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.
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