When Do Car Insurance Rates Go Down?

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

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 $556 per year when you turn 19.


Average Annual Premium by Age

AgeAverage Annual PremiumDifference From Previous Year
16$5,234--
17$4,970-$264
18$4,630-$340
19$4,074-$556
20$3,811-$263
21$3,440-$371
22$3,285-$155
23$3,141-$144
24$3,056-$85
25$2,903-$153

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.




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.


Average car insurance rate increase after speeding ticket

YearAverage Annual PremiumAverage Annual Increase
None$1,427--
First-Year Increase$1,757$264
Second-Year Increase$2,415$329
Third-Year Increase$3,403$988


Average car insurance premium increase after DUI

YearAverage Annual PremiumAverage Annual Increase
None$1,427--
First-Year Increase$2,520$1,092
Second-Year Increase$4,704$2,185
Third-Year Increase$7,981$3,277


Average car insurance rate increase after at-fault accident

YearAverage Annual PremiumAverage Annual Increase
None$1,427--
First-Year Increase$2,115$687
Second-Year Increase$3,490$1,375
Third-Year Increase$5,552$2,062


There are some serious ramifications for receiving a ticket or DUI conviction, or causing an at-fault accident. 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 just expensive — 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 good way to find cheaper rates.



Find car insurance today!