How Much Is Car Insurance by Age?

Did you know that if you’re a young teen or have just become an adult and drive a car, you’re likely to pay around two times higher than the average car insurance rate? However, if you live in Hawaii or Massachusetts, you won’t face this issue, as these states ban the use of age as a factor for setting insurance rates.  

Car insurance costs depend on many factors, and age is one of them. Younger drivers, especially teens, typically pay the most. For instance, a 16-year-old might pay over $5,000 annually for full-coverage car insurance, depending on the state and the insurance company. According to Forbes, a 16-year-old male driver pays an average of $7,188 for full coverage, while a female driver of the same age pays around $6,408. Interestingly, an 18-year-old driver pays the highest amount for full coverage, which is roughly $7,638 as per Bankrate research. This might feel unfair as good drivers do exist in every age group. 

However, rates decrease as you grow older and gain more driving experience. It’s all about how your auto insurance company views you as a driver. Auto insurance costs start increasing again around age 65, Forbes states. A 60-year-old driver pays $1,468 for full coverage, but a 65-year-old driver pays $1,513 for the same coverage which is $45 more. 

Apart from age, rates can vary widely by factors like state, gender, driving record, credit score, claims record, annual mileage, vehicle make and model, marital status, and coverage level. However, in this article, we’ll only discuss the average car insurance cost by age and how these rates change as you grow older. 

The Average Cost of Car Insurance by Age 2025

Estimating car insurance costs by age can be difficult due to the many influencing factors. However, age is certainly one of the crucial factors for auto insurance quotes. Younger drivers, especially teenagers, typically face the highest premiums due to their inexperience and higher likelihood of accidents. According to Yahoo Finance, young drivers aged 16 to 24 often incur the highest average costs. An 18-year-old driver pays nearly two and a half times more than a 30-year-old driver for auto insurance, as per ValuePenguin data. 

After the age of 25, car insurance costs generally start to decrease. Typically, the lowest costs are seen between the ages of 25 and 55. However, after 65, car insurance rates begin to rise again. Essentially, only the very young and very old drivers pay higher insurance rates. 

Young drivers are more prone to speeding, accidents, driving under the influence, and unforeseen events, leading to more auto insurance claims. As drivers age, their experience reduces risks, resulting in lower premiums. However, after 65, rates rise again, reflecting increased risks associated with slower reaction times and declining vision. 

According to Bankrate, a 16-year-old driver pays an average of $5,871 annually for full coverage, whereas a 40-year-old pays about $2,641 per year. For minimum coverage, costs drop significantly but still remain higher for younger drivers. 

Car Insurance Rates by Age Chart

Based on our research, here's a breakdown of average annual car insurance costs by age:

Please note that this rate has been estimated by L.A. Insurance by studying data from Bankrate, ValuePenguin, and Forbes. We set this range of annual costs for full coverage car insurance for both male and female drivers which combines liability insurance (personal injury protection, property damage, and bodily injury), collision insurance, and comprehensive coverage. 

Learn More: 

• How Much Is Car Insurance?
• Average Car Insurance Rate by Gender
• How Does Driving History Affect Car Insurance Rates?
• How Make and Model Affect Car Insurance Rates?
• What Is the Cost of Car Insurance Based on Credit Score?
• How Does Your Location Affect Car Insurance Rates?
• How Does Marital Status Affect Car Insurance Costs?
• How Does Annual Mileage Impact Car Insurance Rates?
• How Much Is Car Insurance in Michigan?

When Car Insurance Rates Go Down the Most?

Here’s a table that shows how car insurance costs change as you grow older and after 65 it starts to creep back again:

The biggest decrease in car insurance costs occurs when a person turns 25. At age 25, the average full coverage cost drops by approximately 25.29% from the previous age category of 21. This significant decrease is largely because younger drivers are statistically more likely to be involved in accidents, so as they get older and gain more driving experience, their risk decreases, leading to lower insurance premiums.

How Does Age Impact Auto Insurance Costs?

Age affects your car insurance cost notably. Teen drivers pay the most. They are inexperienced and prone to higher accident risks. According to the Insurance Institute for Highway Safety (IIHS), 16-19-year-olds have three times more fatal crashes than older drivers. Insurers charge higher premiums to offset these risks. For example, a 16-year-old pays up to $8,508 annually for full coverage. 

Here are common risk factors for teen drivers that raise their auto insurance rate:

• Teen drivers underestimate risks more often which leads to 3x fatal crashes (Via IIHS).
• Teen drivers are about four times more likely to be involved in fatal crashes at night compared to daytime (Via IIHS). So, learn more about nighttime driving tips.
• 40% of fatal crashes happen at night (IIHS, 2019 data).
• Teen drivers tend to drive more often on weekends when over 50% of fatal crashes occur (IIHS, 2019 data)
• 56% of teens aged 16–19 who died in car crashes in 2020 weren't wearing seat belts (Via CDC).
• In 2019, 43.1% of U.S. high school students didn’t always wear seat belts as passengers (Via CDC).
• 39% of high school drivers in the U.S. texted or e-mailed while driving at least once in the previous 30 days (CDC, 2019 data).
• 35% of male and 18% of female teen drivers (aged 15 to 20) involved in fatal crashes in 2020 were speeding at the time of the crash (CDC, 2020 data).
• In 2021, 27% of drivers aged 15-20 who died in crashes had BACs (Blood Alcohol Level) of .01 g/dL or higher; 22% had BACs of .08 g/dL or higher (NHTSA, 2021).

In brief, inexperience, frequent nighttime driving, speeding, alcohol use, distracted driving, low seatbelt usage, and driving on weekends increase the risks of accidents for teen drivers. And based on these risk factors car insurance companies justify why teen drivers pay the most.

However, costs drop as drivers gain experience and become less susceptible to accidents. The biggest decrease in costs happens in the early twenties. By age 25, rates stabilize significantly. According to NHTSA data, safe driving habits and fewer accidents lower premiums for adults.

Middle-aged drivers (30-55 Years Old) enjoy the lowest rates. This happens as they experience fewer claims. In fact, insurance data says middle-aged drivers have the fewest claims among all age groups. At 35, full coverage costs range from $2,364 to $2,600 annually.

Insurance costs start rising again for seniors as they approach 70. Seniors develop higher risks of accidents due to declining vision and slower reaction time. IIHS also explains that older drivers are more likely to suffer severe injuries in crashes which increases their medical claim costs. 

Here's a TL; DR:

• Teens (16-18): High premiums due to inexperience and higher risk.
• Young Adults (18-24): Gradually decreasing rates as experience grows.
• Mature Drivers (25-55): Lowest rates due to experience and stability.
• Older Adults (65+): Increasing rates due to declining abilities and higher risk. 

How to Lower Insurance Premiums for Teen and Senior Drivers

Teen and senior drivers often pay high car insurance rates. However, there are ways to lower premiums. Let's discuss how they can save on auto insurance. 

1. How Teens Can Lower Car Insurance Premiums

• Good Grades: Teens with a B average or higher can save up to 14% (Carinsurance.com).
• Defensive Driving Course: Completing these courses shows responsibility and reduces premiums.
• Choose a Safe Car: Cars with high safety ratings cost less to insure.
• Bundle Policies: Combine teen and parent policies for discounts.
• Increase Deductibles: higher deductibles lower premiums but require saving for emergencies.
• Low Mileage Discounts: Teens driving less can qualify for reduced rates.
• Usage-Based Insurance: Programs track safe driving and reward teens with lower premiums.
• Avoid High-End Vehicles: High-end vehicles like sporty cars cost more to insure. So, choose modest, safe vehicles.
• Shop Around: Compare quotes from insurance companies to find better deals. 

2. How Seniors Can Lower Insurance Premiums

• Defensive Driving Course: Seniors completing approved courses may qualify for discounts.
• Telematics Programs: Safe driving habits tracked by devices can lead to lower premiums.
• Safe Cars: Vehicles with safety features reduce insurance costs.
• Reduce Coverage: Seniors driving less can opt for limited coverage plans.
• Higher Deductibles: Choosing higher deductibles lowers monthly premiums.
• Membership Discounts: Organizations like AARP offer senior discounts for auto insurance.
• Bundle Policies: Combine home and auto insurance for additional savings.
• Annual Payment Discounts: Paying premiums in full reduces overall costs.
• Avoid Accidents: Maintaining a clean driving record keeps premiums even.

Learn More: How to Insure a Car for Your Elderly Parent? 

Get Affordable Auto Insurance for Teens and Seniors with L.A. Insurance

If you need to insure a car for teens or seniors at the most affordable rate, L.A. Insurance is here to help. We specialize in providing the most affordable full coverage auto insurance across Michigan and six other states: Colorado, Florida, Georgia, Texas, and Arizona. Our experience and dedication have made us the most affordable insurance agency in these regions, and we are fortunate to have more than 10 million satisfied customers. 

Save hundreds of dollars on teen and senior car insurance. We have exceptional experience in offering coverage for high-risk drivers. Don't overpay for car insurance anymore. Get a cheap auto insurance quote right here or find an agent to discuss your insurance needs. You can also dial us at (888) 500-6065. 

Average Auto Insurance Costs by Age: The Bottom Line

Car insurance costs vary by age due to risk factors like experience and accident rates. Teens pay the highest premiums because of inexperience and risk factors such as speeding, alcohol use, and distracted driving. A 16-year-old faces premiums of up to $8,508 annually. Rates drop significantly by age 25, ranging from $2,664 to $3,031. Middle-aged drivers enjoy the cheapest insurance, with costs as low as $2,364 at age 35. However, seniors see rising costs, with 70-year-olds paying between $2,385 and $2,850. Drivers can lower premiums by maintaining a clean driving record, taking defensive driving courses, or bundling policies. Choosing safe cars or using telematics programs also helps reduce auto insurance rates for both teens and seniors. 

Frequently Asked Questions (FAQs)

At What Age Does Car Insurance Go Down? 

If you're under 25, especially between 16 and 19, insurance companies will likely charge you higher auto insurance rates. According to the Insurance Information Institute, car insurance usually becomes cheaper when you turn 25. Insurers see drivers at this age as more experienced and less risky. Having a clean driving record and no claims history can also help lower your premiums. We suggest comparing quotes to find the best rates. 

What Age Is Car Insurance Most Expensive? 

If you’re between 16 and 19 years old, you’ll pay the highest rates for auto insurance. Generally, car insurance is most expensive for drivers under 25, particularly for teenagers. According to Forbes, a 16-year-old pays $7,188 annually for full coverage auto insurance. Meanwhile, Bankrate reports that an 18-year-old pays approximately $7,638 annually for the same coverage. 

Does Car Insurance Get Cheaper After the Age of 50? 

Yes, car insurance often gets cheaper after age 50. Drivers, in this age group, are considered experienced. This leads to lower premiums if they have good driving records. 

What Is the Average Cost of Car Insurance for a 30-Year-Old? 

A 30-year-old pays an average of $2,170 to $2,622 per year for full coverage car insurance. However, this amount can vary based on several factors, including the insurance company, driving record, claim history, credit score, location, coverage level, and deductible amount.

References:

• Metz, J. (2023, August 17). How Age And Gender Affect Car Insurance Rates. Forbes Advisor. https://www.forbes.com/advisor/car-insurance/rates-age-and-gender/
• Martin, S. (2025, January 17). Auto insurance rates by age in 2025. Bankrate. https://www.bankrate.com/insurance/car/auto-insurance-rates-by-age/
• Dow, N. (2023, December 15). How car insurance rates vary by age. Yahoo Finance. https://finance.yahoo.com/personal-finance/insurance/article/car-insurance-rates-by-age-193712279.html
• Timmons, M. (2025, January 8). Average Cost of Car Insurance (2025). ValuePenguin. https://www.valuepenguin.com/average-cost-of-insurance
• Fatality Facts 2022: Teenagers. (n.d.). IIHS-HLDI Crash Testing and Highway Safety. https://www.iihs.org/topics/fatality-statistics/detail/teenagers
• Teenagers. (n.d.). IIHS-HLDI Crash Testing and Highway Safety. https://www.iihs.org/topics/teenagers
• Risk factors for teen drivers. (2024, April 25). Teen Drivers. https://www.cdc.gov/teen-drivers/risk-factors/index.html
• National Center for Statistics and Analysis. (2023, August). Young drivers: 2021 data (Traffic Safety Facts. Report No. DOT HS 813 492). National Highway Traffic Safety Administration.
• What determines the price of an auto insurance policy? | III. (n.d.). https://www.iii.org/article/what-determines-price-my-auto-insurance-policy