When Does Car Insurance Go Down?
Age plays a significant factor in the price of auto insurance in most states. However, other factors can lower the cost of your insurance too. Keep reading to learn when you can expect the cost of car insurance to drop and how you can speed up the process.
When does car insurance go down based on age?
Brand-new, 16-year-old drivers in the United States will pay more for car insurance than any other demographic. This is because insurance companies consider new drivers “high risk” since they have less experience on the road and are more likely to get into a car accident than any other age group. Other teenage drivers also pay higher rates than drivers who are older.
So, when does car insurance go down based on age? The cost of car insurance will slowly decrease with each year of age and/or driving experience. The most significant drop in insurance cost occurs at age 25, but how much your car insurance will do down at 25 depends on your gender.
When Does Car Insurance Go Down for Females?
The average female driver will see the first decrease in the cost of car insurance by age 20. By age 25, they will see the most significant percentage decrease for their auto insurance policy.
When Does Car Insurance Go Down for Males?
It’s important to note that males pay more on average than females for car insurance. Like their female counterparts, the average male driver will see the first decrease in the cost of car insurance by age 20 but will still pay an average of 10% more than female drivers. By age 25, the difference decreases to around 2.5%.