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The best car insurance companies for first time drivers over 25 years old are Erie Insurance, American Family Insurance and State Farm. When shopping for car insurance, first time drivers over 25 should look for the highest quality coverage at the lowest price, but they should also expect to pay more for coverage than other drivers their age. Although car insurance costs the most for new teen drivers, lacking experience at any age means that you’re considered high-risk and will pay a higher premium.
Best Car Insurance Companies for First Time Drivers Over 25
- Erie Insurance
- American Family Insurance
- State Farm
- Geico
- Progressive
- Allstate
- Nationwide
- Liberty Mutual
- USAA
While most of these companies operate nationwide, Erie Insurance and American Family Insurance only operate in 12 and 17 states, respectively. Additionally, USAA is only available to military servicemembers and their families.
No matter which insurance company you choose, time is the best tool for new drivers over 25 who want to save money on their car insurance. Costs will usually begin to lower after three years of good driving, and the biggest drop in your premium will come after nine years of driving. Aside from your driving record, age is also going to help long-term costs. Insurance rates gradually decrease as drivers get older, until they reach senior status.
People also ask
When does car insurance go down?
The cost of car insurance typically goes down the most between the ages of 18 and 19, when rates drop by about 25% on average. Car insurance premiums generally continue to go down each year until age 25, when rates begin to level off for the next few decades. When drivers turn 25 years old, they can expect a discount of about 14%.
When Car Insurance Rates Go Down the Most
| ... | Average Rate | Change from Previous Age |
How much is car insurance for a 25-year-old?
Car insurance for a 25-year-old costs an average of $815 per year for minimum coverage. Twenty-five-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
The exact cost of car insurance for a 25-year-old depends on a few factors, including their driving record, gender, location, vehicle, and car insurance company. Some of the best insurance companies for 25-year-old drivers are...
read full answerDoes car insurance go down at 25?
Yes, car insurance tipically goes down at age 25 for experienced drivers with good driving records. Drivers can usually expect to pay 12% to 20% less for car insurance coverage starting at age 25, since 25-year-olds are no longer considered as high-risk as younger drivers.
How Car Insurance Rates Change by Age
| Age | Average Rate | Decrease From Prior Year |
| 16 | $2,845 | N/A |
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