Car Insurance Rates by Age Chart: Everything You Need to Know

·5 min read
Photo credit: Westend61 - Getty Images
Photo credit: Westend61 - Getty Images

When you request an auto insurance quote, your age is one of the main factors the insurance company will use to set a coverage rate. Younger drivers pay more because they have less experience and present a higher risk for accidents. Drivers with more years of accident-free and violation-free experience pay less for auto coverage. Premium prices for car insurance decrease from the teen years through the 60s, at which point drivers 70 and older see a slight uptick in cost. Review the car insurance rates by age chart in this guide to estimate your policy cost based on your birth year and other factors.

What Will I Pay for Car Insurance by Age?

Motor1 reports these average auto insurance rates by gender and age:

Why Do Young Drivers Pay More for Insurance?

Insurance companies charge young drivers more because statistically, their inexperience makes them more likely to be involved in a serious auto accident. According to data from the Insurance Institute for Highway Safety reported by Value Penguin, drivers ages 16 to 19 have a 300 percent higher risk of an accident than drivers in other age groups. About 10 percent of fatal accidents involve drivers ages 15 to 20, who represent just 7 percent of overall drivers in the U.S.

Value Penguin also reports that as a result of this data, the largest average insurance rate decrease occurs between 18 and 19 when the premium cost for drivers goes down about 30 percent. Drivers also experience a discount of about 14 percent on average between ages 24 and 25.

What Other Factors Influence Auto Insurance Cost?

As NerdWallet notes, every insurance company weighs different factors in its own way when setting auto insurance quotes. The insurance company will also consider your driving history and motor vehicle record, your marital status, the type of car you drive, your geographic location, how many miles you tend to drive each year, and whether you have a good credit score.

Gender may also impact how much you pay for auto insurance depending on where you live. WalletHub reports that men pay about 12 percent more than women on average for lifetime coverage. Age has a bigger impact than credit score on car insurance costs and some state laws prohibit using factors such as credit score and gender when setting auto coverage rates. Gender-based car insurance rates are illegal in Pennsylvania, North Carolina, Montana, Michigan, Massachusetts, Hawaii, and California according to NerdWallet.

WalletHub indicates that age has a bigger influence on car insurance rates than geographic location as well. While age plays a bigger role in pricing than car make and model for drivers in their teens and 20s, car choice impacts premium cost more than age for older drivers.

Driving record has a bigger impact than age on auto insurance rates across the board. Drivers who have a history of accidents, violations, and claims will pay at least 50 percent and up to 300 percent more for insurance than safer drivers in the same age group.

How Can I Save on Auto Insurance?

Young drivers can potentially save money by shopping for rates with various companies, signing up for a policy with a parent or experienced driver, and looking for insurers that offer valuable discounts.

You can also save by purchasing only the legal minimum car insurance in your state. However, if you have personal assets to protect or lease your vehicle, you might need to buy added insurance coverage. For example, it often makes financial sense to buy collision, comprehensive, and medical policies.

Comprehensive coverage pays for damage to your vehicle resulting from extreme weather, theft, or vandalism. For example, you would be able to replace your vehicle if it was stolen and totaled. Collision insurance pays to fix your car after an accident even if you were at fault.

Driving safely is the best way to keep your auto insurance costs down. According to Motor1, filing an at-fault accident claim can result in a 50 percent rate increase over 36 months, with an even higher increase after a ticket for driving under the influence.

ValuePenguin notes that some companies tend to offer lower rates for teen and twenty-something drivers. The website recommends buying a policy with either State Farm or Erie for the fairest pricing. GEICO tends to offer the best rates after drivers turn 25.

Drivers ages 55 and older can look for companies with senior discounts. The Allstate 55 and Retired program automatically discounts driver policies by 10 percent if they reach age 55 and have a clean claims history.

Motorists of all ages can qualify for discounts through many insurance companies. For example, you can save by taking a defensive driving course or maintaining a B average if you attend high school or college. Bundling more than one policy can also result in savings.

Now that you've reviewed the car insurance rates by age charts, follow these tips to find the best possible rates on your auto insurance.

Sources:

https://www.valuepenguin.com/how-age-affects-auto-insurance-costs

https://www.nerdwallet.com/article/insurance/car-insurance-rates-age-gender

https://wallethub.com/edu/ci/average-car-insurance-rates-by-age/69321

https://www.motor1.com/reviews/394962/average-car-insurance-rates-by-age/

https://www.caranddriver.com/insurance/

https://www.caranddriver.com/news/g28564313/most-stolen-cars-2019/

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