Average Car Insurance Rates by Age and Gender

key Takeaways

While age is an significant factor that affects car indemnity costs, it is fair one of many used to determine rates. other factors include localization, driving history and vehicle type.

Gender affects rates for car indemnity much more in new drivers than drivers over the age of 25, where the average deviation in cable car insurance costs is only $ 18 per year . car insurance companies base their prices on risk and the likelihood that a claim will be filed. young drivers, in general, carry the highest hazard — but particularly young male drivers. Loading …

How Much Is Car Insurance by Age and Gender?

When calculating car insurance prices, companies consider experience to be one of the most critical factors. young drivers have less experience and tend to be riskier to insure, so they are charged higher rates than more know drivers. Assuming a driver ’ second record is scavenge, the cheapest car indemnity rates tend to go to middle-aged drivers around 50 years old. On average, a 16-year-old on their own policy pays $ 5,318 per year. Once the lapp driver reaches 19, the average annual rate drops to $ 2,789. Each year after that, the average costs for cable car indemnity decline by $ 100 or more until historic period 25 . HOW DOES GENDER AFFECT RATES ? Though not adenine important as historic period, gender is a big agent in cable car indemnity rates. Adding a 16-year-old male to a policy costs, on average, $ 422 more annually than a 16-year-old female. Once drivers reach senesce 25, however, the median annual dispute reduces to $ 18.

Car Insurance Rates by Age Chart

unseasoned drivers see significant decreases in car policy prices each year, but rates level off as they age. The chart below shows sample costs for full coverage car policy rates for 16- to 18-year-olds. It compares the monetary value of getting an individual policy with the cost associated with being added to their parents ‘ policy. For extra context, the median cost of an individual policy for a driver old age 19 and older is besides shown. Gender is another deciding factor for youthful drivers ‘ car insurance rates. The table below shows rates for males and females in different old age groups. Young males pay hundreds of dollars more per year than young females, though prices flatten about age 25. Males age 30 or older actually pay less. For ages 16 to 18, the number represents the cost of adding a young driver to a family policy, not the cost of the stallion policy.

The Average Cost of Car Insurance by Age and Gender

Car Insurance Rates by Age and State

Though age is one of the most important factors in cable car policy costs, it ’ mho hush one of many, including location. Comparing rates in your state can help you get the best monetary value. In some states, young drivers pay disproportionately more for car insurance, like New York, where 16-year-olds pay about four times more than what a 30-year-old does.

Average Annual Car Insurance Costs by Age

Why Age Affects Car Insurance Rates

First-time drivers of any age who have just gotten their license may need to pay higher rates due to their inexperience. But because thus many first-time drivers are besides young teenagers, this age group will inevitably pay more because, overall, they ’ re more likely to get into an accident. And the numbers bear that out. In 2014–2015, drivers aged 16 and 17 had the highest number of crashes per 100 million miles drive at 1,432. The number of crashes went toss off to 730 for ages 18–19 and 572 for drivers between 20 and 24 years of long time. And as drivers enter into their 30s and 40s, the total of crashes decreases even more. Those in their 30s were involved in 328 crashes, and drivers in their 40s were involved in 314.

Why Gender Affects Car Insurance Rates

young drivers are riskier to insure than older, more experience drivers, and the lapp is on-key for young males compared to young females. According to the CDC, males aged 16–19 are about doubly a likely to be killed in a cable car accident as females of the lapp senesce. As drivers gain more experience, the gap between car indemnity costs pin down until merely a few dollars separate the genders. At this charge, other factors overshadow the importance of old age and sex in car indemnity pricing, including driving history and location.

Read More About Car Insurance

Methodology

MoneyGeek collected data for drivers historic period 16 to 25, 30 and 50 to determine the average monetary value of car indemnity. The same driver profiles were used across all ages and states as described on our methodology page. About the generator Mandy Sleight is a professional freelance writer and licensed indemnity agent. She has her property, casualty, life, and health licenses and has been working in the industry since 2005. Mandy has worked for well-known policy companies like State Farm and Nationwide Insurance, and most recently as the Operations Coordinator for a start-up employee benefits ship’s company. Mandy earned her knight bachelor of Science degree in Business Administration and Management from the University of Baltimore and her Master in Business Administration from Southern New Hampshire University. She uses her huge cognition of the insurance industry and personal finance combined with her writing setting to create easy-to-understand and engaging content to help readers make fresh choices with their budget and finances.

sources

• Centers for Disease Prevention and Control. “Teen Drivers: Get the Facts.” Accessed May 19, 2021 .