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Liability car insurance is affected by a wide variety of things. With factors like your gender, your location of residence, your credit score and so many other things being weighed against each other, it’s no doubt that auto insurance is a very complicated thing. But one of the most, if not the most, important things that determines what you’ll be paying for your annual premium is your age. Continue reading if you want to find out more about the average car insurance rates by age.
Why Age Matters for Car Insurance
Maybe you have always wondered to yourself why age matters so much when it comes to determining car insurance prices. There are a couple of answers why this is the case and they’re all pretty straightforward.
For one thing, age is associated with experience. And this isn’t just a wild theory. Research typically suggests that the older someone is, the less likely they are to get into car crashes or any other sorts of accidents. Believe it or not, most car accidents occur with people under the age of 36.
As you may already know, liability insurance is about determining what are the biggest and lowest risks. And when it comes to age, the younger you are the riskier you are. This is why car insurance is almost always at its most expensive with younger drivers, typically from the ages of 16 to 21. They’ve had way less years on the road than most adults and as a result they are considered to be inexperienced. A lack of experience translates into a greater chance of car accidents, therefore they are more of a liability.
Car Insurance Rates: Prices Vs. Age for Younger Drivers
So, now we know that the younger you are the more you’ll be paying for car insurance. But this isn’t enough information still. We want to know what exactly are the average car insurance rates by age. You could be a 16 year old who just got your driver’s license and first car, or you may have turned 30 and are wondering just how much of a benefit your few extra years have brought you when it comes to saving some cash on insurance.
The data below was taken from CarInsurance.com, which specializes in collecting and sorting out statistics relevant to all things automobile insurance. The prices are sorted into three categories: the state minimum annual premium, the average annual cost for a 50/100/50 coverage plan and the average annual cost for a 100/300/100 coverage plan. This all applies to the year 2017.
Each age is calculated as the aggregate of both men and women living across all 50 states.
Let’s start with the youngest age: 16. The state minimum is $2,593 making this by far the most expensive option on the list, as expected. 50/100/50 coverage costs $2,957 and 100/300/100 coverage costs $6,930. It’s an unfortunate reality for young new drivers but car insurance is very expensive—for reasons we’ve already discussed.
Moving onto 17: the state minimum is $2,179. The 50/100/50 and 100/300/100 coverage plans cost $2,500 and $5,836 respectively. Already we’re seeing a noticeable dip in price. A year of driving experience can really make a difference at this point.
Next, 18 years old: $1,870 for the state minimum. The 50/100/50 and 100/300/100 plans respectively cost $2,142 and $5,115. Again, a noticeable dip. This is partially due to the fact that people who are 18 years old have legally reached adulthood and are considered Age of Majority.
Age 19: state annual minimum is $1,260, and the 50/100/50 and 100/300/100 coverage options cost $1,444 and $3,503 each. Another big dip, showing that the first early years of driving are important. Good conduct and an effort made towards being responsible can really help out your wallet.
Age 20: the state minimum is $1,102. The 50/100/50 and 100/300/100 plans are $1,261 and $3,214 respectively.
For people aged 21, we see the last big dive in annual prices. The state minimum is only $875. The 50/100/50 and 100/300/100 plans are $1,001 and $2,516 on average.
22: state minimum is $794, whereas the 50/100/50 and 100/300/100 plans are $906 and $2,288 respectively.
23: state minimum is $732. The 50/100/50 and 100/300/100 coverage plans are $834 and $2,116 each.
24: state minimum is $684, and the 50/100/50 and 100/300/100 plans are $779 and $1,982.
25: state minimum is $608, and the 50/100/50 and 100/300/100 plans are $691 and $1,745 each.
Car Insurance Rates: Price Vs. Age for Older Drivers
These were the first 10 years of average car insurance rates by age. These are typically the most important years for collecting data on as it is more difficult to calculate these prices.
Next we’re going to be looking at ages 35 and up but going by increments of 10. At this point there’s little to differentiate between one year of difference, unlike for younger drivers. Let’s continue looking at average car insurance rates by age.
For the age of 35, the state minimum is only $552. The 50/100/50 and 100/300/100 are priced at $627 and $1,564 each.
For 45, the state minimum is $525. The 50/100/50 and 100/300/100 are $596 and $1,469 respectively.
For 55, the state minimum is $494. The 50/100/50 and 100/300/100 are $560 and $1,363 each.
At 65, the state minimum is $515 with the 50/100/50 and 100/300/100 plans averaged out to $585 and $1,402 respectively.
Coming in at 75 we’re actually going to see our first increase on this entire list. The state minimum goes up to $630 with the 50/100/50 and 100/300/100 at $718 and $1,651 each. This is because older drivers in this age range are a little more likely to make minor accidents or general mistakes when driving. They are still far less likely to cause major incidents compared to younger adults or teenagers though.
Finally, our last age is 85: with the state minimum at $778 and the 50/100/50 and 100/300/100 at $887 and $1,987 respectively, we see yet another price jump. Again, this is because people aged 85 and up tend to lose some of their dexterity with age.
That’s all we have for average car insurance rates by age. We hope you’ve learned a lot from this information and use it to understand the world of driving and auto insurance better.