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 $350 per month for full-coverage insurance and $198 for liability insurance. The national averages are comparatively lower, at $182 and $103, 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.
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
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
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.
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:
Age isn’t the only reason auto insurance premiums can go down. Here are some factors that may help push your rate lower.
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.
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.
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.
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.
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.
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:
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%.
If you still have questions about when car insurance rates drop, the additional information below can help.
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.
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.
Car insurance rates typically reach their lowest point when a driver is in their 60s.
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.
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.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
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