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Car insurance for 25-year-olds

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Which car insurance brands do we work with?

We compare dozens of the biggest insurance providers in the country, including:

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How much does car insurance cost for 25-year-olds?

Fortunately once you get into your mid-twenties your premiums are likely to be far less than they were a few years before. In fact, between July and September of 2021 motorists aged 25 paid on average less than half of what most teenage drivers did.

Age of main driver

Average annual premiums

17 to 19

£1,884

20 to 24

£1,195

25 to 29

£801

30 to 39

£619

40 to 49

£476

50 to 64

£311

40 to 49

£281

*Based on fully comprehensive policies with one driver holding a full UK driving licence. MoneySuperMarket data collected between July and September 2021.

What type of car insurance should I get at 25-years-old?

You’ll have the same options as ever when taking out car insurance as a 25-year-old, and those are the main three car insurance policy types:

  • Third-party only

    The minimum legal requirement to drive on UK roads, third-party insurance covers you for damage to another person, their vehicle or their property

  • Third-party, fire and theft

    The next step up, third-party, fire and theft policies add cover for your own car if it’s stolen or damaged by fire or an explosion 

  • Fully comprehensive

    Fully comprehensive policies include all of the above, as well as a range of other protection for you and your vehicle

What are the cheapest cars to insure for 25-year-olds?

Car insurance premiums are also affected by the make and model of car you’re insuring – and insurers base it on factors like the car’s top speed, power and general performance as well as the cost of parts and repairs.

This would explain why the top five cheapest cars to insure are all compact hatchbacks.

Make

Model

Average annual premiums

MERCEDES-BENZ

A180

£620

FORD

FIESTA

£650

VOLKSWAGEN

POLO

£709

MINI

COOPER

£740

VAUXHALL

CORSA

£777

*Based on fully comprehensive policies with one driver holding a full UK driving licence. MoneySuperMarket data collected between July and September 2021.

What car insurance extras do I need?

Car insurance policies can come with a range of extra features to enhance your cover – and you might be more tempted to add them as your overall premiums come down in your mid-twenties. They will cost more to add to your policy – but with fully comprehensive car insurance some of them may be included as standard.

  • Breakdown cover: If you car breaks down while you’re on the road, a breakdown cover policy helps with the cost of roadside rescue and repairs – and can sometimes even include a courtesy car

  • Motor legal protection: Also known as legal expenses cover, a motor legal protection policy helps pay for legal costs you might face if you’re involved in a road accident

  • Personal belongings cover: You can protect personal items you leave in your car with a personal belongings policy, including electronics and clothing 

  • Personal accident coverPersonal accident cover offers financial protection for you or your dependants if you’re seriously or fatally injured in a road accident  

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How can 25-year-olds get cheaper car insurance?

As you’re no longer really what insurers call a ‘young driver’, you can expect your premiums to drop once you hit 25 years of age. However, insurers consider a range of other factors that you can influence when deciding your premiums, such as:

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    Pay more excess:

    Volunteering a higher excess payment tells insurers you’re unlikely to bother with small or frivolous claims, as they wouldn’t be worth the cost – the lower claim risk means cheaper cover

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    Pay annually:

    Paying your car insurance premium up front every year might mean a greater initial spend, but it often works out cheaper overall than spreading the cost over 12 months

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    Drive less:

    The more you drive, the higher your chances are of being involved in a road accident – so lowering your estimated mileage can help bring costs down

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    Try pay-per-mile cover:

    In fact, some policies even offer a pay-per-mile rate – making it easier to pay just for the cover you need

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    Improve your car’s security:

    Parking your car in a locked garage at night and having factory-installed alarms and immobilisers reduce the risk of theft, which can help lower your premiums

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    Build a no-claims discount:

    If you can go for a year or longer without making a claim – by driving safely, and paying for minor expenses yourself – you’ll accrue a discount on future car insurance premiums 

Why compare car insurance quotes for 25-year-olds with MoneySuperMarket?

Your car insurance premiums should drop significantly once you hit 25, but it’s always good to compare quotes to make sure you’re getting the best deal available. Our mission is to make finding cheap car insurance easier – and when you take out cover with MoneySuperMarket you can benefit from:

  • MoneySuperMarket discounts

    Everyone deserves to save money – in fact, almost a quarter of people comparing car insurance quotes with us received a MoneySuperMarket price cut in their results*

  • Renewal reminders

    Our car monitor gives you reminders on your road tax and MOT, as well as showing your MOT history and car valuation – helping you stay up to date, so you never miss a renewal

  • Support from our team

    Our live chat tool is there so our experts can guide you through the car insurance question set, offering tailored support during business hours to help you get the right policy for the right price

*24.43% of customers completing a quote through MoneySuperMarket received a price cut quote in their top 10 results. Based on MoneySuperMarket quotes between May 2021 and May 2022

Sara Newell

Our expert says

"

Car insurance costs are likely to drop at 25, but there are still ways to find cheaper cover. Choosing a sensible car, paying your premiums annually and building up a no-claims discount can all help you save more money on your car insurance policy.

"

- Sara Newell, Motor and Van Insurance Lead

Finding cheap car insurance is quick and easy when you compare quotes with MoneySuperMarket – and it helps you take advantage of the lower premiums you can get when you turn 25. Just tell us a little bit about yourself, your car and the cover you need, and we’ll search the marked for policies that meet your needs.

You’ll be able to compare quotes by the overall annual and monthly cost, the cover you’ll get and the amount you’ll need to pay to make a claim. Once you find the deal you want, just click through to the provider to finalise your purchase.

Statistically, drivers aged 25 and over are less likely to be involved in motor accidents than their younger counterparts. While it’s not cut and dry, the overall risk is lower for insurers – keep in mind they consider a range of other factors to determine this overall risk, but age is a significant one.

The overall trend tends to be that the older you are the less you pay for cover – so drivers aged 18 to 21 are likely to see the highest premiums. 17-year-olds learning to drive will probably pay the highest of all on their own policies, but many will be insured on parents’ or guardians’ policies as named drivers as a way to cut costs.

When you compare car insurance with MoneySuperMarket, you’ll be able to choose how you’d like to pay for cover – you can pay it all in one lump sum for the year, or you can pay in 12 monthly instalments to spread the cost.

This may be an easier way to handle the financial burden, but keep in mind it will cost more overall – insurers will essentially charge interest as you’ll be covered without having paid the full cost of the policy.

You can be insured to drive other cars at any age, licence permitting, but the cost of adding you as a named driver to another policy is likely to be less once you turn 25.

You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.

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You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.