Anamarie Waite, Car Insurance Writer
@anamarie.waite
Yes, car insurance does go down when you turn 21 years old. Car insurance goes down by about 20% between the ages of 20 and 21 years old and car insurance premiums continue to decrease each year throughout your 20’s and 30’s. The 21-year-old rate drop is the second biggest age-related price change, on average. The greatest savings occur between 18 and 19 years old, when premiums go down by around 30%. At 25, drivers get one last major rate reduction of about 14% before rates level off over the next decade.
When Car Insurance Rates Go Down
| Age | Average Rate | % Difference from Previous Age |
| 16 | $6,930 | 0% |
| 17 | $5,836 | 16% |
| 18 | $5,115 | 12% |
| 19 | $3,503 | 32% |
| 20 | $3,385 | 3% |
| 21 | $2,696 | 20% |
| 22 | $2,427 | 10% |
| 23 | $2,233 | 8% |
| 24 | $2,079 | 7% |
| 25 | $1,784 | 14% |
| 35 | $1,438 | 19% |
| 45+ | $1,863 | Increase 30% |
Most drivers experience age-related rate changes, but California, Hawaii, and Massachusetts don’t allow insurance companies to use age as a factor in determining rates. If you live in one of these states, you won’t see prices go down just for reaching a certain age.
People also ask
How much is car insurance for a 21-year-old?
Car insurance for a 21-year-old costs an average of $1,217 per year for minimum coverage. Twenty-one-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
The exact cost of car insurance for a 21-year-old depends on a few factors, including their driving record, gender, location, vehicle, and car insurance company. Some of the best insurance companies for 21-year-old drivers are...
read full answerHow much is car insurance for a 25-year-old?
Car insurance for a 25-year-old costs an average of $815 per year for minimum coverage. Twenty-five-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
The exact cost of car insurance for a 25-year-old depends on a few factors, including their driving record, gender, location, vehicle, and car insurance company. Some of the best insurance companies for 25-year-old drivers are...
read full answerWhen does car insurance go down?
The cost of car insurance typically goes down the most between the ages of 18 and 19, when rates drop by about 25% on average. Car insurance premiums generally continue to go down each year until age 25, when rates begin to level off for the next few decades. When drivers turn 25 years old, they can expect a discount of about 14%.
When Car Insurance Rates Go Down the Most
| ... | Average Rate | Change from Previous Age |
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