At What Age Does Car Insurance Start to Go Down? (2024)

FAQs

At What Age Does Car Insurance Start to Go Down? ›

In fact, new drivers will see the biggest drops in their insurance premiums on their 19th and 21st birthdays, with rates continuing to decline until they're 30. After this, rates tend to plateau until drivers reach their 50s or 60s.

At Progressive, the average premium per driver tends to decrease significantly from 19-34 and then stabilize or decrease slightly from 34-75. At age 75, the average premium begins trending upward.

Although 25-year-olds tend to pay higher premiums than 40- and 50-year-old drivers, you can usually expect lower average premiums than teens and younger adults. Generally, you'll see a drop in premium at the first renewal after you turn 25.

On average, the premium for a new auto insurance policy is cheaper for a 25-year-old than for a 24-year-old—at Progressive, for instance, rates on new policies drop by a whopping 9%. That's because drivers under the age of 25 are statistically more likely to cause an accident and file an insurance claim.

For both men and women, the risk of being in an accident goes way down when they turn 25. However, many insurance companies reduce premiums for female drivers slightly earlier — from the ages of 21 to 25 Then as men hit 25, their premiums come back in line with the drop that female drivers have already experienced.

Car insurance rates increased 24% on average in 2023 and are projected to rise another 7% in 2024. These increases are largely the result of increased costs for insurers: As they pay more to settle claims, they pass on the costs to customers. The good news is that there are some things you can do to save money.

Why do men pay more for auto insurance? Men pay more for auto insurance on average because they're statistically more likely to get into accidents and to have major injuries. However, male drivers only pay about $51 more per year than their female counterparts on average.

If you're below the age of 25, rest assured that your car insurance rates will probably go down as you age into your 30s. You get more driving experience as you age. Younger drivers are more likely to get into car accidents and commit traffic violations than older drivers, so they pay higher rates.

Is car insurance cheaper if you own your car? Car insurance premiums don't automatically go down when you pay off your car, but you can probably lower your premium by dropping coverage that's no longer required. Banks and financing companies who loan you money for your car are called lienholders.

If you buy directly from a Progressive company, your car insurance price reflects the cost of staffing and maintaining the sales centers, and a larger portion of our marketing costs.

Are older cars cheaper to insure? ›

In general, auto insurance for older cars may be cheaper than insuring newer vehicles of the same make and model if the used car is cheaper to repair or replace.

Car insurance rates are highest for teens and seniors, on average, because they are considered high-risk due to an increased likelihood of accidents and expensive claims.

In many cases, your insurance will go down by 5-20% in the first year of no claim, depending on your insurer. After the first year, this discount increases each year, usually by 5%, if you don't make a claim. But it only increases up to a maximum discount, usually 50-60%, and a number of years — usually 5-6 years.

Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.

Age and car insurance

As a general rule of thumb, you can expect to pay the most for your car insurance when you're under 25. Once people are over 25, they tend to find that the cost of their car insurance starts to fall. The price usually declines gradually between the ages of 25 and 60.

At what age car insurance goes down depends on several factors, but you should see your insurance premium start to decline by the time you reach 19, with the decrease becoming less noticeable after you reach 35. In your senior years, you may see your rate begin to increase again.

While rates typically decrease as teen drivers gain experience and reach milestones like turning 25, individual circ*mstances vary. Factors like driving record, vehicle type, and coverage choices influence rate adjustments.

Driving Record: Young drivers may lack experience on the road, leading to more accidents or traffic violations. As a result, they can be considered higher risk and have higher premiums charged by insurance providers.

Young Drivers and Accident Rates

The primary reason automobile coverage for teenagers is so expensive is that young people get into more car accidents than older drivers. As drivers mature and get used to handling vehicles, they become far less likely to get into a wreck.