Once a driver reaches age 25, they are no longer in the riskiest age category and their car insurance rates will begin to reflect that noticeably. When combined with a good driving record and few or no traffic tickets, a 25-year-old can expect to pay about almost same as than they did at age 20 for a full coverage policy.
The average car insurance rate for a 25-year-old driver is about $2,259 per year or $188 per month for a full coverage policy. It’s almost same as the average at age 24.
In North Carolina, 25-year-olds can expect to pay an average annual rate of $1,882 for a full-coverage car insurance policy.
Keep reading to learn more about car insurance for 25-year-olds in North Carolina.
Cheapest car insurance for 25-year-olds in North Carolina
In North Carolina, a 25-year-old driver generally pays $1,882 per year for full coverage car insurance. North Carolina law prohibits insurance companies from using gender as a factor to calculate car insurance premiums. The table below shows the average full coverage rates from major insurance companies in North Carolina for 25-year-old drivers.
| Company | Average annual rates |
|---|---|
| Erie Insurance | $1,108 |
| North Carolina Farm Bureau | $1,300 |
| Geico | $1,529 |
| State Farm | $1,702 |
| Nationwide | $1,748 |
| Penn National Insurance | $1,872 |
| Farmers | $2,028 |
| Progressive | $2,028 |
| Utica National Insurance Group | $2,070 |
| Allstate | $3,450 |
How much is car insurance for a 25-year-old in North Carolina each month?
As a 25-year-old in North Carolina, your car insurance premiums will vary depending on your location, coverage options, credit score, driving record and deductible amount.
The table below highlights the average monthly and annual car insurance premiums for a 25-year-old in North Carolina.
| 25-year-old policy | Average annual rates | Average monthly rates |
|---|---|---|
| State Minimum Liability Only | $510 | $43 |
| 50/100/50 Liability Only | $558 | $47 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $1,882 | $157 |
How do rates for 25-year-olds compare to rates for other ages in North Carolina?
The cost of car insurance will peak in your teens and decrease yearly until age 65 when rates start to increase again. See the chart below to see how rates change at various ages, from your teens to age 70.
| Age | Average annual rates | Average monthly rates |
|---|---|---|
| 16 | $5,374 | $448 |
| 20 | $2,219 | $185 |
| 25 | $1,882 | $157 |
| 40 | $1,741 | $145 |
| 65 | $1,679 | $140 |
| 70 | $1,740 | $145 |
Check out our detailed guide on the average car insurance rates by age
Explore auto insurance rates for 25-year-olds in your neighboring states
What’s the best car insurance for 25-year-old drivers in North Carolina?
At 25, young adults are beginning to build their finances, so they can afford more than liability car insurance. Liability insurance only covers injuries and damage you cause to others in an accident up to the policy’s limits. However, the minimum coverage required by the state is often insufficient because medical expenses can quickly add up if someone is seriously injured in a crash.
As young adults earn more disposable income, they should think about getting comprehensive and collision coverage, especially if they’re financing a vehicle (in which case, full coverage will be required by the lender). Choosing a higher deductible can lower your insurance rate, but remember that you’ll have to pay the deductible if you need to file a claim.
Ultimately, the best car insurance for 25-year-olds is the one that suits their individual needs. According to CarInsurance.com’s Best Insurance Companies survey, American Family is the top choice for young drivers and teens. When evaluating an insurance company, consider its National Association of Insurance Commissioners (NAIC) score, which ranks companies based on the number of customer complaints it receives, its J.D. Power auto claims satisfaction score and AM Best rating, which assesses financial strength.
Car insurance discounts for 25-year-olds in North Carolina
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 North Carolina
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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