Average Car Insurance Rates by Age

It is easy to find the average premium costs in a state and it is a good figure to compare quotes to. However, median expenditure figures leave out so many variables. For example, the US avg. is $841 but it isn’t even clear what type of a policy a typical driver can buy for that price. Adding more variables to equation will result in better estimates that can be used in comparison shopping. That is why this post will look at average vehicle insurance rates by age because how old listed drivers are matters a lot. We will go one step further and look at liability and full coverage costs separately, rather than offering one figure.

In our previous studies, we looked for answers to when does vehicle insurance go down? In the process, we had a look at how age affects prices. When people start seeing movements and when it is settled. In another post, we looked to find answers to how much is automobile insurance and ended up breaking it down to average cost of full coverage and liability. These two posts were very helpful in determining typical costs per group and coming up with our findings displayed on the table below.

Motorists may need to pay more or less than median rates depending on their profiles. There is a lot in a birth date that can tell about risk ratings. This risk rating is used like a multiplier to determine premiums. In the light of the studies discussed on our previous posts, our own experience and this study, we calculated the effects of age multipliers on the liability and full coverage policy pricing. Our findings are displayed on the table below that shows typical estimated quotes for various era driver groups.

Below chart shows roughly how much a typical driver in each group pays per year. But it isn’t meant to predict how much you should pay annually. It is worth keeping in mind that so many different factors go into calculations. Nobody else has your unique blend of experience, vehicle, zip code, driving record, mileage, marital status, and credit history. Each of these rating factors, along with type of coverage and limits chosen make a quote almost as unique as DNA. 

Regardless, you can save hundreds, perhaps thousands, of dollars if you find the right insurer. That is why you must compare carriers and find the most competitive one for your individual list of rating factors.

Table: Average Liability vs Full Coverage Auto Insurance Rates by Age Chart

Driver’s Age Avg. Liability
Car Insurance Cost
Avg. Full Coverage
Car Insurance Cost
     
16 $2,394  $4,637
18 $1,796  $3,478
21 $1,168  $2,262
25 $771  $1,494
30 $715  $1,387
35 $684  $1,325
40 $667  $1,289
45 $651  $1,260
50 $626  $1,212
55 $622  $1,205
60 $630  $1,220
65 $660  $1,278
70 $719  $1,392

The table above can only give you very rough idea as to how much is a fair premium for you because there are still so many variables missing from it. However, it clearly demonstrates how inexperience affects costs, especially between the ages of 16 to 25. The above figures are on an annual basis but you can easily find per month by dividing them by 12. Here is the summary of the information contained in the table;

Usually a 16 year old pays twice more than a 21 year old, 3 times more than a 25 year old and 3.5 times more than a 35 year old. After 25, prices dull down. The other factors become more prominent. If there is a serious increase or decrease it may be because of a recent claim, traffic ticket or improvement on credit score. People between 40 and 65 get the best rates. And they start going up again after 70.

How Does Age Affect Car Insurance Rates?

There are several other good reasons why teenagers pay high prices while more mature people pay the cheapest. The main reason is experience, which comes not only with driving but also life. People may not be scared of risks when they are young but they would be extra careful to avoid risks when they have responsibilities like raising a family. Simply, maturity takes the edge away and makes people more patient and calmer.

Auto Insurance Premiums for 16 – 25 year olds

As demonstrated above birthdate is a very influential factor in the early years. Youngsters and novices are probably the riskiest group and they should be looking for high risk companies if they want affordable quotes.

Only about 6% of licensed drivers are 16 to 21 year olds, but they are responsible for about 11% of fatal crashes. Not only they are 4 times more likely to cause accidents than mature people but also their accidents tend to be serious with fatalities. 16 year olds and novices are particularly expensive because of lack of experience as well as unpredictable judgments.

The rates keep falling fast until you are 25 years old. Ratio of the decrease slows down dramatically after 25 although it keeps going down further with each birthday under normal circumstances.

Average Premiums for 40 – 65 Year Olds

By the time you reach 40 you gain enough experience to be taken as an established motorist. Also, you may qualify for further discounts because of improved credit score, home ownership, profession and owning a safe family car. You should enjoy this group while you can because the downward trend starts reversing after 65.

Automobile Insurance Prices for Seniors

According to the chart motorists over 70 starts to see increased quotes. Older people are known to be slow in seeing the dangers and reacting to them. That is why they are more likely to cause accidents. They may be mostly fender benders but they end up wasting a lot of money in administration and processing. That is why premiums start going up after 70 only a little because older people become aware of their shortcomings and start self-policies, traveling slow, avoiding rush hours and night-time. Also there are other factors that work in their favor like having good credit, homeownership and long record.

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