Does insurance go down with age?

Asked by: Kaci Brakus  |  Last update: January 22, 2026
Score: 4.8/5 (38 votes)

Insurers typically charge higher premiums for drivers younger than 25, according to the Insurance Information Institute (III). But, as teen drivers get older, rates typically drop — as long as they maintain a good driving record, the III says.

At what age do insurance rates typically go down?

The biggest drop is typically from 18 to 19, when the average rate drops by around $1,595. Car insurance typically drops as you grow older, when you drive safely for three to five years following an accident or citation, and when you switch to a cheaper company.

At what point will car insurance drop you?

Insurers may not drop a customer after their first one or two incidents. The first step is often to increase your car insurance rate. From there, if a customer has another accident or files more claims, the insurer may send a notice that they won't be renewing the policy at the end of its term.

Will my insurance go down if I get an older car?

The price of car insurance generally does go down as a car gets older. This is because older cars are typically worth less than new cars, so the cost to repair or replace them in the event of an accident is lower.

At what age is insurance most expensive?

Key takeaways. 18-year-old drivers on their own policy pay the highest car insurance premiums out of the age groups Bankrate analyzed. The most significant difference in premiums by gender occurs at age 18. On average, 18-year-old males cost 9 percent less to insure than their female counterparts.

Will my auto insurance go down when I turn 25?

43 related questions found

What age is insurance cheapest?

Does car insurance become cheaper when you turn 25? On average, drivers will see their premiums begin to fall around age 25. This reflects the lower risk posed by drivers in their mid-20s as they gain driving experience and maturity, compared to a 17-year-old who has just passed their test.

Does credit score affect car insurance?

How credit-based insurance scores work. Most U.S. insurance companies use credit-based insurance scores along with your driving history, claims history and many other factors to establish eligibility for payment plans and to help determine insurance rates. Again, except in California, Hawaii, and Massachusetts.

When should you drop full coverage on your car?

For example, you might want to drop comprehensive coverage if: You park your car in the garage and protect it from animals, falling objects, and severe weather. You plan to replace your car next time it needs big repairs. Your car is worth less than the deductible on your comprehensive coverage.

Can you get full coverage on a 20 year old car?

Yes. Full coverage is available for older cars. However, if your older car has a low market value, you won't get much from the insurance company if it's totaled or stolen. This is the main reason to drop full coverage for an older car with a low resale value.

Is insurance cheaper on a new or used car?

Insurance is usually cheaper for used vehicles because it doesn't cost as much to repair and replace them as new cars. However, factors other than your vehicle's age, such as your car's make, model and safety technology, can impact your premium, so used car rates aren't always less expensive.

How to get car insurance to go down?

If you're wondering how to get a lower car insurance rate, use these methods for lowering your premium:
  1. Qualify for insurance discounts. ...
  2. Increase your deductible. ...
  3. Reduce your coverage. ...
  4. Compare rates. ...
  5. Try usage-based insurance. ...
  6. Take a defensive driving course. ...
  7. Get a car that's cheaper to insure.

What is the most popular insurance company in the US?

State Farm is the most popular insurance company nationwide, It's also the most popular company in 19 states. Progressive is the largest insurance company in 21 states. This includes many New England states, some states in the Midwest, Florida and Texas.

How long do accidents stay on your record?

In the state of California, most vehicle accidents will stay on your record for around 3 years. However, more serious traffic violations will follow you for longer. For example, a DUI conviction will stay on your record for 10 years.

Which gender pays more for car insurance?

On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger. When they are older, women start to pay slightly higher rates.

How much does car insurance go down after 1 year no 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.

Why is my insurance still high after 25?

A clean driving record will get you the best car insurance rates. Young drivers with a traffic violation, driving under influence, or car accident on their record can expect even higher rates. Depending on your driving history, your rates may also not drop at 25 years if you have a lot of violations.

At what age is car insurance cheaper?

On average, auto insurance rates for 25-year-olds are cheaper than rates for younger drivers. Auto insurance premiums tend to decrease as you get older, until about age 75. But your age is just one factor insurers consider when setting rates.

Is it better to have collision or comprehensive?

If your car is damaged in a road collision with another car or object and you're at fault, only your collision coverage can help pay to repair it. Only comprehensive coverage covers losses caused by contact with animals, civil disturbances, fires, natural disasters, theft, and vandalism.

Should I keep full coverage on a 10 year old car after?

Full coverage car insurance is likely to be a poor investment for vehicles that are more than 10 years old. After this period, the annual cost of insurance represents 46% of the value of older-model vehicles. After an at-fault crash, rates are very likely to exceed the value of vehicles that are 15 or more years old.

Is it good to keep full coverage on a paid-off car?

Risk Tolerance: Full coverage can provide peace of mind by protecting your car from various risks, including accidents, theft, and weather damage. If you prefer the extra security, keeping full coverage might be worth it, even after the car is paid off.

How old are you when your car insurance goes down?

While your auto insurance rates may drop at age 25, they will go down the most when you turn 19 (a 16% savings) and when you turn 21 (a 17% drop). The reason car insurance is expensive for drivers under age 25 is because younger drivers are statistically more likely to get into an accident than older drivers.

Why is my full coverage car insurance so high?

Car accidents and traffic violations are common explanations for an insurance rate increase, but other reasons why your car insurance rate can go up include changing your address, adding a new vehicle or driver, increases to claims in your ZIP code, and increases to car repair/replacement cost.

What bills improve your credit score?

As with cell phone bills, cable and internet bills can help your score if you opt in to a service like Experian Boost that gives you credit for utility and other kinds of payments. Just be mindful that not all of your credit reports will be affected.

Does State Farm run your credit?

Most major car insurance companies like GEICO, Progressive and State Farm factor in your credit score when giving you a quote. Some smaller, regional insurers skip credit checks, though their coverage options (and available online information) can be limited.

What is a good credit score?

For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.