No, car insurance does not go up at age 21. Average car insurance premiums actually drop around this age as drivers grow older and become more experienced and responsible in the eyes of insurers. Car insurance at age 21 still is more expensive than the national average of $60 per month, however.
Cost of Car Insurance by Age
Average Monthly Premium
16 years old
21 years old
22 years old
25 years old
45 years old
65 years old
Note: Premiums reflect state-minimum coverage.
It’s important to remember that age is not the only factor used to calculate insurance risk. Insurers also account for things like your driving record, your ZIP code, and the make and model of your vehicle.
Because companies use different factors to determine your premiums, it’s important to compare multiple quotes from different insurers to make sure you’re getting the best deal. To learn more, check out WalletHub’s guide to comparing car insurance rates.
The average cost of car insurance for a 21-year-old is $104 per month, which is much higher than average compared to other age groups. Drivers who are 21 pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.… read full answer
Because the cost of coverage for 21-year-olds is so high, it’s important to shop around for multiple quotes before buying a policy. Some of the best car insurance companies for 21-year-old drivers are USAA, Travelers and Geico.
Cost of Car Insurance for a 21-Year-Old by Company
The exact cost of car insurance for a 21-year-old depends on a few factors, including their driving record, gender, and vehicle type. Additionally, whether a 21-year-old is buying their own policy or being added to their parents’ policy makes a difference.
Adding a 21-year-old to an existing policy will raise the premium by an average of 140% to 160%. But even with the added cost, it’s still a more cost-effective option than having the driver purchase their own policy.
The cost of car insurance typically goes down the most between the ages of 18 and 19, when rates drop by about 25% on average. Car insurance premiums generally continue to go down each year until age 25, when rates begin to level off for the next few decades. When drivers turn 25 years old, they can expect a discount of about 14%.… read full answer
Note: The table above shows average annual rates for minimum coverage across all 50 states.
Around middle age, rates may begin to creep back up. This is because middle-aged drivers tend to insure newer, nicer cars and begin to add their children to the policy, increasing the average rate for this age range overall. Individual rates also start to go up again between the ages of 65 and 75 because senior drivers have a higher risk of accidents than middle-aged drivers.
Why Age Affects Car Insurance
Age affects car insurance rates because it’s an indicator of a driver’s risk to an insurance company. Young drivers are statistically more likely to get into a car accident than older, more experienced drivers. As a result, they’re considered high-risk and are more expensive to insure.
The risk for the insurer and the cost for the insured then generally decline as drivers age and gain experience. Once drivers pass the age of 65, however, their risk starts to go up again. Not only are senior drivers more likely to get into an accident than middle-aged drivers, but they’re also more likely to be injured as a result.
States Where Age Does Not Affect Rates
Although most people in the U.S. will find their prices change according to this timeline, there are a few states in which insurers can’t use age to determine your rate. In California, Hawaii, and Massachusetts, age won’t have a direct effect on how much you pay for car insurance. Other factors will still have an impact, though. Your driving record, credit score, and marital status can all affect your final premium.
Car insurance is cheapest around age 55, on average, according to WalletHub data. Middle-aged drivers with experience on the road are the least expensive to insure because they have the lowest accident and claims rates, especially compared to senior and teenage drivers, who are the most likely to be involved in car crashes. Overall, car insurance is cheapest for drivers aged 35-65. … read full answer
Cheapest Ages for Car Insurance
Average Annual Premium
Premiums represent an average of quotes from Quadrant Information Services for ZIP codes nationwide.
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