Key Takeaways on Insurance Rates by Age
- Young drivers, especially 18-year-olds, face the highest car insurance premiums.
- Gender-based pricing differences are most noticeable at 18, with males paying around 8% less than females on average.
- Insurance premiums decrease as drivers gain experience but tend to rise again after age 70 due to increased accident risks.
- Some states, like California and Massachusetts, prohibit using age and gender as rating factors.
Understanding Insurance Rates by Age
When shopping for auto insurance, your age plays a significant role in determining your premium. Insurance providers assess risk levels based on historical data, and age is a major factor because younger and older drivers statistically have more accidents. While young drivers face the highest costs, rates gradually drop with experience before increasing again for senior drivers.
Average Auto Insurance Rates by Age
The table below outlines the average annual full coverage insurance rates by age for male drivers in 2025:
| Age | Average Annual Full Coverage Rate |
|---|---|
| 16-year-old* | $5,940 |
| 17-year-old* | $5,518 |
| 18-year-old | $7,706 |
| 19-year-old | $6,280 |
| 20-year-old | $5,708 |
| 21-year-old | $4,729 |
| 22-year-old | $4,337 |
| 23-year-old | $4,053 |
| 24-year-old | $3,834 |
| 25-year-old | $3,375 |
| 30-year-old | $2,875 |
| 35-year-old | $2,764 |
| 40-year-old | $2,677 |
| 50-year-old | $2,503 |
| 60-year-old | $2,419 |
| 70-year-old | $2,630 |
Rates for 16- and 17-year-olds reflect the additional cost of being added to a parent’s policy. Rates for 25-year-olds assume the driver is a renter, while rates for ages 30 and older reflect homeownership discounts.
How Insurance Rates by Age Change Over Time
Teen Drivers (16-19)
Teenagers are the riskiest age group to insure due to their lack of driving experience. According to national crash data, 16- to 19-year-olds have nearly three times the fatal crash rate per mile driven compared to older age groups. This elevated risk leads insurers to charge significantly higher premiums for young drivers.
Young Adults (20-25)
The good news is that insurance rates drop significantly after age 20. By the time a driver turns 25, insurance companies no longer classify them as high-risk, leading to noticeable reductions in premium costs. Maintaining a clean driving record during these years can result in even greater savings.
Middle-Aged Drivers (30-60)
Between the ages of 30 and 60, insurance rates remain relatively stable. Drivers in this category tend to have years of experience, reducing their likelihood of accidents. Many in this group also qualify for discounts such as bundling home and auto insurance, good driver discounts, and low-mileage savings.
Senior Drivers (70 and Older)
As drivers reach their 70s, car insurance premiums often start to rise again. This is due to increased accident risk associated with slower reaction times, vision impairments, and other age-related factors. Additionally, medical expenses tend to be higher for older drivers, contributing to increased costs for insurers.
How Gender Affects Car Insurance Rates by Age
While age plays a crucial role in determining insurance costs, gender can also impact rates in many states. Statistically, men engage in riskier driving behaviors, such as speeding and reckless driving, but they don’t always pay higher premiums. The impact of gender on insurance rates depends on several factors:
- State Regulations: Six states—California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania—prohibit gender-based pricing.
- Driving Record: A female driver with traffic violations or accidents may pay higher rates than a male driver with a clean record.
- Credit Score: Some states allow insurers to factor in credit scores when calculating premiums. A male driver with a strong credit score may pay less than a female driver with poor credit, and vice versa.
How to Lower Your Car Insurance Premiums
Regardless of age, there are multiple ways to reduce auto insurance costs:
- Good Student Discounts: Available for young drivers with high academic performance.
- Driver Training Discounts: Many insurers offer reduced rates for completing a defensive driving course.
- Bundling Policies: Combining auto and home insurance can lead to significant discounts.
- Usage-Based Insurance: Programs that track driving habits can result in lower premiums for safe drivers.
- Shopping Around: Comparing quotes from different insurers ensures you get the best possible rate.
FAQs About Insurance Rates by Age
At what age do car insurance rates by Age go down?
Insurance rates typically decrease in your early 20s, with the most significant drop occurring around age 25. Rates continue to decline gradually until around age 60, when they may start rising again.
What other factors influence car insurance rates?
In addition to age, insurers consider driving history, vehicle type, credit score, location, and the coverage options you choose.
How can young drivers get cheaper car insurance?
Young drivers can save by staying on a parent’s policy, maintaining good grades for a student discount, taking defensive driving courses, and choosing a safe, used vehicle with lower insurance costs.
Final Thoughts on Insurance Rates by Age
Understanding how insurance rates by age change over time can help you make informed decisions about your car insurance policy. While young and senior drivers often face the highest premiums, safe driving habits and available discounts can help lower costs. Comparing quotes and adjusting coverage as needed ensures you get the best deal at every stage of life.
Want to know more about other insurances, Read our latest articles.
