Are you a seasoned driver or did you just get your license? Are you considered a youngster or elder? Find out how your age impacts your car insurance prices.
There are some things in life that you can’t control. Growing old is one of those uncontrollable things that seems to have power over everything, including your car insurance prices. In fact, age is one of the main factors insurance companies look at when pricing your car insurance policy.
The more years you have under your belt behind the wheel, the less likely you are to get into an accident and submit a claim. At least, that’s what insurance companies think. That’s why the older you are, the better your rates will be. Until you reach 65, that is. The youngest and oldest drivers pay the most for car insurance, whereas drivers between the ages of 25 and 65 pay significantly less.
We looked at average monthly car insurance rates for different age groups. These are the average car insurance rates by age:
|Age Group||Average Rate (monthly)|
|18 to 24||$163|
|25 to 34||$135|
|35 to 44||$140|
|45 to 54||$146|
|55 to 64||$131|
As you can see, teens pay significantly more for auto insurance than any other age group. Prices decrease drastically when you hit 25 and increase again after the age of 65.
Teen drivers cost more to insure. That’s because they’re new on the road, and it shows. According to the CDC, the risk of car crashes is higher among teenagers than any other age group. Teen drivers ages 16 to 19 are almost three times more likely to be involved in a fatal crash than drivers 20 and older.
These are the leading causes of teen crashes:
That’s why it’s risky for insurance companies to cover teen drivers. The riskier it is for the company, the pricier it is for the driver, or in this case, the driver’s parents. It costs an average of $278 a month to add a 16-year-old to a parent’s policy. And to buy an individual policy for a teenager? That’s an alarming $438 a month on average.
Feeling overwhelmed by the price tag on insuring a teen driver? Fortunately, insurers offer a plethora of discounts. There are a few ways to lower insurance rates for teen drivers.
Auto insurance prices are lowest for people ages 25 to 65. That’s because between these ages, drivers have gained more maturity on the road than teenagers, and don’t yet have declining physical abilities like some senior drivers. A lower risk of car accidents from this age group results in low insurance prices. We found that adults in this age range spend an average of $131 to $143 per month on car insurance. But don’t get too excited yet-- your rates depend on more than just your age.
These are other factors that will influence your rates during this time:
In 2016, there were almost 42 million licensed drivers over the age of 65 in the US. When you hit the age of 65, your rates will begin to rise. According to the CDC, this is likely due to age-related declines in vision and the ability to reason and remember.
Seniors qualify for plenty of senior discounts, and car insurance is no exception. On top of that, many seniors can also benefit from discounts for club memberships.
There are also several steps that many senior drivers already take that improve their safety, including:
Unfortunately, even with the measures seniors take for safe driving, they still pay more for car insurance. That’s because the risk of being injured or killed in a car crash increases as people age. There are some steps seniors can take to limit their risk of a crash like following a regular activity program, finding the safest driving route, and leaving a large following distance.
There’s no question- the best way to save money on auto insurance is to be a safe driver. No matter your age: never drive impaired, be extra attentive at night, always wear a seatbelt, and put away your cellphone. Safe driving leads to insurance discounts (and less money spent on mechanic and medical bills)!
But accidents can be shocking and unavoidable. A simple way to find the best deals and save money is to compare quotes from several companies and bundle your insurance. Every company prices an insurance policy differently. You can get the same insurance coverage for much less by shopping around with multiple companies.
A: No, in fact, car insurance rates go down with age. Teens have the highest auto insurance rates, which drop significantly when the driver turns 25. Rates only increase with age after the age of 65. That’s because older people have a higher risk of being involved in a car crash but are still less of an insurance risk than teens.
A: Yes, car insurance prices drastically decrease when you hit 25. Adults ages 25 to 65 have the lowest risk of car crashes, which means drivers reap the benefits of their age group. But no matter your age, other factors like crash history, location, and the type of car you drive influence your insurance prices.
A: Teens ages 16 to 19 pay the most for car insurance. They are three times more likely to be involved in a car accident than drivers older than 20-years-old. In 2016, people age 15 to 19 represented 6.5 percent of the US population, but accounted for 8.4 percent of the total costs of crash injuries. Insurance companies determine a high auto insurance rate based on those risks.
A: Teens have a higher rate of car crashes than any other age group. More crashes mean more insurance claims. That’s why it’s a huge risk for insurance companies to cover teen drivers. It costs $278 a month on average to add a 16-year-old to a parent’s policy. To buy an individual policy for a teenager costs an average of $438 a month.
A: Car insurance increases once you hit 65-years-old. Senior citizens have a higher risk of age-related declines in vision and the ability to reason and remember. Insurance companies look at those risks and raise rates for seniors.
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