How age impacts car insurance rates


WRITTEN BY: Julia Matseikovich

UPDATED: DECEMBER 29, 2022 | 1 MIN READ

You might be surprised that age has a lot to do with the kinds of car insurance rates you will get. Whether you are young or old, your age does impact your rates.

Unsurprisingly, a young, brand-new driver would pay more than an experienced driver. When it comes to an insurance company offering you a quote, it correlates with driving experience. They also consider how likely someone young might get into a car accident.

When a young person first gets their insurance, it can stay high until around 25. That’s when you will notice a price difference of about 30% less. If you have a good driving record, the best rates that you will see are in your 50s and 60s. You will start to see an increase in your rates after age 65.

National Average Car Insurance Rates

On average, the car insurance rate for a 45-year-old driver is $716 per year instead of $3,342 per year for 16-year-old drivers. The highest auto insurance rates that you will see will be for seniors and teens. That’s because they are considered high-risk due to their age, and it’s believed they have a higher risk of expensive claims and accidents.

AgeAverage Annual Premium
16 years Old$3,343
20 years Old$2,010
21 years Old$1,250
22 years Old$1,134
25 years Old$862
45 years Old$716
65 years Old$734
Average Cost of Car Insurance by Age

Different factors come into play when getting a car insurance quote. For example, a 50-year-old man with a DUI won’t get the same discounts available to people over 50 with a clean driving record.

Your insurance company will use a risk calculator to determine your risk as a driver, where you live, and your age before providing you with a yearly quote. Age is the most significant factor in determining how much you pay for a car insurance policy yearly.

How Do Car Insurance Companies Set Your Rates?

It’s always a good idea to call around for quotes on car insurance. Not every company will give you the same quote, and if you shop around, you might be able to find a good deal. Insurance companies use your information differently, which is why you might get a different quote from another company.

Even though age is the dominant factor in getting a quote, some companies care more about the kind of car you drive, while others care more about your driving history. The insurance rate you get can also be different depending on what state you reside in. States right beside each other can have completely different rates for you.

For example, if you live in Florida at 35 years old, you will likely pay a yearly rate of $2,775 for full coverage car insurance. But if you move just a little further into Georgia, the same driver will see a drop in their insurance rates of $1,000.

Where you live is a huge factor in how much you will pay for car insurance.

How Does Risky Behavior Affect My Teen?

Your teen is already a new driver and will start with higher rates than adults, so the last thing they want is to get even higher rates due to risky behavior behind the wheel.

A teen can pay upwards of $6,800 annually with their insurance policy. That’s already a pretty high rate compared to middle-aged drivers. Unfortunately, not too many teenagers can afford to have their insurance policies because of this. Many parents will keep them on their policy as it’s cheaper.

Due to inexperience, teens are more likely to get into an accident than adults. Teens between the ages of 16-19 are more likely to get into a fatal crash.

Common Risk Factors for Teen Drivers

  • Nighttime driving: 40% of fatal car crashes among teen drivers in 2019 happened between 9 PM and 6 AM. More than half of these fatal car accidents occurred on a Friday, Saturday, or Sunday.
  • Alcohol use: In 2019, 24% of teens between 15-20 who died in a car accident had a BAC (blood alcohol concentration) of .01 or higher. 82% of those drivers had a BAC of .08 or higher.
  • Inexperience: Teens are more likely not to recognize a dangerous situation on the road than older adults.
  • Distracted driving: 1 in 3 teens who text on their phone admit to doing it while driving.
  • Not using a seatbelt: Young adults and teens are more likely not to use a seatbelt. For example, nearly half of the teen drivers who died in 2019 were not wearing seatbelts.
  • Speeding: In 2019, speeding was a factor in 27% of fatal car accidents involving teens aged 15-18.

Insurance Rates for Seniors

If you have been enjoying lower rates in your 50s and 60s, you can expect your car insurance to increase when you reach the age of 65. For example, a 75-year-old male can pay 21% more in car insurance than a 50-year-old male driver. When you get your 80th birthday, you will reach another increase of 12% for males and 9% for female drivers.

The reason for these increases is that older drivers have an increased risk of getting into a car accident and being injured or killed increases significantly.

In 2018, 7,700 adults over 65 were killed in car accidents, and 250,000 more received emergency room treatment for car crash injuries.

As you age, you must assess any age-related changes in your health, including physical fitness, vision, attention, and your ability to react quickly to sudden changes. In addition, it’s important to recognize the warning signs of declining driving skills.

FAQs

How much is car insurance for a 16-year-old?

A new driver at the age of 16 can expect to pay, on average, $813 per month in car insurance. It’s important to call around, as insurers can give quotes between $311 to $1,141 per month for full coverage.

Which age group pays most for car insurance?

Young drivers between the ages of 16-25 and over 65 typically pay the most in car insurance. Teenagers are three times as likely as drivers over 25 to get into an accident, so their premiums are the highest.

Does your age affect your car insurance?

Yes. Age is an indicator of risk to an insurance company. Statistically, young drivers are more likely to get into a car crash.

Is car insurance more expensive for people over 70?

Car insurance rates typically increase over 65 as senior drivers are considered high-risk and more likely to get into accidents.

At what age does car insurance go down?

Your car insurance price will start to decrease at 25, but it will be at its cheapest from 45 to 60.

What are some other ways to lower my car insurance premiums?

Several other factors help lower the cost of insurance coverage. Your credit score, a safe driver discount, and additional safety features on your vehicle will contribute to lower insurance costs. Increasing your deductible or adjusting to liability coverage limits will lower your insurance premiums.

Find Out the Best Car Insurance Rates for your Age

Age has a lot to do with how much you will pay for car insurance rates, so the best thing you can do is avoid risky behavior and keep a clean driving record.

Make sure to compare the insurance companies in your area to the best car insurance rates. You can do this by simply filling out our online rate form. We can connect you with a licensed auto insurance agent if you still have questions.