Average Car Insurance Rates by Age and Gender

Your age is one of the most important factors when determining your car insurance rates. A 16-year-old on their own policy pays on average $4,000 more per year than a 50-year-old does.

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The cost of car insurance is mainly affected by your age, driving record, location and credit score. While gender is a determining factor, it only makes a significant price difference in young, single drivers under 25. When comparing two 16-year-olds, one male and one female, the male driver pays almost $400 more annually than the female driver. By the time both reach age 25, the average difference in their car insurance costs is just $18 per year.

Key Takeaways

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While age is an important factor that affects car insurance costs, it is just one of many used to determine rates. Other factors include location, driving history and vehicle type.

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Gender affects rates for car insurance much more in young drivers than drivers over the age of 25, where the average difference in car insurance costs is only $18 per year.

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Car insurance companies base their prices on risk and the likelihood that a claim will be filed. Young drivers, in general, carry the highest risk — but particularly young male drivers.

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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 experienced drivers. Assuming a driver’s record is clean, the cheapest car insurance 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 same driver reaches 19, the average annual rate drops to $2,789. Each year after that, the average costs for car insurance decline by $100 or more until age 25.

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HOW DOES GENDER AFFECT RATES?

Though not as important as age, gender is a big factor in car insurance 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 age 25, however, the average annual difference reduces to $18.

Car Insurance Rates by Age Chart

Young drivers see significant decreases in car insurance prices each year, but rates level off as they age. The chart below shows sample costs for full coverage car insurance rates for 16- to 18-year-olds. It compares the cost of getting an individual policy with the cost associated with being added to their parents' policy. For additional context, the average cost of an individual policy for a driver age 19 and older is also shown.

Gender is another deciding factor for young drivers' car insurance rates. The table below shows rates for males and females in different age groups. Young males pay hundreds of dollars more per year than young females, though prices flatten around 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 entire policy.

The Average Cost of Car Insurance by Age and Gender

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Car Insurance Rates by Age and State

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

Average Annual Car Insurance Costs by Age

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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 so many first-time drivers are also 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 driven at 1,432. The number of crashes went down to 730 for ages 18–19 and 572 for drivers between 20 and 24 years of age. And as drivers enter into their 30s and 40s, the number 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 experienced drivers, and the same is true for young males compared to young females. According to the CDC, males aged 16–19 are almost twice as likely to be killed in a car accident as females of the same age. As drivers gain more experience, the gap between car insurance costs narrows until only a few dollars separate the genders. At this point, other factors overshadow the importance of age and gender in car insurance pricing, including driving history and location.

Read More About Car Insurance

Methodology

MoneyGeek collected data for drivers age 16 to 25, 30 and 50 to determine the average cost of car insurance. The same driver profiles were used across all ages and states as described on our methodology page.

About the Author


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Mandy Sleight is a professional freelance writer and licensed insurance 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 insurance companies like State Farm and Nationwide Insurance, and most recently as the Operations Coordinator for a start-up employee benefits company.

Mandy earned her 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 vast knowledge of the insurance industry and personal finance combined with her writing background to create easy-to-understand and engaging content to help readers make smarter choices with their budget and finances.


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