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Once you turn 25, car insurance gets more affordable. But it's important to choose the right car to maximize your savings.
Once you turn 25, you reap the benefits of reduced insurance premiums. On average, the cost difference between a six-month premium for drivers aged 16 to 19 and drivers aged 20 to 29 is 164%! Once you turn 25, your six-month premium drops by $136 and will continue to decline until you reach your late 60s.
Let's explore some of the best ways to save on auto insurance after you turn 25, as well as which vehicles are cheapest to insure for drivers within this age bracket.
The best way to find cheap car insurance is to shop around. Getting car insurance quotes does not affect your credit score or your current rate. The only downside is that it's relatively time-consuming — so we've done some of the work for you. We've outlined below some average auto insurance rates for drivers 25 and older from the most popular companies in the US.
Your auto insurance premiums will probably decrease significantly after your 25th birthday. Using The Zebra's in-depth auto insurance rating methodology, our team of licensed insurance agents discovered USAA and GEICO are the cheapest insurance companies for 25-year-old drivers.
|Insurance Provider||6-Month Premium|
Reference our complete guide to cheap car insurance for 25-year-olds.
Drivers in their 30s pay 16% less for car insurance than do drivers in their 20s — about $265 per policy period. USAA provides qualifying customers the cheapest rates during their 30s.
Learn more about car insurance in your 30s.
There is not much of a difference between average premiums for drivers in their 30s vs. drivers in their 40s. The Zebra's data show drivers in their 30s pay 3.76% — or $26 — more per six-month policy than do drivers in their 40s. In other words, turning 40 makes you only slightly less risky a client in the eyes of an auto insurance company. USAA offers the cheapest rates for qualifying drivers aged 40 to 49.
|Insurer||Average 6-Month Premium|
Consult The Zebra's guide to car insurance for drivers in their 40s.
The perfect vehicle is dependent on the driver. Some drivers want something to get them from A to B — while other drivers want more. Either way, you need to cover your car. Let's breakdown all each different vehicle-type by the top insurance companies in the US so you can make the right decision.
Given their towing and hauling power, trucks hover on the higher end of the insurance-price spectrum. If you're looking for the cheapest truck to insure, start your search with the Nissan Frontier or the Chevy Colorado. These pickup trucks will set you back approximately $130 less in insurance costs each year than a typical truck — and their list prices are relatively affordable.
6-Month Insurance Rates for Pickup Trucks
|Truck Make/Model||List Price||Premiums|
For more information on trucks, including premiums by car insurers see our guide here.
SUVs are among the most popular vehicle types. They're not as bulky or as costly to insure as pickup trucks, but they maintain more versatility than sedans or coupes. Moreover, they tend to cost much less than a pickup truck to insure or buy. On average, an SUV costs $1,579 per year to insure. The Ford Escape is the cheapest SUV to insure.
6-Month Insurance Rates for an SUV
|SUV Make/Model||List Price||Premium|
|Jeep Grand Cherokee||$30,395||$696|
For more information on SUVs, see here.
If you're considering upgrading to a family-friendly vehicle, you're probably shopping for a minivan. Despite their stodgy reputation, minivans come in handy when it comes to transporting kids. Plus, minivans are fairly inexpensive to insure. On average, a minivan will set you back $1,484 to insure each year, or about $742 for a standard six-month policy. Below are some popular vans and their corresponding insurance premiums.
6-Month Insurance Rates for Minivans
|Minivan Make/Model||List Price||Premiums|
|Chrysler Town and Country||$29,995||$681|
|Dodge Grand Caravan||$26,250||$725|
For more information regarding minivans, including insurance company rates, see here.
Sedans are among the lowest-priced vehicle types, but our data show insurance rates for sedans can be quite high. On average, a sedan is slightly more expensive than is a minivan or SUV to insure. Of the makes and models analyzed, the Chevy Cruze was the cheapest to insure, with an annual premium of $1,372.
6-Month Insurance Rates for Popular Sedans
|Sedan Make/Model||List Price||Premiums|
Now that we've covered how your age impacts your premium, which vehicles are the cheapest to buy and insure, let's breakdown some quick ways to lower your premium.
Accidents happen — but that doesn't mean you need to file a claim. Depending on the value of damage, you can pay more in increased insurance premiums than the out of pocket damage. For example, you live in Texas and damaged your vehicle while backing out of your driveway — no other vehicles involved. The out of pocket expenses are $1,400.
In 2018 in Texas, the average collision claim increased rates $801 per year. Because most insurance companies will increase your rates for three years after an accident (at minimum), you can expect that $801 to equate to $2,403 total. If you have a $500 deductible, the total expense of the accident is $2,903. If you had paid for the damage yourself, you could have saved $1,503.
If you're unsure on whether or not to file a claim or just want more information, see here.
If your vehicle is 10 years or older or worth less than $4,000, consider dropping your collision coverage. This coverage is designed to protect the physical integrity of your vehicle, but if it isn't worth much you could be paying for coverage you do not need. You can determine the value of your vehicle by using Kelley Blue Book. If it's determined you do not need your collision coverage, considering keeping your uninsured/underinsured motorist coverage. This will cover any property damage done to your vehicle after an accident with an uninsured driver — for example a hit and run. Furthermore, you should also keep your comprehensive coverage to prevent weather, animal, and theft-related damage to your vehicle.
If you own a home or are renting, you can save money on your auto insurance by bundling your policies.
Many discounts will be automatically added to your policy based on the VIN of your vehicle or your driving history. However, there are some you need to look or apply for in order to qualify. Below are some highlights.
Telematics, or usage-based insurance providers, use the way you drive in order to determine your premium. Here, your driving habits can earn you a discount on your premium. By avoiding harsh braking, high acceleration speeds, and late-night drives, you can save on your auto insurance policy. Below are the advertised savings by insurance company.
The absolute best thing you can do is shop around. Although your rate does decrease after you turn 25, only one company will offer you the lowest rate. Enter your information below to see comparison quotes from local and national insurance companies based on your driving record, vehicle, and age.