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Last updated: December 8, 2023

At What Age Do Car Insurance Rates Go Down?

Your next birthday might lower your auto insurance bill.

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A number of factors influence car insurance premiums, including age. Young drivers pay the most for auto insurance of any other age group. If you’re under 25, or someone in your household is, here’s when you can expect rates to drop.

When Does Car Insurance Get Cheaper for Young Drivers?

If young drivers maintain a driving record free of at-fault accidents and violations, their cost of car insurance will go down each year.

The most significant drops happen at age 19 (25 percent decrease in premiums) and age 21 (20 percent decrease). Rates will continue to decline in your twenties, and they stabilize around age 30 to 34.

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

Men pay more than women for car insurance, especially at younger ages. As drivers age, the difference is less significant.

Age Average Annual Full Coverage Premium for Women Average Annual Full Coverage Premium for Men Percentage Difference for Men
16 $6,080 $6,705 10%
17 $5,180 $5,754 11%
18 $4,578 $5,089 11%
19 $3,423 $3,817 11%
20 $3,201 $3,444 8%
21 $2,545 $2,782 9%
22 $2,370 $2,551 8%
23 $2,223 $2,375 7%
24 $2,111 $2,231 6%
25 $1,945 $2,022 4%

In the following states, it is illegal to use gender when determining auto insurance premiums:

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

How Much Do Car Insurance Rates Go Down With Age?

Between age 16 and 25, auto insurance premiums decrease by around $4,400 annually in total, or by $368 monthly. Exactly how much you pay depends on a number of factors, such as vehicle type, ZIP code, and driving history.

Age Average Annual Rate for Full Coverage Average Monthly Rate for Full Coverage Percentage Decrease
16 $6,392 $533
17 $5,467 $456 -15%
18 $4,834 $403 -12%
19 $3,620 $302 -25%
20 $3,323 $277 -8%
21 $2,663 $222 -20%
22 $2,461 $205 -7%
23 $2,299 $192 -6%
24 $2,171 $181 -5%
25 $1,983 $165 -10%

Why Car Insurance Drops So Much for Drivers at Age 25

Insurance companies classify young drivers as high risk, due to their inexperience and increased likelihood of exhibiting unsafe driving behaviors (e.g., distracted driving). As you get older and gain more experience behind the wheel, insurance companies consider you a lower risk to insure, which causes your premium to drop.

If your insurance didn’t go down when you turned 25, there are a few factors that could be at play:

  • Driving history: At-fault accidents, speeding tickets, and other violations will all increase your premium.
  • Credit: People with bad credit are statistically more likely to file claims, which is why low bad can increase premiums.
  • ZIP code: In areas with high rates of theft or vandalism (cities often fall in this category), customers pay more for insurance.
  • Insurance history: If you have a history of not paying your premium or there was a period of time when you didn’t have insurance (even if you didn’t own a car), you’ll pay more.

How to Get Cheaper Car Insurance as a 25-Year-Old Driver

To save on car insurance as a young driver, try the following:

  1. Change your coverage levels. If you drive an older vehicle (typically older than 15 years old), it may not make sense to carry comprehensive and collision coverage. Dropping these coverages will lower your premium significantly, but keep in mind if someone steals your car or you total it in an at-fault accident, you’ll have to pay for a replacement vehicle out of pocket.
  2. Increase your deductibles. The higher your deductibles are, the lower your car insurance premium will be. Make sure you’d be able to afford the higher deductible in the event of an incident.
  3. Switch to a pay-per-mile plan. If you drive infrequently (e.g., you work from home), a pay-per-mile plan may be cheaper than a traditional plan. With these plans, you typically pay a base monthly rate plus a per-mile rate. Consider switching if you drive less than 8,000 to 10,000 miles per year.
  4. Switch insurers. Each insurance company uses a unique formula to determine its rates, so some companies will be cheaper for young drivers than others. Shop around and get at least three quotes before switching to a new company.

Another great way to save on insurance is to look for discounts. While turning 25 often disqualifies you from receiving a student discount, the following can still lower your premium:

  • Telematics: To encourage safe driving habits, many companies offer discounts for tracking your driving behavior (e.g., acceleration, braking, phone use) — including a discount just for signing up.
  • Clean record: Having no at-fault accidents, violations, or claims in the past three to five years will lower your premium.
  • Bundling: When you buy another policy (e.g., renters insurance) from the same insurance company, you will usually get a discount.
  • Preferred payment: Many companies offer discounts for setting up auto-pay, paying your premium in full, or going paperless.
  • Affiliation: Some professional organizations and other affiliation groups (including university alumni groups) partner with insurance companies to offer lower rates.

Looking for less expensive insurance? We’ve rounded up the best companies for cheap auto insurance.

Why Age Affects Car Insurance

There are several reasons why both younger and older drivers tend to pay more for auto insurance.

Why Young Drivers Pay So Much for Insurance

Companies consider young drivers higher risk, and consequently charge them more for insurance, for several reasons. Young drivers:

  • Lack experience behind the wheel
  • Are less likely to wear seatbelts
  • Have higher rates of speeding
  • Drive more on nights and on weekends, when most accidents occur


Half of traffic fatalities occur at night, despite the fact that only a quarter of driving takes place at night.1

Why Insurance Rates Increase for Seniors

Insurance is often cheaper for people over age 55, due to their tendency to drive safely. However, rates go up between age 65 and 75, in part due to slower response times and potentially impaired vision and hearing. Older adults can expect a 10 to 20 percent increase.


Seniors are less likely than younger adults to survive a car crash, so it’s important to know when to stop driving. It can be difficult, emotionally and practically, for seniors to give up the autonomy of driving. But according to the Insurance Information Institute, when seniors begin to lack confidence behind the wheel, it’s often time to consider relinquishing a driver’s license.2

States Where Age Does Not Affect Rates

In the following states, insurance companies cannot take age into account when calculating insurance premiums:

Other Factors That Lower Your Car Insurance Premium

In addition to age, the following factors affect your premium:

  • Driving record: A record free of accidents and violations will lower your premium.
  • Education: People who hold a bachelor’s degree, master’s degree, or a Ph.D. are statistically less likely to file claims, which translates to lower premiums.
  • Marital status: Married couples pay slightly less for insurance than single people.
  • ZIP code: If you live in a less populated area with a low crime rate, you’ll pay less for insurance.


Insurance rates decrease the most at ages 19 and 21. Rates increase again as drivers age, around 65 to 75 years old. Getting multiple quotes will help you find the cheapest insurance available.


Does car insurance go down at age 30?

Car insurance goes down somewhat at age 30. For example, 30-year-olds will pay 10 to 12 percent less for auto insurance than 25-year-olds, but the difference in premiums for a 29-year-old and 30-year-old won’t be significant.

At what age is car insurance most expensive?

Car insurance is most expensive for teenagers, especially 16- and 17-year-olds. That’s because younger drivers are statistically more likely to get into an accident than other groups.

Is it cheaper to insure an older or newer car?

In general, older cars are cheaper to insure. Cars tend to lose value over time, which lowers the amount an insurance company has to pay for it in the event of a total loss.

Is it cheaper to pay car insurance annually or monthly?

If your insurance company offers a pay-in-full discount, it’s cheaper to pay for your policy upfront (policies usually run six or 12 months). If your company doesn’t offer this discount, paying annually or monthly won’t make a difference.


  1. The Most Dangerous Time to Drive. National Safety Council. (2023).

  2. Senior driving safety and insurance tips. Insurance Information Institute. (2023).