At What Age Does Car Insurance Go Down?

For young drivers, things aren’t always easy when it comes to paying for car insurance in those early years of motoring. There is some light at the end of the tunnel, and that’s when your insurance company starts to recognize your experience as a driver with a clean record, and your premiums drop as a result.

Though your teenage years may have been some of your favorites (you learned to drive, after all!), now, they’re mostly behind you– and the same thing goes for the higher insurance rates that came along with them.

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As a motorist entering the end of your teenage years, you’ve graduated from the risky ‘teen driver’ demographic as you move into your twenties. By the numbers, you’re now about 3 times less likely to be involved in a fatal crash than when you were first licensed, you’re less likely to be driving with teenage passengers (a risk factor for accidents), and you’re more likely to be wearing your seatbelt.

With a clean driving record, you could expect to see your car insurance premiums fall throughout your twenties and settle off in your mid-thirties, with the steepest drop often coming in your early to mid-twenties.

Of course, that’s a generalization, and many factors and nuances affect the rates you’ll pay, and when they’ll change.

I asked Ray Blackburn, an insurance expert at Toyota Insurance, to help explain.

“In the good old days, a young driver could count on their rates to drop at age 25 and again at age 29. But now, insurance pricing is far more sophisticated, and you may find that insurers’ rating factors improve slightly every year from the time that a young driver is first licensed. Because of this, the decreases at ages 25 and 29 are no longer as noticeable. As in most cases with insurance prices, this varies with each insurance company.”

Each drop in insurance rates can be associated with a reduction in risk, including additional experience behind the wheel and a decreased propensity for risky behavior. Just remember, different auto insurance providers measure risk in different ways, and where you live also plays a factor.

Still, a single accident or conviction on your driving record can increase your premiums significantly and for years to come, backtracking previous progress. Drive safe!

As you move out of your teens and into your twenties and thirties, remember to talk to a broker about your specific insurance needs. As your lifestyle changes, so may your choice of vehicle, the state you live in, and your habits as a driver. A broker can quickly help you tailor your auto insurance policy, search for available discounts, and even track down home and auto insurance bundles that can save you money.

A broker can also advise you on which cars are less expensive to insure– typically those with high safety ratings, lower repair costs, and lower theft rates.

Does insurance still drop when you get married?

“In most cases, yes” says Blackburn.

“The math shows insurance companies that young people instantly become more responsible and are safer once they have a family. Insurance pricing based upon marital status varies by company.”