Why Do Car Insurance Rates Change With Age?
When you first get your driver’s license as a teenager, auto insurance rates will typically be quite high. As you gain more experience behind the wheel — and maintain good driving habits — your rates will start to decrease. As long as you keep a clean driving record, your rates will keep decreasing through your 30s.
The reason rates change so much over the course of your life is based on how risky you appear to car insurers. High-risk drivers have a greater likelihood of filing a claim or having one filed against them, so insurance companies charge riskier drivers more for coverage.
According to its most recent study of car accidents among teenagers, the Centers for Disease Control (CDC) found that nearly 2,800 teens were killed in car accidents in 2020. 227,000 teens were injured in car wrecks. The crash risk for drivers aged 16-19 is higher than any other age group, almost three times as high as the rate for drivers aged 20 and older. To get even more granular, male drivers aged 16-19 are three times more likely to get into a car accident than female drivers in the same age group.
Motorists over the age of 70 are also considered risky to insure, as they have a substantially higher car crash death rate than middle aged drivers, according to the CDC. Older drivers are much more physically vulnerable to injury. Older people tend to have deteriorated vision and reaction times as well.
Average Car Insurance Rates by Age
The table below shows average monthly and annual costs for a full-coverage car insurance policy based on age. Each age profile combines data for both male and female drivers. Additionally, these profiles are based on drivers with a clean driving history and a good credit score. The 16-year-old rates apply to drivers with their own policies. Teens on a family plan would see cheaper rates than these.
| Age | Average Monthly Cost | Average Annual Cost |
| 16 | $632 | $7,581 |
| 25 | $195 | $2,336 |
| 35 | $167 | $2,008 |
| 45 | $160 | $1,923 |
| 55 | $147 | $1,767 |
Average Car Insurance Rates by Provider
We also took a look at average full-coverage cost data for some of the top insurers based on age group.
| Provider | Average Annual Cost for 16-Year-Olds | Average Annual Cost for 25-Year-Olds | Average Annual Cost for 35-Year-Olds | Average Annual Cost for 45-Year-Olds | Average Annual Cost for 55-Year-Olds |
| Erie | $4,259 | $1,796 | $1,458 | $1,348 | $1,258 |
| Auto-Owners | $4,459 | $2,076 | $1,619 | $1,573 | $1,469 |
| Nationwide | $4,835 | $1,663 | $1,433 | $1,342 | $1,229 |
| Geico | $5,307 | $1,807 | $1,596 | $1,581 | $1,457 |
| Travelers | $5,436 | $1,694 | $1,595 | $1,475 | $1,346 |
| State Farm | $5,514 | $1,952 | $1,657 | $1,628 | $1,534 |
| USAA | $6,431 | $1,825 | $1,512 | $1,414 | $1,347 |
| Progressive | $10,139 | $2,243 | $2,030 | $1,904 | $1,679 |
| Allstate | $11,263 | $2,958 | $2,598 | $2,557 | $2,349 |
| Farmers | $16,408 | $3,626 | $3,169 | $3,065 | $2,790 |
Car insurance rates by age typically follow an inverted bell curve, with teen and senior drivers paying the most for coverage.
Average Car Insurance Rates by Age and State
In the table below, we highlight average costs for a full-coverage policy by age group in each state. The data is based on the profile of a driver with good credit and a clean driving record. To get average rates in each state, using Quadrant Information Services we compiled averages from 100 ZIP codes, including from 10 of the largest cities in each state.
| State | Average Annual Costfor 16-year-olds | Average Annual Costfor 25-year-olds | Average Annual Costfor 35-year-olds | Average Annual Costfor 45-year-olds | Average Annual Costfor 55-year-olds |
| Alabama | $6,853 | $2,085 | $1,775 | $1,697 | $1,579 |
| Alaska | $6,422 | $1,949 | $1,685 | $1,613 | $1,481 |
| Arizona | $8,495 | $2,332 | $2,008 | $1,913 | $1,766 |
| Arkansas | $7,868 | $2,377 | $2,038 | $1,920 | $1,758 |
| California | $6,725 | $2,767 | $2,313 | $2,244 | $2,199 |
| Colorado | $8,453 | $2,535 | $2,173 | $2,087 | $1,935 |
| Connecticut | $11,410 | $2,301 | $1,919 | $1,854 | $1,730 |
| Delaware | $13,788 | $3,280 | $2,881 | $2,757 | $2,489 |
| Florida | $12,184 | $3,624 | $3,244 | $3,142 | $2,882 |
| Georgia | $8,254 | $2,368 | $1,973 | $1,875 | $1,713 |
| Hawaii | $1,805 | $1,656 | $1,656 | $1,656 | $1,656 |
| Idaho | $6,433 | $1,679 | $1,402 | $1,340 | $1,225 |
| Illinois | $5,409 | $1,799 | $1,541 | $1,440 | $1,326 |
| Indiana | $5,402 | $1,877 | $1,587 | $1,463 | $1,353 |
| Iowa | $5,041 | $1,845 | $1,563 | $1,499 | $1,355 |
| Kansas | $7,661 | $2,190 | $1,918 | $1,844 | $1,655 |
| Kentucky | $9,597 | $2,964 | $2,522 | $2,367 | $2,178 |
| Louisiana | $13,261 | $3,496 | $3,040 | $2,874 | $2,621 |
| Maine | $4,831 | $1,475 | $1,238 | $1,170 | $1,126 |
| Maryland | $7,065 | $2,108 | $1,833 | $1,756 | $1,626 |
| Massachusetts | $9,483 | $2,725 | $2,430 | $2,328 | $2,230 |
| Michigan | $12,921 | $4,230 | $3,643 | $3,531 | $3,244 |
| Minnesota | $5,403 | $2,050 | $1,766 | $1,698 | $1,518 |
| Mississippi | $6,722 | $2,015 | $1,658 | $1,583 | $1,431 |
| Missouri | $6,896 | $2,529 | $2,104 | $2,017 | $1,838 |
| Montana | $7,394 | $2,258 | $1,979 | $1,867 | $1,724 |
| Nebraska | $6,293 | $2,174 | $1,871 | $1,769 | $1,596 |
| Nevada | $11,788 | $3,081 | $2,788 | $2,676 | $2,526 |
| New Hampshire | $5,814 | $1,681 | $1,362 | $1,305 | $1,225 |
| New Jersey | $10,578 | $2,827 | $2,513 | $2,441 | $2,269 |
| New Mexico | $7,463 | $2,159 | $1,943 | $1,872 | $1,771 |
| New York | $6,659 | $2,398 | $2,088 | $2,034 | $1,892 |
| North Carolina | $4,373 | $1,728 | $1,627 | $1,590 | $1,510 |
| North Dakota | $7,770 | $2,168 | $1,916 | $1,793 | $1,628 |
| Ohio | $5,956 | $1,933 | $1,599 | $1,532 | $1,429 |
| Oklahoma | $8,117 | $2,624 | $2,278 | $2,246 | $2,057 |
| Oregon | $8,403 | $2,141 | $1,925 | $1,833 | $1,712 |
| Pennsylvania | $6,441 | $2,350 | $1,981 | $1,862 | $1,730 |
| Rhode Island | $13,472 | $2,805 | $2,357 | $2,255 | $2,105 |
| South Carolina | $6,491 | $2,197 | $1,845 | $1,755 | $1,604 |
| South Dakota | $8,192 | $2,562 | $2,291 | $2,197 | $1,959 |
| Tennessee | $6,897 | $1,780 | $1,524 | $1,454 | $1,327 |
| Texas | $8,722 | $2,602 | $2,205 | $2,126 | $1,946 |
| Utah | $8,534 | $2,173 | $1,928 | $1,849 | $1,703 |
| Vermont | $4,463 | $1,437 | $1,199 | $1,144 | $1,018 |
| Virginia | $6,984 | $2,117 | $1,781 | $1,699 | $1,539 |
| Washington | $6,328 | $1,813 | $1,616 | $1,555 | $1,467 |
| Washington D.C. | $9,465 | $2,605 | $2,218 | $2,158 | $2,020 |
| West Virginia | $9,046 | $2,593 | $2,177 | $2,100 | $1,889 |
| Wisconsin | $8,434 | $1,954 | $1,694 | $1,622 | $1,475 |
| Wyoming | $6,108 | $1,912 | $1,702 | $1,646 | $1,545 |
Because each state sets its own regulations, the average cost of car insurance varies quite a bit. Florida and Michigan pay some of the highest rates, while Idahoans and Mainers enjoy some of the cheapest car insurance in the country.
What Other Factors Affect Car Insurance Costs?
Though age is a major component of how your car insurance premium gets calculated, there are other contributing factors. They include:
- Location: If you live in an area with higher rates of property crime or car accidents, you’ll probably pay more for car insurance.
- Vehicle type: Luxury vehicles and sports cars cost a lot to repair and have a higher likelihood of being stolen, so they cost more to insure.
- Vehicle use: The more you drive, the higher the chance you’ll get into an accident, which makes you a higher risk to insurance providers and thus pay more for coverage.
- Driving record: If you keep a clean driving record — meaning you don’t have any recent speeding tickets, DUI convictions or accidents — you’ll pay much less for car insurance.
- Credit history: Drivers with good credit typically pay lower rates.
- Type of coverage: If you purchase a liability-only policy, you’ll pay less than if you opt for a full-coverage insurance policy.
- Deductible: If you choose a higher deductible, you’ll pay a lower premium.
What Car Insurance Discounts Are Available?
No matter how old you are, you probably want to save as much money as you can on car insurance. There are discounts available to drivers of all ages. Teen drivers, for example, can find savings for maintaining good grades or using certain telematics insurance programs.
Here’s a table that shows discount opportunities offered by some of the country’s most popular providers.
| Insurance Company | Young Driver/Driver’s Ed Discounts | Discounts forGood Students | Defensive Driving Discount for Seniors | Discounts forGood Driving |
| State Farm | ✓ | ✓ | ✓ | ✓ |
| USAA | ✓ | ✓ | ✓ | ✓ |
| Geico | ✓ | ✓ | ✓ | ✓ |
| Erie | ✓ | ✓ | ||
| Travelers | ✓ | ✓ | ✓ | |
| Auto-Owners | ✓ | ✓ | ||
| Progressive | ✓ | ✓ | ✓ | |
| Nationwide | ✓ | ✓ | ✓ | |
| Allstate | ✓ | ✓ |
In most cases, you can also find savings for loyalty, insuring multiple cars on the same policy and bundling auto coverage with other insurance products.
Icons representing six common discounts offered by car insurance companies
Car Insurance Rates by Age: The Bottom Line
Most companies use a driver’s age as a big factor in determining their car insurance rates. Younger drivers tend to pay the most for coverage. The reason being that teens and older drivers are more likely to get into car accidents and therefore are higher risks for companies to insure. However, you can find affordable rates by insuring multiple drivers on one policy and by shopping around to compare coverage.
Top Auto Insurance Recommendations
Considering average car insurance prices for your age is an important part of selecting a provider, but you’ll want to evaluate a company based on its reputation and coverage options as well. We conducted an industry-wide review of the top insurers and found that USAA and Geico are good places to start your search. We recommend comparing a few different car insurance quotes in order to find the best rates.
Compare: USAA vs Geico
USAA: Best for Military Members
If you’re a part of the military, a veteran or an immediate family member of either, you can get some of the most affordable car insurance in the country through USAA. The provider’s low rates and extensive discounts makes it an especially good choice for new drivers.
USAA offers policies that satisfy minimum coverage requirements across the country, as well as full coverage options like collision coverage, comprehensive insurance and uninsured motorist coverage. The company offers savings to good students and a discount for seniors who take an approved defensive driving course.
Read more: USAA insurance reviews
Geico: Best for Budget-Conscious Drivers
Geico has become one of the largest insurance providers in the United States thanks to its reputation for offering cheap car insurance and significant discounts. Geico’s discount offerings are especially generous to students, with savings available for those who maintain good grades, have an accident-free driving record and are alumni of certain schools and programs.
Read more: Geico insurance reviews
Car Insurance Rates by Age: FAQ
Below are some frequently asked questions about car insurance rates by age.
Teenage drivers have the highest car insurance rates overall. This is because they have less experience and are more likely to get into an accident than older drivers.
Car insurance costs do tend to decrease as you get older. As you get more experience — and stay accident- and violation-free — you’ll pay less and less for coverage. Rates may increase for seniors as their risk of accidents and injury go up.
Based on our research, the average cost of car insurance for a 16-year-old driver is $7,581 per year or $632 per month. This applies to a 16-year-old with their own insurance policy.
According to our data, drivers between the ages of 45 and 55 tend to pay the lowest rates for car insurance coverage.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Industry standing (20% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
Daniel RobinsonWriter
Daniel Robinson is a writer based in Greenville, N.C. with expertise in auto insurance, loans, warranty options and more. Away from the keyboard, Daniel spends time with his wife and son, plays guitar, and obsesses over the Beatles and Baltimore Orioles.
Rashawn MitchnerManaging Editor
Rashawn Mitchner is a MarketWatch Guides team editor with over 10 years of experience covering personal finance and insurance topics.
