Auto insurance rates tend to go down at age 25, as long as you've kept a clean driving record.

Insurers see age 25 as an indicator of experienced driving and lower risk. They often offer a lower annual premium in recognition of this. As long as you maintain a good driving record and have been driving for several years, you should see a drop in your annual auto insurance rates at age 25 that could save you hundreds of dollars a year. This article will go over:

Do my auto insurance rates go down at age 25?

Drivers often see their car insurance rates go down at age 25, assuming they have a clean driving record. This is because auto insurance providers consider younger drivers to be inexperienced and more prone to having an accident. Once a driver hits 25, however, they are statistically less likely to get into accidents.

Auto insurance companies recognize this and tend to decrease policy rates to reflect the lower risk. But you should know that this decrease is not automatically given. There are two key factors involved in whether or not you qualify for a rate decrease and how much it is:

  • Your driving and insurance records: Being a low-risk driver is the foundation of getting a lower rate. If your driving history is filled with accidents and insurance claims, you probably won't see your rates going down at 25. In fact, you could see your rates go up at policy renewal time.
  • How long you've been driving: Being an experienced driver is key to lowering your risk on the road and seeing your premium go down at 25. If you only got your driver's license when you were 23 years old, chances are you won't have enough experience behind the wheel for auto insurers to consider you a lower risk. The less time you've been driving, the less you'll likely save.

You should also know that when you turn 25, the rate decrease will happen at the renewal period after your 25th birthday. It won't happen on your exact birthday.

How much does car insurance cost at age 25?

We found that car insurance for a 25 year old costs $194 per month on average for full coverage. If you keep a clean driving record, you may see up to a 58% decrease in auto insurance rates when you turn 25 years old:

Driver's age Average monthly auto insurance rate
16 $471
25 $194
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Besides age, other factors affect auto insurance rates. They include:

  • Driving and insurance claim records.
  • Credit score.
  • Where you live.
  • Auto insurance coverage limits.

How to get lower auto insurance rates at age 25

To see your lowest auto insurance rates at 25, you'll want to keep your driving record clean. Your risk level is the primary factor that insurers look at when calculating your premium, and all it takes for your rates to go up is one accident. Careful driving is the key.

There are other ways to lower your annual auto insurance rate that you may take advantage of. Ask your provider about:

  • Discounts: To stay competitive, car insurance companies offer a wide array of discounts to drop your premium even further. If you're currently in college, for example, you may qualify for a good student discount.
  • Bundling: If you already have renters, home or life insurance, talk to your auto insurance company. You may be able to bundle an auto policy together with your current policy. Quite often, you can save money on all of the policies you have packaged together.
  • Get the correct limits: Talk to your car insurance company and have them help you make sure you have accurate coverage based on your needs. If you're paying for coverage you don't need, that can add up to hundreds of additional dollars a year.
  • Compare new quotes: If you get a small or no auto insurance rate decrease when you turn 25, it's a good time to look at what other auto insurance companies offer. Compare quotes from multiple auto insurance companies and see if there's a better rate for you.

Car insurance goes down considerably at age 25.

How much can you see?

Will my auto insurance rate keep going down after 25?

If you keep a clean driving and insurance history, our research shows that after you hit age 25, your auto insurance premium should continue to drop steadily.


This graph shows that rates usually decrease again through age 35. After that, your average rate should stay fairly steady until age 70, when your average premium goes up again.

The key reason for higher rates when you're older is the decrease in eyesight and reflexes that may occur as the years go on. Additionally, the chance of a fatal crash increases at age 75. You'll see an average rate of $172 a month then, and at age 80, you can expect to see even higher increases.

References: LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.