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 almost same as 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 – almost same as the insurance cost for a 24-year-old driver.
In North Carolina, the yearly cost for the same coverage is $1,882 for 25-year-olds.
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. California 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 California 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?
How much you pay for car insurance as a 25-year-old in North Carolina will vary depending on where you live, coverage levels, credit score, driving record and the deductible you select.
The table below shows how much car insurance costs for a 25-year-old per month and per year, on average, 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 |
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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?
By the age of 25, many young adults begin to build their finances and can afford more than liability car insurance, which covers injuries and damage inflicted on others in an accident up to your policy’s limits. However, state-mandated minimum coverage often falls short, particularly as medical costs can add up significantly in case of a severe accident.
As young adults start to have more disposable income, it’s wise to consider adding comprehensive and collision coverage, especially if they’re financing a car. Opting for a higher deductible can reduce your insurance premium, but remember, you’ll need to cover the deductible if you file a claim.
Ultimately, the best car insurance for a 25-year-old driver is the one that fits their specific needs. CarInsurance.com’s Best Insurance Companies survey found that the American Family is the best insurance company for young drivers and teens.
To make an informed choice, consider a company’s National Association of Insurance Commissioners (NAIC) score, which ranks an insurer based on the number of customer complaints it receives, its J.D. Power auto claims satisfaction rating and AM Best data, which evaluates financial stability.
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., stresses that the three biggest favors any young adult can do for themselves in terms of getting the lowest insurance rates are to stay accident-free, have a clean driving record and maintain 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%
Beyond discounts, be mindful of the type of car you buy. A practical, safe and reliable car will have a much lower insurance rate 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 driving experience, you’ll see a drop in your auto insurance rates. The even better news is that this decrease continues as you get older. Each state has its own insurance regulations and minimum coverage requirements, so ensure you’re meeting legal obligations while also getting adequate protection.
Resources & Methodology
Sources
- Insurance Institute for Highway Safety, Highway Loss Data Institute. “Fatality Facts 2020, Males and Females.” Accessed October 2024.
- National Association of Insurance Commissioners. “NAIC Score” Accessed October 2024.
- J.D. Power. “2022 U.S. Auto Claims Satisfaction Study” Accessed October 2024.
- AM Best. “AM Best Ratings” Accessed October 2024.
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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Guide to car insurance (with rates) in cities of North Carolina