Here's what happens to your rates as you get older: car insurance costs decrease yearly for drivers between 16 and 24, with the most significant reductions occurring at specific age milestones.
Auto Insurance
When Does Car Insurance Go Down?
Updated: July 18, 2025
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Key Takeaways
Car insurance rates decrease most at ages 18 and 21, with young men seeing larger drops than women due to higher initial rates.
Violations drop off your record after three to five years depending on severity and state regulations, with DUIs taking five to seven years to fully clear.
Marriage typically reduces car insurance rates by 15% because married drivers file fewer claims than single drivers.
Credit score improvements can reduce premiums by 20 to 30% in most states, making it one of the most impactful factors for rate reductions.
Life events like removing a teen driver, moving to a safer area, or completing defensive driving courses can trigger immediate rate decreases.
At What Age Does Car Insurance Go Down?
Age Range | Rate Change | What Triggers the Decrease |
|---|---|---|
16–18 | 12–15% annually | Gaining initial driving experience |
18 | First major milestone | Insurers recognize improved experience for 18-year-old drivers |
21 | Major rate decrease | 21-year-old drivers exit highest-risk category |
25 | Final major age-based reduction | 25-year-old drivers reach statistical maturity |
25–30 | 2–3% annually | Continued experience improvement |
30–50 | Minimal change | Rates stabilize in lowest-risk years |
How Much Does Car Insurance Go Down by Age and Gender
Car insurance price reductions when you turn 25 vary across companies. Use the table below to compare percent decreases for different companies.
| 16 | $7,550 | $7,699 | $149 |
| 17 | $5,906 | $6,018 | $112 |
| 18 | $5,050 | $5,144 | $94 |
| 19 | $3,623 | $3,674 | $51 |
| 20 | $3,239 | $3,284 | $45 |
| 21 | $2,533 | $2,567 | $34 |
| 22 | $2,315 | $2,345 | $30 |
| 23 | $2,126 | $2,152 | $26 |
| 24 | $2,002 | $2,026 | $24 |
| 25 | $1,752 | $1,775 | $23 |
Key Gender Gap Statistics
- At age 16, females pay $149 more annually than males.
- This female premium excess decreases with age, dropping to $23 by age 25.
- The gap narrows significantly as drivers gain experience.
- By age 30, the rates become nearly identical between genders.
STATE-SPECIFIC VARIATIONS
California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania prohibit gender-based pricing. In these states, male and female drivers pay identical rates at all ages. If you see gender-based rate differences in these states, contact your insurer immediately, as this violates state law.
Some states prohibit gender-based pricing. Consult your state's insurance regulations for specific requirements.
How Violations Affect Your Car Insurance Rates?
If you have a violation on your record, you're probably wondering when it'll stop affecting your rates. Understanding when violations are removed from your record is important for planning rate reductions, and the good news is that these penalties have specific recovery timelines you can count on.
Our research shows that drivers with traffic violations see their premiums jump 53% on average, making high-risk driver coverage essential for those with violations, but these penalties have specific recovery timelines.
Violation Type | Rate Increase | Record Retention |
|---|---|---|
Speeding (6–10 mph over) | 22% | 3 years |
Speeding (11–20 mph over) | 28% | 3–5 years |
Reckless Driving | 73% | 5 years |
DUI/DWI | 93% | 5-7 years |
Hit and Run | 95% | 7–10 years |
At-Fault Accident | 45% | 3–5 years |
Violation timelines vary significantly by state and may change based on local regulations. Contact your state's Department of Motor Vehicles or insurance commissioner for current requirements in your area.
State-by-State Violation Timeline Variations
Violation recovery timelines vary by state. Progressive reports that speeding tickets may drop off your driving record within three to five years, depending on how long your state keeps violations on its records.
California
Most violations stay on record for three years, but serious violations like DUI remain for 10 years. California drivers should understand these state-specific timelines.
Texas
Moving violations typically remain for three years, with DWI convictions staying for 15 years. Texas drivers face some of the longest DWI penalties in the country.
Florida
Most violations stay for three to five years, but DUI convictions remain for 75 years.
New York
Moving violations stay for four years, serious violations for 10 years.
MULTI-STATE LICENSING COMPACT
Most states participate in the Driver's License Compact (a system where states share violation information across state lines). Getting a ticket in another state will typically affect your home state's record and insurance rates. Only Massachusetts, Michigan, Tennessee and Georgia don't participate in full information sharing.
Other Factors Why Car Insurance Go Down
Beyond age and violation recovery, several life events can trigger immediate premium decreases. Understanding these factors helps you plan for rate reductions.
- Average rate decrease: 15% for married vs. single drivers
- Multi-car discount potential: Up to 25% when combining policies
- Bundle discount opportunity: Additional 5% to 15% when adding homeowners' insurance
- Rate increase risk: If the spouse has a poor driving record, rates may increase instead
Marriage Impact on Insurance Rates
Married drivers pay an average of $194 less per year than single drivers. This reduction occurs because married drivers file fewer claims and are viewed as more stable.
Here's what marriage can do for your rates:
Teen Driver Removal
Removing a teen driver from your policy can result in immediate and substantial savings. Based on our rate analysis, families typically save $1,500 to $2,500 annually when a teen leaves for college or gets their own policy.
Teen drivers must meet state-specific licensing requirements and may be subject to additional restrictions, including supervised driving hours, passenger limitations and nighttime driving restrictions that vary by state. Consult your state's DMV for complete legal requirements before making coverage decisions.
Credit Score Improvements
Americans with poor credit scores pay much more for car insurance than those with excellent credit. Improving your credit score can trigger 20 to 30% rate reductions in most states.
California, Hawaii, Massachusetts and Michigan prohibit using credit scores for insurance pricing. If you live in these states, focus on other ways to reduce rates, like improving your driving record or increasing your deductible.
Moving to a Safer Area
Your ZIP code impacts your rates. Moving from an urban area with high theft and accident rates to a rural or suburban location can reduce premiums by 10 to 40%. Insurance companies reassess your risk profile based on your new address.
Driving Experience vs. Age
Two 26-year-olds with different experience levels see different rates. A driver who just got their license pays more than someone who's been driving for 10 years. Insurance companies prioritize actual driving experience over chronological age.
Credit History Impact
In most states, your credit score affects your insurance rates more than you might expect. Drivers with excellent credit (750+) pay 20 to 30% less than those with poor credit (below 600). Improving your credit score can trigger immediate rate reductions at your next renewal.
Vehicle Type and Safety Features
Your car's safety rating, theft rate, and repair costs influence your premiums. Switching to a vehicle with better safety ratings or lower theft rates can reduce your rates by 10 to 25%. Anti-theft devices and safety features like automatic emergency braking can qualify for additional discounts.
Coverage Changes and Deductible Adjustments
Increasing your deductible from $500 to $1,000 reduces your premium by 15 to 20%. However, ensure you can afford the higher out-of-pocket cost if you need to file a claim. Consider dropping comprehensive and collision coverage entirely for older vehicles worth less than $4,000.
How to Get Cheap Car Insurance
Car insurance for drivers under 25 can be expensive. Taking proactive steps like taking a defensive driving course and working on your credit score can help lower your insurance costs.
- 1
Improve your driving record
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.
- 2
Take a defensive driving course
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.
- 3
Seek out all available discounts
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.
- 4
Boost your credit score
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.
- 5
Shop around for quotes
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, comparing car insurance quotes may help you find lower rates. This is particularly beneficial when you're young and policies are more expensive.
LEARN MORE ABOUT SAVING ON CAR INSURANCE
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.
Compare Cheap Car Insurance Quotes
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.
Car Insurance Calculator
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$192
High
$139
Average
$87
Low
Rates updated:
Aug 15, 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.
Company-Specific Rate Reduction Policies
Different insurance companies have varying approaches to rate reductions and violation forgiveness policies. Understanding these differences can help you choose the best insurer for your situation.
Company | Accident Forgiveness | Violation Forgiveness | Teen Driver Programs | Credit Score Impact |
|---|---|---|---|---|
GEICO | Available after 5 years | Limited | Good Student Discount | High |
State Farm | Available with good record | Limited | Steer Clear Program | Medium |
Progressive | Available for purchase | Limited | Snapshot Program | High |
Allstate | Available with Platinum status | Limited | Drivewise Program | Medium |
USAA | Available to members | Limited | SafePilot Program | Low |
Choosing the Right Company for Your Situation:
- Young drivers: Consider companies with strong teen programs like State Farm or GEICO.
- Drivers with violations: Look for companies with forgiveness programs like Allstate.
- Credit-conscious drivers: USAA and some regional insurers weigh credit less heavily.
- Safe drivers: Consider usage-based programs from Progressive or Allstate.
When Does Auto Insurance Go Down: Bottom Line
Car insurance rates go down at predictable intervals and life events, but the timing depends on multiple factors, including your age, driving record, credit score and state regulations. The most reductions occur at ages 18 and 21, when violations are removed from your record after three to five years, and when you experience positive life changes like marriage or credit improvement.
To maximize your savings, shop around annually, maintain a clean driving record, and take advantage of available discounts. Rate reductions aren't automatic; you often need to contact your insurer to receive all eligible discounts and rate adjustments.
DUI/DWI convictions can affect rates for five to seven years, making affordable coverage after a DUI challenging to find, but recovery is possible with time and safe driving habits.
When Do Car Insurance Rates Drop: FAQ
Below, we answer common questions to help you understand when and why car insurance costs decrease.
When does car insurance go down after marriage?
Car insurance rates typically decrease immediately after marriage, with an average reduction of 15%. You'll need to contact your insurer to update your marital status and potentially combine policies. The discount applies because married drivers file fewer claims than single drivers.
How long do violations affect car insurance rates?
Most violations affect your rates for three to five years, depending on the violation type and your state. Speeding tickets typically impact rates for three years, while DUI/DWI convictions can affect rates for five to seven years. The exact timeline depends on your state's record retention policies.
Does insurance go down every six months?
Insurance rates are reviewed at each renewal (every six or 12 months), but they don't automatically decrease. Rate changes depend on your driving record, credit score changes, claim history and overall market conditions. Some insurers offer continuous rate optimization that can result in mid-term adjustments.
What happens when I remove a teen driver from my policy?
Removing a teen driver can reduce your annual premium by $1,500 to $2,500 on average. You can remove them when they go to college without a car, get their own policy or move out permanently. However, they must be removed from your policy entirely; they can't remain covered if they're no longer listed.
How does moving affect my car insurance rates?
Moving can impact your rates, with changes ranging from 10 to 40% depending on your new location. Urban areas typically have higher rates due to increased theft and accident risk, while rural areas often have lower rates. You must update your address with your insurer within 30 days of moving.
When should I file a claim vs. pay out of pocket?
File a claim if damages exceed your deductible by more than $1,000, or if injury or third-party liability is possible. For minor damages (under $1,000), consider paying out of pocket to avoid potential rate increases. Comprehensive claims (theft, vandalism, weather) typically have less impact on rates than collision claims. Finding affordable coverage after an accident becomes crucial during this period.
How often should I shop for car insurance rates?
Shop for rates annually, especially when your policy renews and if you have a major life event, such as moving, marriage or a new job. Your rates may decrease with different companies even if your current insurer hasn't reduced your premium. Young drivers (under 25) should shop more frequently as their rates change rapidly.
What happens if I miss car insurance payments?
Missing payments can result in policy cancellation, typically after 10 to 30 days, depending on your state and insurer. A lapse in coverage will increase your future rates by 10 to 25% and may require you to file an SR-22 (a certificate proving you have required coverage) in some states.
Contact your insurer immediately if you're having trouble making payments; many offer payment plans or temporary coverage extensions.
Average Car Insurance Cost by Age: Our Review Methodology
We designed our research to track how rates actually change across age groups, so you can plan your insurance budget and know what to expect.
Our Research Approach
We analyzed real rate data to show you when car insurance costs drop and by how much. Our analysis comes from state insurance departments and Quadrant Information Services, covering 22,848 quotes from six providers across 100 ZIP codes. This gives us the breadth to show national trends while capturing regional differences that affect your actual costs.
Why this methodology matters for age-based rate changes: Insurance companies adjust rates based on risk patterns that emerge at specific ages. Using a consistent driver profile across all age groups, we can isolate the impact of age alone, without other factors like vehicle type or driving record muddying the results.
Driver Profile Details
We used this standard profile to calculate average annual costs:
- 16 to 25 year old drivers (our primary focus group)
- 30 and 40-year-old drivers (both male and female for comparison)
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
We modified this profile by location, coverage type and limits to show average costs for different driver situations across the United States.
Coverage Levels We Analyzed
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.
For national averages, we used 100/300/100 full coverage:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability per accident
- Comprehensive and collision coverage with $1,000 deductible
For state-specific data, we used 50/100/50 full coverage:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- Comprehensive and collision coverage with $1,000 deductible
Important: Liability coverage never includes deductibles; you pay nothing out-of-pocket when your liability coverage pays for damages you cause to others. The $1,000 deductible applies only to comprehensive and collision coverage, which protects your own vehicle.
Why these coverage levels: The 100/300/100 reflects what most financial experts recommend for adequate financial protection, while 50/100/50 shows costs closer to what many states require. This dual approach shows you both budget-conscious and comprehensive coverage scenarios. Rates vary by location, driving record and other factors.
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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.
sources
- AAA Foundation for Traffic Safety. "Prevalence and Timing of Driver Licensing Among Young Adults, United States, 2019." Accessed July 18, 2025.
- Centers for Disease Control and Prevention. "Risk Factors for Teen Drivers." Accessed July 18, 2025.