How Age Affects the Cost of Auto Insurance (2024)
Your age affects your insurance rates, but by how much? Certain age groups pose unique risks behind the wheel, though there are ways you can still save money.
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Scott W. Johnson
Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
Licensed Insurance Agent
UPDATED: Jul 25, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 25, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Auto insurance premiums vary for different age groups due to their associated risk factors
- According to the CDC, teen drivers are three times more likely to be involved in an accident than adult drivers
- Auto insurance rates often increase when a driver reaches age 70 due to age-related issues that can impair the driver’s ability to operate a vehicle safely
Before offering you coverage, auto insurance companies need to better understand you as a driver before offering you coverage. So, they use certain information, including your age, to decide whether or not to insure you and how much to charge.
Since adult drivers are considered safer and more responsible than teen drivers, adults typically see lower rates. And the difference in rates is further impacted by gender, driving record, and other factors. However, there are ways on how to lower your auto insurance premiums no matter your age.
We’ll take a closer look at how age affects the cost of auto insurance.
Auto Insurance Rates by Age
Here’s an auto insurance rates chart by age to show how auto insurance rates differ between male and female drivers by age.
Average Monthly Full Coverage Auto Insurance Rates by Age and Gender
| Companies | 18-Year-Old Female | 18-Year-Old Male | 30-Year-Old Female | 30-Year-Old Male | 65-Year-Old Female | 65-Year-Old Male |
|---|---|---|---|---|---|---|
| Allstate | $448.45 | $518.62 | $168.42 | $176.48 | 158.33 | 156.53 |
| Farmers | $597.48 | $628.61 | $160.08 | $167.16 | 136.18 | 135.62 |
| Geico | $219.55 | $253.62 | $89.87 | $86.79 | 78.16 | 78.45 |
| Liberty Mutual | $521.90 | $625.59 | $174.23 | $199.56 | 167.43 | 170.04 |
| Nationwide | $302.66 | $387.17 | $124.10 | $136.19 | 110.55 | 112.22 |
| Progressive | $590.85 | $661.74 | $130.78 | $136.05 | 109.30 | 102.84 |
| State Farm | $229.17 | $283.98 | $93.53 | $102.85 | 84.15 | 84.15 |
| Travelers | $530.19 | $739.74 | $99.18 | $107.67 | 95.53 | 96.76 |
| USAA | $180.43 | $202.79 | $74.09 | $79.42 | 57.68 | 57.39 |
Females tend to pay less than male drivers, who are more likely to file a claim.
Cheapest Auto Insurance for 18-Year-Olds
Below is the cheapest rates auto insurance for teens driver.
Average Monthly Full Coverage Teenage Auto Insurance Rates by Gender
| Insurance Company | 16-Year-Old Male With a Clean Record | 16-Year-Old Female With a Clean Record | 18-Year-Old Male with a Clean Record | 18-Year-Old Female with a Clean Record |
|---|---|---|---|---|
| Allstate | $637.83 | $608.25 | $518.58 | $448.42 |
| American Family | $480.08 | $390.17 | $390.33 | $287.67 |
| Farmers | $741.75 | $777.50 | $603.17 | $573.25 |
| Geico | $311.92 | $297.75 | $253.58 | $219.58 |
| Liberty Mutual | $778.25 | $716 | $632.75 | $527.92 |
| Nationwide | $476.17 | $410.50 | $387.17 | $302.67 |
| Progressive | $813.83 | $801.42 | $661.75 | $590.83 |
| State Farm | $349.25 | $310.83 | $284 | $229.17 |
| Travelers | $896.83 | $708.83 | $729.17 | $522.58 |
| National Average | $609.58 | $557.92 | $495.58 | $411.33 |
The cheapest rates for 18-year-old drivers are often higher than the cheapest rates for adult drivers.
Cheapest Auto Insurance for 30-Year-Olds
Let’s take a look at the cheapest auto insurance rates for drivers who are 30 years old.
Average Monthly Full Coverage Auto Insurance Rates for 30-Year-Olds
| Companies | 30-Year-Old Female | 30-Year-Old Male |
|---|---|---|
| Allstate | $168.42 | $176.48 |
| Farmers | $160.08 | $167.16 |
| Geico | $89.87 | $86.79 |
| Liberty Mutual | $174.23 | $199.56 |
| Nationwide | $124.10 | $136.19 |
| Progressive | $130.78 | $136.05 |
| State Farm | $93.53 | $102.85 |
| Travelers | $99.18 | $107.67 |
| USAA | $74.09 | $79.42 |
With years of experience behind the wheel, adult drivers see lower rates than teen drivers.
Cheapest Auto Insurance for 65-Year-Olds
Here’s the list of the auto insurance providers for seniors and how much drivers can expect to pay for the cheapest auto insurance coverage.
Average Monthly Full Coverage Senior Auto Insurance Rates by Gender
| Insurance Company | 60-Year-Old Male With a Clean Record | 60-Year-Old Female With a Clean Record | 65-Year-Old Male With a Clean Record | 65-Year-Old Female With a Clean Record |
|---|---|---|---|---|
| Allstate | $153.92 | $149.75 | $156.50 | $158.33 |
| American Family | $99.17 | $97.92 | $107.58 | $106.33 |
| Farmers | $122.83 | $115.25 | $130.08 | $130.67 |
| Geico | $74.33 | $72.67 | $78.42 | $78.17 |
| Liberty Mutual | $157.50 | $146.50 | $168.50 | $165.92 |
| Nationwide | $104.42 | $99.08 | $112.25 | $110.58 |
| Progressive | $95.25 | $92.08 | $102.83 | $109.33 |
| State Farm | $76 | $76 | $84.17 | $84.17 |
| Travelers | $88.75 | $87.67 | $95.42 | $94.17 |
| National Average | $108 | $104.08 | $115.08 | $115.25 |
Although senior drivers have experience, they often see an increase in rates, as age-related issues can impact their ability to operate a vehicle safely.
Average Auto Insurance Rates by Age and State
Here’s how auto insurance rates compare by state.
Average Monthly Auto Insurance Rates by State
| States | Average Monthly Liability Rates | Average Monthly Collision Rates | Average Monthly Comprehensive Rates | Average Monthly Full Coverage Rates |
|---|---|---|---|---|
| Alabama | $37 | $28 | $14 | $79 |
| Alaska | $47 | $31 | $12 | $90 |
| Arizona | $48 | $25 | $16 | $89 |
| Arkansas | $36 | $29 | $17 | $82 |
| California | $45 | $36 | $8 | $88 |
| Colorado | $49 | $25 | $17 | $91 |
| Connecticut | $59 | $32 | $11 | $102 |
| Delaware | $69 | $28 | $11 | $107 |
| District of Columbia | $58 | $41 | $19 | $118 |
| Florida | $76 | $26 | $11 | $113 |
| Georgia | $55 | $30 | $14 | $98 |
| Hawaii | $39 | $27 | $9 | $75 |
| Idaho | $32 | $20 | $10 | $62 |
| Illinois | $40 | $27 | $11 | $77 |
| Indiana | $34 | $22 | $11 | $67 |
| Iowa | $27 | $19 | $16 | $62 |
| Kansas | $32 | $23 | $21 | $76 |
| Kentucky | $47 | $24 | $12 | $83 |
| Louisiana | $73 | $37 | $19 | $128 |
| Maine | $30 | $23 | $9 | $62 |
| Maryland | $55 | $31 | $13 | $100 |
| Massachusetts | $52 | $34 | $12 | $98 |
| Michigan | $72 | $37 | $13 | $121 |
| Minnesota | $39 | $20 | $16 | $76 |
| Mississippi | $41 | $29 | $18 | $88 |
| Missouri | $38 | $24 | $16 | $79 |
| Montana | $34 | $23 | $21 | $77 |
| Nebraska | $33 | $21 | $20 | $74 |
| Nevada | $64 | $27 | $10 | $100 |
| New Hampshire | $35 | $26 | $9 | $70 |
| New Jersey | $76 | $33 | $11 | $119 |
| New Mexico | $44 | $24 | $15 | $84 |
| New York | $71 | $34 | $15 | $120 |
| North Carolina | $31 | $26 | $11 | $67 |
| North Dakota | $25 | $22 | $20 | $67 |
| Ohio | $35 | $24 | $10 | $69 |
| Oklahoma | $40 | $27 | $20 | $88 |
| Oregon | $53 | $20 | $8 | $81 |
| Pennsylvania | $43 | $29 | $13 | $85 |
| Rhode Island | $68 | $36 | $11 | $116 |
| South Carolina | $50 | $24 | $16 | $89 |
| South Dakota | $26 | $19 | $24 | $69 |
| Tennessee | $37 | $27 | $13 | $77 |
| Texas | $49 | $33 | $19 | $101 |
| Utah | $45 | $23 | $10 | $78 |
| Vermont | $30 | $26 | $11 | $68 |
| Virginia | $38 | $25 | $12 | $74 |
| Washington | $53 | $24 | $9 | $86 |
| West Virginia | $43 | $28 | $18 | $88 |
| Wisconsin | $33 | $20 | $12 | $65 |
| Wyoming | $29 | $24 | $23 | $75 |
| National Average | $48 | $29 | $13 | $90 |
State insurance requirements differ, so auto insurance rates vary.
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How does age affect your auto insurance rates?
Your age determines how auto insurance companies view you as a driver. Auto insurance rates follow a predictable trend, typically starting out on the more expensive end for teen drivers, but begin to decrease as you move into adulthood and gain more experience behind the wheel.
However, senior drivers tend to see an increase in auto insurance rates, as several risk factors are associated with drivers over age 70.
Teen Drivers
Which age group pays the most for auto insurance? Drivers under 25 years old see some of the highest auto insurance rates. Why do young drivers pay more for auto insurance? According to the Centers for Disease Control and Prevention (CDC), teens are three times more likely to be involved in an accident than adult drivers because teen drivers fail to properly estimate or recognize dangerous situations, which can result in errors.
Additionally, teen drivers often fail to wear seat belts, follow the speed limit, and avoid texting while driving. Learn more about the cost of insurance for a 16-year-old.
Adult Drivers
Ideally, you’ve maintained a clean driving record, free of traffic violations and accidents, from the time you got your license until you turned 25 years old. If that is the case, once a driver turns 25, auto insurance rates generally significantly decrease due to years of experience. However, if you need auto insurance for high-risk drivers, your rates will still be higher.
Senior Drivers
Adult drivers can enjoy a lower insurance premium for decades, but when they reach age 70, they may see an increase. Although senior drivers have years of driving experience, at this age, it is common for issues with vision, hearing, and responsiveness to impact their ability to drive safely. So, with the increased likelihood of them filing a claim, senior drivers can expect higher insurance premiums than adult drivers.
Even though age can cause auto insurance rates to increase, there are ways for drivers to save. Depending on the insurance company, teen, adult, and senior drivers have access to a variety of discounts. For example, Geico offers a good student discount to high school and college students, alongside a defensive driving discount for drivers 50 years old and up who enroll and complete a defensive driving course.
How Auto Insurance Companies Determine Rates
Auto insurance companies calculate auto insurance premiums by age, but it is not the only thing considered.
Here are the additional factors that impact auto insurance premiums.
- Location: State laws, minimum auto insurance requirements, theft., vandalism, and accident rates, can increase rates.
- Gender: Females have lower insurance premiums than males because they are less likely to file a claim, making them safer to insure.
- Credit: Every driver has a credit-based insurance score. Since your insurance company can predict the likelihood of you filing a claim based on this score, drivers with a low credit-based insurance score may pay higher premiums.
- Vehicle type: Color, make, model, year, and safety features can impact rates.
- Type of auto insurance: Drivers who purchase liability auto insurance coverage pay less than drivers who purchase full coverage.
- Annual mileage: Drivers with a lower yearly mileage decrease their chances of being involved in an accident, making them less risky to insure.
- Driving record: Drivers with a history of traffic violations and accidents are risky to insure, so they often see higher rates than drivers with clean records.
Each auto insurance company has its own rating system it uses to calculate a driver’s premium. While the systems vary, companies use the same information but weigh it differently.
Gender and Teen Auto Insurance Rates
Insurance companies view both male and female teen drivers as risky, but when compared to males, female drivers are safer when behind the wheel. The CDC reported that male drivers between ages 16 and 19 are three times as likely to be fatally injured in an accident than female drivers between ages 16 and 19. As a result, male drivers in this age group see the highest insurance rates.
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Saving Money on Auto Insurance as a Teen or Senior Driver
Since teen and senior drivers tend to have higher auto insurance rates than adult drivers, consider different ways to save money on car insurance if your age negatively impacts your rates.
In addition to discounts, here are more ways to save money on auto insurance as a teen or senior driver.
- Compare quotes. Rating systems between insurance companies differ, so getting a quote from some of the top auto insurance companies can help you ensure you are getting the best rate.
- Bundle. If your insurance company offers multiple insurance coverages, bundling policies can save you.
- Adjust coverage types and amounts. You may be able to save by making adjustments to your coverage, so take a look at your policy and confirm which types of coverage and amounts are still necessary.
- Adjust deductible. A lower deductible for comprehensive and/or collision insurance increases your premium, so if you can afford to pay a deductible of $500 or more in the event of an accident, you can increase the deductible and save on your premium.
- Improve your credit score. The higher your credit score, the lower your insurance premium will be, so raising your score by even a few points can make a difference.
- Maintain a good driving record. You can get access to lower auto insurance rates by keeping your driving record clean, which requires avoiding traffic violations and accidents to demonstrate that you are a safe, responsible driver.
Depending on your insurance company, there may be other opportunities to save. For example, you can enroll in a pay-per-mile insurance program, which is ideal for drivers who don’t get behind the wheel often because drivers only get charged for the miles they drive. So, drivers can save significantly and still have traditional auto insurance coverage, including liability, comprehensive, and collision.
Bottom Line on How Age Affects the Cost of Auto Insurance
Insurance companies are taking a risk when insuring drivers, resulting in higher rates for drivers who aren’t safe and responsible. For example, teen drivers lack experience behind the wheel, while senior drivers face age-related medical issues that can impair their ability to operate a vehicle safely.
So, both groups of drivers are risky to insure because they are more likely to receive a traffic violation or be involved in an accident.
Frequently Asked Questions
How do I get cheaper auto insurance if I am a young driver?
Young drivers interested in cheaper auto insurance can lower rates by taking advantage of discounts offered by their auto insurance company. For example, many auto insurance companies offer a discount to full-time high school and college students who maintain good grades or to teen drivers who take a driver’s education course.
Additionally, avoiding traffic violations and accidents can lower your rates because this exhibits your ability to be a safe, responsible driver.
What factors impact auto insurance rates?
The following factors impact auto insurance rates:
- Age
- Location
- Driving record
- Gender
- Vehicle type
- Type/amount of coverage
- Annual mileage
Auto insurance companies weigh these factors differently, so rates will vary.
How much does auto insurance cost for a 17-year-old driver?
Insuring a 17-year-old driver is risky, so drivers this age often see some of the highest insurance rates for minimum and full coverage. A Forbes Advisor analysis reported that the average cost of auto insurance for parents or guardians insuring a 17-year-old is $5,011 annually, which nearly doubled their average rate of $2,948.
How much does auto insurance cost for a 20-year-old driver?
By age 20, drivers have more experience behind the wheel. While their rates are often lower than those of a 16 or 17-year-old driver, they are still higher than adult drivers aged 25 and older. For a 20-year-old driver, the average cost of auto insurance is $375 per month or $4,500 per year, which is higher than the national average of $182 per month or about $2,188 per year for those aged 25 and older, a Forbes Advisor analysis reported.
Do teenage male or female drivers pay higher insurance rates?
Male drivers between ages 16 and 19 are three times more likely to be fatally injured in an accident than female drivers between ages 16 and 19, resulting in teenage male drivers having a higher premium than teenage female drivers.
How does changing my coverage impact my auto insurance rate?
The type of coverage, coverage limit, and deductible amount can make a huge difference in how much you pay for auto insurance. Typically, liability coverage is cheaper than full coverage because you aren’t paying for additional protection. If you have full coverage, dropping comprehensive, collision, and other coverage can save you a lot.
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Scott W. Johnson
Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.