Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 1, 2021

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Key Takeaways

  • Females aged 21 receive lower car insurance quotes than males the same age
  • Car insurance companies in California, Hawaii, and Massachusetts can’t change rates based on age
  • Car insurance rates typically lower slightly after the first year with a clear driving record

Car insurance rates increase for young drivers. Their lack of experience makes them high-risk in the insurance world. But, when does that change? What are the affordable car insurance companies that decrease their rates after the drivers turns 21?

Rates tend to start dropping for drivers when they reach the age of 21. However, there are still some factors that affect how much of a decrease is applied. A little car insurance 101can help you find the best rates.

Typically, females are a lower risk than males and receive a larger rate decrease once they turn 21. Another factor is the driving record of the individual. Although you’ve gotten older, one to many tickets or an accident may keep your rate high.

Where you live also plays a part in how your car insurance rates decrease at age 21. In some states, it’s illegal to use age as a determining factor for car insurance rates.

Check car insurance rates that decrease at age 21 by entering your ZIP code in the free tool above.

What are the car insurance companies that decrease their rates after the drivers turns 21?

Not all car insurance companies drop their rates for drivers when they turn 21. GEICO and USAA have the lowest average rates for people 21 and older.

Car Insurance Company Average Monthly Rate at 21
Allstate $628
Farmers $411
Nationwide $252
Progressive $302
State Farm $302
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On average, car insurance rates drop by 20% when a driver reaches 21. If you boast a clear driving record, your rates will continue to decrease year-over-year until about 25.

States like California, Hawaii, and Massachusetts don’t allow car insurance companies to increase or decrease your car insurance rates based on age, so these rates won’t apply there. Learn what state auto insurance laws apply in your state.

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Car Insurance Rates Decrease at 21 Based on Gender

Your birthday isn’t the only qualification for lower rates once you turn 21. Your gender can also play a part.

AgeFemale Male
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When does car insurance go down for females and when does car insurance go down for males?

Females are automatically labeled as low-risk compared to their male counterparts. If there are no accident or bad driving reports, females can anticipate a decreased rate that is about 50% lower than males at age 21.

In contrast, males can still expect a decrease in car insurance rates at 21, but their rates won’t go does as much as for females of the same age. Males won’t usually get the same rate as females until about 30 years old.

When does car insurance go down for new drivers?

Depending on which car insurance company policy you have, new drivers can expect to see a decrease between the first and third year of their policy with no traffic violations or accidents.

As mentioned before, young drivers are a higher risk than the average driver. This is because they’re more prone to accidents or traffic violations. View the traffic statistics for young drivers at the Insurance Information Institute (III).

No matter your gender, if you can keep a clean driving record your car insurance rate will most likely decrease. A series of other factors such as being a student, your specific job title, your commute, and even the area in which you live can also lower your rates further.

Search car insurance rates that decrease at age 21 by entering your ZIP code in the free tool below.