Your age affects your car insurance rates; younger, less-experienced drivers pay more because they’re more likely to file a claim. There are a few states where it’s illegal to use age as a rating factor, but insurance companies can still use years of driving experience. So, if you’re a teen driver, you’ll pay more no matter where you live.
Auto insurance rates decrease as drivers move from their teens into their 20s and are the lowest for those in their 40s and 50s. Rates start to trend upward again for senior drivers. However, seniors don’t pay nearly as much as teens.
The average full coverage annual rate for a 16-year-old driver is $7,203, while the average rate at 40 is $1,682. The same policy for an 85-year-old driver averages $2,165 a year.
Of course, it’s not only age that affects your car insurance premiums. There are many other factors involved, and one of those is the insurance company. Drivers of any age can save money on car insurance by shopping around.
Average auto insurance rates by age and gender
In addition to your age, your gender affects car insurance rates in most states (some states have banned the use of gender as a rating factor) because statistically, men are at a higher risk than women for accidents. This difference is especially noticeable in teen drivers.
Car insurance rates for teen drivers are very high, especially high for teen males. As drivers get older, the difference in rates by gender narrows.
Auto insurance rates by age and gender
Find out what you can expect to pay for car insurance, at what age you’ll get cheaper car insurance rates.
| Age | Female | Male | Avg. Annual Premium |
|---|---|---|---|
| 16 | $ 6,285 | $ 7,096 | $ 6,690 |
| 17 | $ 5,168 | $ 5,838 | $ 5,503 |
| 18 | $ 4,531 | $ 5,149 | $ 4,840 |
| 19 | $ 3,393 | $ 3,883 | $ 3,638 |
| 20 | $ 3,073 | $ 3,497 | $ 3,285 |
| 21 | $ 2,523 | $ 2,826 | $ 2,674 |
| 22 | $ 2,335 | $ 2,575 | $ 2,455 |
| 23 | $ 2,176 | $ 2,370 | $ 2,273 |
| 24 | $ 2,061 | $ 2,215 | $ 2,138 |
| 25 | $ 1,869 | $ 1,958 | $ 1,914 |
| 30 | $ 1,702 | $ 1,716 | $ 1,709 |
| 35 | $ 1,659 | $ 1,657 | $ 1,658 |
| 40 | $ 1,614 | $ 1,607 | $ 1,611 |
| 45 | $ 1,585 | $ 1,579 | $ 1,582 |
| 50 | $ 1,516 | $ 1,520 | $ 1,518 |
| 55 | $ 1,466 | $ 1,476 | $ 1,471 |
| 60 | $ 1,451 | $ 1,465 | $ 1,458 |
| 65 | $ 1,491 | $ 1,520 | $ 1,505 |
| 70 | $ 1,572 | $ 1,616 | $ 1,594 |
| 75 | $ 1,706 | $ 1,790 | $ 1,748 |
How does age affect car insurance rates?
Age affects car insurance rates in most states because statistics show that certain age groups have more accidents.
The states that also don’t allow age as a rating factor are:
- California
- Hawaii
- Massachusetts
- North Carolina
In every other state, your age will affect your rates.
Insurance companies rely on a lot of data to determine car insurance rates, and that data shows that younger drivers are at a much higher risk to insure. They’re inexperienced and have more accidents. The Insurance Institute for Highway Safety (IIHS) reports that drivers aged 16 to 19 have a fatal crash rate three times higher than drivers 20 and up.
How does gender affect car insurance rates?
In most states, gender can be used to calculate rates. The states that don’t allow the use of gender as a rating factor are:
- California
- Hawaii
- Massachusetts
- Maine
- Michigan
- Montana
- North Carolina
- Pennsylvania
The reasons are the same as those for using age: statistics. Male drivers are more likely to engage in risky driving behaviors and are involved in more accidents. This difference is much wider in younger drivers; older male drivers pay rates similar to females of the same age. The IIHS reports a higher incidence of fatal crashes among young male drivers; two out of three involved a teen male driver.
It's important to note that not every insurance company treats age and gender the same when it comes to rates. Comparing car insurance rates from multiple companies is the best way to get cheaper insurance, even if you’re a young male driver.
Frequently asked questions: Car insurance rates
When does car insurance go up or down?
As a general rule, car insurance gets cheaper as you age, with the biggest changes seen around the age of 20 and even more so at 25. Rates tend to start going back up at the age of 65. Know more about 16 reasons your car insurance rates could drop.
How do insurance companies set your rates?
Insurance rates are calculated using a lot of different factors, and your age is just one of them. Other factors include your driving record, where you live, the make and model of your car and your credit history. Insurance companies weigh these factors differently, which is why shopping around is the best way to save.
Methodology
Insurance.com commissioned insurance rates through Quadrant Data Services in 2022 across all ZIP codes and age groups from dozens of insurance companies. Rates are based on a 2021 Honda Accord LX for a driver with a clean record and good credit using a full coverage policy with 100/300/100 liability coverage and $500 deductibles.
