Auto Insurance Rates

What Are Average Car Insurance Rates by Age


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Statistics show that the highest rate of automobile accidents is found among the youngest drivers. Thus, average car insurance rates by age will vary accordingly. One way to estimate the insurance rate you will receive is to use a car insurance calculator found online. With the most concise calculators you will enter pertinent information such as zip code and number of cars and drivers to be insured. Going further, you will be required to enter in your age, gender and other information. Age plays a big role in determining auto insurance rates. It is a business that assesses risk–the higher the perceived risk, the more expensive the premium. Because perceived risk varies widely with age, the average rate for car insurance will vary too.

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Average Car Insurance Rates by Age

  • Teenagers: A part of the demographic that is considered by insurers to be the highest risk, teenagers listed on a parent’s policy can raise their premiums substantially. Average rates for teenagers will depend upon if they have insurance in their own name or if they are listed on another’s policy. Good student discounts may apply as well, but in general, car insurance averages for teen drivers are quite high.
  • Under Age 25: Despite the difference in independence, the ability to vote and purchase alcohol, drivers under the age of 25 are still considered to be a high risk. Like teenagers, this age group can save by being listed on a parent’s insurance policy. If they buy insurance in their own name, due to the perceived risk of carelessness, their car insurance premiums will be a lot higher than someone who is 27.
  • Ages 26-54: This span of thirty years can work either in a driver’s favor or against them depending on their driving record. No longer considered the risk they were at 25 and younger, this demographic of drivers nevertheless does not receive the best rates. Many factors go into the determination of rates, not just age. Area of residence, gender, marital status, claims history, driving history and credit score all influence car insurance rates. For people in this age group, it is fortunate you are no longer assumed to be a high risk (even if you were not), but keep in mind that most insurers will still treat you like you’re about to cost them money.
  • Age 55 and Up: Once you have reached this plateau, you are deemed to be of a very low risk to auto insurers. The reason for this is that you are thought to have too much to lose by driving recklessly. In this age group you enjoy the benefits of the lowest average rates and the most favorable discounts.
  • Over 65: By the time you reach 65 and up, insurers begin to think of you as a risk again. With the onset of old age it is assumed that your ability to drive is waning, that your perception is on the decline and that you are more likely to get into an accident. Statistically, next to drivers under the age of 25, senior citizens are the most likely to be involved in an accident. Average rates then begin to climb back up, and it is even common for insurers to drop drivers in this age group.

Although other factors apply, car insurance costs per age, on average, start high when you're a new driver; go down after you reach the age of 26; and continue to decrease slowly until you reach the age of 55. From then on they are the lowest until you reach the age of 65 when they begin to climb again.

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