Does Auto Insurance Go Down At Age 25?

Auto insurance goes down at 25, but you won't see a sudden drop in your auto insurance rates at age 25. Most drivers notice a gradual decrease in their auto insurance costs after they turn 25 because older drivers are considered less of a risk than young drivers. If you've recently turned 25, start comparison shopping online to find the cheapest rates you can get now that you're older. Enter your ZIP code below to get started with your free auto insurance quote here.

FREE Car Insurance Comparison

Secured with SHA-256 Encryption

Rachel Bodine graduated from college with a BA in English. She works as an associate editor and writer for for over a year and enjoys creating content that offers expert advice on car insurance topics.

Full Bio →

Written by

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs...

Full Bio →

Reviewed byLeslie Kasperowicz
Former Farmers Insurance CSR

UPDATED: Aug 24, 2020

Advertiser Disclosure

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

Advertiser Disclosure: 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.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Young drivers typically pay more for car insurance than older drivers do. Insurance companies view younger drivers as being a higher risk, and they have the stats to back up this assertion. Young drivers are involved in more accidents, drive faster, and are more reckless behind the wheel. Because of this, their insurance rates are much higher. But how long are these high rates in effect? Do they get cheaper after age 18? Age 21? Some claim that 25 is the “magic number”.

do insurance rates drop at age 25

Age Is More Than Just A Number

You might be wondering why at age 25 your insurance rates are different than at other ages. The fact is that auto insurance premiums rise and fall as we age due to a myriad of factors. Your age and the amount of time you’ve had your driver’s license are two of the major things auto insurers look at when determining your rates. The more experienced the driver is, the lower their rates usually are. But why is this the case?

The answer lies in the keyword – “risk”. Insurance companies are risk assessors. So, when insurance companies look at your age, they also look at their data that tells them how risky that age is, on average. Younger people are the riskiest because they lack in experience and get into more accidents. Older, more mature drivers tend to be more responsible on the road.

Therefore, if you fall into one of these age groups that tend to get into lots of accidents and files lots of insurance claims, you can expect to pay much more for auto insurance coverage. It’s nothing personal. Remember, to insurance companies, you are just a statistic!

Enter your zip code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

What Happens To Your Car Insurance At Age 25

The truth is that there is no magic number as to when your auto insurance rates will take a turn for the best. At age 25 your insurance rates will not suddenly drop. Most drivers, however, do start to see a gradual drop in their rates around age 25 because of the experience they built up over the years.

Many Americans start driving at age sixteen or seventeen, so by age twenty-five, they already have years of driving history under their belts. As long as you’ve maintained a good driving record and do not have a history of filing claims, you should start seeing your insurance rates get lower as you reach your mid-twenties.

How Much Can You Expect To Save?

Like stated already, there is not some special discount you get when you turn 25. Your insurance rates, however, do tend to naturally get lower as you hit this age. You can expect your insurance premiums to drop by about 10% at this time.

This 10% saving rate is different for each person. As stated above, your insurance rates are determined by many different factors. Other things that could play a role in your lowered rated include: if you are married or not; if you are male or female; what your credit score looks like; if you have kids; what your driving history looks like; what your occupation is; and how many miles you drive each month. These factors all contribute to determining how much you will pay for your car insurance.

Keep in mind that if in your years as a young driver you kept a poor driving record with lots of accidents, speeding tickets, and other violations, you should not expect to see a drop in rates when you turn 25. Remember – insurance companies deal in risk assessment. Therefore, if you traded your minivan for a Lamborghini, if you just were cited for your tenth DUI, if you drove into a parked cop car, etc. Do not expect your insurance rates to go down, it just won’t happen!

How To Get Lower Rates If You Are 25

If you haven’t been in touch with your insurance agent in a while, give him or her a call. Once you turn 25, you should ask your insurer to take a look at your insurance rates and see if they can help you out. Ask if there are any discounts or rate reductions available to you. If you do not ask, chances are your insurance company will not give them to you.

If you recently turned 25 and you are not satisfied with your insurance rates, you can always shop around and look at different rates from different companies. Using websites like 4AutoInsuranceQuote to compare insurance quotes is a great way to find the best insurance rates for your needs.

Are you looking for free insurance quotes?

Your one-stop online Car Insurance guide. Get a Free Quote Now!

(855) 898-5028