What Age Does Car Insurance Go Down? (2024)

FAQs

What Age Does Car Insurance Go Down? ›

Car insurance is the cheapest for drivers between the ages of 35 and 55. Car insurance is very expensive for teens because they have a high risk of accidents, and then it decreases sharply as drivers age into their 20s and develop more reliable driving habits.

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. Both men and women see the steepest drop in car insurance costs between ages 18 and 19.

Auto insurance premiums tend to decrease as you get older, up until about age 75 when they start increasing again. But your age is just one of many factors insurers consider when setting rates.

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.

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.

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.

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.

Auto premiums are unlikely to go down in 2024, but car owners have several ways to help reduce the cost of their insurance policies.

Car insurance does get cheaper at 25 , but the percentage decrease varies a lot depending on the company. Of the largest auto insurance companies — Geico, State Farm, USAA and Progressive — USAA and Geico have cheaper rates for young drivers than Progressive or State Farm.

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.

Why is insurance so expensive under 25? ›

Insurance companies often see young drivers as a greater risk because they are more prone to accidents and poor decision-making — both of which raise the potential cost of claims that need to be paid out by insurers. As a result, these added risks lead to higher premiums when insuring teen drivers.

AAA is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $529 per year, the average AAA car insurance policy is actually cheaper than coverage from most competitors. In fact, AAA is one of the cheapest car insurance companies nationally.

If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.

Drivers see higher car insurance rates well into their 20s because of this, even if they have clean driving records. You might be the safest 20-year-old driver out there, but the average cost of car insurance for your age group is higher because of the drivers who do get into accidents.

Your Progressive rates may increase after six months depending on a number of factors. Like other car insurance providers, Progressive will typically raise your rates if you receive a speeding ticket or moving violation, cause an accident or make comprehensive insurance claims.

Between 10 and 15 years after a vehicle's model year, full coverage is a poor investment. While the cost of full coverage by itself likely won't be more than what a car is worth, the cost of insurance is more likely to be higher than the value of the car after an accident.

With this perspective, you can understand why an insurance provider would charge higher rates for younger drivers. On the same note, male drivers between 20 to 29 years old are almost twice as likely to be in a fatal accident than their female counterparts. This results in higher premiums for males in this age range.