What’s The Average Car Insurance Rate At Every Age?
A lot of factors go into calculating your car insurance rate, including gender, driving record, and location. One of the biggest factors? Age. CarInsurance.com recently revealed the average annual insurance rate for every age, if they want full coverage. This includes personal liability insurance, collision insurance, comprehensive insurance, and medical payments insurance. There are certain instances where you might not need full coverage, although cheap insurance may be too good to be true — or downright dangerous.
If you’re a teenager, you’re looking at higher insurance than other age groups. Here are the average full coverage rates for younger drivers:
- 16: $10,387
- 17: $8,614
- 18: $7,498
Insurance rates start to drastically go down in your 20s:
- 20: $5,173
- 21: $4,215
- 22: $3,867
- 23: $3,596
- 24: $3,397
- 25: $3,044
By the time you reach your 30s you will see rates continue to decline:
- 30: $2,731
- 35: $2,652
- 40: $2,578
- 45: $2,528
- 50: $2,421
- 55: $2,341
- 60: $2,312
Once you are 65, insurance rates start to increase gradually:
- 65: $2,353
- 70: $2,498
- 75: $2,742
Why does age impact car insurance price?
Car insurance rates are calculated based on risk. Certain demographics are more likely to get in accidents, which causes increased rates — the more accidents, the more money your car insurance has to shell out.
The riskiest demographic? Teenagers. With far less experience behind the wheel, teenagers have crash rates almost four times those of drivers above 20 years old. Adults are considered more experienced drivers, and they’ll see their rates go down quite a bit. However, seniors are seen as risky once more, with slower reaction times making them more accident-prone. Seniors are also more likely to get injured in a crash, leading to 70-plus-year-old drivers having a higher crash death rate than middle-aged drivers, according to the Center for Disease Control and Prevention.
Age isn't the only factor at play, of course
Gender is another big factor for car insurance rates, with young male drivers paying a higher average insurance premium due to their riskier driving. Women are considered safer drivers, but the pricing gap starts to shrink around 40 years old. No matter what your demographic, there are some tricks to get cheaper car insurance.
