How Much Is Car Insurance For A 27-Year-Old? 2025 Rates

Hello and welcome to your comprehensive guide to car insurance for 27 year-old drivers. As a former licensed property and casualty insurance agent, I have assisted countless individuals in navigating the sometimes bewildering complexities of auto insurance, and I’m here to help you, too.

In this article, we’ll examine the average costs of auto insurance for a 27 year-old, look at the factors that influence these costs and provide insights on how you can possibly lower them.

The figures quoted below are average figures. Please note that actual costs may vary based on factors such as gender, credit score, location, driving history, and the insurance provider.

The big difference between minimum and full coverage car insurance rates serves to highlight the importance of understanding exactly what you’re getting for your money. Minimum coverage might seem appealing due to lower cost, but it could leave you vulnerable in some situations.

On the other hand, full coverage provides comprehensive protection, which includes collision as well as comprehensive coverage, protecting you against vandalism, theft, and damage from natural disasters.

The good news is that there are several ways to lower your costs. For instance, maintaining a good driving record and leveraging the discounts offered by auto insurance providers could lower your premiums. Another plus is that shopping around and comparing rates from various companies can help you track down the best rates.

Average Cost Of Car Insurance For A 27-Year-Old – By Gender

Understanding the cost of car insurance is a crucial step for any driver, especially for 27-year-olds who are those often faced with higher premiums. Various factors influence these costs, and one such key determinant is gender.

On average, car insurance rates tend to be different for males and females due to perceived risk factors associated with each gender. Let’s look at the specific costs associated with car insurance for 27-year-old male and female drivers.

Many vehicle insurance companies take your gender into consideration when setting your rates. Studies have shown that beginning at age 20, men pay higher average car insurance premiums.

By the age of 30, women and men are paying rates that are almost equal, but the cost gap never truly closes all the way. Across all age groups, men pay more on average than women.

In this case, there’s data to back up the common practice of charging young men more for auto insurance coverage. A study from the Insurance Institute for Highway Safety, or IIHS, found that male drivers of all ages are 63% more probable than female drivers to be involved in a fatal vehicle crash.

Younger men are yet even more prone to have fatal accidents, with rates for male drivers ages 16-19 almost twice that of female drivers of the same age group.

Fatal crash rate per 100 million miles driven:

Average Cost Of Car Insurance For A 27-Year-Old – By State

Car insurance rates may vary significantly. Factors like the state you live in may affect your premiums, for example.

Based on thorough research from multiple sources, I’ve put together a comprehensive comparison chart that shows the average auto insurance rates for a 27 year-old by state.

These figures are averages. Actual costs may depend on various factors.

With the exception of Hawaii and Massachusetts, age in all states is one of the largest factors that affects how much you pay for car insurance as a 27 year-old driver. Another key factor is the type of insurance coverage you select.

If you choose the minimum coverage required by the state where you live, the average cost for a 27-year-old for car insurance is $671 annually. If you decide on a full coverage policy, the average cost for a 27 year-old is approximately $2,448 per year.

Average Cost Of Car Insurance For A 27-Year-Old – By Credit Score

Although exact rates according to credit scores aren’t usually published by insurance providers, it’s widely understood that credit scores do affect car insurance premiums. A lower credit score may result in higher insurance costs, and a higher credit score may mean lower rates. According to Forbes, auto insurance premiums may increase by 76% on average, dependent on credit scores.

The fact is that generally speaking, the better your credit rating, the better your car insurance rates. This works the same way for poor credit: The lower your credit rating, the higher your auto insurance rate will be.

For example, a 27 year old driver with an excellent credit score can expect to pay an annual premium of about $1,400-$1,900 for full coverage. A 27 year old driver with poor credit, though, will pay in the neighborhood of $3,000 to $4,000 annually. Big difference!

• Drivers can reduce their insurance rate by an average of 17% (or $384) by improving their credit score by only one tier.
• Across the country, raising your credit score from Very Poor to Exceptional would yield a 114% savings. That’s an average of $1,537 saved annually.
• Laws about the use of credit scores and histories in insurance ratings are evolving, which might mean savings for many drivers.
• Depending on the laws about insurance in your state, drivers with Very Poor credit scores can see rate increases between 56% and 207%.

Cheapest Car Insurance Companies For A 27-Year-Old

When it comes to finding the most affordable car insurance for 27-year-olds, several companies lead the pack with competitive rates and comprehensive coverage options. As a young driver, it’s vitally important to balance cost-effectiveness with quality coverage to ensure you’re protected on the road.

However, remember that your individual rate will depend on various factors, including your driving record, credit score, and the type of vehicle you drive.

Car insurance rates are something that may vary significantly between providers. For example,a 27 year old driver might pay between $110-$160 a month for full coverage, from Geico, but get a quote from Allstate for $160-$250 a month.

This is why you always want to compare several companies before purchasing a car insurance policy.

Here are some tried and true ways you can save money on your car insurance:

• Membership savings: Affinity discounts might be offered to members, employees, or customers of an organization. This may include auto clubs such as AAA, employers, credit unions,  the military, or alumni associations.
• Multi-car: If you have multiple vehicles insured with the same company, your family may qualify for a multi-car discount. You may also be eligible if you live with a spouse or domestic partner and your vehicles are all on the same insurance policy.
• Tracking devices:More and more insurers are offering discounts to drivers who will agree to use a telematics device or a mobile app that monitors their driving habits. Practicing safe driving habits or limiting miles on the road during high-risk hours can help you get a lower car insurance rate.
• Bundling policies: The majority of insurers offer a significant discount if you bundle your insurance policies. This means that your car is insured with the same company as your renters or homeowners insurance, for instance.
• Safety features: This discount might be available to young adult drivers who have the most common safety features in their vehicles,like anti-lock brakes, anti-theft devices, or airbags.

It’s important to note that all car insurance companies don’t offer these discounts. You might need to shop around to locate an insurer that offers discounts you’re eligible for.

Average Cost Of Car Insurance For A 27-Year-Old – By Vehicle

When you’re 27 years old, you’re not considered a teen or very young driver anymore, but your auto insurance rates are still going to be higher than for older drivers with more experience.

The type of vehicle you drive can play a big part in the cost of your insurance. From repair costs to safety ratings, multiple factors are taken into account when car insurers calculate your rates.

It can be helpful, as you decide which vehicle to drive or purchase,.to have a good understanding of how your choice of vehicle affects your insurance rates

A 27 year old will pay an average of $1,400 a year for full coverage of a sedan. This same driver with a  luxury car rather than a sedan will be looking at a markedly higher premium, with annual full coverage of between $2,300 and $3,500.

Average Cost Of Car Insurance – By Age

As shown in the table below, younger drivers typically pay the highest rates for auto insurance because of their lack of driving experience along with a high risk profile.

As drivers age and acquire more experience, their insurance rates generally become lower, reaching lowest rates in middle age. But, rates start to go up again as drivers reach senior age, which is a reflection of the increased risk associated with drivers in this age bracket.

A 27 year old driver can probably plan on paying around $1,600 a year for full coverage. A 50 year old driver, though, will pay about $1,300 a year. As you age and get more experience driving, insurance companies view you as a lower risk than someone younger.

How To Save Money On Your Car Insurance As A 27-Year-Old

As a 27-year-old, you’ll find that car insurance can still be expensive. This is probably due to the perception of increased risk often associated with younger aged drivers. But, there are strategies you can use to decrease your insurance rates and save yourself some money.

Here are 5 effective ways to do this:

Maintain A Clean Driving Record

The most effective way to lower your auto insurance premiums is by maintaining a clean driving record. This involves not receiving traffic citations, avoiding accidents, and not drinking or using drugs while driving. Insurance providers will almost always offer discounts to drivers who haven’t filed claims, as they are seen as lower risk.

Take Advantage Of Multi-Car Discounts

If you have more than one vehicle, or you live with someone who does, you may be able to take advantage of multi-car discounts. A lot of auto insurance carriers offer discounts to policyholders who insure multiple vehicles in the same policy.

Take A Defensive Driving Course

You can accomplish two things by enrolling in a defensive driving course. Besides improving your driving skills, you can also lower your car insurance premiums. Many  insurance companies give discounts to drivers who have completed these defensive driving courses because they are considered less likely to have accidents.

Shop Around For The Best Rates

It’s always wise to shop around and compare premiums from various car insurance companies. Each company has its own formula used to calculate rates, which means that prices may vary widely from one insurer to the next.

Getting quotes from multiple companies ensures that you’re getting the best deal available.

Regularly Review Your Coverage

As your life changes, so should your auto insurance coverage. Review your policy at least once a year or anytime you experience a major life change, like getting a new job or moving to a different city. Doing this will ensure you aren’t paying for coverage you don’t need anymore.

You can reduce your car insurance premiums, leaving more money in your pocket, by implementing these strategies. Keep in mind that the key to saving money on vehicle insurance is being proactive and taking the necessary steps to show insurance providers that you’re a low-risk driver.