Does auto insurance go down at 21?

Drivers in their early 20s pay some of the highest auto insurance premiums, but you may still see your auto insurance go down at 21 if you've been driving since you were a teen. You'll see a more significant drop in your rates when you turn 25.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Insurance Feature Writer Rachel Bodine

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. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Jun 6, 2022

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Drivers in their teens and early 20s pay some of the highest rates in America for car insurance. As you get older, however, can you expect car insurance to decrease in price? Or will you have to wait until you’re 25 or 30 before car insurance premiums go down?

Today, we’re explaining everything you need to know about whether or not car insurance goes down at 21.

Car Insurance Premiums Typically Decrease With Age

You might have heard that car insurance premiums drop after age 25. But is there a significant drop in car insurance when you turn 21? Or will you really have to wait four more years for premiums to drop?

It’s true that there’s a significant drop in car insurance premiums after age 25. However, car insurance premiums generally go down as you get older – so you should still see a drop after age 21.

As you get older, you become a more experienced driver. With more experience, you become less likely to make a claim. As long as you maintain a clean driving record, then your car insurance premiums should drop at age 20, 21, 22, 23, 24, and 25.

The more experience you have, the less you can be expected to pay for car insurance. If you received your license the day you turned 16, for example, and you’re turning 21, then you have five full years of (presumably clean) driving experience. So, insurance for 21-year-olds is generally cheaper than insurance for teens, and will continue to get cheaper in the years that follow.

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Some Carriers Offer a Car Insurance Discount at 21

It’s common for car insurance carriers to offer a premium discount at age 25. However, some carriers have started offering a premium discount at age 21 as well.

Certain insurance carriers do not like having young drivers in their insurance pool. Other insurance carriers do like having young drivers in their insurance pool. Depending on which car insurance carrier you have chosen, you might find rates stay about the same at age 21 – or they drop.

Drops Get More Significant After Age 25

It’s true that car insurance drops with age (generally speaking).

You can typically expect a small drop in car insurance from age 20 to 21 and from age 21 to 22.

However, the most significant drops tend to occur from age 25 to 30, assuming you maintain a clean driving record. By the time you hit age 30, you’re paying some of the lowest car insurance premiums an adult American can expect to pay. Car insurance rates continue to drop until you’re in your 40s and 50s, but the most significant price drops tend to occur from age 25 to 30.

Car Insurance Is More Expensive for 21-Year-Old Males than Females

A male driver in his teens and early 20s is one of the riskiest drivers to insure. Statistics show male drivers in this age group are more likely to make a claim than any other class of driver.

With this gap in mind, a 21-year-old female may get a significant drop in insurance premiums when going from age 20 to 21, while a 21-year-old male driver might not get the same discount.

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It’s Unlikely for Car Insurance Rates to Rise With Age

It’s rare for car insurance premiums to rise as you get older. Statistically, drivers in their 40s, 50s, and 60s are some of the safest drivers on the road. They’re less likely to make a claim than younger drivers.

There are only two major situations where car insurance premiums rise with age:

  • Once you reach a certain age (typically, 75 and older), car insurance premiums will rise with age because you’re a riskier driver to insure
  • If you have a speeding ticket, an at-fault accident, a claim, or any other type of incident in your recent history, then your premiums will rise regardless of age

If you don’t fall into either category, then you can generally expect premiums to decrease as you get older.

Final Word

Car insurance tends to drop significantly age you hit age 25. However, most drivers will still see a drop when moving from age 20 to 21. Drops will continue every year after age 21 as long as you maintain a clean driving record.

Depending on your insurance company, your state, your driving history, and other information, this drop in car insurance premiums around age 21 could be small or large. Compare car insurance quotes online today to make sure you’re paying competitive car insurance premiums at age 21.

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