Car Insurance Rates by Age

People of all different ages
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There are a lot of different factors that go into determining how much you’ll pay for car insurance, and many of them are in your control: keep out of trouble, always drive the speed limit, keep a good credit score, and avoid risky behavior, and your rates will likely remain low. Getting married also helps, as does sticking with the same carrier for years.

But there are many factors that impact how much you’ll pay, that are out of your control, and your age is one of them. As you might imagine, the youngest drivers on the road are perceived as the riskiest, and thus, insurance companies charge more in premiums for them. But you might be surprised to know that getting close to retirement age can also set your premiums on an upward creep.

The Average Cost Of Car Insurance By Age

According to a 2018 study commissioned from Quadrant Information Services, the average cost of car insurance varies significantly based on the driver’s age. The following example is the average cost of liability coverage of for a one year old Honda Accord, based on rates offered by the 6 largest insurance carriers:

Age: 20 ; State Minimum Coverage: $1,102 ; Recommended 100/300/100: $3,214

Age: 25 ; State Minimum Coverage: $608 ; Recommended 100/300/100: $1,745

Age: 35 ; State Minimum Coverage: $552 ; Recommended 100/300/100: $1,564

Age: 45 ; State Minimum Coverage: $525 ; Recommended 100/300/100: $1,469

Age: 55 ; State Minimum Coverage: $494 ; Recommended 100/300/100: $1,363

Age: 65 ; State Minimum Coverage: $515 ; Recommended 100/300/100: $1,402

Age: 75 ; State Minimum Coverage: $630 ; Recommended 100/300/100: $1,651

Age: 85 ; State Minimum Coverage: $778 ; Recommended 100/300/100: $1,987

As you can see, car insurance is significantly more expensive when you’re a very young driver, and it starts going down as you get more experience on the road. Once you’re over the proverbial hill, however, the rates start to climb back up again.

It pays to be a more experienced driver. Even as you begin to reach “elderly” territory, you’ll likely never pay more for car insurance than when you’re first learning how to drive. Recommended liability coverage is more than $1,000 more expensive per year for a 20-year-old on average than it is for an 85-year-old on average. Even the statewide minimum coverage is much more expensive for a young person than it is for an older person.

Why Is Car Insurance So Much More Expensive For Young Drivers?

We promise it’s nothing personal. Insurance companies are in the business of making money, and they do so by calculating how risky each particular driver is and charging appropriately. Statistically, young drivers are much more likely to be in a car accident than more mature drivers are, and as such, their rates are higher.

What Can I Do To Get The Best Deal On Car Insurance?

No matter what your age, there is some common-sense information that applies to everyone. First and foremost, do your best to always follow any and all traffic safety laws – that includes speeding! Definitely don’t take risks like driving under the influence of drugs or alcohol, and do your best to avoid driving in dangerous conditions.

It almost always pays to shop around for car insurance, too. The more you compare rates, the more information you’ll have to help you make the best decision.

Another often overlooked thing that can save you money is driving your car less frequently or parking it in a safe area. If you are commuting to and from work every day or storing your vehicle in a dangerous zip code, there is a bigger chance that your car will cause or receive damage, which makes your rates go up.

If you are a young person living at home, it almost always makes sense to be on your family car insurance plan – especially if your parents are footing the bill. Having multiple cars under the same policy could net you a multi-car discount.

On the other hand, if you have a very risky driver living under your roof (say, someone who has received a DUI or other serious offense), then listing them as a non-driver on your policy and having them get their own could end up saving you money.

Finally, there are several steps that young drivers, in particular, can take to reduce the amount of money they pay in car insurance premiums. Taking a driver’s ed class is a great way to learn road safety, which can help you avoid accidents and might net you a discount. In addition, students in high school and college can generally get a discount for having good grades.