Does car insurance go down at 25?

Car insurance goes down at 25 because drivers gain experience and are less likely to take risks, such as speeding and distracted driving. However, your driving record, credit history, and ZIP code also affect your rates.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent Brad Larsen

UPDATED: Apr 2, 2022

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Things to Know

  • Car insurance rates decrease around age 25 because drivers gain experience with age
  • Other factors, such as your driving history and ZIP code, also affect the cost of car insurance
  • 25-year-old drivers can save money on car insurance by adding discounts and reducing coverage

Every driver knows that car insurance for young drivers is expensive, but the good news is that rates decrease as age and experience increase.

Does car insurance go down at 25? In most cases, yes. You will start to see your rates drop as you get older. However, other factors like your driving record can keep rates high no matter your age.

Drivers can lower car insurance rates by adding discounts, reducing coverage, and maintaining a clean driving record. In addition, comparison shopping helps drivers find the lowest rates available.

Keep reading to learn more about car insurance rates decreasing at age 25, and learn other ways to save on car insurance.

Why does car insurance go down at 25?

If you’ve ever looked for car insurance for young drivers, you know that rates are very high. However, rates don’t always stay so expensive.

Does car insurance lower after turning 25? While car insurance rates begin to drop before, age 25 is where most drivers see the most savings.

Rates decrease mainly because older drivers have more experience and are less likely to be involved in accidents.

For example, the Insurance Information Institute reports that per 100,000 licensed drivers aged 16-20, 32.5 are involved in a fatal car crash. On the other hand, per 100,000 licensed drivers aged 25-34, 26.1 are involved in a fatal accident. The numbers drop even more as age increases.

Typically, drivers gain experience as they age and change risky behaviors, such as speeding and distracted driving.

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How much is car insurance for 25-year-olds?

Now that we’ve talked about why car insurance decrease once you turn 25, let’s look at the numbers.

This table shows average annual rates from top car insurance companies based on age, gender, and marital status.

Average Annual Auto Insurance Rates Based on Age, Gender, and Marital Status
CompanyAverage Annual Rates Single 17-Year-Old FemaleAverage Annual Rates Single 17-Year-Old MaleAverage Annual Rates Single 25-Year-Old FemaleAverage Annual Rates Single 25-Year-Old MaleAverage Annual Rates Married 35-Year-Old FemaleAverage Annual Rates Married 35-Year-Old MaleAverage Annual Rates Married 60-Year-Old FemaleAverage Annual Rates Married 60-Year-Old Male
American Family$5,996.50$8,130.50$2,288.65$2,694.72$2,202.70$2,224.31$1,992.92$2,014.38
Liberty Mutual$11,621.01$13,718.69$3,959.67$4,503.13$3,802.77$3,856.84$3,445.00$3,680.53
State Farm$5,953.88$7,324.34$2,335.96$2,554.56$2,081.72$2,081.72$1,873.89$1,873.89
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Drivers who turn 25 will pay an average of $400 a month less than younger drivers. However, drivers will start to see their rates increase beginning around age 70.

What factors affect the cost of car insurance?

Many different factors affect car insurance rates, and every company calculates them differently. Other than age, your driving record, gender, marital status, credit score, and where you live also affect your rates.

Your driving record is one of the most significant factors that affects your car insurance. Drivers with accidents, tickets, and DUIs will pay much higher rates than drivers with a clean record.

Your gender also affects car insurance rates. On average, male drivers pay more for coverage than females of all ages. Insurance companies believe that men are riskier drivers than women and are more likely to speed or be in an accident.

Does my marital status affect auto insurance? Yes, married people are less likely to take risks and are seen as more responsible. As a result, they get lower car insurance rates.

You may not know that your credit score also affects your car insurance rates. Insurance companies believe that drivers with a high credit score are more likely to avoid claims and pay for damages themselves.

Where you live also affects your rates. Drivers who live in areas with a lot of theft, a high traffic volume, or even bad weather will pay higher rates since it’s more likely their cars will be damaged.

How can 25-year-old drivers save money on car insurance?

Even if your rates drop at age 25, there are more ways you can save on car insurance.

First, take advantage of car insurance discounts. Discounts vary by the insurance company, but drivers are typically eligible for at least one discount. Save more by bundling all available discounts, such as multi-policy, safe driver, and discounts based on your car’s safety features.

This table shows discounts offered by top car insurance companies. The savings amount is listed if available.

Car Insurance Discounts
Car Insurance DiscountsAllstate (%)American Family (%)Farmers (%)GEICO (%)Liberty Mutual (%)Nationwide (%)Progressive (%)State Farm (%)Travelers (%)USAA (%)
Adaptive Cruise ControlN/AN/AN/AN/A5xxN/AN/AN/A
Adaptive HeadlightsN/AN/AxN/A5xxN/AN/AN/A
Anti-lock Brakesxxx555x5xx
Claim Freexxx26x10x152312
Continuous CoveragexxxxN/AN/AxN/A15N/A
Daytime Running Lightsxxx155xN/Axx
Defensive Driverxxxx105105103
Distant StudentxxxxN/A10xx7x
Driver's Edxxxx10N/A101583
Driving Device/AppxxN/Ax30402050305
Early SigningxxxxN/A8xN/A1012
Electronic Stability ControlxxxN/A5xxN/AN/AN/A
Emergency DeploymentN/AN/AN/A25N/AN/AN/AN/AN/AN/A
Engaged CoupleN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Family LegacyN/AxN/AxN/AN/AxN/AN/A10
Family PlanN/AxxN/AN/A25N/AN/AN/AN/A
Farm VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Federal EmployeeN/AN/Ax810N/AN/AN/AN/AN/A
Forward Collision WarningN/AN/AN/AN/A5xxN/AN/AN/A
Full PaymentN/Axxx$5N/AxN/A7.5N/A
Further EducationN/AN/AN/Ax1015N/AN/AxN/A
Good CreditxxN/AN/AN/AxxxN/AN/A
Good Studentxxx1522.510x2583
Green VehiclexN/A5N/A10N/AN/AN/A10N/A
Lane Departure WarningN/AN/AN/AN/AxxxN/AN/AN/A
Life InsurancexN/AN/AN/AN/AxN/AN/AN/AN/A
Low Mileagexxxxxxx30xx
Military GaragingN/AN/AN/AN/AN/AN/AN/AN/AN/A15
Multiple DriversN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Multiple Policies1029x102010121713x
Multiple Vehiclesxxx25102010208x
New Customer/New PlanN/AN/AN/AN/AxN/AN/AN/AN/AN/A
New GraduateN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Newer VehiclexN/AxxN/Axx401012
Newly LicensedN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Occasional OperatorN/AN/AN/AN/AN/AN/AN/AN/AN/Ax
On-Time PaymentsxN/AN/AN/AN/AN/AN/AN/A15N/A
Online ShopperN/AN/AN/AN/AN/AN/A7N/AN/AN/A
Paperless DocumentsxxxN/AN/A5$50N/AN/AN/A
Paperless/Auto BillingxxxN/Ax$30x$233
Passive Restraintxxx40x20x40xx
Recent RetireesN/AN/AN/AN/A4N/AN/AN/AN/AN/A
Roadside AssistanceN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Safe DriverN/AN/Ax15N/A3531152312
Seat Belt UseN/AN/AN/A15N/AN/AN/AN/AN/AN/A
Senior DriverxN/AxN/AN/AN/AN/AN/AN/Ax
Stable ResidenceN/AN/AN/AN/AN/AxxN/AN/AN/A
Students & AlumniN/AxN/Ax107N/AN/AN/AN/A
Switching ProviderN/AxxN/A10N/AxN/AN/AN/A
Utility VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Vehicle Recoveryxxx153525x5xx
VIN EtchingN/AN/AxN/A5xxN/Axx
Young DriverN/AN/AN/AN/AxN/AxN/AN/A$75
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Next, reconsider your policy. Reduce coverages and increase deductibles to lower rates. However, you will have to pay more out of pocket if you’re in an accident.

In addition, keep your driving record clean, increase your credit score, and be aware of where you live. Because these items affect your costs, do everything you can to lower your rates.

Finally, shop around. Since every car insurance company evaluates your personal factors differently, they offer various rates. Compare multiple companies to find your best deal.

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The Bottom Line: Does car insurance go down at 25?

Car insurance rates go down at age 25 since older drivers have more experience. However, you may not see a significant rate reduction if you have a bad driving record, low credit score, or live in a dangerous area.

Add discounts, reduce coverage amounts, and increase deductibles to get even lower rates. While you can’t change your age, you can change your driving record, credit score, and ZIP code to save on car insurance.

In addition, shop multiple companies. Compare rates and discounts to find the company that offers you the best deal. Although your car insurance rates drop at age 25, pay close attention to your policy and compare insurance companies to save even more.

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