Average car insurance rates vary by as much as 416% based on age and 11% based on gender, according to WalletHub’s analysis. Car insurance companies take driver information like age and gender into account when determining premiums in most states because certain groups are more likely to get into accidents than others.
Teen and senior drivers are statistically more likely to be involved in car accidents, so insurance companies charge them the most for coverage to compensate for the increased risk. Young male drivers are also more expensive to insure than young female drivers, though the difference becomes minimal after drivers turn 25 years old.
What to Know About Car Insurance Rates by Age and Gender
- Car insurance premiums for a 16-year-old male are 367% higher, on average, than prices for a 40-year-old male.
- Premiums gradually decrease as young drivers gain experience.
- Rates rise again when drivers turn 70 years old.
Average Car Insurance Rates by Age and Gender
|Age||Male vs. 40-Year-Old Male||Female vs. 40-Year-Old Female|
|Base Case: 40||-||-|
Young male drivers are the most expensive demographic to insure, since they are statistically the most likely to cost car insurance companies money. However, the difference in cost between men and women narrows over time. After age 40, women can even be slightly more expensive to insure.
Average Car Insurance Rates by Age
|Age||Average Annual Cost|
As young drivers gain experience on the road, their rates will gradually decrease. Then, premiums begin to rise again when drivers turn 70 years old.
Young drivers can save by being added to a family policy rather than purchasing insurance on their own. Additionally, good student discounts and other savings can help make the cost of teen car insurance more reasonable.
State Restrictions on the Use of Age and Gender in Insurance Pricing
Hawaii, California, and Massachusetts do not allow insurers to consider age as a factor when calculating premiums. However, companies in these states can consider a customer’s driving experience and insurance history, so teens are still likely to pay more for coverage.
Average car insurance rates by age and gender were determined by calculating the nationwide average cost of three different policies for drivers in each age group. The three policies included the following coverage limits:
- Each state’s minimum coverage requirements
- Each state’s minimum coverage requirements plus collision and comprehensive
- $100,000 in bodily injury liability per person ($300,000 per accident), $50,000 in property damage liability insurance, $100,000 in uninsured motorist bodily injury coverage per person ($300,000 per accident), collision, and comprehensive insurance