Age often explains many driver related risks so it is a very important factor in vehicle insurance premium calculations, especially in determining rates for younger drivers. And average costs can be used as a measuring stick to tell us how much certain age drivers pay for a liability only or full coverage car insurance and how their premiums compare to other age groups. Each motorist may need to pay more or less than the median cost depending on their profiles and many other factors.
In the light of this study, you can see the effects of age on the liability and full coverage policy premiums. Our findings are displayed on the table below that shows typical premiums for various age driver groups. It is worth pointing out that while the first column is for minimum state required coverage only, the second column includes a larger liability coverage of $100,000/$300,000/$100,000.
Table: Average Liability vs Full Coverage Auto Insurance Rates by Age
| Driver’s Age | Average Minimum Liability Auto Insurance Cost | Average Full Coverage Auto Insurance Cost |
| 16 | $2,402 | $7,203 |
| 18 | $1,796 | $5,242 |
| 21 | $884 | $2,864 |
| 25 | $609 | $2,010 |
| 30 | $539 | $1,785 |
| 35 | $528 | $1,730 |
| 40 | $520 | $1,682 |
| 45 | $512 | $1,647 |
| 50 | $496 | $1,581 |
| 55 | $482 | $1,528 |
| 60 | $482 | $1,511 |
| 65 | $507 | $1,555 |
| 70 | $554 | $1,661 |
| National Average | $662 | $2,014 |
The table above 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 2.7 times more than a 21 year old, nearly 4 times more than a 25 year old and 4.5 times more than a 35 year old for basic state required liability only vehicle insurance. 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 50 and 65 get the best rates. And they start going up again after 65.
How Does Age Affect Car Insurance Rates?
There are several other good reasons why teenagers pay high prices while more mature drivers 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 are extra careful to avoid risks when they have responsibilities like raising a family. Simply, maturity takes the edge off and makes people more patient and calmer.
Auto Insurance Premiums for 16 – 25 year olds
As demonstrated above, age 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 are they 3 times more likely to cause accidents than mature drivers but also their accidents tend to be serious with fatalities. 16 year olds and novice 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. Ratio of the decrease slows down dramatically after 25 although it keeps going down further a bit under normal circumstances.
Average Premiums for 50 – 65 Year Olds
By the time you reach 50 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 65 start to see increased rates. 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 each claim costs extra in administration and processing. That is why car insurance premiums start going up after 65 only a little because older people become aware of their shortcomings and start self-policies, traveling slowly, avoiding rush hours and night-time. Also there are other factors that work in their favor like having good credit, homeownership and a long record.
The above 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 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. So, you should always get multiple quotes and compare prices to find the fair premium for you at your current age.