Did you know that an 18-year-old’s annual premium averages around $5,200, whereas a 50-year-old pays roughly $1,700 on average? That’s because younger drivers and very senior drivers usually pay the highest premiums. A simple reason is that insurers set rates based on risk, and statistics show teen drivers have far more accidents, and older drivers face increasing risk as they age. Keep reading to know more about how age affects car insurance rates. (For personalized help with your rate, call Insure on the Spot at 773-202-5060.
Why do younger drivers pay more for car insurance?
Younger drivers pay more for car insurance because insurers see them as a higher accident risk due to their inexperience. In fact, drivers aged 16–19 have nearly triple the fatal crash rate of drivers ages 20+ per mile driven. Due to this inexperience and greater tendency toward risky driving behaviors, insurers charge much higher premiums to drivers under 25. A teenager or college-age driver is far more likely to get into an accident or file a claim, so their cost to insure is correspondingly high. By contrast, as drivers gain experience and maintain a clean record over time, they prove to be lower-risk and their insurance rates drop accordingly.
What age group pays the most for car insurance?
Typically, teenagers (especially 16 to 19-year-olds) pay the most for car insurance of any age group. Young drivers in their teens face the highest rates due to their lack of driving experience and high crash statistics. For example, an 18-year-old driver might pay several times more than a 30- or 40-year-old driver for the same coverage.
The table below illustrates how dramatically premiums decrease from the teenage years into adulthood:
Average Annual Full Coverage Car Insurance Rates by Driver Age (U.S.)
| Driver Age | Average Annual Premium |
| 18 | $5,249 |
| 25 | $2,259 |
| 35 | $1,947 |
| 45 | $1,869 |
| 55 | $1,737 |
| 65 | $1,742 |
| 75 | $2,010 |
It’s clear that teen drivers pay the most. An 18-year-old averages about $5,249 per year, which is over twice what a 35-year-old pays. The cheapest insurance rates are enjoyed by experienced middle-aged drivers (around their 50s), with premiums bottoming out in the mid-$1,700s on average. Even though rates do rise again for older drivers (as seen by age 75 in the table), the oldest drivers still tend to pay less than the youngest. In short, drivers under 20 are the costliest age group to insure.
When does car insurance get cheaper?
Car insurance gets significantly cheaper once you reach your early-to-mid 20s. The most notable drop in premiums usually happens around age 25. By that point, many insurers move you out of the highest-risk teenage category, often resulting in a substantial rate reduction (about a 9% average decrease at 25 according to Progressive). Rates generally continue to decrease through your 30s, 40s, and 50s, assuming you maintain a good driving record. These middle adult years are typically when you’ll see the lowest insurance costs.
To break it down, here’s how age tends to affect insurance rates over time:
- Teens (16–19): Very high premiums – Young new drivers pay the most due to extremely high accident risk and no driving history.
- Early 20s: Gradually falling rates – Premiums begin to go down as drivers gain a few years of experience. Each year without incidents helps.
- Mid-20s (≈25 years old): Notable drop – Rates drop significantly by age 25 for many, as insurers now consider you a lower risk than a teen driver (roughly a 9% rate reduction on average at 25).
- 30s to 50s: Lowest rates – Mature drivers with lots of experience (and clean records) enjoy the cheapest insurance. Premiums stay relatively low and stable through one’s 30s, 40s, and 50s.
- 60s: Stable to slight increase – Drivers in their early 60s often still benefit from low rates, especially if they’re accident-free. By the late 60s, some insurers may start to inch rates up.
- 70s and above: Increasing premiums – Car insurance typically gets more expensive for seniors once they reach their 70s. At this stage, age-related risks (slower reflexes, health concerns) lead insurers to raise rates again.
Do car insurance rates drop exactly when you turn 25? Not instantaneously on the birthday, but effectively around that time. In practice, insurers don’t automatically change your rate the day you turn 25. Instead, you’ll likely see the discount when your policy renews after your 25th birthday. Once you hit 25 (and assuming a clean driving record), you’ve entered a lower-risk age bracket, so your next renewal or quote should reflect a lower premium.
Does car insurance go up after age 60?
Car insurance rates usually begin to rise (by 19% or more) for older adults after around age 60–65. Auto insurance is cheapest for experienced middle-aged drivers, but as drivers become seniors, insurers start pricing in the growing risk.
A simple reason behind this is that older drivers become more prone to accidents and injury. Age-related physical changes, such as diminished vision, slower reaction times, and other health issues, increase the likelihood of crashes or severe injuries. A U.S. Department of Transportation report notes that drivers 65 and older have higher fatal crash rates per mile than nearly every other age group except teenagers. Because of these factors, insurers view senior drivers as higher risk and start adjusting premiums upward in one’s later 60s and 70s.
It’s also worth noting that the increase is usually gradual. You might not see a big jump right at 60, but by your early 70s you’ll likely notice higher quotes. Some states even impose extra requirements on older drivers for safety. For instance, the Illinois DMV (Secretary of State) requires a road test at age 75+ for license renewal. This reflects the same safety concerns that cause insurers to charge more. The good news is that seniors can still find affordable coverage by shopping around and utilizing any senior discounts (such as completing approved safe driving courses). Many companies offer “mature driver” discounts to help offset the age-related rate increase.
How can you save money on car insurance at any age?
No matter your age, there are smart ways to lower your car insurance premium. Insurance costs don’t have to break the bank – from teenagers to seniors, everyone can take steps to get a better rate. Here are some effective strategies to save on car insurance:
Maintain a clean driving record
The best discount is no accidents or tickets. Safe driving over time makes you a lower-risk customer, which translates to cheaper rates. Many insurers offer safe-driver discounts if you remain accident-free for a certain number of years. Keeping your driving history clean is especially important for young drivers as they build up experience.
Take advantage of age-specific discounts
Both young and older drivers have special discount opportunities. Good student discounts can significantly cut premiums for drivers under 25 who maintain a “B” average or better in school. Teens and new drivers can also benefit from completing accredited driver education courses, which some insurers reward with lower rates. On the other end, senior drivers can often get discounts for taking an approved defensive driving or mature driver course (many states mandate an insurance discount for seniors who complete these courses). Check with your insurer about any age-related programs that could save you money.
Bundle policies or vehicles
If possible, insure multiple things with the same company. Insurers typically give multi-policy discounts when you bundle your auto policy with a homeowners or renters policy, for example. Likewise, covering more than one car with the same insurer (such as your spouse’s or family’s vehicles) can qualify for a multi-car discount. Bundling can yield a notable reduction in total premiums.
Use telematics or low-mileage programs
Many insurers offer usage-based insurance programs (often via a smartphone app or plug-in device) that track your driving habits. If you are a careful driver or don’t drive very many miles, these programs can reward you with discounts based on your actual low risk. Similarly, if you’re driving significantly less (retirees, for instance), ask about a low-mileage discount. Paying per mile or demonstrating safe driving through telematics can cut costs for both young and senior drivers who drive cautiously.
Shop around and compare quotes
Insurance rates vary widely between companies, so it pays to re-shop your policy periodically. This is especially true when you hit a new age bracket (25, 30, 65, etc.) or if your rates have crept up over time. Get quotes from different insurers to see if you can find a better deal for the same coverage. Comparing options is one of the best ways to ensure you’re not overpaying. Even within the same age group, one insurer might rate you much lower than another. So don’t hesitate to leverage an independent agent or online comparison tools to find the most competitive rate for your age and profile.
Finally, by keeping a good record, seizing discounts, and regularly checking the market, drivers of any age can save on their car insurance. While you can’t change factors like your age or birthday, you can control your driving habits and insurance choices. For example, a young driver who is a responsible student and completes driver’s ed might pay far less than peers who don’t; a senior who takes a refresher driving course and drives fewer miles could avoid an otherwise steep increase. It always pays to ask your insurance provider about available discounts and to review your policy annually to make sure you’re getting the best value.
(Remember, Insure on the Spot is here to help. We work with drivers of all ages to find affordable coverage. Feel free to reach out for a free quote or consultation about your policy.)
FAQ
Does age affect car insurance rates?
Yes. Auto insurance companies heavily factor in age when setting premiums. Generally, young drivers pay the highest rates (due to higher accident risk), middle-aged adults pay the lowest, and older seniors may see rates rise again as their risk increases. In short, age has a significant impact on what you pay for car insurance.
What age group pays the most for car insurance?
Teenagers, especially drivers under 20, pay the most for car insurance. This young age group faces the highest premiums because they are the riskiest to insure, with far more accidents on average. A teen driver’s policy can cost several times more than a middle-aged driver’s policy due to that elevated risk.
When does car insurance get cheaper?
Car insurance typically gets cheaper as you move out of your teens and into your 20s. The big drop occurs around age 25, when many drivers see a noticeable decrease in premiums. Rates tend to remain relatively low through your 30s, 40s, and 50s (assuming a clean record). So, after the early 20s, and particularly by 25, you’ll likely enjoy much cheaper insurance rates.
Why is car insurance more expensive for young drivers?
It’s more expensive for young drivers because they are statistically much more likely to be in accidents. Drivers in their teens and early 20s have higher crash rates and less experience, so insurers charge higher premiums to offset the greater risk. In short, a young driver is riskier to insure, and that’s reflected in the cost.
Does car insurance go up after age 60?
Yes, car insurance can start to increase for drivers after about age 60–65. While rates are low in mid-life, insurers begin raising premiums for older drivers as they enter their senior years. The risk of accidents and injuries grows in one’s 70s and beyond, so insurance costs often rise for drivers in their late 60s, 70s, and older.