Best Auto Insurance Companies That Lower Their Rates After Drivers Turn 25 (2021)

Are you curious to find out the best auto insurance companies that lower their rates after drivers turn 25? You aren't alone. While there are some auto insurance companies that don't lower their rates when you turn 25, most top companies do. For example, GEICO's rates reduce by 7% when a driver turns 25 as long as they have a clean driving record.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Sep 30, 2021

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Things to Remember

  • Depending on various factors, your auto insurance rates may or may not go down when you turn 25
  • When your rates do drop, where you live will impact how much your costs will reduce
  • Many of the top-rated auto insurance companies will reduce your rates when you turn 25

When you turn 25, you may start to wonder, “Are there auto insurance companies that lower their rates after drivers turn 25?” Auto insurance for under 25-year-olds can be pretty costly, so many look forward to a discount at age 25.

While there are some companies that don’t lower their rates after drivers turn 25, most of the top-rated ones will, depending on a few factors. The experience you get as a teenage driver isn’t enough to guarantee a discount at 25.

Before learning more about auto insurance companies that lower their rates after drivers turn 25, enter your ZIP code in our free tool above to compare rates from insurance companies in your area.

What auto insurance companies lower their rates after drivers turn 25?

Most of the largest auto insurance companies offer a rate reduction when you turn 25. To qualify, you need to make sure you have a clean driving record. If you have accidents, speeding tickets, or other infractions on your record when you turn 25, you may not see any savings.

If you were to look into GEICO, Progressive, USAA, or State Farm, you would see that they each offer a lower rate to drivers at age 25. The real question is, how much will you save?

You can compare Progressive vs. State Farm auto insurance to get an idea of rates, but that will take a lot of time. We have put together a quick chart to show you how much you can save with each of these top-rated companies when you turn 25.

Monthly Rate Comparison for 24 and 25-Year Olds by Provider
Auto Insurance CompanyAverage Monthly Rate for a 24-year-oldAverage Monthly Rate for a 25-year-oldSavings Percent
State Farm$325$22413%
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While your rates with State Farm and Progressive will go down more than the other two companies when you turn 25, USAA and GEICO offer better rates to begin with. Comparing quotes from various companies is the best way to ensure you are getting the most affordable rates.

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Does auto insurance automatically go down at 25?

When you start to approach 25, you may wonder, “How much does auto insurance drop when you turn 25?” and “Does my auto insurance go down automatically at 25?” There isn’t a simple answer to either of these questions.

The amount your rates will drop depends on not only your driving record, but several other factors as well. When determining your rates, auto insurance companies will look at your:

  • Age
  • Location
  • Education
  • Driving Record
  • Credit History
  • Annual Mileage
  • Claims History

Each of these factors will help them determine how risky it is to insure you and how much you will end up paying in monthly premiums.

These drop sin ratings do not usually happen automatically. More often than not, you will want to contact your auto insurance company and see if there are any new discounts you qualify for. Getting a new quote is a simple way to see if there are more savings for your situation.

Now that you know more about auto insurance companies that lower their rates after drivers turn 25, find cheap auto insurance rates by entering your ZIP code into our free tool below.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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