Do Car Insurance Prices Go Down Every Year?

Car insurance premiums are liable to fluctuate depending on a variety of factors both year to year and during a year’s policy.

Changes in Car Insurance Due to Age 
Age can heavily affect your car insurance premiums year to year. In most cases, your auto insurance rates may go down little by little each year up until you (or an insured child) reach the age of 25. From then, you shouldn’t see much fluctuation in your car insurance premiums year to year related to age until you are older, such as 65-75 years of age.

Teenagers tend to pay the highest amount in car insurance despite other factors.

Driving Record Affecting Your Car Insurance Premiums 
Your driving record can also change year to year. A single at fault accident, for example, may last on your record for three to five years, meaning your car insurance will be higher for this period of time. Once the accident drops of your record, you can see a related drop in your car insurance premiums. If you get into an accident, you won’t have to wait until the next year to see the difference, however. A jump in your insurance rates will likely happen immediately.

Changes in the Insurance Provider 
Sometimes changes in your car insurance rates have nothing to do with you. You could see a jump or drop in your car insurance premiums depending on internal changes within your insurance provider. If this occurs, you may consider looking elsewhere and checking quotes from multiple insurers to make sure that you are still getting the best deal possible.

Other outside sources could be changes on the state level, such as any new mandates or changes that influence insurers and their clients. If you believe any changes may affect your car insurance premiums, be sure to speak with your insurance agent about ways you can save money, such as qualifying for discounts.

Overall, car insurance prices can change year to year, but it won’t necessarily be a significant amount—and it won’t always be in your favor. Connect with your insurance agent if you have any questions about your auto insurance policy or the premiums you are paying. It helps to compare quotes among insurers so that you can understand the market and how much you should be paying for your specific auto insurance needs.