when does car insurance go down?

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Many of us know when and why our rates tend to rise (after an accident, speeding ticket, claim, etc.), but when do insurance rates go down? While there's no magic number, necessarily, you can expect your age group to affect what you pay — for better or worse.

The fact is, auto insurance rates rise and fall over the course of time due to a laundry list of factors and circumstances. Your age and the number of years you've been licensed are big contributors to what you'll pay for coverage — but why?

It all has to do with the amount of financial risk your age group, on average, poses to the insurance company.

So if you fall into a demographic that statistically gets into less accidents and/or files less insurance claims than the average driver, you can generally expect to pay less for coverage (all other contributing factors aside). That helps explain why females often pay less for car insurance than their male counterparts.

does car insurance go down at 25?

Auto insurance rates don't necessarily drop when you turn 25. But most drivers do start to see decreases in their car insurance premium as they gain experience and avoid too many tickets and accidents. So if you've been licensed since you were 16 and maintain a clean driving record, there's a good chance you'll start seeing lower car insurance rates when you hit your mid-20s and into your 30s.

But, as we said, there's no specific age at which car insurance rates automatically drop. If you were licensed at 23 and only have 2 years of driving experience by the time you're 25, you're not as likely to see big changes in what you pay for auto insurance until you gain additional driving experience.

What's more, individuals in their 40s and 50s could see even further decreases in their premiums — namely because, at this point in their life, they're typically responsible for others (who are often likely to be traveling in the same car with them). And, if you insure your spouse and children in addition to yourself, you stand to see savings by insuring multiple cars on the same policy.

Many insurers, including Esurance, offer homeowners discounts on car insurance if you happen to own a home, and multi-policy discounts if you insure more than just your cars with the same company. Plus, Esurance offers unique savings options like the Renters Plus® discount, which helps you save on your car insurance when you add renters coverage to your Esurance auto policy.*

why teen car insurance rates can be more expensive

Driver inexperience, driving with other teen passengers, and impaired, distracted, and nighttime driving are among a handful of contributing factors to high crash rates for teens. So on average, car insurance for young drivers tends to be significantly pricier because of their increased likelihood of getting in an accident.

In fact, 16- to 19-year-olds face a higher risk of motor vehicle crashes than any other age group, and are nearly 3 times more likely than motorists aged 20 or older to be in a fatal accident, according to the Centers for Disease Control and Prevention.

But there are certainly ways to keep costs down. Try seeing if adding a teen to your policy could be a good option for everyone involved. Whether your teen ends up on your policy or gets one of their own, they could qualify for the Good Student discount, and in some states, discounts for taking a driver safety course.

You could also save (or help your teen save) by assisting them in picking out a car with a lot of safety features, which can help bring rates down.

Plus, Esurance's very own DriveSafe® program helps you coach your teen on safe and responsible driving habits even when you can't be in the car with them. And we all know safe driving usually means lower car insurance rates in the long run.

car insurance rates for seniors

According to the Insurance Institute for Highway Safety, crash rates — including fatal crashes — begin to increase when drivers reach their 70s. Plus, property damage liability claims, in addition to collision claims, begin increasing after the age of 65.

This sometimes spells bad news for senior car insurance rates, but not always. There are plenty of ways older drivers can help keep their premiums down — including discounts for mature driver courses, insuring multiple vehicles, owning a home, and more.

How your car insurance rate is determined
In addition to your age group, there are quite a few factors that help determine what you'll pay for car insurance.

What If® Calculator
Learn how tickets, moving to a new area, or changing vehicles could alter your auto insurance premium.

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