Car Insurance Rates by Age

Age is a significant factor in determining car insurance rates, mainly because certain age groups are more prone to causing accidents, leading to higher insurance claims. On average, it’s the youngest drivers and the senior-most drivers that pay the highest premiums. With USA Auto’s affordable coverage options, you can get the best rates for your age group.

How Age Impacts Car Insurance Premiums?

Car insurance premiums shift significantly with age. Younger drivers usually face the steepest rates, middle-aged drivers tend to enjoy the lowest costs, while seniors often see premiums rise again. Here's a cost breakdown of car insurance premiums based on age.

Age Group

Average Monthly Cost

Average Annual Cost

Percentage Difference

16–17$419$5,0320%
25-34$240$2,880-51%
35-44$205$2,460-14.60%
45-54$200$2,400-2.40%
55-64$185$2,220-7.50%
65-74$190$2,2802.70%
75-80$215$2,58013.20%
The table represents the average cost of car insurance to give you a close estimate of how much it may cost for specific age groups. To know your actual premiums, you need to get a personalized quote from an insurance agent.
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Why Teen Drivers Pay More Than Others?

According to the CDC and NHTSA, teen and young drivers are two to three times more likely to get involved in car accidents due to their risky driving behavior and activity. Typically, more car accidents usually lead to higher chances of claiming auto insurance more frequently. 


Based on statistical trend analysis, teenagers and young drivers are responsible for more than 20,000 motor vehicle crashes per year. This leads to more than 180,000 injuries and over 2,800 fatalities each year.

At What Age Does Car Insurance Go Down?

Drivers between 16 and 19 typically face the highest premiums. Rates start gradually declining after age 20 and drop more rapidly between 25 and 50, as this age group is generally seen as more experienced and responsible. After age 50, premiums decrease slowly, but they begin to increase again around age 65 due to higher accident risk linked to age-related health concerns.

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Paying Too Much for Car Insurance as a Young Driver?

How to Lower Car Insurance Rates for Young Drivers?

There are some techniques that you can apply to lower your car insurance premiums as a young driver. These tips should help you qualify for cheaper rates with discounts and other exclusive offers.  


  • Focus on Your Academics: Teenagers and young drivers with good academic grades are perceived to be more mature and responsible, which can qualify you for lower premiums.  
  • Sign Up with Your Parents’ Policy: By getting car insurance with your parents’ policy, you can save up to 45% premiums, only if they have a clean driving record.  
  • Complete a Defensive Driving Course: Completing a defensive driving course shows that you have taken active steps to learn and apply safe driving practices, which can qualify you for lower premiums.  
  • Maintain a Clean Driving Record: A clean driving record shows that you’re responsible and experienced as a young driver, which is the most significant requirement to determine car insurance premiums.  
  • Avoid Policy Lapse: Consistently having a car insurance policy for a year shows that you’re responsible, which can also help you secure lower rates.

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Frequently Asked Questions (FAQ)

Find answers to common questions about car insurance by age and our services.

What is the average car insurance rate by age?

Car insurance rates vary significantly with age. Drivers aged 16–19 typically pay the highest premiums at $490/month. Middle-aged drivers, between 25 and 50, enjoy lower rates ranging from $240/month to $185/month. Senior drivers aged 65 and older pay slightly higher premiums, averaging around $190/month.

What age is the most expensive car insurance?

On average, the most expensive age for car insurance is between the age of 16 and 19, while it gradually starts declining from the age of 20 to 24, and drops at a faster rate from the age of 25. 

What age is the cheapest car insurance?

If you manage to maintain a clean driving record with no insurance claims or policy lapse for more than 3 years, then you can enjoy the cheapest car insurance premiums from the age of 30 to 50, until your rate may start increasing again from the age of 65.

How does age affect car insurance rates?

Age is a key factor insurers use to determine car insurance rates. Younger and older drivers are statistically more likely to be involved in accidents, which often leads to higher premiums, while middle-aged drivers generally enjoy lower rates. 

Does car insurance go up after 80?

Car insurance usually increases after 80, mainly because there’s an increased chance of accidents resulting in higher insurance claims due to degrading physical conditions, and concerning health problems like poor eyesight, and a slower response time.

How much more do 16-year-old drivers pay compared to adults?

16-year-old drivers typically pay the highest car insurance premiums due to their inexperience and higher accident risk. On average, a 16-year-old may pay around $490 per month for coverage, which can be more than double the rate of adult drivers aged 25 to 50, who pay between $185 and $240 per month. Insurers charge these higher rates to account for the increased likelihood of accidents and insurance claims among the youngest drivers.

Does adding a teen driver to a parent’s policy reduce costs?

“Yes, adding a teen driver to a parent’s car insurance policy is often the most cost-effective option. By including the teen under an existing family policy, insurers typically offer significant savings, sometimes up to 40–45% compared to a standalone policy. This is because the risk is shared across the household, and the teen benefits from the parent’s clean driving record and history of insurance coverage.

How can young drivers qualify for lower car insurance rates without parents’ help?

If you’re 16 and above, you can qualify for lower car insurance rates without your parents’ help by getting a good grade, completing a driving safety course, maintaining a clean driving record.

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