What Age Does Car Insurance Go Down?

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Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on July 12, 2023

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated July 12, 2023

Visit author page

1 minute read

Article Contents

When Does Car Insurance Go Down?

Generally speaking, your car insurance rates will start to go down once you hit 25. Even after 25, you should see gradual drops in your rate given a clean driving record. While this age typically holds true, there isn’t some automatic lever that gets pulled when you hit the 25-year milestone.

Assuming you’re a good driver with no infractions, you’ll likely see drops in your rate when you renew your policy after you turn 25, potentially having your rates drop by as much as 50% in some instances! If you’re a young man, your rates can actually go down incrementally when you turn 19, 21 and 23 years old.

Here’s a quick and free tool to find the cheapest quote according to your requirements.

What If I’m Not A Spring Chicken?

Don’t worry, retirees also get a discount as well. When you hit your golden years and want to retire, you can qualify for yet another discount! Typically, drivers over the age of 65 or drivers receiving income under the Canada pension plan qualify for a discount as well. Unfortunately, this discount is not as drastic and will account for 2 percent to 5 percent of your total premium amount.  With that said, claims rates and accidents are typically higher for senior citizens so this discount can seem fleeting in the grand scheme of things.

This Is All Age Related, What If I Want My Rates To Drop Now?!

There are plenty of other scenarios in which clean drivers can have their insurance rates drop upon renewal, including but not limited to:

  • Your car is ageing and its value is depreciating (the less your car is worth, the less it costs to insure)
  • Becoming a premium or elite member at your given insurance company (if you’re claim-free for over 10 years with the same company, ask and see if there are any incentives for you upon renewal)
  • Insurance companies change their rates several times a year. You could be lucky and it could be your insurance company lowering their rate, or you could be smart and shop around to see if you can get a better rate on your own!


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