MoneyLife

What Age Does Insurance Go Down? Cheaper Car Insurance Guide

By Jacinta Sherris
what-age-does-insurance-go-down

If your insurance bill has been eating away at budget, you may be wondering at what age you can expect your insurance to go down. Car insurance rates vary depending on your gender, age, driving history, location, and more. Some groups inevitably end up paying more for car insurance than others. You could try our car insurance calculator to see how much people like you pay for car insurance and ways to save.

Here are answers to the most common questions regarding when you can expect a reduction in car insurance and how to keep your insurance costs low. We’ll also review answers to “At what age does insurance go down?” and “Which group pays more for car insurance?”

When will my insurance go down?

Most people find that their car insurance payments tend to go down once they turn 25. However, your personal rates will vary depending on your driving history, gender, and residential area. 

For example, car insurance costs are impacted by any history of being in a car accident. If you’ve recently been in an accident, it can take anywhere from three to five years after the incident before your insurance costs start going down again. 

When does insurance go down for female drivers?

For women, car insurance rates start going down around the age of 21. However, the most significant drop happens at 25, since the risk for accidents at this age decreases drastically at this age. 

Women also typically have cheaper car insurance than males from the get-go, especially if she’s the primary driver of the car. Insurance companies have found that when a woman is the primary driver of a car, it’s less likely that multiple other people will be driving the same car. Some trends also point out that men tend to be more accident-prone than women, especially at a younger age. 

When does insurance go down for male drivers?

Usually, car insurance rates for men won’t begin to decline until they are at least 25 years old. Insurance companies have found male drivers pose more of a risk to insurance companies than women, especially at a younger age. This effect tends to decrease over time and women actually end up paying slightly more than men during middle-age years. 

When does insurance go down for new drivers?

The cost of insurance doesn’t go down dramatically until young drivers are at least 25 years old. Young drivers are viewed as more risky by insurance companies, and these companies will try to compensate for the risks by charging a higher premium. Even with student discounts, young drivers are more likely to save money by staying on their parents’ car insurance. 

How much does car insurance go down after 1 year no claims?

You should absolutely practice being a safe driver, as this is the best way to keep your car insurance rates low. As long as you continue to drive safely, your insurance costs should experience a year-over-year decline as you age. It may not be a dramatic decrease at first, but over time, you’ll begin to save more and more money. 

Does car insurance go down at 25?

Yes! When you turn twenty-five, you can expect your car insurance to go down. Once you cross this threshold, you can expect to pay less than you did in your early twenties as- so long as there are no accident claims on your driving history. 

Which age group pays the most for car insurance?

We’ve talked about the answer to the question, “At what age does car insurance go down?” but you’re probably also wondering which age group pays more for car insurance. Here’s an outline of the average rates men and women can expect to pay at any given age. 

Auto insurance rates by age

Age Male Female 
20$3,195$2,769
25$2,181$2,036
30$1,869$1,832
35$1,813$1,790
40$1,648$1,700
45$1,516$1,528
50$1,445$1,451
55$1,419$1,421
60$1,414$1,415
65$1,463$1,452
70$1,546$1,527
75$1,736$1,666

Top 6 car insurance discount programs

If you’re hoping to get a better rate on your car insurance, you might be surprised to learn that your credit score may be holding you back. In some states, insurance companies check credit scores

If you’re struggling in this area, know that you can boost your credit score with a MoneyLion Credit Builder Plus loan. Over 50% of users have boosted their credit score by 42 points or more in 60 days. Learn more here

Once your credit is in better shape, make sure to browse top car insurance discount programs. Some companies offer better rates than others. Take a look at the cheaper options:

Never miss a car insurance payment

Missing a car insurance payment can bring about extra fees that hurt your credit score. To make sure you never miss a payment, open a RoarMoney online bank account to set up autopay for your car insurance payments. 

You won’t have to deal with the hassle of actively remembering to make your payments on time, and you won’t run the risk of missing payments either! Even better, car insurance companies tend to give out discounts when you set up autopay.

RoarMoney also comes with additional benefits like financial tracking tools, cashback rewards, price protection, and the option to deposit your paycheck early. The online bank account only costs $1 per month and it features zero hidden fees. Learn more here!

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