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Your age is more than just a number when it comes to getting car insurance.
To insurers, your age is an indicator of how risky you are to insure – essentially, how likely you are to file costly claims. The riskier you’re perceived to be, the more the insurance company will charge you for coverage.
Let’s take a closer look at how age affects car insurance rates, which age brackets pay the highest insurance rates, and other criteria that could be impacting the cost of your auto insurance premiums
Learn more: How does car insurance work? The basics explained.
Car insurance rates by age chart
There is no standard formula to calculate car insurance rates based on age. Rates are individualized, and age is only one of many factors.
On top of that, each insurance company evaluates criteria – such as age, location, driving record, claims history, and more – in its own way to set rates.
To give one company’s example, consider this data from Progressive on the average monthly rates of its customers who purchased policies from September 2023 to August 2024.
How age affects car insurance rates
When you seek out quotes for coverage, auto insurance companies will often ask you for your age or date of birth. This is because most companies use age to determine auto insurance rates.
Age group classification
Insurance companies typically categorize drivers into age groups. It may not matter much to your insurance company if you’re 33 vs. 34, but the difference between being 23 vs. 43 will matter because that places you in a different age group.
Typical car insurance age brackets are:
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Teens/young adults (ages 16-24)
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Experienced drivers (ages 25-39)
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Middle-aged drivers (ages 40-64)
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Senior drivers (ages 65+)
Your insurance rates can still vary among others in your same age bracket. Age is far from the only component auto insurers consider when setting rates. However, you’re more likely to see a difference in your car insurance costs as you enter into different age brackets. Insurance companies associate each age bracket with a particular degree of risk.
Statistical risk assessment
With age comes experience and maturity, and that’s often reflected in a person’s driving abilities. Research shows teen drivers are more likely to get into car accidents than more experienced drivers. Car accidents are one of the leading causes of death for teens 16 to 19, and teens are three times more likely to be involved in a car crash than drivers aged 20 or older, according to AAA.
In addition, older drivers, specifically those over 75, have a greater chance of having physical limitations (such as vision loss or cognitive decline) that can negatively impact their driving skills compared to their middle-aged counterparts.
Insurance companies consider statistical data regarding age and the likelihood of filing insurance claims when setting car insurance rates, charging higher rates to drivers who are more likely to get into accidents to offset the potential financial loss. Conversely, drivers seen as less risky are generally rewarded with lower auto insurance premiums.
Driving record and claims history
Age tends to have a significant influence on your driving record, another key rating factor.
When you’re young and don’t have much experience on the road, an insurance company can’t rely on years of past driving history as evidence of whether you’re a bad or good driver.
With several years of driving experience under your belt, you get the chance to sharpen your driving skills. You can successfully manage driving on congested highways or in inclement weather. You may qualify for car insurance discounts for being a safe driver and having a record free from any accidents, tickets, or insurance claims.
If you were involved in car accidents in the past, it’ll take a few years for those incidents to clear from your driving history. After that time has passed, you may qualify for lower insurance premiums, which is another reason some older drivers end up with better insurance rates.
One way insurance companies can extend lower premiums to drivers without an extensive driving history is to offer usage-based insurance, sometimes referred to as telematics. These insurance programs, usually run through an app or a plug-in device, can monitor your car’s data and provide discounts for safe driving behavior.
Learn more: How usage-based insurance works for drivers
Car insurance age brackets
Drivers in the following age brackets often share similar characteristics, including their auto insurance risk factors.
Young drivers (16-24)
As a result of riskier behavior behind the wheel, car insurance companies view young drivers as the most costly to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.
However, young drivers who live with their parents can offset some of their high insurance costs by being added onto their parents’ policy rather than getting insurance on their own – provided their parents have a good driving history. In addition, teens and young adults in school may be able to qualify for good-student discounts to lower the cost of their insurance premiums.
Learn more: Car insurance discounts: 17 ways to save
Experienced drivers (25-39)
After age 25, auto insurance rates tend to go down as experienced drivers drive more responsibly and are less likely to cause car accidents or file claims. Experienced drivers who can point to a solid driving history will typically be eligible for lower premiums. Drivers in this age bracket can enjoy rather consistent auto insurance rates provided there isn’t a change in other factors such as location, credit score, or marital status.
Middle-aged drivers (40-64)
Middle-aged drivers tend to enjoy the lowest car insurance rates. These drivers have improved their driving skills, and time has likely elapsed since they incurred dings on their driving records due to accidents or moving violations.
Drivers in this age range may also benefit from insurance discounts if they own a home, are married, have good credit, or drive safer vehicles. However, you could see a spike in your insurance rates if you have a teenage driver or elderly parent living with you.
Learn more: How to get the most affordable car insurance for your teen driver
Senior drivers (65+)
While senior drivers – ages 65 and up – aren’t as risky to insure as a teenager, they generally face higher average rates than middle-aged drivers
As drivers age, they have a greater potential of experiencing physical limitations – such as impaired vision or hearing, slower response times, and cognitive decline – that may negatively impact their driving abilities. Certain medications taken by senior drivers can impair driving, and seniors have a greater chance of suffering more severe bodily injury in an accident.
According to the Centers for Disease Control, drivers 70 and older have higher automobile fatalities than middle-aged drivers.
If you’re a senior driver, you can offset policy increases by driving less or taking a defensive driving course.
At what age does car insurance go down?
While you might not see much change in your insurance rates with each passing year, you’ll likely notice rate changes as you hit particular age milestones.
Young drivers, from ages 16 to 24, often face the highest average costs. Once you’re 25, however, you can typically expect your costs to go down. Progressive, for example, states that rates drop about 8% on average for its customers once they turn 25.
Drivers in their 30s, 40s, and 50s typically find themselves enjoying the least expensive car insurance prices of their lifetime – unless, of course, they have a teenage motorist included on their policy.
After age 75, car insurance rates tend to go up again for older drivers, but not as high as teen drivers tend to see.
Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save
Other criteria impacting car insurance rates
Age is not the only factor that can result in scoring cheap car insurance or paying through the nose.
Type of coverage and deductibles
The amount of coverage you get for your vehicle will affect how much you pay. Carrying only liability insurance could save you money each month, but you’d be on the hook for replacing or fixing your vehicle if you cause an accident, a tree branch breaks your windshield, or your car is stolen.
Comprehensive insurance and collision insurance that are part of a full coverage policy give you more protection, but you’ll pay more in premiums.
If you want to lower your insurance premium, you could elect to pay a higher deductible. Just be prepared to pay that higher amount out of pocket in the event that you’re in an accident.
Learn more: What you need to know about car insurance deductibles
Type of car and vehicle usage
The type of vehicle you drive and how you use it play a major role in determining your car insurance rate. If your vehicle is more expensive to repair or the specific model is often a target for theft, you can expect to pay more for insurance. If your car has top safety and anti-theft features, you might pay less.
Also, your car insurance premiums can go up if you put a lot of mileage on the car each year or if you’re using your car for business purposes. Conversely, if you work from home or are retired and drive less, you may be eligible for discounts or usage-based insurance that provides a pay-per-mile rate.
Learn more: How your vehicle’s make and model affect car insurance costs
Location
Where you live will have a major influence on your car insurance rates. Florida, for example, has some of the highest rates in the nation, while Idaho is at the low end.
Not only do individual states have their own minimum coverage requirements, but your specific ZIP code also comes with its own level of risk. If you live in a densely populated area with more road congestion, you’ll likely pay more for car insurance than if you live in a more rural town with less traffic.
Learn more: How does your ZIP code affect your car insurance?
Credit score
Insurance companies use credit scores to determine car insurance rates due to research that shows a correlation between a person’s credit score and their likelihood to file car insurance claims. Drivers with excellent credit tend to file fewer claims, while those with poor credit tend to file more claims.
Gender and marital status
Your gender and your marital status are other factors insurance companies use to determine auto insurance rates. Male drivers – especially younger ones – usually pay more for car insurance than female drivers, based on data showing that men are more frequently involved in serious car accidents. Insurance companies typically view married drivers as less risky to insure compared to single drivers and tend to offer them lower rates.
Learn more: Which gender pays more for car insurance?
Insurance providers
Each insurance provider has its own underwriting process and methodology for evaluating your level of risk. That’s why it’s important to get auto insurance quotes from multiple companies. Even if you are already insured with one company, you might want to check rates from competitors once a year to make sure you’re getting the best car insurance for the best rate.
Read more: Buying a car? Here’s how to shop for insurance
Car insurance rates by age FAQs
Why is age a factor for car insurance rates?
Studies have shown that certain age groups are more prone to being involved in car accidents and filing auto insurance claims. To mitigate potential financial losses, most car insurance companies charge higher premiums for high-risk age groups.
What age group has the most expensive car insurance?
Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to younger drivers.
Why does car insurance go down after 25?
Drivers 25 and older are typically viewed as having better driving skills due to more experience on the road. Speeding tickets, DUIs, or car accidents from earlier years disappear from driving records with time, so drivers over 25 with clean driving records should see an improvement in the cost of car insurance.
What age group has the cheapest car insurance?
Experienced and middle-aged drivers in their 30s, 40s, and 50s often have the cheapest car insurance of all age groups. These drivers have more experience on the road and tend to be better drivers. They’re less likely to cause accidents and file insurance claims, so they’re viewed as less risky to insure. However, if drivers in this age range have teenage children or an elderly parent living in their household, their car insurance rates could go up.
Is it cheaper for teens to get their own insurance or be on their parents’ policy?
While having a teenage driver on a parent’s car insurance policy will cause that policy to be more expensive, it’s still usually less expensive than if that teen were to get insurance on their own. With a combined policy, the family can ideally benefit from the parent’s good driving history, credit score, and being in a less risky age group.
Amy Danise and Tim Manni edited this article.
Kaz Weida contributed to this article.
