Updated: June 4, 2025
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Car insurance rates go down differently by gender for young drivers. Men pay more than women.
Your car insurance premium is less likely to be affected by age when you reach 25, which is why rates stabilize at this point.
Many factors affect car insurance costs besides age. Your driving experience, coverage lapses and driving history can affect premiums substantially.
Car insurance costs decrease each year for drivers between 16 and 24. Rates continue to drop until you turn 30, then remain roughly the same. Premiums only begin increasing again when you become a senior driver.
Based on our analysis, your premiums decrease the most on your 18th and 21st birthdays. The graph below shows how auto insurance premiums change as you age.
The average annual cost of car insurance doesn't suddenly plummet when you turn 25, despite what many people believe. The real story is more gradual. A survey by the AAA Foundation for Traffic Safety found that at least 60% of American drivers get their license before age 18, giving them several years of driving experience by 25.
Here's what actually happens: Insurance companies consider drivers ages 16 to 24 high-risk, so your rates drop steadily throughout your early twenties as you gain experience and move away from that risk category. By 25, you've officially graduated out of the highest-risk age group.
Your premiums continue decreasing gradually through your late twenties and thirties, then stay relatively stable until you're in your 50s, when rates may start increasing again due to age-related factors.
Car insurance price reductions when you turn 25 vary across companies. Use the table below to compare percent decreases for different companies.
Company | Percent Decrease |
|---|---|
Progressive | 13% |
Nationwide | 11% |
State Farm | 10% |
GEICO | 7% |
Allstate | 6% |
Sixteen-year-old drivers pay around $2,000 more for car insurance than 25-year-olds. The gap comes down to inexperience behind the wheel. You develop better driving skills and judgment during those years between 16 and 25, which translates to lower insurance rates as you get older.
A young driver's age isn't what makes them riskier — it's the behaviors that come with being young and inexperienced. For instance, 50% of accidents involving this age group happen on Fridays, Saturdays and Sundays when teens are most likely to have social plans. Teen drivers also use seatbelts less often and miss road hazards more frequently than experienced drivers.
The good news? You naturally outgrow these risky behaviors as you gain experience and develop better driving habits.
Car insurance rates are higher for young drivers, so shop around to find the cheapest car insurance companies.
Age isn't the only factor affecting car insurance costs for young drivers. Gender also plays a role: young men typically pay higher rates than young women. The car insurance between men and women gap exists because of differences in accident rates, violation patterns and vehicle choices.
According to the National Highway Traffic Safety Administration, men are more likely to be involved in fatal accidents due to speeding and tend to drive cars that cost more to insure. An FBI report also found men are twice as likely to be arrested for serious driving violations like DUIs.
However, some states prohibit using gender as a rating factor. California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania require identical rates for male and female drivers.
The difference in car insurance rates between men and women is more pronounced before 25. We found that 16-year-old men pay $423 more than women on average. Below are the average rates for young men and women and the difference in premiums.
Age | Female | Male | Extra Amount Paid by Males |
|---|---|---|---|
16 | $3,160 | $3,583 | $422 |
17 | $2,940 | $3,338 | $398 |
18 | $2,686 | $3,048 | $362 |
19 | $2,629 | $2,949 | $320 |
20 | $2,333 | $2,597 | $264 |
21 | $1,873 | $2,042 | $169 |
22 | $1,759 | $1,876 | $117 |
23 | $1,601 | $1,696 | $95 |
24 | $1,508 | $1,578 | $70 |
25 | $1,393 | $1,411 | $18 |
The table above shows premiums for men and women getting closer as they age. This continues until 25 when they pay roughly the same rate for coverage. After 30, women pay slightly more for car insurance. Based on our analysis, no data indicate a confirmed risk factor in older women drivers. Check cost differences and average rates for 30-year-olds and 50-year-olds below.
Age | Female | Male | Extra Amount Paid by Males |
|---|---|---|---|
30 | $1,285 | $1,250 | -$35 |
50 | $1,187 | $1,171 | -$16 |
Some states including California, Hawaii and Massachusetts have begun equalizing car insurance rates by prohibiting gender from being used as a car insurance rate factor.
Age isn't the only factor that affects when car insurance rates go down. Other aspects are just as important to providers.
New drivers pay more regardless of age. Two 26-year-olds with different experience levels will see dramatically different rates. The person who just got their license pays substantially more than someone who's been driving for 10 years.
Tickets, accidents and DUIs make you a high-risk driver, leading to higher premiums. The more violations on your record, the more you'll pay.
Married drivers typically pay less than single or widowed drivers. Insurance companies view married people as more financially stable and cautious behind the wheel. Plus, married couples often bundle their cars under one policy for multi-car discounts.
College graduates pay less for car insurance. Studies show drivers with bachelor's, master's or doctoral degrees file fewer claims than those without college degrees.
Your profession affects your rates, but insurers interpret careers differently. One company might charge executives more because they drive frequently for work, while another offers lower rates because they view executives as financially responsible.
Poor credit typically means higher premiums since insurers have found that drivers with lower credit scores file more claims.
Where you park your car overnight determines your base rate. Urban areas with higher crime and accident rates cost more than rural locations.
Car insurance for drivers under 25 years old can be expensive. Taking proactive steps like taking a defensive driving course and working on your credit score can help drivers lower their insurance costs and receive more affordable premiums.
Safe drivers pay lower premiums than those with violations. If you currently have a clean record, keep it that way because it will benefit you tremendously in the long term.
You can often get a discount if you complete a defensive driving course. However, not all carriers offer this, so inquire about it with your provider beforehand.
Different insurance providers offer varying discounts, so check what options you have available. Pay particular attention to discounts that fit your situation, such as new car discounts or those for good students.
Car insurance providers offer lower rates to drivers with good credit because it reflects how well you manage your finances. Improving your credit may take time, but it also comes with long-term advantages.
Rates don't just vary between areas or driver profiles, they also differ between providers. Although you can get a loyalty discount for staying with the same company each year, taking the time to compare car insurance quotes may help you find lower rates. This is particularly beneficial when you're young and policies are more expensive.
Although car insurance rates are higher when you're younger, there are practical ways to lower them. These five tips are the most common approaches, but you can get more information from our article on reducing car insurance costs.
Many factors besides age contribute to the cost of car insurance. Because providers consider so many variables, compare rates from multiple carriers. Our calculator below can help you get started.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jun 06, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Car insurance rates decrease as drivers gain experience, with major drops around ages 19, 21 and 25. Factors like driving history, location and vehicle type also impact costs. We've discussed when premiums go down and how to maximize savings by comparing quotes and adjusting coverage.
Below, we answer common questions to help you understand when and why car insurance costs decrease.
Car insurance rates are affected by age and go down each year, but premium prices dip most at ages 19 and 21.
Yes, car insurance is more affordable for 25-year-old drivers. However, the most substantial dips in annual car insurance rates occur before you turn 25.
The average cost of car insurance decreases by 7% each year for drivers between 16 and 25.
On average, car insurance rates decrease by 9% when you hit 25.
Improving your credit score, being mindful of your driving record and completing a defensive driving course can help lower your insurance costs. When applying for auto insurance for the first time, compile a list of car insurance companies available in your area, collect multiple quotes and choose the best possible offer.
The average cost of car insurance for a 25-year-old driver is $612 for minimum coverage and $1,284 for full coverage.
Study Overview
MoneyGeek collected and analyzed car insurance rates using a consistent driver profile to determine average costs by age group, identify factors that affect rate changes and compare premiums across insurance companies.
Data Sources and Analysis
Our data comes from state insurance departments and Quadrant Information Services. We analyzed 22,848 quotes from six providers across 100 ZIP codes.
Driver Profile
We used this standard driver profile to calculate average annual car insurance costs:
We modified this profile by location, coverage type and limits to show average costs for different driver situations across the United States.
Coverage Levels and Deductibles Explained
Your deductible is the amount you pay before insurance covers the rest of a claim. Full coverage combines liability insurance with comprehensive and collision coverage to protect both you and your vehicle.
100/300/100 coverage means:
For national averages, we used 100/300/100 full coverage with a $1,000 deductible.
50/100/50 coverage means:
For state-specific data, we used 50/100/50 full coverage with a $1,000 deductible.
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
