Merrill Burchell, Car Insurance Writer
@merrill_burchell
Car insurance rates begin to go down for young female drivers at age 21, usually. When men or women turn 25, their statistical risk of being in an accident goes way down. However, many insurance companies begin to reduce premiums for female drivers four years earlier. From the ages of 21 to 25, female drivers’ rates gradually drop nearly 25%, according to studies. Women’s rates continue to decrease after age 25, but more gradually, until they level off between 50 and 60 years old.
Between the ages of 65 and 75 (depending on your insurer), rates start to rise again for both women and men. Studies by the Centers for Disease Control and Prevention show that senior drivers have slower reflexes, which causes more crashes. Also, the risk of being injured or killed in an auto accident increases as you age. There is more risk of claims for your insurer, resulting in higher costs for you.
Although most female drivers in the U.S. will see their insurance costs rise and fall on this schedule, three states don’t allow insurers to use age as a rating factor—California, Hawaii, and Massachusetts. Even removing this significant factor doesn’t mean premiums will remain level over your lifetime, however. Changes in location, coverage levels, driving record, type of car, credit rating, and marital status are still likely to push your costs up and down over time.
People also ask
How much is car insurance for an 18-year-old?
Car insurance for a 18-year-old is $2,325 per year for minimum coverage, on average. Eighteen-year-old drivers pay even more for full coverage, which typically includes comprehensive and collision insurance in addition to the state's minimum requirements.
Eighteen-year-olds 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. Because the cost of coverage for 18-year-olds is so high, it's important to...
read full answer by Candace Baker, Car Insurance WriterHow much is car insurance for a 23-year-old?
Car insurance for a 23-year-old costs an average of $1,013 per year for minimum coverage. Twenty-three-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 23-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 23-year-old drivers...
read full answer by Candace Baker, Car Insurance WriterWhen 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 30% 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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