Your car insurance rate will be influenced by your age. According to data from Quadrant Information Service, 18-year-old male drivers pay the highest car insurance rates. They spend an average $5,650 per a year for full coverage. For full coverage, the average car insurance premium for 40-year-old females is $1,532 per annum. For comparison, the national average annual cost of car insurance in the U.S. is $1,674.
While some states prohibit the use of gender in rating factors, most states allow it to be used. However, rates are determined by your gender. Bankrate has compiled average car insurance rates by age group and arranged them by gender so you can understand how your personal rating factors impact your premium.
Average auto insurance rates based on gender and age
Your age is a significant factor in determining how much insurance companies assign to your driving habits. Due to their lack of experience, younger drivers tend to get into more accidents than older drivers. In many states, gender also plays a role in how much you pay for car insurance, with men tending to pay higher rates due to an increased likelihood of accidents.
Car insurance costs can vary due to many factors. The price you pay will reflect both your age and gender but also the state you live in, your personal driving history and the types of coverage you choose.
Below is a table that shows the national average annual auto insurance rates for full coverage. These numbers will give you an idea of the rates you can expect to pay, even though they may vary depending on your individual situation.
How does age impact your car insurance rates
You may see a pattern when you compare average car insurance rates by age. Teens and young adults start out paying more for coverage. As drivers get more experience behind the wheel, the premiums tend to decrease over the years. Premiums can rise as drivers age. This is generally due to the risk factors that are associated with each age.
- Teens: Teens can be the most dangerous drivers to insure. Teen drivers are three times more likely to be in a fatal car crash than older drivers. To offset the higher cost of teen driving claims, insurers often charge teens more to insure them.
- Adults: Auto insurance costs begin to fall when a driver turns 25. By 25, drivers might notice a pretty significant reduction in their premiums. As long as drivers are safe drivers and have not made any insurance claims, premiums will continue to fall throughout adulthood.
- Seniors: The downward trend in insurance premiums usually ends when drivers turn 70. Seniors are more likely to be involved in accidents due to aging-related factors such as vision and hearing loss, slow response times, or other factors. While seniors might see their insurance premiums rise, they won’t likely return to paying the same high rates as teen drivers if their driving record is clean.
Many insurers recognize that car insurance can be costly for certain age groups. They offer discounts to lower those premiums. For young drivers, discounts include driver training discounts and good student discounts. Senior drivers often qualify for discounts because of their loyalty to the company or affiliation with organizations like AARP.
What gender influences your car insurance rates
Gender is used in most states to determine car insurance premiums. Although statistically, men are more likely to be reckless drivers than women, this does not necessarily mean that they pay more for coverage. The general trend in premiums is that men pay more than women but this depends on many factors.
Cost of car insurance will depend on the state that a driver lives and their age. A 60-year old man in Arkansas will pay $46 more annually for full coverage than an older woman, while a Florida 40-year old man will pay $36 less per year for the same coverage as a woman 40 years younger.
California, Hawaii and Massachusetts are the only states currently that don’t allow gender to be used in rating factors. These states should have rates that are roughly equal for men and women if all other rating factors, such as age, vehicle type, driving record, etc., are considered. — are equal.
Questions frequently asked
What are the best ways to find the best car insurance for my gender and age?
The first step to finding the best car insurance for your circumstances is to figure out what factors matter most to you. To narrow down your list of potential auto insurance companies, you will need to know what you value in terms of discounts or mobile tools. It may be worthwhile to get quotes from several insurance companies. You can then compare the coverage and premiums to find the policy that suits you best.
What can I do to get auto insurance that is cheaper for young drivers?
Insurance companies understand that the premiums for young drivers can be daunting. Many companies offer discounts to offset these costs. These discounts include good student discounts or driver training discounts. Safe driving habits will help you keep your driving record clear of tickets and other accidents. This can help to lower costs.
What factors are used by insurers to determine my premium, other than age and gender?
Insurance companies take into account a number of factors to determine premiums. Every company is different, but the general rule of thumb is that companies will consider your annual mileage, driving record, coverages chosen, and credit scores.
