Car insurance generally becomes more affordable as drivers age and gain more driving experience. Between the ages of 16 and 25, your car insurance rates will drop steadily for every year you keep your driving record clean. Car insurance rates drop at age 25 by a wide margin. Rates then slowly but surely decline until age 65, before rising again.
Keep in mind that these average rates may be affected by other factors, such as your insurance and driving claim history. Unlike new drivers, drivers over 65 can expect their car insurance premiums to increase over the years. However, just because car insurance rates generally fall for new drivers over the years doesn't mean that older age gives you an advantage over younger new drivers. If you're 26 years old but just got your driver's license, you'll be considered a new driver and you'll pay more for car insurance than a 26-year-old person who's already been driving for a decade.
If you find that your auto insurance company is raising your rates despite your excellent driving record, it's a good time to compare quotes from other car insurance companies. Women tend to pay less than men for car insurance between the ages of 16 and 26 because they are more careful when driving and are less likely to drive at a speed or have accidents. They may see this age as a sign of maturity and follow the standards of car insurance companies to mitigate the risk of their vehicles. If you haven't had any accidents or received any fines when you renew your policy, your car insurance rates may remain the same.
Drivers see their auto insurance premiums start to drop around age 20, and a big drop around age 25. For young drivers, car insurance rates go down every year that you renew your policy and you haven't filed any claims. Auto insurance companies usually only check your recent driving history, so the accident will “disappear from your record” after enough time has passed. Car insurance companies use statistical data, among other factors, to determine auto insurance rates. The average car insurance costs for women and men are slightly different, but drivers of all genders will see their rates drop as they approach age 25, an average of about 16 percent each year.
When you first get your license as a teen or young driver, it's very likely that you're not paying for car insurance yourself, which is fortunate, since those first few years of being insured are some of the most expensive of your entire life. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy. Because drivers under 25 years of age are more likely to have car accidents and file claims than older drivers, younger drivers pay more.