Average Car Insurance Rates by Age

It is easy to find the average cost of auto insurance in your state and it is a good figure to compare your quotes to. However, median premium expenditure figures leave out so many variables. For example, the US average 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 policyholder’s’ age is one of the most influential factors. We will go one step further and look at liability and full coverage costs separately, rather than offering one average premium expenditure 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. 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 auto insurance. These two posts were very helpful in determining typical car insurance costs by age 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 age profiles. There is a lot in an age that can tell about risk rating of a driver. 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 premium quotes for various driver age groups.

Below average car insurance premium by age chart shows roughly how much a typical driver in each age 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 automobile insurance quote calculations. Nobody else has your unique blend of age, vehicle, zip code, driving record, mileage, marital status, and credit history. Each of these rating factors, along with type of coverage and limits you choose make your quote almost as unique as your DNA. 

Regardless of your age, you can save hundreds, perhaps thousands, of dollars if you find the right insurer. That is why you must compare vehicle insurance carriers and find the one with the best rates for your individual list of rating factors.

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

Driver’s Age Average Liability
Car Insurance Cost
Average 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 in your age because there are still so many variables missing from it. However, it clearly demonstrates how age affects auto insurance rates, especially between the ages of 16 to 25. The above figures are on an annual basis but you can easily find average car insurance rates by age per month by dividing them by 12. Here is the summary of the information contained in the table;

A 16 year old pays on average 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, car insurance prices dull down. The other factors take center stage. If there is a serious auto insurance rate increase or decrease it may be because of a recent claim, traffic ticket or improvement on credit score, but not age. Drivers between the age of 40 and 65 get the best rates. And the premiums start going up again after the age of 70.

How Does Age Affect Car Insurance Rates?

There are several other good reasons why teenagers pay high premiums while middle-aged drivers pay the cheapest rates but the main reason is experience. With age, experience comes not only with driving but also with 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.

Auto Insurance Rates for 16 – 25 year olds

As demonstrated above age is a very influential factor in premium calculations in the early years of driving. Young and new drivers are probably the riskiest group of drivers and they should be looking for high risk auto insurance 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 drivers but also their accidents tend to be serious with fatalities. Vehicle insurance premiums for 16 year olds and first time drivers are particularly expensive because of lack of experience as well as unpredictable judgments.

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

Average Auto Insurance Rates by Age 40 – 65

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

Automobile Insurance Rates for Seniors

The next question to answer is do auto insurance rates increase with age? According to the chart they do after the age of 70. Older drivers 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 cost money too. That is why premiums start going up after the age of 70. However average automobile insurance rates by age 70 and over go up only a little because older drivers become aware of their shortcomings and start self-policies, driving slow, avoiding rush hours and driving at night. Also there are other factors that work in their favor like having good credit, homeownership and long driving record.

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