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Car insurance for 25-year-olds

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1Accurate as of July 2023.

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 January and June 2023 motorists aged 25 paid on average more than £300 less for their car insurance than drivers aged 20-24.

Age of main driver

Average annual premiums*

20 to 24


25 to 29


30 to 39


40 to 49


50 to 64


65 +


*Based on annual price of fully comprehensive car insurance policies, with one driver holding a full UK driving licence. Data collected between January 2023 and June 2023

Why is car insurance cheaper when you turn 25?

Drivers aged 25 and over are less likely to be involved in motor accidents than younger drivers with little driving experience. While it’s not cut and dry, the overall risk is lower for insurers – when compared with those who have just passed their driving test.

Although insurers consider a range of other factors to determine this overall risk, age is a significant one.

The overall trend is that older drivers pay less for cover – so drivers aged 18 to 21 who may be out on the roads in their first car are seen as a higher risk and are likely to see the most expensive premiums. However, despite this, there are ways to cut costs, such as by being insured on a parent’s policy as a named driver.

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

You’ll have three options when taking out car insurance as a 25-year-old, which are the same no matter how old you are. These are the following main 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.

Vehicle Model

Average Premium*

















*Based on annual price of fully comprehensive car insurance policies, with one driver aged 25 holding a full UK driving licence. Data collected between January 2023 and June 2023

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  

parked car

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

As you’re no longer what insurers call a ‘young driver’, your premiums will usually drop once you hit 25. However, insurers consider a range of other factors when calculating your premiums including your profession and the type of car you have. Luckily, there are a range of ways you can cut costs, such as:

  • Tick

    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

  • Tick

    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

  • Tick

    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

  • Tick

    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

  • Tick

    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

  • Tick

    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 no-claims bonus on future car insurance premiums 

Rebecca Goodman

Our expert says


While technically 25 isn’t old, insurers don’t class this age as a young driver anymore, which is good news as it means your car insurance premiums should go down. However, you’ll still be seen as a higher risk than older drivers and therefore it’s well worth looking at ways to cut your cover. There are lots of tips and tricks to get your insurance bills down, from shopping around and upping your excess to paying in one go and cutting out any extras you won’t need.

- Rebecca Goodman, Financial journalist

Why compare car insurance quotes with MoneySuperMarket?

Our mission is to make finding cheap car insurance easier – and when you take out cover with MoneySuperMarket you can benefit from:

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*51% of consumers could save up to £451.09. Consumer Intelligence, May 2023. UK Only.

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.

Black box car insurance can make your car insurance cheaper if you are a careful driver. However, if you have some bad driving habits having a black box installed in your car can also make car insurance more expensive.

Black box car insurance has a number pros and cons to consider before you jump into buying a policy. Find out more in our guide 'How does black box car insurance work?'

It can make your insurance cheaper by adding an older, more experienced driver to your insurance policy. This is because insurance providers see it as a reduced risk that you will be involved in an accident and try to claim on your car insurance policy.

You can find out more about the technicalities of adding other drivers to your policy in our named driver car insurance guide.

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