Once a driver turns 25, they move out of the highest-risk age category, resulting in a significant reduction in their car insurance rates. With a good driving record, a 25-year-old pays $1,335 more than for a full coverage policy compared to what they paid at age 20.
A 25-year-old driver typically pays an average of $2,259 annually or $188 monthly for full coverage car insurance across the nation, which is $223 more than the cost for a 24-year-old.
In Texas, the average annual rate for a full-coverage policy for 25-year-olds is $2,352.
Keep reading to learn more about car insurance for 25-year-olds in Texas
Cheapest car insurance for 25-year-olds in Texas
An average 25-year-old driver in Texas pays $2,352 per year for full coverage car insurance. The chart below shows the average rates for full coverage from major insurance companies in Texas for male and female drivers at age 25.
| Company | 25-year-old female | 25-year-old male |
|---|---|---|
| Texas Farm Bureau | $1,463 | $1,684 |
| Redpoint Insurance | $1,681 | $1,681 |
| Geico | $1,820 | $1,826 |
| Nationwide | $1,772 | $1,903 |
| State Farm | $2,064 | $2,494 |
| Auto Club Enterprises (AAA) | $2,372 | $2,610 |
| Allstate | $3,477 | $3,477 |
| Progressive | $3,618 | $3,628 |
| Farmers | $4,795 | $4,977 |
| USAA* | $2,157 | $2,310 |
How much is car insurance for a 25-year-old in Texas each month?
If you’re a 25-year-old in Texas, 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 Texas.
| 25-year-old policy | Average annual rates | Average monthly rates |
|---|---|---|
| State Minimum Liability Only | $653 | $54 |
| 50/100/50 Liability Only | $856 | $71 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,352 | $196 |
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How do rates for 25-year-olds compare to rates for other ages in Texas?
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 Texas.
| Age | Average annual rates | Average monthly rates |
|---|---|---|
| 16 | $5,583 | $465 |
| 20 | $3,688 | $307 |
| 25 | $2,352 | $196 |
| 40 | $2,043 | $170 |
| 65 | $1,799 | $150 |
| 70 | $1,897 | $158 |
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 Texas?
According to CarInsurance.com’s data, the average full coverage insurance policy for a 25-year-old male in Texas with $500 comprehensive and collision deductibles costs $2,408.
| Coverage level | Average annual rates for male |
|---|---|
| State Minimum Liability Only | $647 |
| 50/100/50 Liability Only | $852 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,408 |
According to the Insurance Institute for Highway Safety, males aged 25 to 30 were involved in 1,848 fatal accidents in 2020 – a rate of 15.6 per 100,000 male drivers. This rate is still relatively high compared to the accident rates for males in their 30s and 40s, but it is a decline from the fatality rates seen in a man’s early 20s.
How much is car insurance for a 25-year-old female in Texas?
With a good driving record and credit score, female drivers will notice their insurance rates have dropped substantially at age 25.
The average national cost of a full coverage insurance policy for a 25-year-old female with a $500 comprehensive/collision deductible is $2,224. In Texas, the average annual cost for a full coverage policy is $2,297, $73 more than the national rate for 25-year-old females.
See other rates in the table below.
| Coverage level | Average annual rates for female |
|---|---|
| State Minimum Liability Only | $658 |
| 50/100/50 Liability Only | $860 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,297 |
Average car insurance rates by state for a 25-year-old
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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 Texas
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 Texas
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 October 2024.
- National Association of Insurance Commissioners. “NAIC Score” Accessed October 2024.
- 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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Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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John McCormick
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John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
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Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.
Guide to car insurance (with rates) in cities of Texas