Average Car Insurance Rates by Age and Gender

The cost of car insurance typically goes down the most between the ages of 18 and 19, when rates drop by about 30% 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%.

When Car Insurance Rates Go Down the Most

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.

It costs about $1,340 per year to add a 16-year-old to car insurance, although this varies widely depending on the insurer and the age of the primary driver. While adding a 16-year-old is expensive, it can cost much more to buy a separate policy, so adding a teen to an existing policy is the most cost-effective option.

Below, you can see how the total cost of a family policy that includes a 16-year-old compares to...

Car insurance goes down for males every year until they reach their 60s, with bigger drops seen at 19 and 21. Once men are in their mid-twenties, rates begin to decrease more gradually. Premiums won't start going up again until men are about 65 to 75 years old. Seniors, like young adults, have a higher level of risk for accidents and pay more for insurance.

Both male and female drivers tend to see rates...

Car insurance rates begin to go down for young female drivers at age 21, usually. When men or women turn 25, their statistical risk of being in an accident goes way down. However, many insurance companies begin to reduce premiums for female drivers four years earlier. From the ages of 21 to 25, female drivers' rates gradually drop nearly 25%, according to studies. Women's rates continue to decrease after age 25, but more gradually, until...

Car insurance for a 16-year-old boy costs about $279 per month, on average—or $3,343 per year. Male drivers who are 16 years old pay more for car insurance than older drivers because they have less experience and tend to make riskier choices behind the wheel. Teenage male drivers also pay around 10% more for car insurance than their female counterparts, since teenage males are more likely to cost insurers money.

Cost of Car Insurance...

Car insurance for a 16-year-old female costs about $253 per month, on average—or about $3,039 per year. Drivers who are 16 years old pay more for car insurance than older drivers because they have less experience and tend to make riskier choices behind the wheel. Female teens pay less than their male counterparts, however, because teenage males are more likely to cost insurers money.

Due to the prohibitive cost of car insurance for...

The age group that pays the most for car insurance is 16-19 years old. For example, 16-year-olds pay an average of $3,343 per year for minimum car insurance coverage, which is more than four times higher than what the average driver overall pays per year.

Age Groups That Spend the Most on Car Insurance 

Yes, men pay an average of 6% more for car insurance than women. For example, a policy that fulfills state minimum coverage requirements for a 45-year-old woman costs $669 per year, while the same policy for a 45-year-old man costs $716. However, rates vary by individual driver and by age group. Male teen drivers typically pay over 10% more than female teens, while some older female drivers will pay more than their male counterparts.

In general, men...

Three factors that determine the cost of your auto insurance are the types and amounts of coverage you purchase, your driving record, and your vehicle's make and model. For drivers with high coverage limits, a poor or limited driving history, or an expensive vehicle, insurance rates tend to be higher.     

Three Factors That Determine the Cost of Your Auto Insurance

• Insurance types/coverage limits: The more insurance coverage you add, the more your policy will...