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When Does Car Insurance Go Down?

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%. 

When does car insurance go down based on other factors?

Since you can’t control how quickly you age, you’ll be happy to know that other factors can decrease your car insurance costs. Here are six other times your insurance may go down and you can get better auto insurance rates. 

1. When you improve your credit score

Drivers with higher credit scores are typically able to get cheaper insurance rates. Taking steps to improve your credit score could help your car insurance go down. 

2. When you qualify for car insurance discounts

Many insurance companies offer discounts to drivers, such as “Good Student” discounts, “Driver’s Ed” discounts, and “Safe Driver” discounts. You can also ask about company discounts like bundling your home and auto insurance to decrease your car insurance cost. 

3. When you buy a different car

Some cars are more expensive to insure than others. For example, insuring a large SUV typically costs more than insuring a small, compact vehicle. Additionally, some insurance companies, such as Farmers Insurance, offer discounts to drivers who drive hybrids or other alternative fuel vehicles. 

4. When you increase your deductible amount

There are two ways you pay for auto insurance. The first is your premium, which is the amount you pay monthly to be insured. The other is your deductible, which is the amount you pay upfront in the event of an accident before your insurance company covers the rest.  

One way to decrease your monthly premium is to increase your deductible amount, which you only pay if you file a claim. Be careful when you do this, though, since increasing your deductible means you’ll pay more out-of-pocket if you ever need to file a claim. Generally, it’s a good idea to only increase your deductible to a number you can reasonably afford, if needed. 

5. When your policy only includes the coverage you need

Each state has minimum auto insurance requirements drivers must adhere to in order to operate a vehicle legally. If you lease or finance your vehicle, your lender may also have minimum insurance requirements. 

Depending on your needs, you can choose to only pay for the insurance your state or lender requires. Use our insurance-by-state tool to learn about your state’s insurance laws, but keep in mind you may need more coverage than the minimum requirements based on your needs and desired coverage, which can vary person to person.  

6. When you switch car insurance providers

Lastly, if you’re wondering how to get cheap car insurance, consider switching insurance providers. Your current provider might not be the most affordable option. At Rate Retriever, we make it easy to compare insurance from top providers so you can find the best policy for the best price. Use our comparison tool today to find your top insurance providers who may be able to give you a better rate! 

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results 

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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