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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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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.

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Reviewed by Joshua Adamson
Joshua Adamson

UPDATED: Jul 16, 2021

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Does Car Insurance Costs Decrease Over Time?

Car ownership can be an expensive proposition when you're young, but the cost of insurance does tend to decrease as you go along. There are many ways to lower the cost of your car insurance over time.

Car ownership can be an expensive proposition when you’re young, but the cost of insurance does tend to decrease as you go along. There are many ways to lower the cost of your car insurance over time.

How does age factor into your auto insurance premium?

One of the benefits of getting older is seeing a decrease in your car insurance premium. Insurance providers use age as one of the deciding factors when assessing risk. They’ve determined younger drivers are statistically more likely to be involved in accidents than more experienced ones. From 16 and 24, you’re considered a “high-risk” driver, but when you turn 25, you might notice the cost of your insurance begin to decrease. This trend will continue as you get older, because the more driving experience you have, the better your auto insurance company feels about insuring you. Teen drivers can offset high rates with the good student discount offered by many auto insurance companies.

Auto insurance companies will also consider your marital status when setting your auto insurance rate, and married drivers tend to pay less than single drivers.

Car ownership can be an expensive proposition when you’re young, but the cost of insurance does tend to decrease as you go along, with middle-aged drivers paying the least. Senior drivers may find themselves facing higher rates.

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How does credit score factor into your auto insurance premium?

Your credit score can also decrease the cost of your car insurance. A good credit history shows responsibility and insurance providers often take that into account when determining the cost of your premiums. Maintaining a good history of credit card payments, student loan repayment, and mortgage payments does pay off in terms of car insurance rates.

How does your driving history factor into your auto insurance premium?

A good driving record is a big factor in determining your car insurance rates. A steady history of no speeding tickets, accidents, or damage to your vehicle shows the insurance provider you’re a responsible driver and they won’t constantly be paying to cover your reckless behavior. You might also convince them to lower or maintain your premium by regularly enrolling in defensive driving courses, though some providers do not offer these insurance discounts. Drivers with multiple infractions on their record will have a difficult time finding cheap car insurance, so it pays to stay safe.

You might be able to take part in a telematics program (also called usage-based insurance programs) with your insurance company, in which you install a mobile app on your cell phone that monitors your driving habits. These programs reward you for safe driving with a discount on your auto insurance rate.

How does staying loyal to a provider lower your auto insurance rates?

Insurance providers are loyal to customers who are loyal to them. Sticking with your provider rather than hopping from insurance company to insurance company helps cement a good relationship. Many insurance providers are willing to reward loyalty with lower premiums for customers who maintain their auto policy over several years.

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How does keeping the same car lower your auto insurance rates?

Your car’s actual cash value (ACV) is taken into account when determining your insurance premiums and deductibles. Over time, the value of your car will depreciate, making it less expensive to repair and your insurance will follow suit. The longer you own your car, the less you’ll have to pay for your insurance monthly premium.

Auto insurance companies vary significantly in what they charge and what discounts they offer, so make sure to shop around by comparing insurance quotes from multiple providers.

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