When Does Car Insurance Go Down?
Generally speaking, your car insurance rates will start to go down once you hit 21 (given you have prior driving experience). After 25, you should see a gradual decline in your rate, provided you have a clean driving record.
Car Insurance Rates by Age in Canada
Car insurance rates in Canada vary significantly by age because insurers price policies based on driving experience and statistical risk exposure.
| Age | Average Annual Car Insurance Premium |
|---|---|
| 18–20 | $4,118 |
| 21–24 | $2,124 |
| 25–34 | $1,636 |
| 35–44 | $1,435 |
| 45–54 | $1,220 |
| 55–64 | $1,134 |
| 65+ | $1,162 |
Similar car insurance rate comparison by age charts are available on our Ontario and Alberta pages.
At What Age Does Car Insurance Go Down for Women?
For women, car insurance typically drops noticeably around age 21, decreases again around 25, and reaches its lowest point in the mid-50s to early-60s.
This happens because insurers view female drivers as lower-risk earlier than men, especially once they gain several years of claims-free driving experience. Rates may rise slightly again after age 65 due to increasing claim frequency and reaction-time risk factors.
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! Several insurers offer premium reductions of 5% to 15% to eligible retirees who are the primary drivers of their vehicles. This discount specifically applies to the Accident Benefits portion of the policy.
Key Advice from MyChoice
- Avoid the “G1 Surcharge” Myth. G1 drivers in Ontario are typically covered at no cost under a parent’s policy. The true rate hike happens when the student graduates to a G2 license and can drive solo.
- In Ontario, you are entitled to a 10% discount for one year immediately after graduating from G1 to G2, and another 10% for one year after obtaining a full G license.
- Every insurer prices different age groups and drivers differently. Comparing rates online is important if you want to get a good overview of the market.