At What Age Does Car Insurance Go Down?

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  • At What Age Does Car Insurance Go Down?

When it comes to determining car insurance rates for drivers, age is one of the most important factors companies use to evaluate their premium decisions. Year after year, statistical data shows that younger drivers tend to speed and get in more accidents than those with a few years’ experience behind the wheel.

On the other hand, drivers over 65 years old tend to pay higher rates than those drivers 25 to 64 due to the nature of aging, which tends to negatively affect vision and overall body function. But determining what age does car insurance go down isn’t cut and dry.

No matter what age, new drivers are going to pay more for car insurance premiums than drivers of the same age with more experience. Women typically pay less than men for car insurance premiums until they hit age 30, when it evens out and sometimes increases more for women.

Aside from that, marriage is a culminating factor for premiums, which is relevant because not too many people get married before 21.

The cost of car insurance is also heavily impacted by whether you maintain comprehensive or liability coverage and other external factors.  Let’s take a look at the most common age factors that are used to determine the average cost of premiums, as reported in a study conducted by

When Does Insurance Go Down for New Drivers?

Car insurance for new drivers, who get their license at 16, tends to go down after five years when they turn 21. The real cost savings come at 25 and 30, though.

As a teenager, you’re more likely to drive carelessly, speed and get in accidents since the decision-making portion of teens’ brains aren’t fully developed yet and they don’t have much experience behind the wheel.

However, just because car insurance rates typically go down for new drivers over the years, that doesn’t mean an advanced age will give you an edge over younger new drivers. A new driver who got their license at 21 will pay similar car insurance rates as a new driver who’s 16.

However, the 21-year-old driver’s premiums will decrease more drastically through the years than their 16-year-old counterpart due to maturity and brain development. But if the 21-year-old proves to be a liability on the road, racking up a slew of moving violations and driving a nice car, their premiums may surpass the younger, more careful driver. Observe the table below that depicts average car insurance rates by age

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Does Car Insurance Go Down at 25?

Yes, 25 years old marks the first benchmark for a major decrease in car insurance premiums. While car insurance begins decreasing at age 17 and steadily decreases until a person reaches 65, the jump from 20 to 25 is the most major decrease in averages.

That’s because a person is more mature and their brain has fully developed by 25, increasing their decision-making skills and leading to more careful driving. In layman’s terms, drivers who are 25 and older are less likely to speed and are more careful on the load, leading to fewer accidents.

When drivers reach 25, many rental car companies open their doors to drivers and allow them to rent cars without having to purchase extra coverage. They may see this age as a sign of maturity and they follow the standards of auto insurance companies to mitigate risk in their vehicles.

Drivers Aged 25 to 30

Car insurance decreases at 25 and steadily decreases until drivers turn 65, but the five years between 25 and 30 are formidable years for the auto insurance industry. During those years, people tend to get married and settle down — both in their personal life and their driving habits.

During those years, drivers typically have 10-plus years of experience on the road, allowing their brains to develop through a multitude of driving situations. They’re more in control and aware of the external driving factors at hand, so they’re much less likely to speed or get in serious accidents.

When people get married, they tend to be more conservative in their driving. They combine auto insurance policies, which gives them a greater discount over those with a single person on the policy.

Drivers Aged 30 to 64

From 30 to 64, car insurance premiums steadily decrease through the years, but, unfortunately, you won’t get those major decreases as you saw at 25. When drivers hit 30, they’ve had lots of experience on the road and age becomes less of a factor in determining car insurance premiums.

During this age range, things like the kind of car you drive, the number of moving violations on your record and credit score are greater factors to determine your increase or decrease in car insurance premiums.

Drivers Aged 65 and Older

The opposite of new drivers, drivers over the age of 65 can expect their car insurance premiums to increase through the years. While this isn’t directly correlating to them driving more recklessly at that age, physical ailments are more present and can make driving a bit more dangerous.

For instance, older drivers have a higher probability of their vision worsening, which can lead to impairment in diving, especially at nighttime. They’re also more likely to suffer from things like arthritis and limited mobility, which can affect how quickly they respond to careless drivers and accidents at hand.

But even though there’s no statistical data proving drivers over 65 get in more accidents, the accidents are typically more severe because injuries are more complex than their younger counterparts.

What Age Does Car Insurance Go Down for Males?

Car insurance rates begin to go down significantly for men by age 21, decreasing an average of 30 percent ($1,236 to $955 per year) from ages 20 to 21. After that, car insurance premiums for men decrease steadily by $50 to $100 per year until they hit the lowest amount around age 64.

It’s also important to note that males pay more for car insurance premiums from age 16 to 25. This is because they’re more likely to speed, get involved in accidents and participate in reckless driving than females at the same age.

What Age Does Car Insurance Go Down for Females?

Car insurance rates for women drop significantly at age 21, going down about 27 percent from $1,114 to $878 — which are both less than men pay for car insurance at the same age. Women typically pay less than men for car insurance from age 16 to 26 because they’re more careful in their driving, being less likely to speed or get in accidents.

However, while car insurance for women still decreases at a steady rate from 21 to 64, car insurance rates for men drop lower than car insurance for women from ages 26 to 40. This is mainly due to external factors, predicting women will more likely drive with children in the vehicle — getting distracted at a greater rate than men not driving with children in the car.

How to Decrease Your Auto Insurance Regardless of Age

Just because the average state car insurance is more expensive for men than women at certain ages, that it decreases slowly until 21 and steadily goes down until 64, that doesn’t mean age is the only factor in determining your car insurance premiums.

Make sure you’re claiming any discounts you may qualify for, you’re driving safer, maintaining a clean driving history and paying for only what you need.

Ready to Save Money on Auto Insurance?

Rethink your auto insurance premium with a free quote from the nation's top companies.

The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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