Annual car insurance rates by driver age While your car insurance premiums may drop at age 25, they will drop more when you turn 19 (16 percent) and when you turn 21 (17 percent). Car insurance companies use many factors to determine your premium, and in most states, your age and gender are among the most important. Car insurance is generally the most expensive for teens and young adults. These higher rates reflect the higher statistical likelihood that these drivers will be involved in an accident due to lack of driving experience.
In addition, men may have higher rates than women due to a greater propensity to drive riskly. When you look at average car insurance costs by age, you might see a trend. Coverage starts out relatively expensive for teens and young adults. Over the years, premiums generally decrease as drivers gain more experience behind the wheel.
However, as drivers reach old age, premiums may rise again. In general, this is due to the risk factors associated with each age group. One of the best ways to reduce your insurance costs (regardless of your age) is to look up car insurance quotes every time your policy is renewed, to see if there's a better option. The rates below reflect a policy with comprehensive and collision insurance, plus liability coverage, for uninsured motorists and other coverage required by the state, when needed.
Getting quotes from different companies can help you compare coverage offers, discounts, policy features, and third-party ratings to find the best option. Car insurance rates across the country vary depending on where you live, but national averages can give you an idea of what you might pay. However, your car insurance won't be automatically reduced when you turn 25. Drivers with accidents or record violations will continue to pay high rates even after they have passed their age outside the highest-risk age group. 25 is generally the age at which car insurance rates decline for most people, but it's not a magic number.
If you practice safe driving habits, maintain good credit, take advantage of discounts and look for annual quotes, you can probably find a policy that easily fits your budget. Car insurance with minimum coverage is exactly what it sounds like, the least possible coverage that meets the requirements of a state. To provide a baseline, Bankrate's insurance editorial team used the rates provided by Quadrant Information Services to break down total coverage premiums by age and gender. Car insurance rates may also have more to do with how many years you have been licensed than your actual age.
While most people believe that 25 is the age at which car insurance rates fall, the most significant declines occur when drivers turn 19 and 21. Most states allow insurers to use the driving experience as a factor in determining rates, so car insurance for new drivers can be expensive regardless of their age. In addition to age, other factors contribute significantly to the cost of car insurance for young drivers. If you're wondering when car insurance rates fall, you should understand that age isn't the only contributing factor.
In addition, many insurance companies will consider you a young driver until your 25th birthday...
