Once I turn 25, how much will my car insurance rates decrease?

UPDATED: Jun 18, 2012

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Asked June 18, 2012

2 Answers


In the United States, car insurance rates are adjusted by risk factors and two of the factors are age and gender. Women are assigned a lower risk premium than men are pay lower insurance rates as a result. In addition, rates are higher for younger drivers who are the group most likely to have a car accident and they pay the highest rates.

Once a driver reaches the age of 25 years old, if they have a clean driving record without tickets and accidents, they typically receive a reduction in their insurance rates. Since men pay higher rates they typically receive a larger reduction in their car insurance rates when they reach 25 years old and the rate reduction can be as high as 25%. Women also get a reduction of their insurance rates upon reaching age 25 but the discount is lower and generally ranges from 10 to 15%.

Answered February 18, 2016 by insky


There is not a set amount that your car insurance premiums will go down when you turn 25, not because there is no set amount for the discount, but because there are so many factors involved in determining car insurance quotes that the amount of the change may or may not be the same as the percentage of discount you receive. This may sound a little confusing, but the issue is the other factors in your life, not the discount you receive for turning 25.

In general, the discount for drivers who turn 25 is around 10% of the base premium cost. However, that does not factor in such things as whether you are male or female, single or married, or whether you rent or live in your own home. These factors all contribute towards setting the amount of your insurance premiums and will affect the final cost. Keep in mind, too, that factors such as your credit score, CLUE report, and your driving history will play a role in setting your rates as well.

On the other hand, if your driving history has worsened, you have traded up from a sedan to a sports car, or some other facet of your insurance has changed that results in higher premiums, the savings you get from turning 25 may not offset the other increases. In this situation, the amount of your monthly premium may go down slightly, but it probably will not go down as low as it could if you had a safe driving history in addition to your other discounts like being over the age of 25.

To ensure you're getting the best deal, compare car insurance quotes at least every 6 months and take a look at different ways to get the cheapest car insurance.

Answered June 18, 2012 by Anonymous

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