Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager Chris Harrigan

UPDATED: Mar 14, 2022

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Key Takeaways

  • First-time drivers over the age of 25 will likely pay higher car insurance premiums until they have more experience on the road
  • Additional coverage like roadside assistance and new car replacement options are available for first-time drivers to purchase through their insurance company
  • Many first-time drivers can get student discounts or reduced premiums for bundling services

Insurance for first-time drivers is notoriously expensive, but what do insurance premiums look like for first-time drivers over 25? It can be challenging to know which price range is affordable for first-time drivers. However, many companies offer cheap insurance coverage for drivers who begin driving after 25.

In addition to finding the best estimates from a broad spectrum of car insurance companies, you can also purchase from a company that offers car insurance discounts for bundling other services.

Most of the time, insurance premiums for new drivers depend on age or the amount of time a person has spent driving. However, those who become drivers at or after the age of 25 can find themselves paying high monthly premiums for auto insurance. Overall, car insurance rates depend on a driver’s history and age, but many other personal factors can raise or lower premiums.

Insurance Premiums for All First-Time Drivers Can Be Expensive

While car insurance premiums can be expensive for first-time drivers, you may not have to settle for an expensive or unaffordable policy.

Typically, when young drivers turn 25, their car insurance premiums decrease. However, first-time drivers who are older and have less experience behind the wheel will not see their car insurance premiums dip for a period after they turn 25. Until a new driver has more time on the road, they may experience higher car insurance costs.

Choosing less coverage is one way to assuage insurance premium costs. However, less coverage may mean more liability and more financial responsibility in the case of a car accident or traffic incident. First-time drivers over 25 who live in no-fault states may not have to worry about their insurance premiums rising from an auto accident very much. Instead, they will have to be concerned with personal injury protection and liability that exceeds their deductible.

First-time drivers over 25 who live in tort or at-fault states may find themselves in a very sticky position if they do not have sufficient car insurance coverage for an auto accident.

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Cheapest Car Insurance for New Drivers Over 25

First-time drivers over 25 years old may suffer from higher car insurance premiums. By choosing a car insurance company that offers low-cost coverage, drivers can save money. Additionally, if you are a first-time driver over 25 experiencing high premiums, you may wish to choose less insurance coverage to keep costs low. While this option may put you at risk for more liability and responsibility for larger medical or personal injury bills, it can help you save extra money per month if you are a safe driver.

As you get more experience driving, these high insurance premiums will begin to decrease, and you will be able to add more coverage to your policy without taking on significantly higher costs.

The companies below have some of the best car insurance for new drivers over 25.

USAA

Of all the car insurance companies on the market, USAA car insurance is one of the least expensive coverage options. While USAA offers competitive pricing and coverage options, these services are only available for military members and direct dependents. If you come from a military family, you may benefit from the cheaper rates and higher coverage that USAA offers. First-drivers may experience insurance premiums as little as $180 to $200 monthly. This price beats many other car insurance companies that charge more than $300 per month.

Additionally, USAA has a meticulous roadside assistance coverage option for as little as $20 annually that includes car towing, tire changes, fuel delivery, and winching services for getting your car out of mud, sand, or snow.

GEICO

Of all car insurance companies on the market, GEICO auto insurance has some of the best insurance for first-time drivers in terms of price. As one of the cheapest car insurance companies available, GEICO can be an easy choice for new drivers who desire a lower price tag on their coverage. GEICO has an average monthly cost of around $170 for first-time drivers to get coverage. With this price tag, you can rest assured that you will not have to empty your bank account to keep your car on the road.

Additionally, GEICO offers discounts for bundling services and insurance coverage, which can drop monthly premiums.

Progressive

Progressive car insurance offers inexpensive monthly costs to cover a first-time driver, regardless of age. Getting good coverage for a young driver with Progressive can cost around $230 monthly. This average cost is relatively low and can offer the basics that young drivers will need. These basics include liability coverage and other necessities that can help prevent trouble on the road and payout for medical expenses from an auto accident.

Progressive also offers GAP insurance and roadside assistance. GAP insurance will cover a portion of a totaled or stolen car’s value to help pay off the loan or lease agreement on your vehicle. GAP insurance can save you a lot of headache and stress after a car accident.

Roadside assistance coverage can help when young drivers need a hand with tire changes, fuel delivery, or lockout services. The wait time for services is usually around 60 minutes, but the help is invaluable and can have them back on the road in no time.

Nationwide

For around $180 per month, young drivers can be insured with Nationwide and receive liability coverage alongside other insurance options. Nationwide offers collision and comprehensive coverage for a higher monthly premium. Many first-time drivers can benefit from these additional protections, but they may increase monthly premiums to over $300.

In addition, Nationwide offers accident forgiveness coverage, which can prevent premiums from rising after getting into an auto accident. These additional coverage options can be expensive, but Nationwide offers many discounts including those for safe drivers and students.

Allstate

While Allstate charges more per month for new drivers, they also have more coverage and incentives. With plenty of additional coverage add-ons, Allstate can be an ideal choice for first-time drivers.

For around $400 per month, a first-time driver can rest assured that they have coverage for liability, personal injury, and medical expenses after their deductible. Additionally, Allstate has plenty of optional coverage like accident forgiveness and new car replacement for low monthly rates.

State Farm

State Farm is one of the best car insurance companies for first-time drivers. With coverage for only $210 per month, you can have coverage without worrying too much about your wallet. State Farm also has plenty of additional coverage options to their liability and medical coverage, alongside ideal customer service.

Insurance Can Be Costly, But First-Time Drivers Can Save

As a first-time driver, you may have much higher premiums than expected, even if you are over 25. However, some car insurance companies have less expensive rates, available discounts for eligible drivers, and packages that include less coverage. These avenues can save you money without losing vital coverage for you and your car.

Usually, first-time drivers under 18 will  pay up to $3,500 per year in car insurance coverage. First-time driver insurance costs are high no matter the age of the driver, but they decrease as you gain more experience. As a young driver, you may pay a lot of money for insurance premiums over the first several years you drive, even if you are over 25.