At What Age Do Car Insurance Rates Go Down?

Key Points:

• For younger drivers who maintain a clean record, insurance rates typically start to fall at age 25. 
• Older drivers between the ages of 50 and 75 often pay the lowest auto insurance premiums.
• Most insurers offer discounts to help offset the high premium rates for teen drivers.

Learning to drive is a coming-of-age milestone for many teens, and paying for a new driver will almost always raise your rates. But at what age will your car insurance go down?

In most states, age is the biggest factor in determining your car insurance rates. Keep reading to learn when auto insurance rates typically fall and what you can do to lower them, outside of having another birthday.

When it’s time to shop for an auto insurance policy for your family, check out our review of the best car insurance companies. And remember that no matter your age, you should always compare auto insurance quotes from several providers so you can find the best coverage and price for you. Use our tool above to get free, personalized car insurance quotes.

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At What Age Does The Cost Of Your Car Insurance Drop?

The cost of car insurance tends to fall around the age of 25, according to the Insurance Information Institute. This is because, as young drivers grow older, gain experience, and maintain a good driving record, they pose less of a risk when it comes to getting into accidents.

Do Insurance Rates Drop At 21?

While it’s typical to see auto insurance rates decrease during your early twenties, turning 21 doesn’t guarantee a significant drop in insurance cost. Yes, you’ve most likely been a driver for five years, but you’re still a relatively young driver. Insurers care about how experienced you are, so you’ll probably see a more noticeable drop around your 25th birthday.

Ultimately, the more years on the road you have, the lower your average rates will likely be.

Does Car Insurance Decrease When You Turn 25?

Yes, auto insurance rates can decrease for 25-year-old drivers. However, each person’s individual driving history is a deciding factor. Speak with your agent to understand your premium and learn your options for insurance discounts.

Will Your Car Insurance Go Down When You Turn 30?

Maybe your rate went down in your mid-20s, but now you’re approaching another milestone. Will you see your car insurance rates go down again in your 30s?

Many auto insurance companies decrease rates after you turn 30 because you’ve gained many years of driving experience. However, like turning 25, turning 30 doesn’t automatically qualify you for a discount. Your insurance provider will look at the number of years you’ve been driving and your driving record in recent years. This will help determine any changes in your premium.

As you gain experience and continuously drive without car accidents, DUIs, or tickets, you’re more likely to see a decrease in your auto insurance rates.

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Why Is Car Insurance For Your Teen So Expensive?

When you add a teen driver to your insurance coverage, you can expect to pay a higher premium. Car insurance rates are determined by the amount of risk a driver poses to an insurance company. This risk is determined by average driver statistics, and in some states, credit history. Insurance companies want to protect themselves, so they charge a higher rate for drivers who are more likely to get into an accident, file a claim, or get a moving violation. 

According to the Centers for Disease Control and Prevention (CDC), a person’s crash risk is the highest during their first year of driving. 16- to 19-year olds are nearly three times more likely to be in a fatal crash than drivers aged 20 or older.

Crashes with teenage drivers in America are often the result of the following:

• Inexperience with driving
• Distracted driving
• Driving with other teenage passengers
• Impaired, reckless, or drowsy driving
• Driving at night

Despite the fact that teenagers pay more than adults for high-risk car insurance, you can still shop around to find rates within your budget. 

Discounts For Teenage Drivers

To save money on car insurance, many families consider enrolling teens in safe driving programs, drivers education, or defensive driving courses. Most insurance companies offer discounts to teens who complete these programs successfully and show safe driving habits.

Some providers offer a good student discount to reward teenagers for maintaining good grades while they learn to drive. Others have a discount for college students that don’t take their vehicles to school with them.

And if you’re not a teen driver, but you have one on your car insurance policy, see if you qualify for good driver discounts or discounts for bundling your auto and home insurance to save even more money. 

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How Do Car Insurance Rates Change As You Age?

When you’re young, you may see a decrease in car insurance rates each year you drive without getting moving violations or filing claims. Rates generally decrease as adults reach their 30s, 40s, and 50s. Mature adults pose less of a risk to insurance carriers and are often rewarded with savings. Having years of experience and proving you’re a good driver is a positive sign for insurance companies.

Unfortunately, rates may go up again when you become a senior over 65 years old. Elderly people are considered high-risk for auto accidents, as their physical abilities begin to change. For instance, impaired vision or physical ailments like arthritis can affect the ability to drive safely. Still, some companies offer a discount for senior drivers.

The cost of auto insurance varies by age and state, so you should research what you can expect from your insurance premium as you get older. We recommend getting multiple quotes to compare your price options, which you can do using the tool below.

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What Else Affects Your Car Insurance Rate?

In addition to age and driving history, here are some other things that can affect average car insurance rates, which may differ based on the state you live in:

• Gender
• Location
• Marital status
• Credit score
• Type of car you’re insuring
• Safety features on your vehicle

While many factors like age and gender are out of your control, there are still many things that could qualify you for lower rates. 

You can lower your car insurance premium by maintaining a good credit score. Make sure to pay your bills on time and work to reduce your debt. The area you live in will also impact your rates. Living in a metropolitan area with dangerous driving conditions or heavy traffic may mean you’ll pay more than someone in a less populated small town.

Sedans and family cars are generally less expensive to insure. That’s because they’re relatively cheap to repair and safer on the road. On the other hand, foreign and luxury cars are considered high-risk for car insurance companies because parts are expensive. These cars are also more susceptible to theft and reckless driving.

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When Does Car Insurance Go Down: Our Take

Many drivers see decreases in car insurance rates after they gain more driving experience, avoid getting tickets, and stay out of accidents. Unfortunately, there’s no guaranteed time when car insurance rates will go down automatically. It all depends on the amount of driving experience you have and how long you maintain a safe driving record.

For instance, if you get your license right when you turn 16 and maintain a clean driving record for a few years, you should start to see lower rates once you reach your mid-20s. However, if you get your license later in life, like at age 23, you might not be eligible for lower rates once you turn 25. This two-year driving history may not be long enough to prove to insurance companies that you’ve lowered your risk.

To maintain a clean driving record, keep these safe driving tips in mind:

• Limit the number of other passengers and distractions. Never drive with your phone in your hand or while eating.
• If you’re a new driver, practice with someone to master good driving skills. Drive in different conditions like rain, after dark, during heavy traffic, and more to become comfortable on the road.
• Continue learning as a passenger. Pay attention to how experienced drivers handle various situations on the road, and keep them in mind when it’s your turn to take the wheel again.
• Stay up to date on driving laws. Make sure you’re compliant in your city.

Our Recommendations For Auto Insurance

Regardless of your age, you should shop around to find the best car insurance rates. Each company offers its own benefits and value, so it’s up to you to decide what you need from your insurance provider.

We reviewed the top insurance providers in the nation to determine which is the best in customer satisfaction, industry reputation, price, coverage options, discounts, and more. State Farm, Geico, and Progressive were three of the highest performers, and we recommend getting auto insurance quotes from each of them. Our simple tool below makes it easy to compare quotes.

State Farm: Best Overall Provider

State Farm earned a 4.7-star rating in our industry review. It has a reputation for low average premiums, great customer service, and easy claims processing. State Farm provides standard coverage options, as well as roadside assistance and rental reimbursement.  

State Farm offers discounts for keeping good grades, being a safe driver, and bundling multiple policies. The auto insurer even has helpful programs in place specifically to support teen drivers during their first years behind the wheel.

Learn more in our State Farm insurance review. 

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Geico: Best For Basic Coverage

Geico is a great choice for families with young drivers. The insurer has family pricing plans, as well as discounts for good students and safe drivers. With 24/7 customer support, Geico has a good reputation in the industry for supporting customers. 

Geico’s user-friendly mobile app allows you to manage your account. You can also take advantage of useful tools like monitoring vehicle maintenance needs and locating gas or parking near you. You can even integrate the app with Amazon Alexa to use voice commands.

Geico offers affordable rates for traditional car insurance coverage, as well as add-ons like roadside assistance. Overall, we gave Geico 4.5 out of 5.0 stars.

Read all about this provider in our Geico insurance review. 

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Progressive: Best Usage-Based Insurance

Progressive is another great option for teenage drivers. The company offers many discounts for things like maintaining good grades and adding multiple cars to your policy. This can be a great help to families with teens and two or more vehicles. Progressive also offers usage-based discounts, so you can pay less when a car’s annual mileage is low.

Because of Progressive’s strong reputation in the industry for customer satisfaction, it earned a 4.6 rating in our review. Progressive has a responsive website and mobile app to access account information. Read more in our full Progressive review, and compare the provider to Geico here.

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At What Age Do Car Insurance Rates Go Down?: FAQ

Here are some frequently asked questions about how age affects car insurance rates:

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How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.

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