When Do Car Insurance Rates Go Down?

Let's explore some common answers to the question, "When will my car insurance rates go down?"

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When does car insurance go down?


Car insurance is a unique commodity, in that its cost is dictated largely by you, the consumer. As your circumstances change — via aging, time passing since your last traffic violation or car accident, or relocation to another zip code — your auto insurance rates can drop. Let's take a look at common reasons car insurance rates decrease.


When do car insurance rates go down?
  1. As you age
  2. When a ticket or citation falls off your record
  3. When you switch insurers


At what age does car insurance go down?


If you’re a young driver, you can look forward to car insurance savings as you get older. Both males and females see the biggest drop in average annual car insurance premiums between the ages of 18 and 19. On average, you can expect savings of $1,595 per year when you turn 19.


Average Annual Premium by Age

AgeAverage Annual PremiumDifference From Previous Year


Car insurance rates decrease with age because insurers see less risk in covering older, more experienced drivers. While it's unlikely your driving skills will magically improve on your birthday each year, data show drivers grow less likely to file insurance claims as they age.

If you're a teen on your own policy or a parent waiting for your young driver's premiums to go down, rest assured: car insurance rates do go down at age 18 and beyond.

Learn more about how your age affects your car insurance rate by checking out our breakdowns by age.



How long after a ticket does car insurance go down?


Most tickets, claims, and citations will stay on your insurance record for three years. Below are common citations and their projected three-year impacts on car insurance premiums, along with insurer-specific estimates for the following violations and citations:


Average car insurance rate increase after speeding ticket

YearAverage annual premiumAverage annual increase
First-Year Increase$1,811$341
Second-Year Increase$2,231$420
Third-Year Increase$2,749$518


Average premium after a speeding ticket by insurance company

CompanyAverage premium after ticketTotal cost over three years
State Farm$1,490$4,470
Liberty Mutual$2,014$6,042


Average car insurance premium increase after DUI

YearAverage Annual PremiumAverage Annual Increase
First-Year Increase$2,556$1,086
Second-Year Increase$4,442$1,886
Third-Year Increase$7,721$3,279


Average premium after a DUI by insurance company

CompanyAverage premium after DUITotal cost over three years
State Farm$1,975$5,925
Liberty Mutual$2,635$7,905


Average car insurance rate increase after at-fault accident

YearAverage Annual PremiumAverage Annual Increase
First-Year Increase$2,087$617
Second-Year Increase$2,963$876
Third-Year Increase$4,207$1,244


Average premium after at-fault accident by insurance company

CompanyAverage premium after accidentTotal cost over three years
State Farm$1,617$4,851
Liberty Mutual$2,358$7,074


There are some serious ramifications for receiving a ticket, DUI conviction, or causing an at-fault accident — especially considering the total cost of increased premiums over three years, something like a DUI can make a significant dent in both your finances and your relationship with your insurer provider. Bear in mind these figures are estimates, dependent on state- and insurance company-specific regulations. For example, a DUI in California will stay on your record for 10 years.



Finding lower rates by switching car insurance companies


Like celebrating a birthday or having a violation fall off your insurance record, moving from company to company is another way to lower your auto insurance rates. Some car insurance companies are on the expensive side — regardless of the policy type — while others may not be great fits for your particular driving profile. Assessing car insurance quotes from various companies every six months is a great way to find cheaper rates.



Find car insurance today!

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Ava Lynch LinkedIn

Ava worked in the insurance industry as an agent for four-plus years. Currently providing insights and analysis as one of The Zebra’s resident property insurance experts, Ava has been featured in publications such as U.S. News & World Report, GasBuddy, and Yahoo! Finance.