Most people know that their age, gender, and driving record have an effect on car insurance prices.
From that basis, a multitude of other factors affects the rate you’ll pay for car insurance—including your locale, minimum mandatory insurance coverage requirements, and the vehicle you drive.
Add-on insurance policy features, coverage caps, and deductible amounts also have an effect on what you’ll pay for your car insurance.
Every driver is unique, and insurance policies vary widely to meet a wide range of needs and budgets. That’s why it’s best to talk to your broker about what car insurance might cost you, considering your specific situation and needs.
Below, we’ll take a look at average insurance rates for a cross-section of drivers, by age.
These figures are guidelines only, though they should prove helpful as a ballparking tool to help determine what you’ll have to pay for car insurance. Remember: this information represents an average calculation, and your premiums may vary.
Teens / New Drivers
Years of experience driving, and years of continual insurance coverage, make you less of a risk to your insurance company. This experience translates into lower car insurance rates.
On the other side of the equation, young and first-time drivers with limited licensed driving or previous insurance experience are a higher risk, meaning they pay higher rates.
A 16-year-old driver, on average, pays about $2,600 per year for Minimum Insurance coverage, which is the minimum mandatory amount of car insurance required to operate a motor vehicle.
With Liability Insurance of up to $100,000 per accident for bodily injury and $50,000 for property damage, the rate approaches an average of $3,000 for our young driver.
For Full Insurance coverage, including $300,000 of bodily injury coverage and $100,000 property damage per accident, average rates more than double, to beyond $6,900 per year.
These rates do quickly begin to drop, however. In fact, by 19 years old, this driver’s insurance rates are roughly half of what they were, just 3 years earlier.
The average 20-year old driver can expect to pay about $1,100 for mandatory minimum coverage, with liability coverage coming in just slightly higher, at around $1,300. Full coverage for the average 20-year-old is about $3,200.
In your twenties, insurance rates drop further. On average, the 25-year-old driver pays about $600 for Minimum Insurance, $700 for Liability Insurance, and $1,700 for full coverage.
Note that female drivers can expect to pay lower rates than their male counterparts, typically resulting in a gender-driven difference of several hundred dollars. Also noteworthy? It’s illegal to set insurance rates based on race or religion.
From about 25 years old and into retirement age, average insurance rates remain relatively steady, with a slight downward trend. At 35, the average driver pays $550 for Minimum Insurance, $630 for Liability Coverage, and $1,600 for full coverage.
By 45, those figures decrease slightly, typically by less than $100.
By 55, there’s a similar drop in rates. Again, it’s small, typically $100 or less. At 55, the average driver is paying about $500 for Minimum Insurance, $560 for Liability Insurance, and $1,400 for Full Coverage.
Translation? The biggest reduction in your rates tends to occur by time you reach your mid-twenties.
Around age 65, your car insurance rates start to creep back up.
Minimum Insurance for the average 65-year-old costs about $500, with Liability and Full Insurance coming in around $600 and $1,400, respectively.
By 75, expect those rates to climb to $630, $720 and $1,600, respectively.
At 85, the average driver is paying about $800 for Minimum Insurance, $900 for Liability Insurance, and $2,000 for full coverage—about the same as a driver in their mid-twenties.
Don’t Forget to Shop Around
We’ll conclude with some important advice about car insurance rates. That advice is to make sure to shop around, and obtain quotes from multiple car insurance providers.
Insurance companies set your rates based on an analysis of the risk you pose as a motorist, but each car insurance company assesses those risks in a different way. The price for similar car insurance coverage can vary significantly between companies as a result.
So, comparing quotes from multiple car insurance companies might require a little time and effort, but it can save you money in the long run.
Remember that certain factors may require you to pay higher car insurance rates than the average driver, as shown here. For instance, drivers who use their vehicles for a ride-sharing program, owners of leased vehicles, or owners of business vehicles, may need to add additional coverage to their car insurance policy.
Contact your broker for more information.
Featured Photo Credit: Shutterstock /Standret