Updated October 7, 2019

Average Car Insurance Rates by Age


Are you paying more for car insurance because of your age? You might be. Age plays an important role in the price of your premiums. Keep reading to learn more.

© CreditDonkey

How Age Impacts Auto Insurance Rates

Age impacts three auto insurance pricing considerations: risk, claims, and rate.

  • Risk
    The likelihood you will file a claim.

  • Claims
    What you submit to your auto insurer to help pay for damage or loss to your vehicle.

  • Rate
    The amount of money necessary to cover risks and claims. Remember those numerous factors listed earlier? The price of your auto insurance is determined from these rate factors.

When companies consider your auto insurance application, they determine the risk they are taking on. A high-risk person is more likely to file a claim.

Keep reading to see what age groups pay the most for car insurance.

Why Does Age Matter?
Age translates to experience and risk. The younger you are, the less driving experience you have. That puts you at a higher risk to be in an accident and file a claim.

Likewise, the older (and more experienced) you are, the lower the risk of being in an accident and filing a claim.

But age can also work against you. Drivers over age 70 generally pay more for their insurance because they are slower to react to road situations. Therefore, there's a greater likelihood of an accident occurring and a claim being filed.

Average Auto Insurance Rates by Age

Most states require drivers to have auto insurance, regardless of age. Currently, New Hampshire and Virginia are the only states without mandatory car insurance requirements.

Here's a look at the average cost for state minimum coverage per age. It's a good starting point when deciding how much car insurance to buy.

Cost for State Minimum Coverage by Age

AgeState Minimum Coverage Costs
16$2,593
18$1,870
20$1,102
25$608
35$552
45$525
55$494
65$515
75$630
85$778

Of course, the type and amount of required automobile insurance coverage varies from state to state. Here's an overall breakdown of those requirements in states with mandatory auto insurance laws:

Property Damage Liability (PD)
Covers damage you cause to another person's property in a crash. Coverage is required in all states, with required amounts ranging from $5,000 to $25,000 per accident.

Bodily Injury Liability (BI)
Covers other people's medical expenses caused by you in a crash. Coverage is required in all states except Florida.

Required coverage amounts range from $15,000 per person/$30,000 per accident to $50,000 per person/$100,000 per accident.

Uninsured/Underinsured Motorist Bodily Injury Liability (UIM BI)
Covers your medical expenses in a crash caused by another person without insurance or with little insurance coverage. Currently, 20 states require UIM BI coverage.

Required amounts range from $15,000 per person/$30,000 per accident to $50,000 per person/$100,000 per accident.

Uninsured/Underinsured Motorist Property Damage Liability (UIM PD)
Covers damage to your car or property caused by another person without insurance or with little insurance coverage. Currently, 3 states require UIM PD coverage.

Required amounts range from $10,000 per accident to $25,000 per accident.

Personal Injury Protection (PIP)
Pays for your injuries, regardless of who is at fault in the accident. Currently, 15 states require PIP coverage.

Required amounts range from $2,000 to $50,000.

State law requires all auto insurance companies to offer policies with the applicable minimum coverage. You also have the option to buy more coverage to meet your auto insurance needs.

However, adding additional coverage or increasing coverage amounts will increase the amount you pay for auto insurance.

What Age Group Pays More for Auto Insurance

Teen Drivers
This is the most expensive age group to insure. The average cost of state minimum liability coverage for a 16-year-old driver is $2,593, according to a 2018 study from Quadrant Information Services.

Drivers 16 to 19 are three times more likely to be in a car accident, according to the Insurance Institute for Highway Safety, They are also more likely to get a traffic violation, particularly for speeding.

The cost of auto insurance for young drivers generally begins to fall at age 25 and stays stable through their 30s, 40s, and 50s. They begin to rise a bit at age 55.

First-time drivers usually pay more for car insurance, regardless of age. Their inexperience puts them in a higher risk bracket for accidents.

Older Drivers
Drivers over age 70 have more intersection-related accidents and fatalities than younger drivers, according to the National Transportation Safety Board (NTSB) and the National Automotive Sampling System (NASS).

Both young and older drivers can find ways to lower their car insurance premiums. Read on to learn how.

Who Pays the Most for Car Insurance Overall?
Single male drivers under age 25 pay the most for car insurance, according to the Insurance Institute for Highway Safety.

How Teenagers Can Lower the Cost of Their Car Insurance

Teens can lower their auto insurance bill by taking these steps:

Take Driving School Lessons
Some auto insurers offer savings for teens who enroll in behind-the-wheel training from a driving school.

Maintain Good Grades
Many auto insurance companies offer a good student discount to high school and college students who maintain a B average or better.

Install A Car Insurance Monitoring Device
These trackers monitor driving behavior. Many insurance companies now offer these programs, either through a plug-in device or a mobile app.

They gather data on how often the car is being used, the distance driven, the speed of the vehicle, and hard braking occurrences.

Monitoring terms vary among insurance companies, particularly what the device will and will not track. Before agreeing to the program, be sure you can opt out if you're not seeing savings on your car insurance.

Buy a Sensible Car
Stay away from sports cars and high-end cars. Instead, buy a vehicle with the latest safety features, such as:

  • Lane departure warning
  • Forward collision warning with automatic braking
  • Rear back-up camera
  • Blind spot warning
  • Anti-lock brakes

Drive Responsibly
Teens with a clean driving record will see their insurance costs decrease each year. A clean driving record means no traffic violations, at-fault accidents, or driving under the influence charges.

Stick to State Minimums
Teens buying their own policy can save by buying only the minimum coverage required by law.

Consider Alternative Policies
Teens who don't drive that much should consider pay-as-you-go car insurance. Age is not considered much of a factor since you pay by the miles driven.

Teens can save hundreds more by being added to their parents' auto insurance policy instead of getting their own. Here's a comparison:

Average cost of an auto insurance policy for a 16-year-old: $2,593
Average cost of adding a 16-year-old to parents' policy: $947
Savings difference:$1,646

How Older Drivers Can Lower the Cost of Their Car Insurance

Drivers over age 65 have several opportunities to lower the cost of their auto insurance policy. These include discounts like:

  • Defensive Driver Or Mature Driver Safety Course
    The courses can be taken in a classroom setting or online. Discount amounts vary from 5% to 20%.

  • Mature Driver Discount
    The savings target older drivers with good driving records. Discounts range from 5% to 10%.

  • Loyalty Discount
    Some auto insurers offer a loyalty discount to customers who have been with them for several years. Discount amounts range from 5% to 10%.

  • Low Mileage Driving Discount
    Retirees most likely qualify for this saving. Mileage requirements and discount amounts vary among auto insurers.

  • Military Discount
    Several auto insurance companies offer a discount to active and retired members of the military. Discount amounts range from 5% to 15%.

Older drivers should also consider reviewing their policies, especially as their lifestyles change. In particular, consider taking a closer look at:

  • Current Coverages
    Seniors driving an older vehicle might consider dropping comprehensive and collision coverages.

A good rule of thumb for dropping coverages is when your vehicle is worth less than 10 times the amount of the cost of the two coverages.

  • How the Policy is Rated
    Seniors who recently retired or are driving less need to update their policy. Going from commuter driving to pleasure driving will reduce the cost of car insurance by as much as 10%.

  • Deductibles
    Seniors who drive a few times a week and take short trips around town may want to increase their coverage deductibles.

    Even a slight increase, like going from a $500 to a $1,000 deductible for comprehensive and collision coverages, can lower your overall cost. Just be sure you can afford to pay the higher deductible if the need arises.

  • Full Year Coverage Needs
    Seniors who live part-time in another state should reduce the coverage on the vehicles they leave behind. Inquire about "snowbird" coverage or stored or parked vehicle coverage.

Shop around for the best price BEFORE your policy renews. Auto insurance companies use different age points for increasing their rates. Others have many more discounts. Getting quotes is quick and easy online or over the phone.

You should also look into group auto insurance from associations that cater to older adults. These clubs offer auto insurance at a group rate that can be 5% to 10% less than what you are paying now.

How All Ages Can Save on the Cost of Their Car Insurance

Although the cost of car insurance is higher for some, drivers of all ages can take measures to save on their auto insurance. Here's how:

Choose Your Car Wisely
Low-risk cars with the latest safety features cost less to insure.

Practice Safe Driving
A driving record free of traffic violations and at-fault accidents ensures cheap car insurance rates.

Find Discounts
Shop around for auto insurers that offer the most savings for which you qualify.

Avoid Filing Small Claims
The cost of insurance increases as much as 40% for just one $2,000 or more claim. Even several smaller claims over multiple years will increase your auto insurance rate.

Compare Prices Every Year
Auto insurers view age, gender, and marital status differently. Plus, they may change their rates and coverages to stay competitive.

Some drivers have saved up to $500 a year by switching to another carrier instead of automatically renewing their current policy.

Where to Find the Best Car Insurance for Your Age

The best way to find the best car insurance for your age is to shop around. Get quotes from at least three insurance companies and compare coverages, included perks, and discounts.

Here are two ways to get multiple quotes:

Online Insurance Marketplaces
These websites provide a comparison tool for obtaining free quotes from multiple auto insurance carriers. You can easily compare coverages and rates all on one page.

From there, you can either apply for an auto insurance policy or save the quotes for informational purposes.

An Independent Agent or Agency
This type of agent or agency sells auto insurance policies from multiple insurers. You can shop in person, on the phone, or online to obtain multiple auto insurance quotes.

The independent agent will walk you through each quote, explaining the coverages and price differences.

Consider Group Insurance
These auto insurance policies often have lower prices or offer better coverage at a good rate. Some group policies include more perks, like a free car rental when yours is being repaired after an accident, or free towing.

Some common sources of group insurance are:

  • Your place of employment
  • Credit unions
  • Clubs and organizations as part of their membership
  • Colleges and universities for its alumni, employees, and students
  • Online or mail offers

How Gender and Marital Status Also Impact Auto Insurance Rates

© CreditDonkey

Besides age, a person's gender and marital status play a big role in the cost of an auto insurance policy. Research shows that the cost of car insurance can fluctuate as much as 50% based on age, gender, and marital status.

Read on to learn more.

Gender

Overall, women pay less for car insurance than men. Female teenagers pay less than male teens. Why?

Statistics show that women are less likely to:

  • Speed
  • Be involved in serious accidents
  • Drive drunk
  • Own high-risk vehicles like sports cars.

By age 30, gender plays less of a role in auto insurance rates for safe drivers.

The impact of gender on auto insurance rates also varies by location. For example, in Nevada, women pay a higher premium than men.

In some states, insurance regulators prohibit auto insurance companies from using gender as a rating factor to determine car insurance rates. Currently, those states are Hawaii, Massachusetts, Pennsylvania, North Carolina, California, and Montana.

Marital Status

Studies show that marital status is just as significant as age and gender when pricing auto insurance.

Generally, married people pay less than singles for car insurance.

This is particularly true with young married drivers, according to the Insurance Information Institute. Statistics show they cause less accidents than young, single drivers.

Various studies find that married people have better driving behavior. The thinking is that marriage makes people more responsible and careful drivers.

Which Age, Gender, and Marital Status Pays More

Consider age, gender, and marital status the triple threat when it comes to the price of your car insurance. Expect to pay more if you are:

A Single, Male Teenager
Young males pay almost $600 more per year than female teens. Statistics show male drivers ages 16 to 19 have more accidents than their female counterparts.

A Single, 20-Year-Old Driver
Drivers in this category pay 21% more than 20-year-old married drivers.

Single, Male, and 20 Years Old
You'll be paying 25% more than your married counterpart.

Single, Female, and 20 Years Old
Expect to pay at least 28% more than your married counterpart.

A Married, Female Driver Aged 30–40
Insurers reason that this group has a higher risk due to pregnancy and distracted driving when small children are in the car.

Age 70 or Older
This is due to slow reflexes and reaction time, diminishing driving skills, declining vision and hearing, and physical conditions such as arthritis.

If you think a high insurance rate is unfair because you have a self-driving car, you might be in luck. This article from Scale Focus outlines some of the upcoming trends in the insurance industry, including more changes for people who own autonomous cars.

Bottom Line

Age is a major factor when auto insurance companies price policies. But it's not the only major factor—gender and marital status count, too.

All auto insurers rate age, gender. and marital status differently. Shop around and compare prices and available discounts.

Buying the minimum state coverage required can also save you money. Remember, as you age, the cost of your auto insurance will change, too. Take advantage of those savings by comparing rates every year.

More from CreditDonkey:


What Should I Be Paying for Car Insurance


Why is My Car Insurance So High


How Long Does it Take to Get Car Insurance

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