When drivers turn 25, they move out of the highest-risk age category, resulting in a substantial decrease in car insurance rates. A 25-year-old with a clean driving record and no traffic tickets typically pays $1,290 more than for a full coverage policy than they did at age 20.
The average annual cost of a full coverage car insurance policy for a 25-year-old is $2,259 a year or $188 per month – $268 more than the insurance cost for a 24-year-old driver.
In Indiana, the yearly cost for the same coverage is $1,808 for 25-year-olds.
Keep reading to learn more about car insurance for 25-year-olds in Indiana.
Cheapest car insurance for 25-year-olds in Indiana
An average 25-year-old driver in Indiana pays $1,808 per year for full coverage car insurance. The chart below shows the average rates for full coverage from major insurance companies in Indiana for male and female drivers at age 25.
| Company | 25-year-old female | 25-year-old male |
|---|---|---|
| Geico | $1,141 | $1,124 |
| Travelers | $1,462 | $1,537 |
| Nationwide | $1,486 | $1,599 |
| Auto-Owners | $1,536 | $1,614 |
| Progressive | $1,776 | $1,794 |
| State Farm | $1,806 | $2,092 |
| Indiana Farmers Insurance | $1,919 | $2,208 |
| Farmers | $2,035 | $2,195 |
| Indiana Farm Bureau | $2,183 | $2,406 |
| Allstate | $2,939 | $2,939 |
| USAA* | $966 | $1,029 |
How much is car insurance for a 25-year-old in Indiana each month?
If you’re a 25-year-old in Indiana, the amount you pay for car insurance will depend on where you live, coverage limits, credit score, driving record and your deductibles.
Below are the average annual and monthly car insurance costs for 25-year-old drivers in Indiana.
| 25-year-old policy | Average annual rates | Average monthly rates |
|---|---|---|
| State Minimum Liability Only | $486 | $41 |
| 50/100/50 Liability Only | $570 | $47 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $1,808 | $151 |
How do rates for 25-year-olds compare to rates for other ages in Indiana?
Car insurance premiums are typically highest during your teenage years and gradually decrease every year until you reach age 65, after which rates begin to increase again. See the chart below to understand how rates vary from your teens to age 70 in Indiana.
| Age | Average annual rates | Average monthly rates |
|---|---|---|
| 16 | $6,010 | $501 |
| 20 | $3,098 | $258 |
| 25 | $1,808 | $151 |
| 40 | $1,515 | $126 |
| 65 | $1,361 | $113 |
| 70 | $1,456 | $121 |
Check out our detailed guide on the average car insurance rates by age
How much is car insurance for a 25-year-old male in Indiana?
Based on CarInsurance.com’s data analysis, a 25-year-old male in Indiana with $500 comprehensive/collision deductibles pays $1,867 for a full coverage insurance policy.
| Coverage level | Average annual rates for male |
|---|---|
| State Minimum Liability Only | $494 |
| 50/100/50 Liability Only | $576 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $1,867 |
The Insurance Institute for Highway Safety reports that in 2020, 25- to 30-year-old males were involved in 1,848 fatal accidents – a rate of around 15.6 per 100,000 male drivers. While this rate remains high compared to males in their 30s and 40s, it is lower than the fatality rates for males in their early 20s.
How much is car insurance for a 25-year-old female in Indiana?
Female drivers with a good driving record and credit score will see a significant decrease in their insurance rates when they turn 25.
The national average cost of a full coverage insurance policy with $500 comprehensive and collision deductibles for a 25-year-old female is $2,224. In Indiana, the annual cost is $1,750, $474 less than the national average for 25-year-old females.
See the table below for car insurance rates for different coverage limits.
| Coverage level | Average annual rates for female |
|---|---|
| State Minimum Liability Only | $479 |
| 50/100/50 Liability Only | $564 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $1,750 |
Explore auto insurance rates for 25-year-olds in your neighboring states
What’s the best car insurance for 25-year-old drivers in Indiana?
At age 25, young adults will be starting to build financial assets so they can afford more than basic liability car insurance, which pays for others’ injuries and damage you cause to their property in an accident. Typically, the state-minimum coverage isn’t enough – medical costs can quickly escalate if significant injuries occur in an accident.
As young adults gain more disposable income, they should consider comprehensive and collision coverage – a must if you’re financing a vehicle. If you have a higher deductible, you can lower your rate, but you’ll be responsible for the deductible if you make a claim.
Ultimately, the best car insurance for 25-year-olds is the policy that meets their individual needs. The Best Insurance Companies survey found that American Family is the best insurance company for young drivers and teens. Review a company’s National Association of Insurance Commissioners’ (NAIC) score, which ranks a company by the number of customer complaints it receives, its J.D. Power auto claims satisfaction score and AM Best data, which measures financial strength.
Car insurance discounts for 25-year-olds in Indiana
Kevin Lynch, an assistant professor of insurance at The American College of Financial Services in Bryn Mawr, Penn., says the three biggest favors young adults can do for themselves in terms of getting the lowest insurance rates are to stay accident-free, maintain a clean driving record and a good credit score.
“They’re the essentials of getting affordable insurance,” he says. “After that, you can look at a variety of other things such as affiliated discounts, bundling insurance policies and perhaps an in-car monitoring device.”
Other car insurance discounts that might be available:
- Good driver/safe driver: Up to 30%
- Multi-policy discounts: Up to 13%
- Lower annual mileage/driving less: Up to 9%
- Usage-based discount programs/telematics: Up to 10%
- Paperless discount/autopay: Up to 4%
- Loyalty discount: Up to 11%
- Anti-theft devices: Up to 2%
Besides discounts, consider the type of car you purchase. A safe and reliable car will be cheaper to insure than a sports or luxury vehicle.
Compare rates on car models like the top teen and young adult-ready cars that cost less than $15,000 with high safety ratings.
Guide: How to lower car insurance costs
Final thoughts on car insurance for 25-year-olds in Indiana
As you gain more experience driving, your auto insurance rates will fall. The even better news is it will continue to get cheaper as you age.
Resources & Methodology
Sources
- Insurance Institute for Highway Safety, Highway Loss Data Institute. “Fatality Facts 2020, Males and Females.” Accessed March 2025.
- National Association of Insurance Commissioners. “NAIC Score” Accessed March 2025.
- J.D. Power. “2022 U.S. Auto Claims Satisfaction Study” Accessed March 2025.
- AM Best. “AM Best Ratings” Accessed March 2025.
Methodology
CarInsurance.com gathered auto insurance rates from Quadrant Information Services for 25-year-old male and female drivers across various coverage levels: state minimum, 50/100/50 liability, and 100/300/100 full coverage with a $500 deductible.
The rates were obtained using a sample profile of a 25-year-old individual driving a Honda Accord LX with no history of traffic violations and a good insurance score. To evaluate the rates, we compared 53,409,632 insurance quotes from 170 regional and national insurance companies, encompassing 34,588 ZIP codes across the United States.
Note: USAA is only available to military community members and their families.
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