Average Car Insurance Cost by Age 2024

Which age group pays the most for car insurance? Being young is a simple way to pay extra for car insurance, as many new drivers have discovered. That higher cost is due to at least two factors. Young drivers have less experience, which is a factor that car insurance companies frequently consider when setting premiums. Second, research indicates that teenage drivers are far more likely to be involved in collisions. This guide will cover everything you need to know about the average cost of car insurance by age.

Car Insurance Rates by Age

Depending on what their insurance company determines as a reasonable risk profile rate, each motorist pays a different amount per year. Your driving history, zip code, and the quantity of coverage you purchase are just a few of the many factors that affect car insurance rates.

However, one of the most important determinants is ultimately age. It has an impact on car insurance rates, with the youngest drivers routinely paying the highest premiums. Check out this car insurance rates chart by age:

Average Monthly Full Coverage Auto Insurance Rates by Age and Gender

The amount that your age affects your car insurance rates varies by company and by state.

Read more: Average Car Insurance Rates by Age and Gender

Average Car Insurance Rates by Age and State

Here’s an overview of the cost of car insurance by state:

Average Monthly Car Insurance Rates by Coverage Type

States with laws prohibiting age-based rates include Massachusetts. Even if your state forbids age-based pricing, you might nevertheless pay more when you’re young. Car insurance for new drivers can be expensive, regardless of age, as the majority of jurisdictions let insurance companies consider driving experience when calculating rates. If you’ve only had your license for a year or two, your insurance premiums will probably be higher than those of someone who has had their license for ten years. (For more information, read our “Best California Car Insurance for New Drivers“).

Average Cost of Car Insurance by Age

If you look at the average car insurance premium by age, you could see a pattern. For teenagers and young people, coverage begins at much higher rates. As drivers gain more driving experience over the years, premiums tend to go down. However, rates can increase again when drivers get older. In general, each age group’s risk factors are to blame for this.

• Teenagers: Why do young drivers pay more for car insurance? Teenagers are among the most dangerous drivers to insure. Teen drivers are three times as likely as adult drivers to be involved in deadly crashes. To cover the higher expenses linked to teen driving claims, insurers frequently charge more to insure teen drivers.
• Adults: By the time a driver reaches their early 20s, the price of car insurance coverage often starts to decline. By the age of 25, drivers may see a fairly considerable decrease in their premiums. If individuals have a history of safe driving and no insurance claims throughout adulthood, premiums often continue to decline as drivers gain more expertise.
• Seniors: Regrettably, once drivers reach their 70s, the declining trend in insurance costs usually comes to a stop. Seniors may be more prone to accidents due to aging-related issues like hearing or vision loss and reduced response times, therefore car insurance for seniors sometimes comes with higher rates. However, provided they have a clean driving record, seniors may see an increase in their insurance costs, but they are unlikely to return to paying the high rates for juvenile drivers.

The majority of insurers are aware that premiums for car insurance can be high for specific age groups and provide discounts to assist lower those costs. Young drivers frequently receive good student discounts and discounts for driver education. Senior drivers may be eligible for reductions if they have a long history with the company or belong to groups like AARP.

In most jurisdictions, your car insurance rate should increase as you get older, regardless of your driving history. Nevertheless, it’s crucial to steer clear of tickets and collisions. Even as you age, you must be proactive to keep your rate low.

Read more: Best Auto Insurance for Young Adults

Does age have a greater impact on car insurance rates than other factors?

Car insurance prices are influenced by a variety of factors, not just age. The good news is that some of the other factors are truly under your control.

Location vs. Age

Age has a greater impact on vehicle insurance prices than location. Younger drivers pay much more than older drivers, and as motorist ages, their rates will gradually decrease no matter where they live.

Vehicle Type vs. Age

When a driver is young, between the ages of 15 and 25, age has a greater impact on car insurance prices than vehicle type. After that, a driver’s choice of vehicle has a more noticeable impact on their premium than their age. For example, insurance for a Tesla may cost up to 70% more than a minivan. Among other things, a car’s safety ratings, the chance of being stolen, and typical repair expenses for that model all have an impact on how much insurance will cost.

Gender vs. Age

Age has a greater impact on car insurance prices than gender. Young male drivers pay the most of any group; they can pay almost $100 more per month than young female drivers. However, 16-year-old drivers, regardless of gender, pay 80% more on average than older drivers. Men and women both pay similar rates by the time they are in their 30s.

Driving History vs. Age

A person’s driving history has a greater impact on their car insurance prices than their age does. Even the most inexperienced and youthful drivers are not as dangerous as those who have had a DUI. Compared to others in their age group, drivers who need high-risk car insurance can expect to pay between 50% and 300% more.

Credit Score vs. Age

An individual’s age has a greater impact on car insurance prices than their credit score. In some places, it is technically against the law for businesses to consider your credit score when determining the cost of your insurance.

What should my car insurance cost?

As a general rule, choose the most comprehensive car insurance you can. You might be tempted to save money by purchasing only the minimum car insurance requirements by your state. However, many optional types of car insurance are worthwhile to take into account because they frequently offer benefits that are far more valuable than the extra cost they incur.

Although neither collision nor comprehensive insurance is necessary, both are wise decisions. Vandalism and theft are examples of non-collision accidents that are covered by comprehensive car insurance. Without it, if a tree falls on your car during a storm, for example, you’re stuck paying all the expenses. Even if you cause an accident, collision car insurance takes care of your car’s repair costs. If the deductible on your health insurance is high, you might also want to think about purchasing medical coverage.

Finally, whether you’re 16 or 65, make sure to compare prices for the coverage you choose to purchase. As a result, you will eventually be able to afford higher coverage limits.

How do car insurance companies set rates?

Because every insurance company uses the information they have about you differently, you almost certainly will see different rates from them all. Others are more interested in your driving record, while others are more interested in the vehicle you drive.

Regulations for determining car insurance premiums, which vary by state, also place restrictions on car insurance businesses. The local rules in neighboring states might cause significant variations in typical expenses. For instance, the average cost of full coverage for a motorist in Florida aged 35 is $2,775 per year. When a driver crosses the border into Georgia, their average rate drops by over $1,000, to $1,698.

As a result, one of the key determinants of the final amount you pay is where you live. Look up the typical car insurance prices in your state to get a sense of what to anticipate.

Top Insurance Companies That Offer Cheap Rates Based on Age

It’s crucial to take into account a car insurance company’s average vehicle insurance rates by age, but you should also assess any potential insurers based on their coverage, customer support, and cost-effectiveness.

Best All-Around

GEICO car insurance, which is offered in all 50 states, received top marks across the board in our evaluation of the sector. Our favorite part about it was the variety of deals it gave to customers. Drivers can make claims, access insurance cards, check and modify plans, and more via the insurer’s top-rated mobile app, which is available. This improves the insurance experience for GEICO consumers.

Best for Military Families

In our insurer study, USAA car insurance did well across the board despite being limited to military personnel and their families. It has a stellar reputation, has received an A++ rating from AM Best, and provides numerous discounts to lower the cost of your insurance plan. Although USAA doesn’t have any physical branches, clients have generally had good experiences with customer service.

How can I save on insurance, despite my age?

There are ways to save money on car insurance regardless of your age. Young and old drivers can both save money on their car insurance by comparison shopping, applying for discounts, and joining someone else’s coverage.

Comparing Prices

When it comes to insurance premiums, comparison shopping is the most efficient strategy to reduce costs.

Obtain estimates from at least three businesses. You can start an online quote with most big insurers, making it simpler to compare pricing.

Discounts

Younger and older drivers can easily reduce their premium costs by seeing if they qualify for any car insurance discounts.

Drivers can reduce their insurance costs by up to 10% by maintaining good grades (for young drivers still in school) and completing defensive driving lessons.

Companies like Allstate, which provide senior discounts, have a “55 and Retired” program that automatically qualifies safe, retired drivers over the age of 55 for a 10% discount.

Although age isn’t directly related to customer loyalty or excellent driving discounts, you’re more likely to qualify as you go older because they demand a minimum number of years of loyalty or accident avoidance. These and other savings are frequently listed on the websites of insurance companies.

Getting Added to Parents’ Policy

As a young driver, your parents are sharing some of the risks, therefore the insurance companies feel more at ease offering a cheaper price. However, be aware that the fee for your parents will drastically rise. A guaranteed technique to get a lower rate is to see if they’ll still add you.

Case Studies: Understanding Car Insurance Rates by Age

Case Study 1: Young Driver Premium

Amy is a 20-year-old college student who just got her driver’s license. She purchased a used car and wanted to get insurance coverage. As a young and inexperienced driver, Amy’s car insurance quotes were significantly higher compared to more experienced drivers. The average cost of car insurance for her age group was $2,000 per year.

Amy was able to reduce her premium by taking a defensive driving course and maintaining good grades, which earned her a 10% discount.

Case Study 2: Middle-Aged Driver Discount

Michael is a 45-year-old married man with a clean driving record. He drives a family sedan and has been insured for many years. When Michael compared car insurance rates, he found that his age group typically enjoys lower premiums compared to younger drivers. The average cost of car insurance for his age group was $1,200 per year.

Michael was eligible for additional discounts due to his long-term customer loyalty and his affiliation with a professional organization, which brought his premium down to $900 per year.

Case Study 3: Senior Driver Rates

Elizabeth is a 70-year-old retiree who drives occasionally. She has a clean driving record and drives a low-mileage vehicle. Elizabeth found that car insurance rates for senior drivers tend to increase due to factors such as reduced reaction time and potential health concerns. The average cost of car insurance for her age group was $1,500 per year.

However, Elizabeth was able to qualify for a mature driver discount by completing a defensive driving course tailored for seniors, reducing her premium to $1,200 per year.

Car Insurance Cost by Age: The Bottom Line

The reality is that your age will greatly affect the rates you pay for insurance. The younger or more inexperienced a driver you are, the more you can expect to pay for insurance.

However, don’t let that discourage you. Many companies offer discounts. Shop around, compare quotes, and talk to insurance agents to find the best deals. Above all, defensive-driving practices will not only keep you safe, but they will help you maintain a good driving record and keep your rates lower, despite your age.