If you passed your test at 17, you could have eight years’ driving experience by the time you turn 25, which is why you start to see your car insurance costs begin to fall.
This means, in a perfect world, you might also have built up a few years’ worth of No Claims Discount (NCD) by the time you reach a quarter century. This should earn you lower premiums than younger drivers on the road, sometimes by up to 70%.
It’s also an age where you start making some big decisions about the future. You might want to save for a wedding, for instance, or even a deposit on a house, so it’s important to make sure you’re making your money go as far as possible. The best way to do this is to make sure you get the fairest possible price on car insurance for 25 year olds.
Why does car insurance get cheaper at 25?
The fact remains that teenagers are burdened with the most expensive insurance, whereas drivers aged 40 and over get the cheapest cover – but why is that?
Insurance premiums are based on how much of a risk you pose. Insurers consider how likely you are to be involved in an accident, or have your vehicle stolen or damaged, and then make a claim. And the higher that risk, the more expensive your car insurance premium will be.
Statistics show that older drivers are involved in fewer accidents than those in their late teens or early twenties, with 19% of all claims made by 17 to 24 year olds. Furthermore, drivers in their mid-twenties are statistically less likely to be involved in accidents than teenagers, which is why you may start to see you premiums drop in price around that time.
The average price for a fully comprehensive policy for a 25 to 29-year-old driver is £545, which is significantly cheaper than the average fully comprehensive premium cost for 17 to 19 year olds, which stands at £1306. That’s according to MoneySuperMarket data for December 2017.
Statistics show that older drivers are involved in fewer accidents than those in their late teens or early twenties
Your insurers will use statistics relating to your age, gender, vehicle, and area in which you live and drive to estimate just how much risk you pose and charge you accordingly. So the lower a risk you pose, the cheaper your insurance should be.
However, this is not always the case so it pays to shop around.
Another easy way of saving a few pounds on your annual premium is by considering black box or telematics insurance, which takes your driving data and transmits it wirelessly to your insurer. If you are a decent driver then you could save up to £202 per year off your car insurance premiums.
Compare car insurance for 25 year olds
With insurance and prices for young people remaining high, it’s important to make sure you get the best possible price for the cover you need.
Our car insurance price comparison service is quick, free to use and covers a huge range of insurance providers, which means you don’t need to go anywhere else.
Answer a few simple questions about yourself and your vehicle and get a quote within minutes, saving you the hassle of reeling off your details to every individual provider.