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Laura Berry

Former Insurance Agent

Former Insurance Agent

Joshua Adamson

Joshua is a copywriter at Obrella who for more than 10 years has been creating content about insurance, health care, and more. He helps companies explain complex insurance subjects in simple ways so that customers can make smart buying decisions. He spends way too much time binge-watching Netflix, loves the outdoors and has a cat who tolerates him.

UPDATED: Nov 29, 2023

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Does Car Insurance Drop at 25?

Your car insurance rate can change for many reasons. One common way is when you reach your 25th birthday, which is when you move out of the high-risk category. At this point, you're considered an adult who has enough driving experience to prevent you from getting in too many accidents.

Factors That Determine Insurance Rates

Age is a primary factor in determining insurance rates. Statistically, the 16 to 24 age group is the most likely to get in accidents. Insurance providers tend to charge more for younger drivers to protect themselves from numerous, and potentially high, claims.

Another key factor is your driving record. If you were reckless as a teenager and got a lot of tickets, you may have a higher insurance rate. If you had a credit card as a young adult and did not make your payments on time or otherwise have bad credit, this may also lead to higher premiums. Gender, marital status, and location are other considerations when determining your insurance rate.

Age is a primary factor in determining insurance rates.

Once You’re Over 25

After the premium cost decreases at 25, your insurance rate does not necessarily stay the same from then on. Your rate can continue to fluctuate for many reasons, but barring serious car accidents, multiple claims, or a major change in your location or the car you drive, you likely won’t see your rate changing much.

If you get a new, expensive car for your 25th birthday, your overall rate may still drop, but that decrease may be offset by the higher rate attached to a flashier car that costs more to insure.

When you turn 25, don’t expect your car insurance rate to drop automatically. Talk to your provider for more details about if or how much your premium drops when you move out of the young driver age group.

If you feel that you are paying too much for your car insurance, give the insurance experts a call today. They can help you compare a variety of insurance policies to ensure your policy gives you the right coverage at the right price.


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