Car Insurance Rates by Age

When it comes to car insurance rates, growing older isn’t a bad thing.

Man Of Older Age Has Hands on Steering Wheel
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Skip Forward: Teens20s 30s40s and 50s60s

Car Insurance Rates By Age

As drivers get older, their car insurance rates often change. This is related to the way insurance companies allocate risks to drivers of different ages. Insurance companies use age as a way to predict driving ability. For example, young drivers are considered riskier than drivers in their 50s.

Let’s take a look at average auto insurance rates by age, starting with young drivers.


Teens

If the thought of a teenager driving you makes you nervous, you can imagine how the insurance company feels as they are financially responsible for the customer’s behavior. On average, teenagers pay more than three times the cost of ordinary drivers, which makes them the age group with the highest insurance costs. Therefore, if you are a parent with a teenage driver, you will understand how difficult it is to find affordable insurance for your young driver.

Cheap Car Insurance Options For Teens

To understand who offers the cheapest insurance for young drivers, the sample rate comes from several different companies. The results are shown in the table below.

AVERAGE COST OF CAR INSURANCE FOR A 17-YEAR-OLD

Car Insurance ProviderAverage 6-Month Premium
Allstate$3,483
Farmers$3,595
GEICO$1,743
Liberty Mutual$3,439
Nationwide$2,309
Progressive$4,255
State Farm$1,793
USAA$1,527
AVERAGE 6-MONTH INSURANCE PREMIUMS: TEEN ON PARENTS’ PLAN
AgeAverage 6-Month Premium
16$1,492
17$1,399
18$1,284
19$1,150

Please note that this data reflects only one type of profile in a position that may not represent you. Use this data as a starting point when purchasing car insurance.

Other Ways To Save On Insurance Costs

If you have a teenager, there is no quick and easy way to cut your insurance premiums in half. However, in addition to considering as many companies as possible, we also recommend some other solutions.

Consider Discounts
  • Safe driver
  • Equipment discount
  • Paid in full discount
  • Paid via bank discount
Consider Telematics

Telematics is an in-vehicle device that can monitor the driving conditions of your teenagers to make more comprehensive car insurance premiums. If your child is a particularly careful driver, based on historical data, his age may still be against him. But with an insurance plan based on telematics, you may be able to save some money.

CompanyEstimated Savings
Progressive SnapShotAverage of $130
Allstate DrivewiseAverage of 10-25%
State Farm Drive Safe & SaveUp to 15%
Esurance DriveSenseVaries
Nationwide SmartRideUp to 40%
Liberty Mutual RightTrackAverage of 5-30%
GEICO DriveEasyVaries
Choose a Moderately Priced Vehicle

Although your teenage son or daughter may want a new car, it is not a good idea for their insurance premiums. A vehicle with a high MSRP driven by an inexperienced driver is the main red flag for your insurance company. And they will almost always offset their concerns about major property damage and personal injury compensation with higher premiums. If you want to keep the premium as low as possible, have your child drive an older car and keep the high-end new car for yourself.

Avoid Accidents

Although this is obvious advice, avoiding accidents as a young driver may be the most important thing you can do to keep your rates low. Not only will insurance companies charge high fees for accidents, but they will stay on your driving record for three years. On average, default incidents increase premiums by $384 every six months. And, like most claims, most insurance companies charge a maximum of three years after an accident, increasing from $384 to a total of more than $2,300 within six months. If you already pay a lot more for insurance premiums for your young drivers, then you do not want to add an accident. Drive safely and pay less.

AVERAGE PREMIUM INCREASE AFTER AT-FAULT ACCIDENT
Duration after AccidentPremium Increase
Increase at six months$384
Increase at 12 months$767
Increase at three years$2,301
Look For Student Discounts

Insurance companies believe that students with good grades (GPA 3.0 or higher) are less likely to take risks while driving. Therefore, they offer pretty good discounts for students. On average, your child can save $207 per year on auto insurance!

AVERAGE SAVINGS FOR GOOD STUDENT AND GOOD DRIVER DISCOUNT

GenderAverage Annual Savings
Teen$283
Male Teen$360
Female Teen$207

Car Insurance In Your 20s

When it comes to insurance, 20 years old is a huge life change. When you are 20 years old, you can save an average of 20% on car insurance costs. That’s because you still have several years of driving and life experience, all of which make you a cheaper customer, which is a good thing for insurance companies. Nonetheless, there are still some tips that you can learn about being 20 in the insurance industry.

AVERAGE INSURANCE PREMIUMS FOR DRIVERS IN THEIR 20S
AgeAverage 6-month premium
20$1,480
21$1,211
22$1,103
23$1,024
24$957
25$855
26$844
27$832
28$824
29$815

Where to Find Cheap Insurance In Your 20s

It’s difficult to choose a company that can offer everyone the cheapest price. There are too many differences between people and insurance is often too specific. But for when you buy car insurance, we want to give you a starting point. Eight popular insurance companies were compared to determine which company offered the cheapest auto insurance rates.

CHEAPEST CAR INSURANCE FOR 25-YEAR-OLDS
InsurerAverage 6-month premium
Allstate$1,117
Farmers$919
GEICO$680
Liberty Mutual$888
Nationwide$794
Progressive$885
State Farm$726
USAA$605

Think of this data as the first step in shopping for car insurance, and be sure to compare rates to find the best policy for you.

Other Ways To Save On Car Insurance Costs In Your 20s

Your 20s provide a unique opportunity to increase your insurance portfolio and save money. Being 25 years old, getting married, and adding renters or family insurance can have a significant impact on your insurance status.

Continue best practices from your teen years:

  • Purchase a telematics policy
  • Drive a moderately priced vehicle
  • Find good driver and good student discounts (if applicable)
  • Drive safely

Bundle Insurance Policies

Keeping all of your insurable interests in one insurance company not only makes things easier but also reduces your rates (for auto and whatever it is bundled with). Combining it with renters or homeowners, you can reduce costs by $79 to $149 per year.

Homeowner StatusAverage 6-Month Premium
Renter$774
Condo owner$757
Homeowner$757
Renter with multi-policy$734
Condo owner with multi-policy$692
Homeowner with multi-policy$683

Be Smart With Your Coverage

Unlike fine wine, the value of a vehicle will not increase over time but will depreciate. Therefore, if you are driving a low-value paid vehicle, the insurance you originally had may not be necessary. In other words, you can give up full insurance and keep liability insurance. Here is a quick procedure to determine if you still need comprehensive collision coverage.

  • Determine your vehicle’s value by using Kelley Blue Book and NADA.
  • If the value of the vehicle determined above is less than the cost of adding additional non-mandatory coverage, leave it
  • If keeping these coverages still saves you money, consider increasing your deductible. By increasing the deductible, you lower the premium, but if you make a claim, you will take on more financial responsibility.

Be Smart With Your Claims

Auto insurance can be a double-edged sword – the more you use it, the more expensive it becomes. If you are considering filing a collision claim after an accident, consider our recommendations.

  • Get an estimate from a mechanic for the out-of-pocket damage first.
  • Every insurance company will increase your rates after you file a claim for at least three years. Compare the out-of-pocket expense to the average surcharge for a collision claim.
  • Consider the surcharge over three years plus your deductible. If it is cheaper to pay out-of-pocket for a claim, do that.

Car Insurance And Roommates

It is common for people in their 20s to live with roommates. Although your insurance company understands that you can live with other people, they have some rules about carpooling. It is important to follow these rules and understand your coverage and exclusions.

If your roommate is not on your policy, they can’t use your vehicle!

Because you share the residence with your roommate, the insurance company will want your roommate to be a qualified driver (for a fee) or to be excluded altogether – very simple.


30s

Your 30s are the general continuation of your 20s; you are settling down, buying a home, and adding your vehicle to your auto insurance policy. As you grow into your 30s, your premiums aren’t much different – just save about 0.5% per year. Unlike the changes you experienced in your teens and twenties, the reason for this lack of change is that the driving habits of a 32-year-old are not much different from those of a 34-year-old. So if you want to save money in your 30s, you’ll have to work harder to lower your rates.

Continue best practices from your 20s:

  • Telematics
  • Moderately valued vehicles
  • Bundling
  • Smart coverage
  • Smart claims

How To Save On Auto Insurance In Your 30s

Although you won’t save much when you enter your 30s, you do see some savings, about 30% less than the average driver in their 20s. So rest assured, although you may not want to be 30 years old, you should see some insurance savings.

AVERAGE 6-MONTH PREMIUMS — DRIVERS AGED 30-39

AgeAverage 6-month premium
30$776
31$774
32$773
33$770
34$770
35$760
36$760
37$759
38$757
39$757

Shop Around And Compare Rates

It is difficult to provide company-specific information for 30-year-olds because the average situation varies greatly. Some 30-year-olds may be married and own a house, which greatly affects their insurance premiums, while others rent a house and live alone. Therefore, to get the best car insurance rate for your driving situation, you need to shop around and get car insurance quotes from as many insurance companies as possible. Or you save time and money by going through us!


40s and 50s

During this period, there are several major changes, all of which will increase your premiums. However, older drivers should retain the content discussed in the previous section.

  • Bundle any and all insurance policies
  • Use telematics, if possible
  • Chose a moderate vehicle
  • Be smart about filing claims
  • Be smart with your coverage

However, we still want to offer something new for this time in your life. To traverse this expensive time, we decided to create a family profile. This is what we found.

AVERAGE 6-MONTH PREMIUM FOR MARRIED COUPLES
Insurance ProviderAverage 6-month premium
Allstate$962
Farmers$748
GEICO$576
Liberty Mutual$840
Nationwide$668
Progressive$706
State Farm$647
USAA$480

This information refers to life without young drivers. As you can see, your 50s are not that bad in the insurance industry. If you are married and are a homeowner, your average six-month interest rate is approximately $703 among all the businesses surveyed. USAA was the cheapest with GEICO in a close second. Next, we added teenage drivers to the picture: one male and a female driver; 17 years of age.

AVERAGE 6-MONTH PREMIUM FOR FAMILIES
Insurance ProviderAverage 6-month premium
Allstate$1,698
Farmers$1,535
GEICO$1,315
Liberty Mutual$1,313
Nationwide$1,073
Progressive$1,574
State Farm$1,260
USAA$866


On average, adding teen drivers to your policy increases your premium by over $1,300 per year. 

How To Save

During this period, even into your 60s, it is important to learn how to save with young drivers (children) on your policy. As we said before, young drivers are regarded as risk-takers by auto insurance companies. They are more likely to have accidents, receive drunk driving and other tickets, and file claims. Therefore, insurance companies protect themselves by charging higher rates. This means that you need to be more cunning when it comes to car insurance.

Keep your teens on your policy

Young drivers are known as high-risk drivers; they usually have more accidents and receive citations that affect their driving record, which affects everyone in the policy rate. This is why some brokers recommend that young people develop their own policies. However, this is actually a bad idea for several reasons. First, let responsible drivers in the policy help mediate the risks posed by inexperienced drivers. The premiums paid by your teenager alone will be much higher than the premiums on your policy. Most teenagers cannot afford more than $5,000 per year. If they are alone, this is the average cost in 2020, so it is likely to fall on you. In short, it will be cheaper to keep them on your policy.

Second, many insurance companies do not allow you to have two separate insurance policies in the same family. From their point of view, the vehicle is likely to be shared, so they prefer to cover all eligible drivers.

Discount to consider: Student Away From Home

If your young driver is in college over 100 miles away from your residence, your insurance company might give you what’s called a Student Away From Home Discount. Basically, your premium is lowered based on what your insurance company sees as a lowered risk for your young driver not using the vehicle as much while they’re away at school.


60s

For insurance consumers, being 60 can be a decade of change. Many people retire, sell their homes to downsize, take their young drivers off their insurance policies, and invest in other forms of insurance. Therefore, you may need guidance on operating an insurance policy to maximize savings and keep premiums low. 

How to save

Although your insurance policy will change with age, the main idea of ​​saving on car insurance remains the same. So, continue with the thoughts we expressed earlier:

  • Bundle any and all insurance policies
  • Use telematics, if possible
  • Choose a moderately priced vehicle
  • Be smart about filing claims
  • Be smart with your coverage
  • Maintain a good credit score
Car Insurance And Kids

If you have children, this may be the time when you want to know how to handle your insurance. Can you keep them on your policy? Should you delete them? Let’s explore it.

  • Remove your kids from your insurance policy: If your children no longer live at home and drive regularly, you should remove them from your policy. Insurance is zip code specific, so it must be written and priced based on your zip code. If your child lives in a different place, they need their own policy.
  • Keep your kids on your insurance policy: If they live in your home and use your vehicle, you can keep them on your insurance policy. Unlike medical care, etc., if your children live with you, they have no upper age limit.

If you own the car, but your children drive it at their residence, you can become an additional interest in the car. This means that although your daughter or son is the main user of the vehicle, you are still interested in investing in it. Insurance companies generally do not care who pays the premium; if your son or daughter does not live with you and therefore cannot join your insurance policy, but you still want to pay the premium, please consult your company’s insurance agent.

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