re getting auto insurance rates from companies that don’t lower rates after drivers turn 25, it might be because of a poor driving record.
Similarly, if you live in a ZIP code with high auto theft and traffic congestion rates, expect to pay more for auto insurance.
Plus, according to the Insurance Institute for Highway Safety (IIHS), state population density impacts the fatality rates. So your location matters.
Or, if you live in a state where credit history affects insurance costs, check your credit score. Many providers view bad credit to mean you’re higher-risk and therefore increase your rates.
How can young drivers save money on auto insurance?
Young drivers can save on auto insurance by asking about standard discounts that are easy to earn at 25.
You might earn military, good student, paperless billing, paid-in-full, claim-free, multi-policy, multi-car, or multi-driver discounts.
This is especially true if you’re still on your family insurance plan.
Also, always practice safe driving techniques. Avoid distractions like cell phones and road rage, and respect posted speed limits.
If budget is a primary concern, avoid purchasing unnecessary coverage levels.
A basic liability policy meeting your state’s minimum requirements always costs less than full coverage insurance.
Also, drive a car with good safety ratings and promising insurance loss ratios. Avoid high-risk vehicles like luxury or sports cars.
Finally, you can also increase your deductibles to decrease your monthly insurance rates.
What You Need to Know About Auto Insurance Companies That Lower Their Rates After Drivers Turn 25
Most 25-year-olds will see a significant drop in their auto insurance rates, regardless of what company they use. But GEICO and USAA usually provide cheap auto insurance quotes for younger drivers.
Don’t worry if you buy auto insurance from companies that don’t lower rates after drivers turn 25 as significantly as you hoped. Instead, shop around for new coverage to secure a cheaper rate.
However, secure your new policy before canceling your old one to avoid a coverage lapse and increased rates.
Now that you’ve compared auto insurance rates from companies that lower rates after drivers turn 25, it’s time to compare quotes from the best companies near you by entering your ZIP code into our free tool below.