Does Insurance Go Down When You Turn 25?

It can be challenging in today’s noisy world to know what is true and what is just hearsay. A few questions that find their way into this category for many younger drivers are, “Does car insurance go down at 25?” or, “I turned 24, and my insurance didn’t go down. What’s up?”

Understanding how age affects your car insurance rates can help you know how to ensure you’re saving the maximum when it comes to insurance for your ride.

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      Myth vs. reality: Does car insurance go down when turning 25?

      The answer to that question is yes. According to the Insurance Information Institute (III), age is a major factor in determining someone’s car insurance rates. The III points out that teenage drivers are more likely to have accidents due to a lack of experience.

      And in case you’re wondering, this is not just something insurance companies assume. Insurers make data-driven decisions by looking at what age groups are more likely to be in accidents. According to a 2018 report from the Insurance Institute for Highway Safety, 18% of motor vehicle crash deaths per 100 million miles traveled were by drivers aged 20-24. This is the largest percentage for any age group. Over 34% of deaths are from drivers 24 or younger.

      [ Next: Why Is My Auto Insurance Premium So High? ]

      While age is a major determining factor for car insurance rates, it’s not the only piece of data that companies look at. Car insurance companies look at things like how dangerous it is to drive where you live, your past driving record, the risk with the type of vehicle you’re driving and even stats about your gender. Ultimately, you’re going to pay a rate based on your demographically-similar peers’ historical performance and your driving record.

      How much will my car insurance go down when I turn 25?

      According to Progressive, a top insurance company, the average rate decrease among their customers who turn 25 is 18%. The average rate for a 23-24-year-old driver is $246. When the driver enters the 25-29 age bracket, that rate drops to $220.

      When you look at the shift in pricing from your teenage years to the age of 25, the drop is even more dramatic. Progressive’s average insurance rate for an 18-year-old driver is $421. The descent from 18 to the 25-29 age bracket is 47.7%.

      It’s important to remember that these are just averages. Your actual rate is determined by plenty of other factors. That being said, you should expect to see some relief when you reach the 25-year milestone.

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      I turned 25, how else can I lower my car insurance?

      As age is just one of the factors that go into determining your rate, there are a lot of different things drivers can do when they reach the quarter-century mark.


      Shopping for discounts with your car insurance is a critical step in getting the best rate. Many car insurance companies automatically apply discounts you qualify for, but not always. For example, many insurers offer good student discounts to full-time college students. Additionally, you may see discounts for good driving, the equipment on your car, customer loyalty, military service and even driving an environmentally (green) vehicle. Ask your insurance agent if there are any discounts that you think you might qualify for. The worst they can say is no.

      [ More: How to Become a Good Driver In Your State ]

      Defensive driving classes

      Some insurers give drivers discounts for taking the time to educate themselves on how to be safer on the roads. You should ask your insurance company if they have any internally-sponsored or certified courses they offer discounts for completing. Even saving a few bucks a month for taking a one-time class is undoubtedly going to be worth it. Additionally, the classes are known to help improve your safety on the road, which is always positive.


      Turn on your TV for more than five minutes, and you’ll certainly see an insurance commercial about bundling. Bundling is a term that means including different forms of insurance — like bundling renters and auto insurance — together with the same company. By choosing to move all of your insurance business to one provider, you can cash in on some great discounts.

      Make sure when you’re bundle shopping that you compare the pricing to purchasing individual policies from the same or different providers. While the bundle can often be the best price, it isn’t always.

      Shopping for quotes

      The number one way to get the best car insurance rate is to put in the legwork and shop for the best quotes. The insurance industry is highly competitive, which means companies will do everything they can to try and win your business. The only way you’ll know exactly what companies are willing to do is to reach out and get quotes.

      [ More: How Does a Lapse in Car Insurance Affect Your Rate? ]

      When should you shop for quotes? There are two main times you should shop — when you first get insurance and when something significant changes in your life. You should try and find the best rate off the bat. Most people are aware of this and do a good job of looking around.

      However, many people neglect looking for a better rate down the line. Significant times you should shop for better car insurance rates include when you get older (like turning 25), when you switch cars, when you move or when you’ve had a long period between any traffic infraction that increased your rate. Remember, you should also check with your current provider to see if there is anything they can offer you to keep your business.

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      • Nashalie Addarich
        Nashalie Addarich
        Insurance Editor

        Nasha Addarich is an editor at The Simple Dollar and a former attorney who specializes in home insurance, auto insurance, life insurance, and savings. She is a former contributing editor to