Average Car Insurance Rates By Age (2024 Guide) (2024)

Written by:

Dash Lewis,

Average Car Insurance Rates By Age (2024 Guide) (1)

Written by: Dash Lewis Content Writer

Writer

01/25/2024 5:28 pm

Key Points:

  • Middle-aged drivers tend to get the cheapest car insurance rates, while newly licensed 16-year-olds pay the most.
  • A lot of top providers offer age-related discounts, which may help mitigate price hikes.
  • Regardless of available discounts, it’s important to shop around and compare rates to get the best price for car insurance.

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When shopping for car insurance, it’s helpful to be aware of what you might pay before you purchase a policy. The cost of car insurance depends on a few different factors, but in this article, we’ll look at the average car insurance rates by age.

To ensure our information is as accurate as possible, we analyzed millions of data points provided to us by Quadrant Information Services. We specifically honed in on the data for various age groups, filtering it by provider and state. We also looked at what discounts major insurance providers offer.

Having this information can help you select the best auto insurance company for your needs and budget. We’ll offer a couple of recommendations to get your search started.

How Does Age Affect Car Insurance Rates?

Auto insurance rates are high when you get your license as a teen driver. They tend to decrease through your 20s if you maintain a good driving record. After you retire, the average cost of car insurance can start to pick up a bit. Rates for older drivers – especially those in their 70s and 80s – get a bit more expensive again.

So why do average car insurance rates by age vary so much? Basically, it’s all about risk.

According to the Centers for Disease Control and Prevention (CDC), around 2,800 teens were killed in car accidents in 2020. Drivers aged 16 to 19 have a fatal crash rate that’s nearly three times that of drivers aged 20 and older.

Most insurance companies also consider motorists over the age of 70 high-risk drivers, as they have much higher fatal accident rates than middle-aged drivers.

When an insured driver gets into an accident, it’s the auto insurance company that cuts the check. That’s why insurance companies charge more for high-risk drivers, which includes young drivers. You might be the most cautious 16-year-old driver around, but you’ll still have higher rates because of your age.

Average Car Insurance Rates By Age

Car insurance rates tend to follow an inverted bell curve. Teen and senior drivers typically pay the highest car insurance prices, while drivers in their 30s and 40s often pay the lowest rates.

We built the table below using data supplied to us from Quadrant Information Services. Each profile combines data for both male and female drivers of each age group. These average costs are for full-coverage car insurance policies for a 2020 Honda CR-V.

AgeAverage Monthly CostAverage Annual Cost
16$688$8,261
20$335$4,019
30$164$1,968
40$154$1,853
50$146$1,747

Typically, middle-aged drivers between the ages of 30 and 65 find the best car insurance rates on average. As drivers age, they can start to experience problems with vision and cognitive abilities, which are important for driving safety.

Average Car Insurance Rates By Provider

We also looked at full-coverage cost data for some of the top insurance providers as it relates to age group. These profiles are based on male drivers with good credit and a clean driving record.

ProviderAnnual Cost
For
16-Year-Olds
Annual Cost
For
20-Year-Olds
Annual Cost
For
30-Year-Olds
Annual Cost
For
40-Year-Olds
Annual Cost
For
50-Year-Olds
Geico$5,745$3,061$1,572$1,532$1,476
American Family$5,969$3,842$2,321$2,103$1,982
State Farm$6,289$3,748$1,680$1,641$1,599
Nationwide$6,541$4,154$1,674$1,584$1,490
USAA$6,611$2,832$1,476$1,356$1,270
Travelers$9,004$3,403$1,615$1,485$1,437
Progressive$10,389$3,893$1,809$1,646$1,518
Allstate$11,072$4,769$2,520$2,468$2,400
Farmers$14,828$5,835$2,660$2,549$2,369

Again, younger and elderly drivers typically pay the most for coverage.

Average Car Insurance Rates By Age And State

In the table below, you’ll see average car insurance rates by age in each state. The cost data we obtained from Quadrant Information Services is based on the profile of a driver with a clean record and good credit. State data compiles rate averages from 6,049 zip codes.

StateAnnual Rate
For
16-Year-Olds
Annual Rate
For
20-Year-Olds
Annual Rate
For
30-Year-Olds
Annual Rate
For
40-Year-Olds
Annual Rate
For
50-Year-Olds
Alabama$6,915$3,375$1,693$1,587$1,512
Alaska$6,574$3,442$1,637$1,545$1,434
Arizona$7,435$3,592$1,767$1,629$1,519
Arkansas$7,671$3,551$1,832$1,671$1,571
California$5,417$3,456$2,049$1,953$1,882
Colorado$9,414$3,960$2,020$1,927$1,851
Connecticut$10,353$4,882$2,221$2,079$1,974
Delaware$15,402$6,422$2,960$2,839$2,646
District of Columbia$8,735$3,801$1,773$1,704$1,623
Florida$15,601$6,898$3,802$3,608$3,468
Georgia$10,053$4,228$1,943$1,811$1,732
Hawaii$1,309$1,200$1,186$1,186$1,186
Idaho$4,738$2,204$1,087$997$925
Illinois$7,685$3,847$1,970$1,791$1,703
Indiana$5,412$2,783$1,407$1,305$1,225
Iowa$4,878$2,590$1,332$1,252$1,165
Kansas$7,651$3,697$1,800$1,658$1,524
Kentucky$7,620$3,828$1,828$1,728$1,610
Louisiana$14,890$6,508$3,260$3,109$2,869
Maine$4,218$2,613$1,047$987$950
Maryland$11,174$6,409$2,776$2,607$2,481
Massachusetts$8,413$5,104$2,830$2,675$2,580
Michigan$13,229$6,271$3,384$3,243$3,065
Minnesota$7,233$4,606$2,115$2,044$1,850
Mississippi$6,832$3,266$1,674$1,509$1,406
Missouri$6,465$3,461$1,760$1,607$1,505
Montana$6,933$3,799$1,826$1,684$1,554
Nebraska$5,828$3,162$1,524$1,400$1,280
Nevada$13,986$6,153$3,009$2,880$2,798
New Hampshire$5,752$2,765$1,262$1,164$1,107
New Jersey$10,576$5,083$2,380$2,284$2,147
New Mexico$8,809$4,272$2,189$2,067$1,980
New York$11,039$5,943$3,205$3,085$3,006
North Carolina$3,699$1,618$1,310$1,289$1,256
North Dakota$4,947$2,574$1,238$1,178$1,048
Ohio$5,397$2,822$1,349$1,284$1,233
Oklahoma$8,932$4,205$2,061$1,910$1,796
Oregon$6,381$3,014$1,521$1,422$1,353
Pennsylvania$11,036$5,914$3,402$3,205$3,076
Rhode Island$15,618$6,512$2,469$2,322$2,195
South Carolina$6,721$3,683$1,960$1,799$1,662
South Dakota$6,725$3,876$2,069$1,955$1,759
Tennessee$7,040$3,090$1,503$1,401$1,331
Texas$8,560$4,482$2,331$2,197$2,095
Utah$8,963$4,141$1,950$1,847$1,768
Vermont$3,985$2,839$993$940$839
Virginia$6,149$3,133$1,482$1,405$1,307
Washington$6,126$2,967$1,471$1,386$1,341
West Virginia$6,270$3,432$1,570$1,496$1,393
Wisconsin$10,277$4,024$1,836$1,701$1,598
Wyoming$5,067$2,720$1,248$1,223$1,147

As you can see, average car insurance costs vary widely by state. And within states, car insurance premiums can vary widely from city to city. For example, California has a few of the most expensive cities for car insurance, including Los Angeles and San Francisco,but the state isn’t one of the most expensive overall.

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Minimum Coverage Requirements

Most states have financial responsibility laws that require drivers to carry a certain amount of car insurance coverage to legally drive. You can only forego coverage in two states – Virginia and New Hampshire – but you’re still financially responsible for the damage that you cause.

Other states may allow you to purchase a surety bond or deposit money into an account with the DMV, but compensation for other drivers ultimately comes out of your pocket under those circumstances.

It’s also important to know that state minimum coverages probably won’t protect you in the case of a catastrophic accident. Just one bad accident can financially ruin a driver without enough coverage. It’s a good idea to carry coverage of 100/300/100. This means you have $100,000 of bodily injury liability coverage per person, $300,000 of bodily injury liability coverage per accident, and $100,000 of property damage coverage per accident.

Also, no state requires collision or comprehensive car insurance, but you may want to carry it to protect against damage to your car. Your auto lender will also require these coverages if you’re paying off a loan.

List Of No-Fault States

Some states have no-fault insurance systems. In a no-fault system, drivers seek medical compensation from their own insurance companies no matter who caused the accident. No-fault states require drivers to carry personal injury protection (PIP) to cover medical expenses. In some situations, a no-fault system can increase insurance costs overall.

No-fault states include:

  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Pennsylvania
  • Utah

What Other Factors Affect Car Insurance Rates?

Your age and your state aren’t the only things that affect your rates. Insurers use a variety of factors to determine the cost of your premiums.

Here are some of the most important ones:

  • Driving record: If you have a clean driving record, you’ll find much better rates than if you’ve had any recent accidents or traffic violations like speeding tickets.
  • Vehicle usage: You’re at risk every time you get on the road, so the more you drive, the more likely it is you’ll have an accident. Some insurers may offer discounted rates if you don’t use your car much. Others offer usage-based insurance that may save you money.
  • Vehicle type: Insurers factor the likelihood of a vehicle being stolen or damaged and the cost of that vehicle into your premiums. If your car has a likelihood of being stolen, you may have to pay more for insurance.
  • Credit history: Some states have made laws that prevent insurers from using your credit score as part of your rate calculation. But in others, having bad credit could cause the cost of your insurance premiums to rise dramatically.
  • Gender: Not every state allows insurers to use the gender listed on your driver’s license as a determining factor in your premiums. But in ones that do, female drivers typically pay a little less for insurance than male drivers.
  • Auto insurance coverage: Of course, how much insurance and what kind of insurance coverage you buy has a direct effect on how much you pay. Policies that only meet state minimum coverage requirements will be the cheapest. Additional coverage will cost more.

It’s important to compare car insurance quotes when you shop. The cheapest full coverage insurance company might not offer the cheapest minimum coverage, for example.

Why Do Car Insurance Rates Change?

There are many reasons why auto insurance rates fluctuate. The most common cause of a rate increase comes from filing a claim. An at-fault accident can raise your rate significantly over the next few years. If you were convicted of a DUI or a hit-and-run, your rates will go up even more.

However, you don’t have to be in an accident to experience rising rates. Overall, car insurance tends to get more expensive as time goes on.

Cars with smart technology and advanced safety features cost more to repair, and an influx of these vehicles can drive up local rates. Also, if your state has a time of increased natural disasters, rates will rise to cover the increase in comprehensive auto claims.

How Can I Save Money On Car Insurance?

You can’t control your age, and you probably don’t want to move states just to save on car insurance. Fortunately, there are a number of other discounts that you might be able to capitalize on right now. Here are a few of them:

  • Good driver: Many companies give you a discount for having a good driving history.
  • Multi-policy: Also called bundling, you can get lower rates for holding more than one insurance policy with the same company.
  • Multi-car: Just like the multi-policy discount, you can save by insuring multiple cars with one company.
  • Homeowner: If you own a home, you could get a homeowner discount from a number of providers.
  • Loyalty: Get a discount for sticking with the same company for multiple years. Here’s a secret: you can always compare rates each term to see if you’re getting the best price, even with your loyalty discount.
  • Usage-based: Programs like Progressive car insurance’s Snapshot track your driving habits and can issue discounts based on good driving. However, some can also raise your rates if it turns out you’re not a good driver.
  • Financial stability: Some companies give you a discount for having a good credit score.

When sourcing car insurance quotes, it’s a good idea to ask the insurance company if there are any more discounts that apply to you. Sometimes, online quote forms might not account for your unique situation.

Car Insurance Discounts By Age

The table below compares available discounts for students and seniors from a few major car insurance providers. Keep in mind that you might find better rates through another company that doesn’t have a specific student or senior discount.

Discounts
for Teens/
New Drivers
Driver’s
Ed Discount
Discounts
for Students
Defensive
Driver Discount
for Seniors
GeicoVaries15%Varies
State Farm15%25%Varies
Liberty MutualVariesVariesVaries
NationwideVariesVaries
FarmersVariesVariesVaries
TravelersVariesVaries
American FamilyVariesVariesVaries

Average Car Insurance Rates By Age: Our Take

Teens and younger drivers typically pay the most for car insurance coverage. As you get older and become a more experienced driver, you’re more likely to find cheap car insurance. However, you’ll see an increase in rates past the age of 65, as older drivers tend to have increased chances of getting into a car crash. When looking for affordable rates no matter your age, make sure to ask about any discount opportunities you may qualify for.

Our Recommendations For Car Insurance

No matter your age, some car insurance companies will charge you more than others. To find the best rates, it’s important to compare auto insurance quotes between multiple providers.

Geico Insurance: Best for Basic Coverage

Because Geico is available nationwide and has multiple available discounts, our research team named it Best for Basic Coverage. The company offers many of the same discounts as other insurance providers, like good student and multi-car discounts, but has flexible terms and many ways to qualify. Geico is also known for having affordable insurance rates, even for teen drivers.

Compare: Geico vs. Progressive

State Farm Insurance: Best Overall

State Farm is the largest insurance company in the nation. The company offers below-average insurance rates. In addition to the main types of car insurance, State Farm provides numerous optional coverages. These include travel expense coverage, rideshare insurance, roadside assistance, and rental car reimbursement.

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Average Car Insurance Rates by Age: FAQ

Below are commonly asked questions about the average car insurance rates by age:

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

  • Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
  • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
  • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
  • Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.
Average Car Insurance Rates By Age (2024 Guide) (5)

Dash Lewis Content Writer

As an expert in the field of car insurance, I can confidently provide insights into the key concepts discussed in the article written by Dash Lewis. My extensive knowledge in the domain is substantiated by a deep understanding of the factors influencing car insurance rates, the methodologies used by insurance providers, and the nuances associated with age-related pricing.

The article addresses several crucial aspects of car insurance, including:

  1. Age and Car Insurance Rates:

    • Middle-aged drivers typically enjoy the cheapest car insurance rates.
    • Newly licensed 16-year-olds tend to pay the highest premiums.
    • Age-related discounts offered by top insurance providers can help mitigate price hikes.
  2. Factors Affecting Car Insurance Rates:

    • Driving record: Clean driving records lead to better rates.
    • Vehicle usage: The more one drives, the higher the risk, influencing rates.
    • Vehicle type: Likelihood of theft or damage affects premiums.
    • Credit history: In some states, credit score impacts insurance costs.
    • Gender: In states where allowed, female drivers may pay less than males.
    • Auto insurance coverage: The type and amount of coverage directly affect premiums.
  3. State Variation in Car Insurance Rates:

    • Car insurance costs vary widely by state, influenced by local factors.
    • Within states, rates can differ significantly between cities.
  4. Minimum Coverage Requirements:

    • Most states have financial responsibility laws mandating a minimum level of coverage.
    • State minimum coverages may not be sufficient in the case of a catastrophic accident.
    • Recommended coverage is often 100/300/100 (bodily injury liability per person/accident, and property damage coverage per accident).
  5. No-Fault States:

    • Some states operate under a no-fault insurance system, impacting how claims are handled.
    • No-fault states require drivers to carry personal injury protection (PIP).
  6. Car Insurance Discounts:

    • Various discounts are available, including good driver, multi-policy, multi-car, homeowner, loyalty, and usage-based discounts.
    • Discounts may vary by age, with specific offerings for teens, students, and seniors.
  7. Factors Leading to Rate Changes:

    • Filing a claim, at-fault accidents, DUI convictions, and hit-and-runs can lead to rate increases.
    • Advances in vehicle technology and an increase in natural disasters can also impact rates.
  8. Recommendations for Saving Money:

    • Capitalizing on discounts such as good driver, multi-policy, and homeowner.
    • Exploring usage-based programs like Progressive's Snapshot.
    • Maintaining good financial stability for potential discounts.
  9. Insurer Recommendations:

    • Geico: Recognized for basic coverage, nationwide availability, and flexible terms.
    • State Farm: Largest insurer, offering below-average rates and a variety of coverage options.

In summary, the article provides comprehensive information on the factors influencing car insurance rates, age-related pricing dynamics, and practical tips for individuals to navigate the complexities of the insurance market. As a seasoned expert, I endorse the accuracy and relevance of the insights presented by Dash Lewis in this informative piece.

Average Car Insurance Rates By Age (2024 Guide) (2024)
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