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Does my car insurance drop at age 25?

Added January 31, 2018
Dairyland Insurance

When you received your driver’s license, you might have been shocked at how much you had to pay your insurance company. And you didn’t even have an accident yet. You couldn’t wait to turn 25 and have those high car insurance rates finally come down. After all, it’s commonly thought that car insurance rates automatically drop for drivers at age 25.

Not so fast.

There is no magic age threshold that leads to a drop in vehicle insurance rates. It’s more of a gradual decline when it comes to the correlation between car insurance rates and age. The age curve varies by insurance company.

One factor that does impact insurance policy rates for all insureds, but particularly at younger ages, is whether an insurance score is factored into the cost. Some insurance carriers, like Dairyland®, will not pull an insurance score for teenage drivers.

A 25-year-old who has done some work to establish and improve his or her credit score—which ultimately relates to their insurance score—may reap rewards as it relates to his or her car insurance premiums.

Other factors that may impact insurance rates of young drivers include the year, make, and model of the vehicle, the number of miles driven each year, the garaging location of the car, driving record, and usage of the vehicle.

Young drivers who are homeowners or are married may qualify for car insurance discounts.

So, remember, age isn’t the end-all determining factor when it comes to insurance premiums. This myth is debunked.


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At Dairyland, we feel strongly about your safety, and we promote that through our Defensive Driving Discount. Check out what you might be able to save today.

Also, make sure you have the coverages you need on the road. 



This document is made available by Sentry Insurance a Mutual Company and its subsidiaries and affiliates (collectively "SIAMCO") with the understanding that SIAMCO is not engaged in the practice of law, nor is it rendering legal advice. The information contained in this document is of a general nature and is not intended to address the circumstances of any particular individual or entity. Legal obligations may vary by state and locality. No one should act on the information contained in this document without legal advice from competent and licensed local professionals.