At what age does car insurance get cheaper?

If you have been a safe driver from the time you started driving, you should see a decrease yearly as you renew your policy. This is before you turn 25 years old. Once you officially turn 25 you should see the most significant drop in your insurance rates. 

If you’re a younger driver or have a young driver on your insurance coverage, once said driver turns 25, you should shop around for the best coverage. The easiest way to shop multiple insurance companies at once to determine what your best rate will be, is to contact an agent at Eugene C Yates Insurance Agency. One of our agents will take a look at all the determining factors and give you the best possible policy for your situation. [click here to call an agent now]

At what age will I receive the lowest auto insurance rates?

Once you turn 50 years old you will be the proud owner of the lowest rates available. Auto insurance companies see less risk in drivers that are in their early fifties.

The majority of drivers in this age range are thought to be very experienced drivers and more financially stable. Typically, drivers in their 50’s pay roughly $200 less annually for their car insurance premium than the average American driver.

When your auto insurance rates decrease

Generally, your car insurance rates aren’t going to automatically drop once you turn 25. Drivers that are 25+ have fewer claims and accidents than their younger selves. Fewer claims means less money paid out from the insurance company for injuries and damages. The insurance companies recognize this through in-depth data analysis and reward these drivers with lower car insurance premiums. 

If you have been a safe driver from the first day you got behind the wheel, more than likely you have already noticed a decrease in your premiums, when you renew every year. On the other hand, if you have a laundry list of violations and insurance claims, you probably have noticed an increase in your auto insurance rates. Experience and driving history can mean more than age in situations like these. 

For example, if you waited until you were 26 to get your license and start driving, you will encounter higher rates than a 26 year old who has been driving safely since they were 16. The insurance company determines rates based on a mix of aggregate data from similar drivers (age, gender, marital status, driving experience etc). 

Similarly, if you have been a licensed driver for a long time but you aren’t exactly the best driver. Let’s say you have a couple accidents and speeding violations. The fact that you’re turning 25 won’t mean as much as a driver that has zero auto insurance claims and a clean driving history.

When do your car insurance rates start to increase again?

For the most part, you can expect to see decreases in your auto insurance rates for the majority of your life. Until you turn 65 years old. That’s the age you can expect your auto insurance rates to start to increase. With age only being one part of the puzzle that determines your auto insurance premium, keep in mind the neighborhood you live in, car you drive and driving history will play a bigger factor in the rate you qualify for even when you are at your prime driving age.

The insurance Institute for Highway Safety states 60 to 64 year olds have the lowest amount of claims. For the most part they are safe reliable drivers with low accident rates. Therefor they receive lower auto insurance premiums. But once you turn 65 you will see your rates start to increase. Data shows that drivers 70 years of age have more frequent fatal car accidents, the result of this is high insurance premiums.