Gianetta Palmer is a writer for CarInsurance101.com, copywriter, and essayist. Her work has appeared in EverydayHealth.com, Healthline, and The Dyrt Magazine. She is the author of Scrunchie-Fried and writes a lot about car insurance in her spare time.

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Reviewed by Melanie Musson
Published Insurance Expert

UPDATED: Mar 13, 2020

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Car insurance rates are determined by many factors; only some of them are within the control of the insured. Some items, such as driving history and type of vehicle being driven, can be changed by the insured. Other factors are less easy to adjust: The driver’s age, gender, marital status and even credit score all factor in the rate determination.

Young drivers, especially young men, pay more for insurance than older or more experienced drivers. Young drivers do not have much driving history to base an insurance rate on, so the insurance company bases decisions on demographics. Statistically, teenagers and young men are the most likely to get involved in a car accident, thus accounting for the comparatively high rates.

At what age will my car insurance rates go down?

For most drivers, the age that insurance rates begin to drop is 25. By 25, you should have enough driving experience for the company to base your insurance premiums on your own driving rather than statistics. Demographically, people over the age of 25 are also less likely to be involved in car accidents than teenagers and college-age adults. Men over 25 tend to pay roughly the same in premiums as women of the same age.

Many people do begin to pay lower premiums earlier, though; women, especially, may start seeing their rates drop at 18 or 21 rather than 25. The details will depend on other factors such as location, credit score and driving record as well as gender.

Of course, your age will only bear a positive impact on your car insurance if your driving record has been clean up to that point. If you obtained numerous traffic citations throughout your college years or had several car accidents, your rates may go up regardless of your age.

How many years after a car accident will my car insurance rates go down?

Because rate determinations are based on so many different factors, it’s impossible to give a blanket statement that would encompass all situations. Some insurance policies are more lenient toward accidents than others. Essentially, every time your vehicle is involved in an accident a point will be charged against your policy. As points accumulate, your rates increase.

Points can stay on a policy for up to seven years, depending on the insurance company and the details of the accident. In some cases, the points will disappear after just a few years of safe driving. Also bear in mind that points assessed from car accidents are considered separately from rate increases due to traffic violations or other factors, so if your rates have gone up due to a ticket the policy will be affected differently than if you are involved in an accident.

What is Accident Forgiveness?

Some insurance companies, such as Allstate, make a point of advertising accident forgiveness policies. These policies allow for you to receive a certain number of “free” accidents before your rates begin to raise. They may also cause a decrease in your deductible or provide other perks for safe driving. While some companies advertise this feature more aggressively than others, nearly every insurance company will have rewards for good driving.

If you have been driving for several years without any accidents, you can contact your agent and see if any discounts can apply to you or if there are any safe driving rewards you can collect. You may be able to receive a credit toward your insurance premiums, a deductible reduction or even a cash payment.

How to Save Money until your car insurance rates begin to drop?

You may be able to reduce your insurance costs by taking advanced driver’s education classes. Classes such as defensive driving or other similar programs can cause your rates to decrease, and can be especially helpful for young drivers who do not have much road experience.

You can also reduce the cost of your insurance premiums by installing safety devices or anti-theft devices into your car. By making your vehicle less attractive to thieves, you can reduce the chance of the vehicle being stolen and thus improve your insurance rates.

If you’re a student, you can also qualify for discounts with many insurance companies by having good grades. Ask your insurance company if there are any good student discounts you can qualify for and what paperwork they need to process that request.

No matter how old you are, you can always take your insurance costs into your own hands. By being proactive with the elements within your control, you can mitigate the rates assessed to your policy for factors outside of your influence.