When Do Car Insurance Rates Go Down?
- Growing older, driving safely, and changing insurers can all lower your rate.
- Compare quotes to see if switching companies will cause your premium to go down today!
Common reasons why car insurance rates decrease
If you’re asking how long it takes for car insurance to go down, here’s what you need to know:
- For teen drivers: The biggest decreases happen between ages 18 and 19 as insurers see more experience and lower risk.[1]
- For males: Rates are higher in the teens and early 20s but drop significantly in the mid-20s when insurers see less risk.
- If you've had a ticket or accidents: Rates usually go down 3-5 years after a violation if you keep a clean record.
- If you have bad credit: Improving your credit from "poor" (300-579) to "very good" (740-799)Â can save you $100 per month on average.
Your premiums can also drop if you shop for better rates. Below, we’ll explain how these milestones work and what you can do to save faster.
At what age does car insurance go down?
Car insurance rates begin to drop as you age, with the most significant decreases happening in your late teens and early 20s. While these larger reductions happen early, rates continue to decline slightly until around age 50. Here’s what the data shows:
What’s behind it? Younger drivers are considered high-risk due to inexperience. Insurers reassess their risk level as they gain driving experience, leading to lower premiums.
What’s behind it? Age 25 is a key milestone when insurers see drivers as significantly lower risk, leading to major rate reductions.
What’s behind it? Insurers initially charge higher rates for males due to greater accident risk. However, as both genders age, the difference in risk narrows, leading to more similar premiums for men and women over time.
Have a look at the following rates to get a sense of what drivers in younger age groups are likely to pay in premiums for their own insurance policy.
Updating data...
| Age | Avg. Monthly Premium | Rate Difference (Age) |
|---|---|---|
| 16 | $558 | |
| 17 | $470 | $89 |
| 18 | $422 | $48 |
| 19 | $330 | $92 |
| 20 | $300 | $30 |
| 21 | $241 | $59 |
| 22 | $221 | $20 |
| 23 | $207 | $15 |
| 24 | $195 | $12 |
| 25 | $169 | $26 |
Source: The Zebra
The Zebra’s auto insurance data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Tips for lowering car insurance by age
Young drivers (16-25)
To help rates drop sooner, teens should stay on a parent’s policy if possible, ask about good student and driver safety discounts, and compare rates regularly.
Established drivers (25-50)
Save by maintaining a clean driving record, bundling home and auto policies, increasing deductibles, and checking for loyalty or low-mileage discounts.
Seniors (50+)
You can still save by reducing coverage (if you drive less, have an older car, or have a strong savings account) asking about senior discounts, and reassessing your policy needs.
Does car insurance go down at 25?
Finding Affordable Teen Car Insurance
Insuring a teen is pricy, but we’ve found the cheapest insurers for teens with top-rated service using The Zebra's data.
- American Family ($343/mo)
- USAA (if you qualify) ($394/mo)
- Erie Insurance ($334/mo).
See our guide to the Best Companies for Teen Drivers for more options and money-saving tips.
Here at The Zebra we do the searching, you do the saving.
When does insurance go down after a claim or ticket?
While minor tickets might only raise your premium slightly and affect your insurance for three years, more serious infractions can result in years of higher costs. A lot depends upon the severity of the infraction and the state you live in. Here’s a general breakdown of how long some common different violations may impact your rates:
| Violation | Typical Length of Time Rates are Impacted |
|---|---|
| Speeding Ticket (1st Offense) | ~3 years |
| At-Fault Accident | ~3-5 years |
| DUI or Reckless Driving | 5+ years (varies by state) |
Below are more details on even more citations and their projected three-year impacts on car insurance premiums, along with the accompanying insurer-specific estimates. Bear in mind these figures are estimates, dependent on state- and insurance company-specific regulations.
Source: The Zebra
| Year | Average Annual Premium | Average Annual Increase |
|---|---|---|
| None | $1,470 | -- |
| First-Year Increase | $2,087 | $617 |
| Second-Year Increase | $2,963 | $876 |
| Third-Year Increase | $4,207 | $1,244 |
| Company | Average premium after accident | Total cost over three years |
|---|---|---|
| GEICO | $1,997 | $5,991 |
| Nationwide | $2,174 | $6,522 |
| USAA | $1,288 | $3,864 |
| State Farm | $1,617 | $4,851 |
| Allstate | $3,017 | $9,051 |
| Liberty Mutual | $2,358 | $7,074 |
| Farmers | $2,226 | $6,678 |
| Progressive | $2,772 | $8,316 |
| Year | Average Annual Premium | Average Annual Increase |
|---|---|---|
| None | $1,470 | -- |
| First-Year Increase | $2,556 | $1,086 |
| Second-Year Increase | $4,442 | $1,886 |
| Third-Year Increase | $7,721 | $3,279 |
| Company | Average premium after DUI | Total cost over three years |
|---|---|---|
| GEICO | $2,647 | $7,941 |
| Nationwide | $3,092 | $9,276 |
| USAA | $1,753 | $5,259 |
| State Farm | $1,975 | $5,925 |
| Allstate | $3,634 | $10,902 |
| Liberty Mutual | $2,635 | $7,905 |
| Farmers | $2,632 | $7,896 |
| Progressive | $2,004 | $6,012 |
| Company | Average premium after DUI | Total cost over three years |
|---|---|---|
| GEICO | $2,647 | $7,941 |
| Nationwide | $3,092 | $9,276 |
| USAA | $1,753 | $5,259 |
| State Farm | $1,975 | $5,925 |
| Allstate | $3,634 | $10,902 |
| Liberty Mutual | $2,635 | $7,905 |
| Farmers | $2,632 | $7,896 |
| Progressive | $2,004 | $6,012 |
| Year | Average Annual Premium | Average Annual Increase |
|---|---|---|
| None | $1,470 | -- |
| First-Year Increase | $2,087 | $617 |
| Second-Year Increase | $2,963 | $876 |
| Third-Year Increase | $4,207 | $1,244 |
| Company | Average premium after accident | Total cost over three years |
|---|---|---|
| GEICO | $1,997 | $5,991 |
| Nationwide | $2,174 | $6,522 |
| USAA | $1,288 | $3,864 |
| State Farm | $1,617 | $4,851 |
| Allstate | $3,017 | $9,051 |
| Liberty Mutual | $2,358 | $7,074 |
| Farmers | $2,226 | $6,678 |
| Progressive | $2,772 | $8,316 |
Tips for lowering car insurance if you have a record
After a Ticket or Minor Infractions
Shop around for insurers (some penalize tickets less), take a defensive driving course, and be extra careful to keep a clean record moving forward.
After a DUI or Other Major Infraction
Check if a state-approved DUI program can help lower your rates. Also, maintain continuous coverage, even without a license, which may require a non-standard policy and an SR-22.
After an At-Fault Accident
Check if your insurer offers accident forgiveness or lowers rates for taking a defensive driving course, and compare quotes as different insurers penalize accidents differently.
How to stay insured with a non-standard policy
If you’ve had multiple incidents or a major violation like a DUI, a non-standard car insurance policy can help you maintain coverage. Here’s how it works:
-
What it is: A non-standard policy is insurance designed for high-risk drivers who don’t qualify for traditional policies. These plans typically offer basic coverage with fewer perks but ensure you meet legal requirements.
-
Why choose a non-standard policy? It’s not usually a choice—it’s often the only option for drivers with major violations, multiple incidents, or poor credit. Non-standard insurance keeps you legally covered when standard providers decline coverage.
- How to get it: Some major insurers offer non-standard policies, but smaller companies often specialize in them at lower rates. We recommend talking with one of The Zebra's licensed independent agents—they can help you quickly explore quotes from large and small insurers and answer all your questions!
Switching insurers: A fast way to lower rates
Car insurance rates don’t stay the same forever, and neither should your policy. If you're waiting for your rates to drop, shopping around now could help you find a better deal faster. Insurers assess risk and discounts differently, and what’s cheapest today might not be tomorrow.
🤫 Insider knowledge: According to one of The Zebra's licensed insurance agents, Jordan Lazare, insurance companies sometimes adjust pricing based on who they want to attract (e.g. certain age groups). If a carrier wasn’t competitive for you before, they may now offer lower rates based on shifts in their target customer profile.
Why use The Zebra?
When rates change, The Zebra makes it easy to check if you're overpaying. As an independent insurance advisor and comparison site, we help you:
✔ Compare multiple quotes at once—see top insurers side by side
✔ Find your lowest rate based on your driving profile
✔ Learn what coverage fits your needs—without the hassle
✔ Get expert help from in-house agents if you need it
✔ Feel confident knowing your personal information is protected
Save an average of $440 per year on car insurance when you let The Zebra do the shopping.
Real help, right here.
FAQs: When do auto insurance rates go down?
Data Methodology. The Zebra’s Dynamic Insurance Rating Tool
Anonymized User Surveys. The Zebra
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.