Most drivers often ask, when does car insurance go down? It is common with young drivers who wonder what age their car insurance will go down. Most people say car auto goes down when the driver is up to 25 years of age. But age is not the only thing that makes car coverage go down.
Some factors can cause your auto insurance rates to go down. Car insurance premiums are always very expensive. Auto insurance rates seem to rise now and then. In different instances, auto insurance costs go down. However, switching insurance providers can be a faster way to make your auto insurance go down instead of waiting for it.
Auto insurance rates are often high for new drivers because they just got their licenses. Over time, these rates go down for different reasons, which include your age. This write-up contains all the insights on the question, when does auto insurance go down?
Can Car Insurance Go Down as You Age?
If you fall under the age of 25, your car insurance rates may go down as you age into your 30s. As you age, your driving experience increases, giving you a chance for a lesser auto insurance rate. Young drivers are considered to be more likely to file a claim for accidents and traffic violations than older drivers.
Because of this, they pay higher rates. Car insurance is more expensive for teenage drivers but decreases as they age. Between the ages of 35 and 55, car insurance rates level off but slightly increase as they become senior drivers.
Car Insurance Rates by Age
Getting familiar with car coverage rates by age gives you the insights needed to be aware of when your car coverage goes down. Car insurance is more expensive for teenage drivers on their policy and not a family policy. It is better to include them in a family policy to prevent them from getting higher premiums. The table below shows how average auto insurance rates go down according to age.
| Age | Average Yearly Car Insurance Cost | Decrease From Initial Age |
| 16 | $6,912 | $0 |
| 17 | $5,612 | $1,301 |
| 18 | $4,958 | $654 |
| 19 | $3,708 | $1,250 |
| 21 | $2,786 | $922 |
| 25 | $2,019 | $766 |
| 30 | $1,831 | $189 |
| 35 | $1,785 | $46 |
| 40 | $1,755 | $30 |
| 45 | $1,730 | $24 |
| 50 | $1,658 | $73 |
| 55 | $1,609 | $49 |
| 65 | $1,648 | $39 |
| 75 | $1,912 | $264 |
These rates pertain to individual auto insurance policies and not a family policy.
Can Auto Insurance Go Down if You’re a Good Driver?
Most driving incidents and at-fault accidents will no longer be on your insurance record after 3 years. If for the last few years, you have been a good driver, your auto insurance rates will go down. This, however, depends on your state’s laws and the type of infraction.
Some states allow car insurance companies to consider just three years of a customer’s driving history, while others allow the insurer to look ten years back on the customer’s records. If you have a serious violation on your record, your auto insurance rate will be affected for three years or more, depending on your state.
Can Car Insurance Go Down if You Switch Companies?
Changing your car insurance company is another way your car insurance can go down. Irrespective of your driving history or any other issues, you will find rates from different insurance providers. There is a better chance at lower auto insurance if you switch providers.
Depending on your situation, you can get cheaper auto insurance from a different insurance company. However, the cheapest auto insurance company for students may be very expensive for veterans. To find the cheapest auto insurance provider, search for the following and consider which is best for you.
- Good student discount.
- Safe driver discount.
- Defensive driving course discount.
- Military discount.
- Teenage driver discount.
- New car discount.
- Bundling discount.
- New driver discount.
These discounts will make your auto insurance go down as you change your current insurance company.
Other Reasons Car Coverage Goes Down
Other factors can make your car insurance go down. Most of these factors are not under your control, and they are unpredictable. However, it is a good idea for you to know the other reasons your auto insurance can go down.
Loyalty Discounts
Many auto insurance companies offer loyalty discounts to customers who stick around. Getting one of these discounts may require you to wait for years, and sometimes, your insurance company may not offer it at all.
Change in your Situation
If you’re a teenager under your family car insurance policy, your car insurance is sure to decrease as you age into your 20s. Your rates can also be reduced if a driver moves out.
State Insurance Requirements
Most states require minimum levels of auto insurance. If the minimum auto insurance requirement is reduced by the state, the cost of your minimum coverage may be reduced.
