What car insurance do I need at 25 years old?
As with all auto insurance policies, you’re legally required to have at least the minimum level of cover in place for your car, no matter how old you are or how long you’ve been driving. The three levels of cover are:
- Third-party: Third-party car insurance covers you for damage you do to a third party, their vehicle or their property – your insurer won’t pay out for any damage done to your own car. While offering the least coverage, this is also usually the most expensive policy available – people aged 25 to 29 paid on average £1,392 for a third-party only policy in June 2019, compared to only £723 for fully comprehensive cover.
- Third-party, fire and theft: Third-party, fire and theft cover adds protection for your own car so you’ll be able to claim for theft or fire damage
- Fully comprehensive: A fully comprehensive policy not only offers extra coverage for your own car, letting you claim for any other kind of damage (depending on the details of your policy), but it’s usually the cheapest available
Does car insurance get cheaper when you turn 25?
Turning 25 generally means you’ll pay less for car insurance, because:
You’ll likely have been driving for a while: If you passed your test at 17, you now have eight years’ driving experience, which is a big plus for insurers.
Average premium for a fully comprehensive car insurance policy*
You’re less likely to be involve in an accident: Statistics show that younger drivers are generally involved in more road accidents – in fact, while under-25s only made up 7% of UK licence holders in 2016, they were involved in almost 1-in-4 fatal accidents.** This is why insurers generally lower the cost of cover when you turn 25, as you’ll be less likely to make a claim.
You might’ve built up a no-claims discount: No-claims discounts are when insurers lower the cost of your policy if you haven’t made a previous claim on your policy – the longer you’ve gone without claiming the better.
*Data collected by MoneySuperMarket between January and June 2019, accurate as of July 2019
**Data collected by The Department of Transport in May 2018, accurate as of July 2019
What else I can do to lower the cost of car insurance for 25-year-olds?
While turning 25 means your premiums will be cheaper, you’ll still be paying more than most drivers older than you – so it’s worth considering further option to lower the cost of cover:
- Pick the right policy: As we mentioned above, fully comprehensive policies are on average £276 cheaper than third-party, fire and theft, and £669 cheaper than third-party only policies – while also offering more coverage
- Pick the right car: Cars in lower insurance groups are cheaper to insure, and they’re ranked in these groups based on their performance, safety, security and repair costs, among other factors
- Pay more excess: Paying a higher voluntary excess proves to insurers that you’ll be less likely to claim, as you’ll only do so when it’s really worth the greater cost to you
- Improve car safety and security: Cars with improved security features such as immobilisers, and vehicles kept in safer locations such as locked garages, are also cheaper to insure, as they reduce the risk of claims for theft or vandalism
- Drive less: If you lower your estimated yearly mileage, your premiums should also go down, as spending less time on the road means you’ll be less likely to claim on your policy
- Sign up for telematics: It’s not just teenagers who benefit from black-box insurance policies – they can also cut the cost of cover for older drivers
- Try pay-per-mile insurance: Pay-per-mile car insurance is when you pay a certain rate for the miles you drive plus a set fee for basic coverage against vandalism or accidental damage. It can work out cheaper than standard cover if you’re a low-mileage driver, which usually means you drive around 7,000 miles a year or under
Compare cheap car insurance quotes for 25-year-olds
Comparing quotes with MoneySuperMarket is the easiest way to find a better deal on cover for your car. Just give us a few details about you and your car and we’ll put together a list of quotes tailored to your exact needs.
You’ll be able to browse the list and compare quotes by their overall monthly and annual cost, as well as the excess you’ll need to pay and the level of cover you’ll get. Once you’ve picked the perfect policy just click through to the provider’s website to finalise your purchase.
As with all insurance policies, it’s best to remember that the cheapest available deal isn’t always the best. Comparing quotes means you get to pick the insurance deal for both price and policy, so you can avoid over-paying and under-insuring yourself.