When Does Car Insurance Go Down?

The biggest drop in car insurance happens at age 25, compared to teen drivers. And the auto insurance rate can fall by over 25% at this point.

But that doesn’t mean you need to wait until age 25. Rates start falling way before that. In fact, young drivers see drops as early as 19 and 21.

So, what’s behind these changing rates? Well, your driving experience, behavior, and how your auto insurer calculates risk play a part in this.

However, age alone cannot set your rates. It’s just one factor. Your credit score, driving record, or even your zip code affects the costs as well. We must not forget that rates can go up again for older drivers. Like younger, older drivers are also susceptible to higher risks when they’re behind the wheel.

So, when does car insurance go down, really? And why does it go up again? In this article, we’ll answer how age affects car insurance, when rates fall for both male and female drivers, and how to save more.

Why Age Affects Car Insurance Rates

Your insurers care about your age because it says a lot about your experience behind the wheel. No matter how unfair it might seem to you, the statistics aren’t really on your side.

Young and inexperienced drivers tend to show more risky behavior on the road. According to the National Highway and Traffic Safety Administration (NHTSA), drivers aged between 15 to 20 years old have the highest involvement in fatal crashes.

However, as you begin to acquire more experience, rates start decreasing. That’s why drivers may be keen on learning at what age car insurance rates drop the most.

It's important to note that drivers living in California, Hawaii, and Massachusetts won’t face higher rates due to age. These states prohibit the use of age factors when setting car insurance rates.

In short, insurers evaluate risks before offering an auto insurance quote. If your age group is within the higher-risk category (16-19 or 20-24), it’s quite certain that you’ll face a higher rate compared to the lower-risk category, such as 25 to 30 or 30 to 35.

Whether you’re a young, high-risk driver or simply looking for a reliable and affordable insurance agency, reach out to L.A. Insurance. We offer cheap full coverage car insurance policies for everyone, including drivers with SR-22. Find an agent now or get a cheap auto insurance quote online.

At What Age Does Car Insurance Rate Go Down

As we have discussed, car insurance premiums don’t remain constant forever. They change as you age, gain more driving experience, and establish solid driving records.

Typically, at age 25 or later, you’ll find the most affordable car insurance rates. However, on a year-by-year basis, 16 to 18-year-old teens pay the highest car insurance premiums, which can reach up to $8,508 per month depending on the state, driving record, and insurance company. On the other hand, 19 to 21-year-old drivers pay on average $4,273 per year, which is roughly 50% less.

And ages 21 to 25 bring bigger savings. At age 21, the average rate might hover around $3,800 annually. That’s already half of what a 16-year-old pays.

By age 25, the change is dramatic. You could pay as little as $2,800 per year, depending on your zip code, credit score, and driving history. This is the age when many drivers finally escape higher rates.

Average Car Insurance Rates by Age (2025)

Here's a quick look at how average car insurance costs change with age: 

*This rate can vary based on other factors, including driving record, credit score, vehicle type, insurance company, coverage level, zip code, and even gender.

More>> How Much Is Car Insurance by Age?

Age-Wise Rate Comparison

The table shows that a 25-year-old driver pays 25% less compared to a 21-year-old driver. Moreover, they pay over 50% less than a 16-year-old teen driver.

At What Age Does Car Insurance Go Down for Male Vs. Female Drivers?

According to the ValuePenguin study, car insurance goes down for men by 12% at age 25, whereas it only goes down by 9% for women. However, this percentage can increase up to 25% based on our research.

Here’s an average rate comparison for male and female driver based on their age:

Source: Autoinsurance.com | As of July 2025

As you can see, young male drivers consistently pay more. The gap starts big and slowly shrinks by age 25.

This happens because young male drivers are more prone to accidents than young female drivers. According to IIHS, men tend to drive more miles and engage in riskier behavior like skipping seat belts, driving under the influence, and speeding. That’s one of the reasons why men pay a little bit higher for auto insurance than women.

However, gender isn’t factored into car insurance rates in every state. The following states have already made it illegal to use gender as one of the factors for setting car insurance rates:  

• California
• Hawaii
• Massachusetts
• Michigan (in certain areas)
• Montana
• North Carolina
• Pennsylvania

More>> Average Car Insurance Rates by Gender

So, Does Car Insurance Really Go Down at 25?

The short answer is yes, it does. Many car insurance companies may reduce your premium by up to 25%, depending on factors such as where you live, your claim history, driving record, credit score, and the make and model of your vehicle when you turn 25.

This is because you are considered less risky to insure. You have gained more experience behind the wheel and likely have a longer driving history.

Most drivers at 25 also avoid risky behavior, like speeding, distracted driving, or driving under the influence (DUI). The National Highway Traffic Safety Administration (NHTSA) reports fewer fatal crashes for drivers over 25. That’s one reason your auto insurance premiums start to drop around this age.

However, not everyone should expect a big drop. If you have a poor credit score, a recent at-fault accident, or a shaky driving record, your rates might stay high.

Does Car Insurance Increase for Seniors?

Another important thing to keep in mind is that not only do young drivers face higher rates, but older drivers do as well. As drivers age past 55, car insurance premiums slowly start to rise again.

Even with years of driving experience, insurance companies consider seniors higher risks. That’s because as you get older, your health deteriorates. For instance, it has been noticed that because of slower reaction times, vision decline, and health-related behavior changes. According to the Insurance Information Institute (III), older adults face a higher chance of injury in a crash.

Seniors may have a clean driving record and still face higher rates due to age-related risks. Most car insurance providers begin adjusting premiums once a driver hits 60.

However, if you drive fewer miles, and complete a defensive driving course, you might earn discounts. Also, driving a safer vehicle and bundling with renters’ or home insurance may also help reduce costs.

Here’s how the average car insurance rate suddenly starts increasing after you turn 65:

Other Factors That Affect Car Insurance Rates

Age is just one piece of the puzzle. There are other key factors that could increase your costs tremendously if not maintained. Let’s look at what else can raise or lower your insurance premium:

• Driving History: If you can maintain clean driving records, you can enjoy lower rates regardless of your age. Drive responsibly. Try to avoid getting any citations. Remember that any history of accidents can raise your rate by 42%.
• Credit Score: A better credit history often means lower rates. Bad credit can lead to higher rates.
• Location: Your zip code impacts risk. Cities usually have higher car insurance costs compared to rural areas.
• Gender: Young men usually pay more than young women. Over time, this gap narrows.
• Vehicle Type (Make and Model): Sports cars cost more to insure. Safer vehicles bring car insurance discounts.
• Coverage Level: Full coverage is costly. Lower coverage brings cheaper car insurance but less protection.
• Marital Status: Married drivers are seen as lower risk. That means lower auto insurance rates. However, California, Massachusetts, Montana, and Michigan are some of the states that don’t let marital status influence car insurance rates.
• Insurance Company: Each insurer has different pricing formulas. Always compare car insurance quotes. If your current carrier is charging you too much, always consider changing your car insurance.
• Annual Mileage: If you drive less, you may qualify for pay per mile or low mileage discounts.

How Can Drivers Under 25 Pay Less for Car Insurance?

Young drivers often pay the highest auto insurance premiums. However, making smart choices can help lower these costs from the start.

Here are simple ways to save:

• Maintain a clean driving record. Avoid tickets, accidents, and risky driving behaviors.
• Take a defensive driving course. Many insurers offer discounts for completing these courses.
• Drive a safe vehicle. Avoid sports cars. Choose models with high safety ratings.
• Bundle insurance policies. Combine auto, RV, renter’s, home, or life insurance for lower rates.
• Increase your deductible. A higher deductible lowers your monthly insurance premium.
• Choose usage-based insurance. Telematics rewards safe, low mileage driving with discounts.
• Ask about student discounts. Good grades can reduce car insurance premiums between 4% to 20%.  
• Avoid lapses in coverage. Always keep an active insurance policy.
• Compare car insurance quotes. Shopping around can help you find the best rates.
• Stay on a parent’s policy. It’s usually cheaper than getting your own as a teen driver.

More>> How to Lower Car Insurance

Wrapping Up

Car insurance doesn’t stay high forever. With age, experience, and smart choices, your rates can drop significantly. You should try to understand the trends, track your driving habits, and take control of these factors because knowing when and why your car insurance goes down is just as important as the coverage itself.

Frequently Asked Questions (FAQs)

When does car insurance get the cheapest?

Car insurance premiums are usually lowest between the ages of 30 and 55. This age group sees the fewest claims and the lowest auto insurance rates.

How long does it take for car insurance to go down?

Most car insurance rates drop each year you avoid accidents or tickets. Larger drops happen after 19, 21, and when you turn 25.

Does insurance go down when you pay off your car?

Paying off your loan may lower insurance premiums. For instance, when you pay off your car loan, you can drop full coverage, which can reduce overall car insurance costs.

Does car insurance go down when you get married?

Yes, insurance companies often offer lower rates to married drivers. Being married is linked to safer driving behavior and fewer claims.

When does car insurance go down after an accident or DUI?

After a fault accident, rates may drop after 3 to 5 years of clean driving history. For a DUI, expect higher auto insurance premiums for 5 to 10 years, depending on state laws. Some insurance companies reduce rates sooner with safe behavior and a defensive driving course.