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How Age Affects Car Insurance Premiums

Statistics play a huge role in the rates that people pay for their automobile insurance policy. Younger drivers tend to be seen as more inexperienced, and senior citizen drivers are also seen as being riskier. Using the data available, car insurance companies assign risk to drivers that are looking for policies. Higher risk drivers pay higher rates.

Regardless of your age, shopping around and looking and for the best rate can save you quite a bit of money. For the most part, car insurance premiums are the lowest for drivers in their 40s, 50s, and 60s. These drivers are seen as having the highest maturity and most experience on the road.

Your Age And Auto Insurance

Drivers that are under the age of 25 generally pay some of the highest rates for automobile insurance. This is mostly due to their inexperience and the fact that they are statistically more likely to get into an accident than other age groups. This makes them a more high-risk driver to insure. For drivers who are age 16, the rates can be up to $1500 or more above the rates of people who are 22. For drivers that maintain a safe record, insurance averages go down each year.

Average Auto Insurance Rates Per Age

Many variables go into automobile insurance rates, but age has a large effect on what people pay for their premiums. Depending on the state minimum limits for insurance, each state can also vary quite a bit in terms of automobile insurance prices. Additionally, with each state utilizing different variables and different ways to determine the rates people pay on their car insurance premiums, there can be a lot of variation in prices.

Drivers that are age 16 can pay as much as $2600 or more for their automobile insurance coverage. Because of this, many people look into other ways to save money on their car insurance policies. Take a look at the average automobile insurance rates in your state by age and consider additional ways that you can save money on your plans.

Driver's age Male driver Female driver Average
16 $7,778 $5,776 $6,777
17 $6,852 $5,597 $6,225
18 $5,889 $5,056 $5,473
19 $4,489 $3,838 $4,163
20 $4,109 $3,524 $3,816
21 $3,268 $2,845 $3,057
25 $2,180 $2,188 $2,184
30 $1,902 $1,942 $1,922
35 $1,878 $1,937 $1,907
40 $1,828 $1,897 $1,863
45 $1,791 $1,841 $1,816
55 $1,679 $1,702 $1,690
65 $1,727 $1,747 $1,737
75 $2,035 $2,038 $2,037
85 $2,475 $2,358 $2,416

Teenagers vs. The Elderly

Teen drivers are among the most expensive to insure, due to statistics showing they are the most likely to be involved in accidents. Even drivers in their 20s pay higher rates, however, and it generally stays that way until people reach age 26. The good news is that this means that younger drivers have lower prices to look forward to. The bad news is that they will be paying higher rates for the next few years. If they focus on safe driving habits, however, and maintain a good driving record, their rates will go down. It is important to remember that a large variety of variables go into prices. Focus on all of the things that can help you save money.

After people pass the age of 60, car insurance rates tend to go on the rise again. Older adults see changes in their ability to react to situations quickly and to see them coming. As people get older, they are not as physically able as they used to be And their hearing on their eyesight is likely to begin to go. These are some of the variables that are attributed to rates increasing. In reality, however, it still all comes down to statistics. People in older age ranges are statistically more likely to get into an automobile accident, and this makes them higher-risk drivers. The higher risk a group of drivers has, the higher their automobile insurance premiums will be on average.

New And Teenage Drivers

Teenage drivers, and those that are just getting out on the road by themselves for the first time, tend to pay higher rates for car insurance for a wide variety of reasons. Again, it all comes down to the statistics the car insurance companies have gathered, and how they apply the statistics to their rates. Newer drivers are more likely to get into accidents, and therefore pay higher rates on automobile insurance policies. Remember that there are many discounts that car insurance providers offer, and different car insurance companies use the variables that affect automobile insurance plans differently.

New and teenage drivers can get discounts on car insurance for many different reasons. If the teenager or new driver is a student, they can get discounts for having good grades. Keep in mind that some of the best ways to save money on car insurance are bundling policies and keeping your driving record clean.

Some parents decide to add their children to their auto insurance policies to save money overall. This can be a fantastic way to pay less on premiums, and there are pros and cons to the decision. Get free quotes here for both options and compare rates.

Drivers Between 20 And 24

While drivers between the ages of 20 and 24 still tend to pay rates that are much higher than many other age groups, the prices they pay can sometimes be lower than younger drivers overall. It is critical to continue driving safely and keeping their driving record clean. Once drivers turn 25 years of age, other statistics can start to help lower rates.

Drivers in this age range sometimes attend school and can get discounts for good grades. Even though it may seem very friendly of auto insurance companies to reward drivers with good grades with lower policy rates, these lower rates are most often because students who focus on getting better grades are statistically safer drivers.

Many people purchase vehicles for themselves in this age range. When you are looking for a new or used car, consider how much insurance costs for that particular vehicle. One of the variables that automobile insurance providers use to determine rates is the safety ratings and reliability of the vehicle being insured.

Drivers Between 25 And 65

Once drivers hit the age of 25, the formulas used to determine rates shift, and prices tend to become lower on average. Drivers who have been in accidents and had relevant moving violations may find that the rates do not go down quite as much, however. On average, drivers over the age of 25 are safer drivers than people who are in the younger age groups. Rates decrease on average until drivers start getting closer to the age of 65.

Drivers Over 65

Once motor vehicle operators become 65 years of age, they are statistically more likely to be in accidents. Drivers can take defensive training courses, and many drivers over the age of 65 limits the number of miles they drive. Both of these can help people in this demographic pay less for automobile insurance. Get free quotes from multiple companies and compare prices to find the best rates.

People who are over the age of 65 and operating motor vehicles should also keep in mind that it is essential to get their hearing and vision checked regularly. An updated prescription for hearing aids or glasses can make a major difference in the safety of the driver and passengers in their vehicles, as well as other drivers on the road. Many people over the age of 65 have multiple types of insurance plans and can bundle their automobile coverage with other types of insurance policies. This can be a fantastic way to save money on not only car insurance plans but also other insurance policies as well.

How to Save Money on Car Insurance as a Young or Old Driver

There are a number of ways to save money on car insurance, regardless of your age. Younger and older drivers can benefit from driver safety courses, which can help hone skills and keep people educated about new updates to laws and safety. As drivers get older, they may decide to stay with the same company for a longer period of time in order to receive accident forgiveness, vanishing deductibles, and loyalty discounts. Younger drivers can focus on their grades, as many auto insurance providers offer discounts to good students. They can also focus on maintaining a good driving record.

The car people purchase also has an impact on rates, and for younger and older drivers it can be beneficial to research insurance rates when looking to buy a new car. Selecting a safe and reliable car can help younger and older drivers decrease their rates. Policyholders can also look to adjust their deductibles, coinsurance, and limits, in order to save money on their premiums.

Taking the time to research companies, discounts, and car insurance needs, can all help people save the most amount of money possible on their automobile insurance. The tools on this site are here to help, make sure to take advantage and start counting the savings that result.

Gender Average Annual Savings
Teen $283
Male Teen $360
Female Teen $207
5.0out of 58 user reviews

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