At What Age Does Car Insurance Go Down?

Car insurance rates typically start to fall at age 25, especially for drivers who’ve maintained a clean record.

Kim Porter
Written byKim Porter
Kim Porter
Kim Porter
  • Co-authored the book “Future Millionaires’ Guidebook”

  • 13 years writing personal finance content

A former chief copy editor at Bankrate and past managing editor at Macmillan, Kim specializes in writing easy-to-understand, actionable personal finance content.

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Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Updated September 1, 2024

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Your age is one of many factors that affect the car insurance rate you pay. A driver’s age often reflects specific levels of driving experience and accident risk, so insurance companies use this information when setting rates.

Teen drivers often pay the highest average rates, at $382 per month for full-coverage insurance and $188 for liability insurance. The national averages are comparatively lower, at $211 and $104, respectively.

For many people, car insurance rates start dropping when they reach age 25. Here’s what you should know about how your age affects rates, how rates change over time, and how to save on car insurance at any age.

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How age affects car insurance rates

Car insurance rates generally start high for teenage drivers and decrease for many 25-year-old drivers. Rates continue on a downward trend for drivers in their 30s, 40s, and 50s as they gain experience. Premiums are typically cheapest for drivers in their 60s, then tend to rise again when drivers reach their 70s and 80s.

Age plays a role in how much you pay because auto insurance companies consider perceived risk when determining rates.[1] Young drivers are statistically more likely to get into car accidents and may subsequently file car insurance claims.

Older drivers also are at a higher risk of being involved in a car accident and of being seriously injured. Senior drivers also have more physical limitations, such as vision loss, that can negatively affect their motor skills compared to middle-aged drivers.[2]

Why young drivers pay more for car insurance

Compared to other age groups, drivers younger than 25 have the least experience behind the wheel. They’re also statistically more likely to engage in risky driving behaviors, such as speeding, texting while driving, and not wearing a seat belt.

Because of these factors, young drivers are more likely than any other age group to get into car accidents and potentially file car insurance claims. Car insurance companies mitigate this risk by charging higher rates to younger drivers.[3]

Learn More: How Old Do You Have to Be to Drive in Each State?

Learn More: How Old Do You Have to Be to Drive in Each State?

Here’s the age when car insurance goes down

Car insurance rates start going down when drivers reach their 20s. Age 25 is generally considered the “magic age” when rates decrease for most people. For example, Progressive says the average premium per driver tends to drop by 9% for many 25-year-olds.

Drivers at this age have usually gained driving experience, but biology plays a role here, too. The region of the brain that inhibits risky behavior is typically formed by age 25, so drivers are less likely to take chances on the road.

Car insurance rates by age

On average, the cost of car insurance drops significantly for drivers in their 20s and 30s, then stabilizes or decreases slightly until they reach their 60s. Rates tend to rise a bit again around age 70.

The following table shows an example of monthly average liability-only quotes from Farmers by age group:

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Other reasons your car insurance can go down

Age isn’t the only reason auto insurance premiums can go down. Here are some factors that may help push your rate lower.

You have three or more years of safe driving

Insurers look at your driving record to determine the likelihood of future accidents and claims. Traffic violations on your record, such as speeding tickets, may cause your rates to go up because you’re more likely to file a claim.

Minor violations tend to fall off your driving record after about three to five years, while more serious incidents may remain longer. Once the violation clears, it typically won’t affect your premium. Your car insurance rate may go down because you’ve shown the insurer you’re a safe driver.

You move

Where you live also affects your car insurance premium. Urban drivers typically pay higher premiums compared to people in rural areas because they’re at a higher risk of vehicle theft, vandalism, and car accidents. You may also pay more for car insurance if severe weather and natural disasters routinely affect your area.

Location affects other factors, too. Auto insurance fraud varies in each region, and the costs of car repairs and medical care can change from one area to the next. Insurers may raise rates in high-cost areas.

If you move to an area with lower risk and cheaper costs, your car insurance premium may drop.

You buy a different car

Your car’s age, make, and model can influence your auto insurance rate significantly. Several factors — like your car’s age, safety features, cost of replacement parts, and price — help determine the likelihood and potential cost of claims.

Slightly older, practical family vehicles are usually the cheapest to insure. So, your insurance rate may decrease if you’ve recently traded a higher-risk car for a more standard vehicle.

You switch insurance companies

Car insurance companies typically use the same criteria — such as age, gender, and driving record — when setting premium rates. But every insurer uses a different equation to weigh these factors. As a result, car insurance rates can vary greatly from one company to another — even for the same coverages. Comparing quotes and switching to a cheaper insurer can help you save money.

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How young drivers can save on car insurance

Young adults have several ways to cut car insurance costs, such as:

  • Enroll in a young-driver program. Many insurance companies offer programs — such as State Farm’s Steer Clear — designed to help new drivers learn safe driving habits. You can get a discount once you’ve completed the program.

  • Earn good grades. A good student discount allows high school and college students to save money on car insurance when they receive good grades. To qualify for the discount, you’ll need to meet your insurance company’s academic and age requirements.

  • Leave your car at home. If you live on your college campus and leave your car at home, you may qualify for a student-away-at-school discount. To qualify for the discount, your school will typically need to be a certain number of miles away from your home where you park the car.

How to save on car insurance at any age

It’s possible to lower your car insurance rate at any age, whether you’re a brand-new driver or have decades of experience under your belt. Here are some options to explore:

  • illustration card https://a.storyblok.com/f/162273/150x150/789c6c481b/car-and-driving-96x96-green_007-driver.svg

    Practice safe driving habits

    People with a good driving record pay lower car insurance rates because they pose less risk to the insurance company. To build a safe driving history, you can focus on driving the speed limit, following traffic laws, and avoiding accidents when possible. You may also qualify for discounts when you stay claim-free or traffic violation-free for a specific time.

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    Pay based on your mileage

    Pay-per-mile car insurance calculates your rate based on the number of miles you drive. You pay a base rate and a per-mile rate each month, so less-frequent drivers tend to save money. These programs are usually a good fit for people who work from home, rely on rideshares, use public transportation, or have a short commute.

  • illustration card https://a.storyblok.com/f/162273/150x150/834da573df/car-and-driving-96x96-orange_023-driving-test.svg

    Get a safe driver discount

    Many insurers provide a discount to people who maintain a clean driving record for a specified period of time. You may save money if you avoid incidents like traffic violations, at-fault accidents, and major comprehensive claims.

  • illustration card https://a.storyblok.com/f/162273/x/fa11c1fe75/comparison-website.svg

    Shop around for lower rates

    Compare rate quotes from multiple insurance companies on a regular basis, such as before your policy expires. Even if you like your current insurer, it’s worth checking whether you can save money by going elsewhere.

  • illustration card https://a.storyblok.com/f/162273/x/d980bd9cc4/membership.svg

    Enroll in a telematics program

    Telematics-based insurance programs allow insurers to gather information about your driving habits using a connected app or a device plugged into your car. Practicing safe driving habits, such as staying within the speed limit and avoiding hard brakes, may help lower your insurance rate.

Keep Reading: 6 Best Pay-as-You-Go Car Insurance Companies (2024)

Keep Reading: 6 Best Pay-as-You-Go Car Insurance Companies (2024)

How will car insurance rates change in 2024?

The costs of car repairs, climate catastrophes, and severe car accidents can affect car insurance rates. And as all of these costs increased in recent years, car insurance premiums followed suit, rising by 24% in 2023 alone.

Insurify predicts rates will generally stabilize in 2024, increasing by 7%.

Important Information

To cut costs, some policyholders are lowering their coverage limits and increasing deductibles. But these coverage adjustments could cause you to pay more out of pocket if you need to file a claim. You also may not have this option if you finance your vehicle and your lender requires certain coverages.

If your premium has increased recently, consider getting rate quotes from multiple insurers. It’s the best way to check whether you can save money now without changing your coverage.

Age car insurance goes down FAQs

If you still have questions about when car insurance rates drop, the additional information below can help.

  • What factors affect car insurance rates?

    Your age, gender, driving history, marital status, and the car you drive are only some of the characteristics that affect your insurance rates. Insurance companies gather and use these factors when pricing your premium.

  • Why does car insurance go down at 25?

    At age 25, drivers are less likely to engage in risky behaviors on the road. They’ve also typically built up driving experience, so they’re less likely to cause car accidents.

  • At what age is car insurance the lowest?

    Car insurance rates typically reach their lowest point when a driver is in their 60s.

  • At what age is car insurance most expensive?

    Teenagers generally pay the highest rates for car insurance because they haven’t built up their driving experience and are more likely to take risks while driving. These factors increase risk for the insurance company.

  • At what age should you go off your parents’ insurance?

    There’s no age limit preventing you from staying on your parents’ car insurance policy. But you can only stay as a listed driver if you live at home or are a full-time college student.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

  1. Insurance Information Institute. "Risk-Based Pricing of Insurance."
  2. Centers for Disease Control and Prevention. "Older Adult Drivers."
  3. Centers for Disease Control and Prevention. "Teen Drivers and Passengers: Get the Facts."
Kim Porter
Kim Porter

Kim Porter is a writer and editor who's been creating personal finance content since 2010. Before transitioning to full-time freelance writing in 2018, Kim was the chief copy editor at Bankrate, a managing editor at Macmillan, and co-author of the personal finance book "Future Millionaires' Guidebook." Her work has appeared in AARP's print magazine and on sites such as U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, and more. Kim loves to bake and exercise in her free time, and she plans to run a half marathon on each continent.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Featured in

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