Average Car Insurance Rates By Age
Ever wonder about average car insurance rates by age? Age is one of the most important factors car insurance companies use when calculating car insurance rates. An auto insurance company uses age as an indication of driving experience and accident risk. Generally speaking, the older you get and the more experience you have driving, the less likely you are to get into an accident and submit an insurance claim. A quick analysis of car insurance rates by age will show that a 16 or 18 year old has much higher insurance costs than any other age group because a new driver is simply more risky to insure.
After you understand the relationship between age and premiums, you may want to compare online quotes to see where you stand versus other drivers your age. Similarly, a price comparison can also help you gauge how much insurance costs for males versus females as first-time male drivers tend to be more aggressive as well. So whether you’re 16, 18, 20, 21, 25, 30 or beyond and want to know the cost of auto insurance for your age group, check out our guide below!
Average Car Insurance Rates By Age
Below, you will find a breakdown of average car insurance rates by age. As expected, the following chart shows that premiums decrease significantly after the age of 25. Further research indicates that 16 to 20 year olds constitute about 6% of licensed drivers, but account for over 10% of fatal crashes. You will also notice that auto insurance costs start to trend upwards again as drivers become 60, 65, and 70 years old. This can be explained by poor vision and slower reflexes as a result of aging, leading to higher incidents of collision and claims.
For your convenience, we’ve also included a table that demonstrates the average cost of car insurance by age:
| Driver's Age | Average Cost Per Year |
|---|---|
| 16 | $8,226 |
| 18 | $6,456 |
| 21 | $3,620 |
| 25 | $2,374 |
| 30 | $2,078 |
| 35 | $2,028 |
| 40 | $1,973 |
| 45 | $1,929 |
| 50 | $1,855 |
| 55 | $1,845 |
| 60 | $1,867 |
| 65 | $1,956 |
| 70 | $2,131 |
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How Age Affects Car Insurance Rates
Understanding how age affects auto insurance rates can help consumers compare quotes to find the best coverage with the cheapest car insurance company. While you may be a better driver than others in your age group, car insurance age brackets exist for a reason and are backed by data and statistics. Here’s why age and auto insurance are strongly connected.
New Drivers
Insurance rates for new drivers are often the highest. The cost of insurance for teens and other first-time drivers will always be expensive because their inexperience makes them a risk to car insurance companies, and there’s plenty of data to back that claim.
- Teens have some of the highest crash and death rates of all age groups, even though they drive less than most adults.
- Teens have far fewer DUIs than adults, but studies show that they are far more likely to have an accident while under the influence.
- 16 and 17 year-old drivers crash twice as often as drivers who are 18 and 19 years old, and drivers between the ages of 16 and 19 crash three times as often as those who are 20 and older.
- Teenagers are more likely to be caught speeding, tailgating, texting and driving, or driving without a seatbelt.
The good news is that teens can lower their insurance rates in a few different ways. Teenage drivers who take driver’s education courses, qualify for “Good Student” discounts, have cars with modern safety features, and drive defensively (and responsibly) generally get the cheapest premiums. Parents can also get better prices when they insure their kids under an old, used vehicle.
Adult Drivers
If you are between the ages of 25 and 65, you enjoy cheaper rates than teens and seniors, and there’s a good chance that your premiums will continue to drop as you get older and maintain a clean driving record. During these years, your car insurance rates are affected more by factors like the car you drive, where you live, how much you drive, and your driving record.
To get the cheapest car insurance, adult drivers should get quotes from other companies to compare premiums, ask for discounts, and negotiate lower rates with their current providers at least once a year. Ultimately, shopping around is the only way to ensure you are getting the best deal.
Senior Drivers
Finally, once you turn 65 years old, your auto insurance rates will gradually start climbing again, even if you drive the same car and have a clean driving history. Per the CDC and data collected by individual states, senior drivers present more risk to companies than adults for several reasons.
- Senior drivers are far more likely to have impaired vision, which can impede their ability to drive safely, especially at night. This increases accident risk substantially and results in a higher number of claims and payouts.
- There is plenty of evidence to suggest that senior drivers have poorer cognition and slower response times, which means they can’t respond as quickly to dangerous situations as young adults. Senior citizens are also far more likely to break traffic laws, particularly in high-traffic situations and on multi-lane highways.
- Older drivers may suffer from a variety of physical ailments that can make it more difficult for them to drive safely. Health issues like back injuries, cataracts, and even arthritis can affect one’s ability to drive.
- Finally, senior drivers are far more likely to take numerous prescription medications, including painkillers, that can cause drowsiness or mental fog. This only compounds the other risk factors.
Seniors can reduce their rates somewhat after the age of 65 by working to keep a clean driving record, taking a defensive driving course, shopping around for cheap quotes, and looking into discounts for senior citizens. In some cases, it may be ideal to switch the main driver on the policy if someone else in the household drives more often than the senior.
Get The Best Auto Insurance Rates For Your Age
It should be no surprise that companies use your age to calculate car insurance rates. And while you may not be able to change your age, there are still ways for drivers to get cheap auto insurance and save money. For starters, drivers can compare quotes to see how much other companies are charging for a similar amount of coverage. Even if you don’t plan on changing providers, sometimes a rate quote from a competing insurer can help you negotiate lower premiums or get more coverage.
Just enter your zip code to find the top insurance companies in your area, and we’ll help you find the best insurance for your money, no matter how old or young you are!
