You can also see that car insurance rates are more expensive for drivers with less experience. While most people believe that 25 is the age at which car insurance rates fall, the most significant declines occur when drivers turn 19 and 21. Rates continue to fall until you turn 30. One of the reasons men tend to pay more than women for car insurance is because men take more risks when insuring. 23-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.
That's because 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. Even so, adding a teen driver won't be cheap, so it's a good idea to shop around to find affordable car insurance for teens. Age affects auto insurance rates because it is an indicator of driver risk for an insurance company. As long as you keep your driving and insurance claim records clean, you should expect that there will be very little change in your car insurance premiums for decades after your 30th birthday.
In general, auto insurance premiums continue to fall every year until age 25, when rates begin to stabilize for the next few decades. Between the ages of 16 and 25, your car insurance rates will drop steadily for every year you keep your driving record clean. If you find that your auto insurance company is raising your rates despite your excellent driving record, it's a good time to compare quotes from other car insurance companies. People with a clean driving record will see their car insurance rates drop considerably around age 25. In California, Hawaii and Massachusetts, age won't have a direct effect on what you pay for car insurance.
The risk to the insurer and the cost to the insured generally decrease as drivers age and gain experience. Drivers see their auto insurance premiums start to fall around age 20, and a big drop occurs around age 25. The cost of car insurance tends to fall the most between the ages of 18 and 19, when rates fall by about 25% on average.