Does car insurance get cheaper with age?

Free Car Insurance Comparison

 Secured with SHA-256 Encryption

Call for FREE quotes: (855) 425-8122

Joel Ohman
Founder, CFP®

UPDATED: May 16, 2016

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Here's what you need to know...
  • The standard age at which car insurance premiums decrease is 25
  • Though you may be under 25, there are ways you can lower your premiums based on your driving record and your performance in school
  • Insurance rates have a tendency to increase again once an individual reaches the age of retirement

Although there is no law stating at what age car insurance rates are lowered, for most insurance companies, the age is 25.

Enter your zip code and compare car insurance rates from multiple companies today.

Different ages signify different milestones, but to an insurance company, the age 25 signifies responsibility.

At 18, you are still a teenager–young and inexperienced. At 21, you are legally allowed to drink, but you may still make poor choices about drinking and driving.

Of course, many adults in various age ranges are not responsible drivers; however, the insurance companies need some sort of standard to classify young drivers and experienced drivers so that they can adjust car insurance premiums accordingly.

At age 25, you are probably working or attending college, and you may already be married.

The more responsibility you have, the more you can expect to save on your car insurance premium.

Getting Car Insurance for a Young Driver

As soon as a young driver is ready to sit behind the wheel, it is time to get insurance.

You most likely will not be able to insure a young driver on a policy by himself. Since age is one significant factor that determines a person’s car insurance premium, most insurance companies will not issue a car insurance policy to anyone who is under 25.

However, you can add almost anyone to your existing policy.

Free Car Insurance Comparison

Compare quotes from the top car insurance companies and save!

 Secured with SHA-256 Encryption

Call for FREE quotes: (855) 425-8122

In order to add a young person to your car insurance policy, you need to contact your insurance company.

They need to know the name and age of the driver and the relationship between the new addition to the policy and the policyholder.

Your policy most likely bans all drivers under the age of 25 from your car insurance coverage.

In order to have someone explicitly covered, he or she needs to be named on the policy. This allows that specific young adult to be covered by your insurance policy as an exception.

While this allows your teenager or young adult driver to be covered by your policy, it does not allow any other drivers under the age of 25 to be covered.

It is imperative that your young driver does not allow anyone else to drive your car, even if they have their own insurance policy.

Reducing Car Insurance for a Young Driver

Asian car driver woman smiling showing new car keys and car. Mixed-race Asian and Caucasian girl.

Young drivers are not considered to be the most responsible because of their age and inexperience.

However, some young drivers are very responsible and are able to lower their car insurance premiums as a result.

  • One of the most common ways to reduce car insurance for a young driver is to prove the student receives good grades. Most car insurance companies give Good Student Discounts to reward students for being responsible in school.
  • Driving safely may not help you reduce your premiums any further, but it keeps your premiums from increasing. Following the rules of the road is a great way to keep your premiums low.

How Age Affects Car Insurance

As you can see from above, 25-years-old is the age a person’s car insurance rates go down in most instances.

By the time you turn 25, you may have graduated college, gotten married, started a family, and most likely began a career. Responsibility tends to accompany the aging process, resulting in a decrease in insurance premiums.

You also probably have 9 or 10 years of driving experience by the time you turn 25.

Since experience is one of the best teachers, especially when it comes to driving, your car insurance goes down at this point. Of course, this is only the case if you have a good driving record.

If you maintain a good driving record and avoid moving violations and insurance claims, your insurance premiums can continue to decrease as you age.

However, once you become a senior driver, you may see a rise in your insurance premiums.

This is because there are several medical conditions that seniors are more prone to, such as heart attacks and strokes. Also, reflexes may be slower, affecting reaction times.

Vision and hearing can also impact a senior’s driving ability. Senior drivers are considered a risk just as young drivers are, thus car insurance rates increase.

Enter your zip code now and compare car insurance rates from multiple providers.

Free Car Insurance Comparison

Compare quotes from the top car insurance companies and save!

 Secured with SHA-256 Encryption