How Age Affects Car Insurance Costs

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Age is one of many points of consideration taken into account by insurance companies when preparing their auto insurance premiums. If you are in the higher risk age group, your insurance premium will cost more. So what age ranges have the highest budget car insurance budgets? What is this the case, anyway?

In this article we will share insights into that and how to save more money as a teen or senior.
It is common for first-time drivers and youths to be asked to pay the highest bill for their auto insurance. These young drivers are considered inexperienced and reckless. Because of this, young drivers, mainly male gender, have the highest car insurance premium cost in the United States.

Research indicates young drivers are more likely to be competitive behind the wheel. Statistics also suggest that novice drivers (both men and women) are more likely to make a claim or obtain a traffic violation like a ticket to a parking lot. For this reason, most insurance providers make customers wait for regular “adult” insurance rates to begin with until they are 25 years old.

Average Auto Insurance Rates Per-Age

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According to the table below shows the average insurance rates of $100,000 for personal injuries per person and accident, $300,000 for total personal injuries per accident and $100,000 for property damage per accident for a person’s policies with liability insurance.

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Let’s take a look:

Driver’s age Male driver Female driver Average
16 $7,778 $5,776 $6,777
17 $6,852 $5,597 $6,225
18 $5,889 $5,056 $5,473
19 $4,489 $3,838 $4,163
20 $4,109 $3,524 $3,816
21 $3,268 $2,845 $3,057
25 $2,180 $2,188 $2,184
30 $1,902 $1,942 $1,922
35 $1,878 $1,937 $1,907
40 $1,828 $1,897 $1,863
45 $1,791 $1,841 $1,816
55 $1,679 $1,702 $1,690
65 $1,727 $1,747 $1,737
75 $2,035 $2,038 $2,037
85 $2,475 $2,358 $2,416

As you can see, teenagers and young adults pay far more for car insurance.

Why Teens and Seniors Pay More

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Teen drivers care extra, as figures show that teenagers and rookies are more likely than other age groups to have vehicle crashes and injuries.

According to the road health policy institute:

• Drivers aged 16 to 19 are three times more likely to suffer a traffic crash.
• Drivers aged 15 to 20 accounted for 10% of all fatal incidents in 2015, while only 7% of all licensed drivers were involved.

If your insurer claims that at a young age, you continue to struggle, the premiums are excessive.

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Older drivers in their thirties and fifties have higher levels of driving skill and road experience, which usually implies lower rates of accidents.

When the drivers are 60 years old, though, the pattern starts to change as the aging and sluggish reflexes influence driving. Insurers generally charge a higher fee for older people at age 70. In fact, a driver who is 80 years old pays nearly a little more than a driver who is 25 years old.

How Gender Affects Car Insurance Rates

It is essential how much every gender pays, too. In the course of their lives, men pay about 12 percent more than women, although the price gap varies with age.

How to Save Money on Car Insurance as a Young or Old Driver

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As a young driver or senior citizen, there are a lot of ways to say money. Here are a few;

• Shops

Shopping is the most effective method for saving money, where insurance premiums are concerned. Several companies are treating young drivers higher than others.

We suggest you receive quotes from at least three firms. The more, the better. You can build an online quote with most major insurers that makes it easy to compare the rates.

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• Earnings

Discounts are a convenient way to save money on the premiums for both young and old drivers. Maintaining good grades (for young drivers still in school) and taking part in defensive driving or other driver re-education courses will save drivers up to 10 percent of their insurance costs.

Organizations like Allstate offer a “55 plus older” discount for senior citizens, where healthy drivers over 55 who are retired automatically get a 10 percent discount. Some firms also allow drivers over 55 to take defensive courses to qualify for discounts.

• Enter an account with your parents

We’ve noticed that on average, entering your parent’s auto policy is around half the cost than starting yours.

This is because their children are part of their risk as a young driver, which makes it easier for insurance companies to get a lower price.

This makes the payments for your parents significantly more expensive, though. If they are willing to add it, then this is a sure way to get a lower rate.


We cannot underestimate the impact age and gender have on the cost of car insurance. But we can manage it really well.

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