How often does car insurance go down? Car insurance can go down or go up depending on the policy period. It usually goes down every six months, but it can also go up or stay the same. It all depends on what kind of record you have.
If you’ve been in an accident, got a speeding ticket, or had a DUI, you’ll usually get a higher rate. But if you don’t have any of those things, you’ll usually see your rates go down over time.
Common reasons why car insurance rates decrease
Car insurance prices tend to go down for a few different reasons:
- You grow older
- You switch insurance companies
- After a motor vehicle accident or other traffic violation, you are prohibited from driving for three years.
Rates tend to drop the most as teen drivers age, typically when they hit the age of 18 or 19. Rates tend to drop even more as you get older, especially once you’re over 25.
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Car insurance rates are lowest for drivers over 50, with an average policy price of $703 per six-month period.
If you have an accident or other violation on your driving record, you’ll typically pay higher rates for three years. However, this can vary depending on how your state deals with certain violations.
Many drivers see a decrease in their auto insurance rates after switching to another company. Keep reading for more on common reasons why auto insurance rates can go down.
At what age does car insurance go down?
Young drivers can expect to save money on car insurance premiums as they age. The average annual car insurance premium drops by $1,595 for both male and female drivers aged 18 to 19.
That’s because most auto insurance companies view younger drivers as more risky to insure because of their lack of experience behind the wheel.
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You can expect to save $1,595 on your auto insurance premiums as you age.
Take a look at the rates below to get an idea of what you’ll likely pay in premiums for your auto insurance policy.
AVERAGE ANNUAL PREMIUM BY AGE
| Age | Average Annual Premium | Difference From Previous Year |
| 16 | $6,647 | — |
| 17 | $5,749 | -$898 |
| 18 | $5,033 | -$716 |
| 19 | $3,438 | -$1,595 |
| 20 | $3,076 | -$362 |
| 21 | $2,461 | -$615 |
| 22 | $2,217 | -$244 |
| 23 | $2,059 | -$158 |
| 24 | $1,921 | -$138 |
| 25 | $1,649 | -$272 |
Why does car insurance decrease with age?
Car insurance rates tend to go down as you age because insurance companies see less risk in insuring older, experienced drivers.
Your driving skills won’t magically get better on your birthday every year, but data shows that older drivers file fewer insurance claims as they get older.
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Young drivers would be wise to stay on their parent’s insurance policy during their teen years if they can, as rates can drop significantly.
They may also find insurance discounts they can take advantage of. For example, most auto insurance companies offer a telematics program that rewards safe drivers.
Good student discounts can also help lower teen driver’s car insurance rates. New drivers should drive older vehicles. New cars tend to be more expensive to insure than older vehicles.
Does car insurance go down at 25?
If you have a relatively clean driving record and no claims history, you’re likely to pay less than you would for a driver in your teens or early 20s.
But turning 25 isn’t as important to insurers as transitioning from your teens to your 20s. If you’re one of our 39% of 25+ customers who feel like they’re paying too much for auto insurance, you might want to consider getting quotes from the lowest-cost carriers for young drivers: USAA at $130/month, State Farm at $150/month, and Progressive at $167/month.
How long after a claim or ticket does car insurance go down?
Most tickets, claims, and citations will remain on your record for three years, but this can vary depending on the nature of the infraction and the state in which you live.
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Below is a list of common citations and their estimated three-year impact on your car insurance premiums, as well as the insurer-specific estimates, all of which are estimates based on state and insurance company regulations.
If you receive a ticket, are convicted of a DUI, or are involved in an auto accident at fault, you could face some serious consequences, especially when it comes to the total cost of your car insurance premiums over the three years.
A DUI can seriously damage your finances and even lead to your car insurance being canceled. If your driving history is full of these types of offenses, you may want to consider getting a non-standard auto insurance policy.
Most non-standard carriers offer lower-cost, no-obligation auto insurance coverage that doesn’t put as much emphasis on factors like your driving record or credit score, but many of them have poor customer service which can be a problem if you file a claim.
Switching companies: one of the quickest ways to lower insurance costs
Moving to another company can help you save money on your auto insurance premiums, similar to what you would do if you celebrated a birthday or got a violation off your record.
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Insurance companies have different underwriting methods, so what one company sees as a high-risk profile, another may see as a moderate or low-risk profile.
That’s why it’s important to research quotes from different insurers and ask questions about savings opportunities, such as discounts when you bundle your homeowners or renters’ insurance with your auto insurance.
It’s also a good idea to review your policy and auto insurance quotes every six months to make sure you’re always getting the best deal for your coverage level.
