How Age and Gender Affect Your Car Insurance Rates
Age and gender significantly influence car insurance rates. Typically, women pay less for car insurance than men. Young drivers, unsurprisingly, face the highest car insurance rates due to their limited driving experience and higher risk of accidents. These high rates for car insurance start to decrease around age 25. The most favorable rates are generally available to drivers in their 50s and early 60s, provided they maintain a good driving record. After age 65, car insurance rates tend to rise again.
Average Car Insurance Rates by Age and Gender
|
Age |
Male
Driver |
Female
Driver |
|
16 |
$7,188 |
$6,408 |
|
20 |
$3,536 |
$3,100 |
|
25 |
$1,964 |
$1,870 |
|
35 |
$1,651 |
$1,651 |
|
40 |
$1,607 |
$1,614 |
|
45 |
$1,579 |
$1,586 |
|
50 |
$1,517 |
$1,512 |
|
55 |
$1,475 |
$1,465 |
|
60 |
$1,468 |
$1,454 |
|
65 |
$1,513 |
$1,489 |
|
70 |
$1,608 |
$1,573 |
|
75 |
$1,780 |
$1,712 |
|
80 |
$1,997 |
$1,880 |
|
Source: Quadrant Information Services provides data based on
insurance for a Toyota RAV4, covering $100,000 in bodily injury liability per
person, $300,000 per accident, and $100,000 in property damage liability,
alongside uninsured motorist coverage and any state-mandated additional
coverage. The rate calculation also incorporates collision and comprehensive
coverage with a $500 deductible. |
||
Is There a Gender Gap in
Car Insurance Rates?
Analysis shows that female drivers
typically pay less for car insurance than male drivers. As drivers age and gain
more experience, the gender gap in rates narrows and becomes negligible. In
some age groups, women might pay slightly more than men, but by around age 35,
the average auto insurance rates for both genders are about the same. As
drivers continue to age, women generally start paying less again.
One
reason men tend to pay more for car insurance is their higher risk profile. Men
usually drive more miles than women and are more likely to engage in risky
behaviors such as speeding, driving under the influence, and neglecting to wear
seat belts, according to the Insurance Institute for Highway Safety (IIHS).
From 1975 to 2019, men consistently accounted for twice as many car crash
fatalities as women, with males comprising 71% of all motor vehicle crash
deaths in 2019.
Additionally,
six states prohibit using gender as a factor in determining auto insurance
rates:
-
California
-
Hawaii
-
Massachusetts
-
Michigan
-
North Carolina
-
Pennsylvania
Risky Teen Drivers May Pay
Significantly Higher Rates
Analysis found that the average rate
for teen drivers is about $6,800 per year when they have their own auto
insurance policy, which is significantly higher than the rates for middle-aged
drivers. For parents of teen drivers, it is usually much cheaper to add the
teen to their existing policy, though it will still be expensive. Therefore,
it’s wise to shop around for cheap car insurance for teens.
Teens
are more likely to be involved in serious car accidents due to inexperience and
risky behavior. According to the Centers for Disease Control and Prevention
(CDC), drivers aged 16 to 19 are nearly three times more likely to be in a
fatal crash compared to drivers aged 20 and older.
Common
risk factors for teen drivers include:
Inexperience: Teens often fail to recognize or underestimate dangerous
situations on the road.
Nighttime and weekend driving: In 2019, 40% of fatal car crashes involving teen drivers
and passengers aged 13 to 19 occurred between 9 p.m. and 6 a.m. Additionally,
over half (52%) of these fatal crashes happened on a Friday, Saturday, or
Sunday, according to the Insurance Institute for Highway Safety (IIHS).
Not using seat belts: Teens and young adults have the lowest seat belt usage
rates. Nearly half (45%) of teen drivers who died in 2019 were not wearing seat
belts, according to the National Highway Traffic Safety Administration (NHTSA).
Distracted driving: One in three teens who text admit to texting while driving,
reports the NHTSA.
Speeding: Speeding was a factor in 27% of fatal car crashes involving
15 to 18-year-old drivers in 2019, according to the NHTSA.
Alcohol
use: In 2019, 24% of drivers aged 15 to 20 who died in car crashes had a blood
alcohol concentration (BAC) of .01 or higher, and 82% of those had BACs of .08
or higher, according to the NHTSA.
Car Insurance Rates for
Senior Drivers
As you reach age 65, expect your car
insurance rates to start increasing. Analysis shows that a 75-year-old male
driver pays 21% more for car insurance than a 55-year-old male driver. Upon
turning 80, rates spike further, with an average increase of 9% for females and
12% for males compared to age 75.
The
risk of being injured or killed in a car crash rises with age, leading to
higher insurance premiums. In 2018, nearly 7,700 adults aged 65 and older were
killed in car crashes, according to the CDC. Additionally, over 250,000 older
adults were treated in emergency rooms for crash-related injuries, amounting to
20 deaths and 700 injuries daily.
The
NHTSA advises older drivers to assess age-related changes in vision, physical
fitness, attention, and reaction times. Resources like the USAA Educational
Foundation, AARP, and NHTSA offer the guide "Driving Safely While Aging
Gracefully," which helps older drivers recognize warning signs of
declining driving skills and provides tips to stay safe on the road.
Tips to Save On Car
Insurance
Age and gender are just two factors
that affect your car insurance rates. Some proven strategies to reduce the price on car insurance:
Shop
around: Compare quotes from multiple auto insurance companies to find the best car insurance deal, as rates can vary significantly for the same coverage and driver.
Ask
for discounts: Look for car insurance discounts for good drivers, good
students, vehicle safety devices, and bundling multiple policies from the car
insurance companies.
Get
rewarded for safe driving: Participate in usage-based insurance programs that
track driving behaviors and offer better rates for safe drivers.
Enroll
your teen in a safe-driving course: Completing an approved safe driving course
can reduce your teen's auto insurance costs. Explore more car insurance
programs designed for teen drivers.
Inference on Auto
Insurance
We utilized data from Quadrant
Information Services, a provider of insurance data and analytics. Rates are
based on a driver with a clean record insuring a Toyota RAV4, including
$100,000 in bodily injury liability coverage per person, $300,000 per accident,
$100,000 in property damage liability, uninsured motorist coverage, and any
state-required coverage. The rate also includes collision and comprehensive
coverage with a $500 deductible.
FAQ’s on How Age and
Gender Affect Your Car Insurance Rates
These questions cover the essential points
about how age and gender impact car insurance rates, providing a comprehensive
understanding of the factors involved.
1. Why do
car insurance rates tend to be higher for young drivers?
Young drivers typically pay higher car
insurance rates due to their limited driving experience and a higher likelihood
of being involved in accidents.
2. At
what age do car insurance rates generally start to decrease for drivers?
Car insurance rates usually start to
reduce around age 25 as drivers gain more experience and statistically become
less risky to insure.
3. When
do drivers typically enjoy the lowest car insurance rates?
Drivers often get the best car insurance rates deal in their
50s and early 60s, assuming they have a good driving record.
4. Why do
car insurance rates increase again after age 65?
Auto insurance rates tend to rise again after age 65 due
to factors such as slower reaction times and an increased likelihood of health related
issues affecting driving ability.
5. How
does gender influence car insurance rates?
Women generally pay less for car insurance
than men, partly because men are statistically more likely to engage in risky
driving behaviors and have higher accident rates.
6. Do the
differences in insurance rates between genders change with age?
Yes, the gender gap in insurance rates
narrows as drivers age. By around age 35, the average rates for men and women
are similar, although women may start to pay less again as they get older.
7. What
are some common risky driving behaviors that contribute to higher insurance
rates for men?
Men are more likely to engage in risky
behaviors such as speeding, driving under the influence of alcohol, and not
wearing seat belts.
8. What
evidence supports the claim that men are riskier drivers than women?
According to the Insurance Institute for
Highway Safety (IIHS), men have consistently accounted for twice as many car
crash fatalities as women from 1975 to 2019. In 2019, 71% of all motor vehicle
crash deaths were males.
9. Which
states prohibit the use of gender as a pricing factor in auto insurance?
California, Hawaii, Massachusetts,
Michigan, North Carolina, and Pennsylvania prohibit the use of gender as a
factor in determining auto insurance rates.
10. How
does adding a teen driver to a parent's car insurance policy compare to having
them on their own policy?
It
is usually much cheaper to add a teen driver to a parent’s car insurance policy
than to have them on their own policy, although adding a teen will still increase
the overall cost of the auto insurance policy.
11. How
do Auto insurance companies use statistical data to set rates for different
demographics?
Auto Insurance companies analyze
statistical data on accident rates, claim histories, and driving behaviors
across different demographics to set rates. Factors like age, gender, driving
experience, and location help predict risk levels, allowing auto Insurance
companies to tailor premiums based on the likelihood of car accidents and
claims for each demographic group.