At What Age Does Car Insurance Drop?

Young drivers are the most expensive age group for car insurance. According to the Insurance Information Institute, people under the age of 25 are more likely to engage in risky driving, and that means insurance companies will charge more to insure young drivers than anyone else. You can take steps to reduce the costs somewhat, but the best idea is to remain on your parent’s insurance as long possible.

Insurance Risk and Young Drivers

According to an article published by Liz Pulliam Weston of, car crashes are the single greatest killer of young people. This fact is mirrored in the rates that auto insurance companies charge young drivers, citing such texting whiel driving, speeding and other reckless behavior behind the wheel. For insurance companies, young drivers are an extremely high risk, and it is necessary to charge higher rates in order to compensate for the increased likelihood of paying a claim.

The Magic Insurance Age

The magic age for car insurance is 25. Some insurance companies may begin dropping rates at 23, but drivers will begin to see lower premiums by the age of 25 as long as they maintain a safe driving record. By that age, statistics show, young drivers are becoming more responsible, settling into careers, moving into their own homes and starting to raise families. All of these factors together paint a picture of behavioral maturity, and that means less risk for insurers and lower insurance costs for young drivers.

Young Driver Insurance Discounts

There are ways to save money on car insurance for young drivers. The best way is for them to drive safely, but students can also get discounts for keeping a 3.0 grade point average in school. Voluntary driver safety and improvement courses are another way to save on car insurance, but the course cannot be a condition mandated by the court or the state department of motor vehicles. Other factors that can save money include driving a car that does not require collision insurance, living in an area with a relatively low crime rate and parking your car in a private garage at night.

Parental Insurance Policy Savings

One way to reduce the cost of purchasing insurance for someone under the age of 25 is to keep them on the parent’s policy. If you still live at home or attend college full time, you may qualify for coverage under your parents' policy until age 25, the age when your rates will drop anyway.


About the Author

Roger Golden began his career as a writer in 2008, when he began writing weekly insurance and personal finance articles. Golden's work has appeared on eHow,, and his privately managed blogs, .modern Dislogic and Outdoors—Dixie Style.