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What age does car insurance go down?

If you're a safe driver, you should start seeing a decrease every time you renew your policy, even before you turn 25. After 25, you should see an even greater drop in your rate.

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By

Andrew HurstAndrew HurstSenior Editor & Licensed Auto Insurance ExpertAndrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Updated|2 min read

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When you first get your license as a teen or young driver, there’s a good chance you’re not paying for auto insurance yourself, which is lucky, because those first few years of being insured are some of the most expensive of your entire life.

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But car insurance does go down as you get older (as long as you keep a clean driving record). We found that between ages 16 and 21, average car insurance rates fell by an average of $814 a year.

Key takeaways

  • For young drivers, car insurance rates go down every year that you renew your policy and haven’t made a claim.

  • Age 25 is when you’ll see the biggest drop in car insurance rates.

  • Car insurance tends to cost more for male drivers, but both male and female drivers will see their rates go down when they turn 25.

What age insurance starts to go down

The general rule of thumb is that your car insurance premiums will decrease when you turn 25. Assuming you’re a good driver, you’ll probably start seeing lower auto insurance rates every time you renew your policy — even before you turn 25. 

We found that for teens with clean driving records, average car insurance rates went down significantly every year, by about $814 a year between the ages of 16 and 21.

Age

Average annual cost

Average monthly cost

16

$6,779

$565

17

$5,855

$488

18

$4,931

$411

19

$4,375

$365

20

$3,820

$318

21

$2,708

$226

22

$2,261

$188

25

$1,929

$161

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Rates for a full-coverage car insurance policy.

When does insurance go down for female and male drivers?

Average car insurance costs for female and male drivers are slightly different, but drivers of all genders will see their rates go down as they approach 25, by an average of about 16% each year.

Age

Female

Male

16

$6,351

$7,207

17

$5,473

$6,238

18

$4,594

$5,268

19

$4,083

$4,668

20

$3,571

$4,068

21

$2,548

$2,867

22

$2,130

$2,393

25

$1,875

$1,983

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Table shows the average annual cost of a full-coverage car insurance policy.

Why does your insurance go down with age?

Your insurance goes down as you age because you’re viewed as less risky to insure — in other words, you’re less likely to get into an accident. 

Age is one of the factors that insurance companies take into account to determine risk, along with things like your driving record, credit history, location, and the number of people on your policy.

But your car insurance won’t automatically go down when you turn 25 — drivers with accidents or violations on their records will keep paying high rates even after they age out of the highest-risk age group.

Car insurance rates can also have more to do with how many years you’ve been licensed than your actual age. If you’re 26 but you just got your driver’s license, you’ll be considered a new driver and will pay more for car insurance than a 26-year-old who’s been driving for a decade already.

Bottom line: Your rates will go down with age, but gaining experience behind the wheel and keeping a clean driving record are essential to keeping your car insurance as low as possible.

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Other ways to save on auto insurance

If you’re a young driver, your car insurance premiums will go down as you age, but there are plenty of other ways to save on car insurance besides waiting for time to pass. If you’re wondering whether your car insurance will ever go down, consider:

  • Try to keep your grades up: Lots of companies offer high school and college students (who have some of the most expensive insurance) discounts for maintaining at least a “B” average in school

  • Consider a per-mile insurance plan: If you don’t drive very often, you might be able to lower your insurance by signing up for pay-per-mile insurance, which bases rates on how much you drive.

  • Sign up for usage-based insurance: Most insurance carriers have usage-based programs that monitor your driving habits and award discounts to safe drivers.

  • Complete a safe driving course: Nearly every insurance company offers drivers lower rates for completing a defensive driving course (which you can even take online, depending on the state).

  • Bundle insurance policies: A tried-and-true way of getting cheaper insurance is to get your auto and home insurance from the same company and bring your premiums down for both.

One of the best ways to bring your insurance costs down (regardless of your age) is to shop around for car insurance quotes every time your policy is up for renewal, so you can see if there’s a better option.

Frequently asked questions

Why does car insurance go down at 25?

Car insurance companies use statistical data, among other factors, when determining car insurance rates. Since drivers under 25 are more likely to get into car accidents and file claims than older drivers, younger drivers pay more. Once you turn 25, you’re no longer part of the risky age group, so if you’re a safe driver with no violations or accidents on your record, your rates will decrease.

When does car insurance go down after an accident?

If you’re in an at-fault car accident, your car insurance rates will likely go up. Depending on your insurance company, accidents can continue to affect your rates for three to five years. Car insurance companies usually only look at your recent driving history, so the accident will “fall off” your record after enough time has passed.

Does car insurance go down every year?

If you haven’t gotten into any accidents or received any tickets when you go to renew your policy, your car insurance rates may just stay the same. However car insurance rates can also go up at renewal, even if you’re gone the whole policy term without any accidents or claims.

What age has the highest car insurance?

Car insurance costs for 16-year-old drivers are the highest. That’s because these drivers are newly licensed. If you’re older and you get your license later in life, your rates would also be more expensive relative to other people your age.