Turning 30 can have a significant effect on car insurance rates. While a 25-year-old might pay less than half as much for a full-coverage policy than an 18-year-old, a 30-year-old could only pay about 25% less compared to a 25-year-old. The cost of car insurance generally declines the most between 18 and 19 years of age, when rates drop by about 25% on average. When drivers turn 25, they can expect a discount of around 14%.
Statistically, young drivers are more likely to have a car accident than older, more experienced drivers. However, car insurance rates will vary depending on individual qualifying factors, so seeking coverage can still be a useful tactic for finding a lower premium. It seems to be one of those cosmic realities of life that the younger you are, the more you'll pay for car insurance. Despite years of driving experience, older drivers may be more likely to have car accidents due to physical, cognitive, or visual disabilities, which can translate into higher rates.
If you're 26 years old but just got your driver's license, you'll be considered a new driver and you'll pay more for car insurance than a 26-year-old who's already been driving for a decade. The final insurance policy premium for any policy is determined by the insurance company upon application. Price may be the first thing you think about when choosing an auto insurance policy, but it's not the only thing you should consider. Plus, there are fantastic coverage options if you also need boat insurance, classic car insurance, or motorcycle insurance.
21-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they're more likely to file a claim. All insurance products are governed by the terms of the applicable insurance policy and all related decisions (such as coverage approval, premiums, fees, and charges) and policy obligations are the sole responsibility of the insurer. Middle-aged drivers tend to insure newer, nicer cars and begin to include their children in the policy, which increases the average rate for this age range overall. Your car insurance won't be automatically reduced when you turn 25.Drivers with accidents or record violations will continue to pay high rates even after they have passed their age outside the highest-risk age group.
In every state except Hawaii, age is one of the most important factors affecting how much you pay for car insurance when you drive in your 30s. Bankrate's insurance editorial team has researched dozens of insurance providers to help you find the best auto insurance company for your needs.