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 $1,540 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 – $202 more than the insurance cost for a 24-year-old driver.
In Tennessee, the yearly cost for the same coverage is $2,014 for 25-year-olds.
Keep reading to learn more about car insurance for 25-year-olds in Tennessee.
Cheapest car insurance for 25-year-olds in Tennessee
An average 25-year-old driver in Tennessee pays $2,014 per year for full coverage car insurance. The chart below shows the average rates for full coverage from major insurance companies in Tennessee for male and female drivers at age 25.
| Company | 25-year-old female | 25-year-old male |
|---|---|---|
| Travelers | $1,599 | $1,678 |
| Farm Bureau Insurance of Tennessee | $1,773 | $1,904 |
| Progressive | $1,838 | $1,886 |
| Nationwide | $1,788 | $1,970 |
| Farmers | $1,842 | $1,971 |
| Geico | $1,896 | $2,066 |
| State Farm | $1,872 | $2,179 |
| Erie Insurance | $2,213 | $2,043 |
| Allstate | $3,271 | $3,398 |
| USAA* | $1,518 | $1,573 |
How much is car insurance for a 25-year-old in Tennessee each month?
If you’re a 25-year-old in Tennessee, 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 Tennessee.
| 25-year-old policy | Average annual rates | Average monthly rates |
|---|---|---|
| State Minimum Liability Only | $508 | $42 |
| 50/100/50 Liability Only | $616 | $51 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,014 | $168 |
How do rates for 25-year-olds compare to rates for other ages in Tennessee?
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 | $7,578 | $631 |
| 20 | $3,554 | $296 |
| 25 | $2,014 | $168 |
| 40 | $1,677 | $140 |
| 65 | $1,548 | $129 |
| 70 | $1,641 | $137 |
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 Tennessee?
The average full coverage car insurance policy for a 25-year-old male with a $500 comprehensive/collision deductible in Tennessee is $2,067, according to CarInsurance.com data.
| Coverage level | Average annual rates for male |
|---|---|
| State Minimum Liability Only | $512 |
| 50/100/50 Liability Only | $618 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,067 |
The Insurance Institute for Highway Safety reports that 25- to 30-year-old males were involved in 1,848 fatal accidents in 2020 – a rate of about 15.6 per 100,000 male drivers. That’s still high compared to the accident rates for males in their 30s and 40s, but it is trending down from the fatality rates for those in their early 20s.
How much is car insurance for a 25-year-old female in Tennessee?
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 Tennessee, the annual cost is $1,961, $263 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 | $504 |
| 50/100/50 Liability Only | $614 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $1,961 |
Explore auto insurance rates for 25-year-olds in your neighboring states
What’s the best car insurance for 25-year-old drivers in Tennessee?
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 Tennessee
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 Tennessee
As you gain more driving experience, your auto insurance rates will decrease. The even better news is that your rates will keep decreasing as you age. It’s crucial to compare quotes from multiple insurers in Tennessee to find the best rate and coverage options tailored to your needs.
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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