Auto insurance companies use many factors to determine your premium, and in most states, your age and gender are among the most important. Auto insurance is typically the most expensive for teens and young adults. these higher rates reflect the greater statistical probability that these drivers will be involved in an accident due to inexperience behind the wheel. in addition, men may have higher rates than women due to a greater propensity to drive risky.
In 2022, the average cost of auto insurance is $1,771 per year for a full coverage policy. however, the insurance is highly personalized and your rate will vary based on your individual qualifying factors. To provide a reference, Bankrate’s insurance editorial team used rates provided by Quadrant Information Services to break down full coverage premiums by age and gender. Our goal is to give you the valuable data you need to make informed decisions while shopping for auto insurance.
average car insurance rates by age and gender
When you get an auto insurance quote, your insurance company uses several criteria to assess your level of risk and calculate your rate. age and gender are just two of those factors. In addition, the state you live in, your driving record, credit score, claims history, and the types of coverage you choose can also affect your premium.
In general, young drivers can expect to pay higher rates than older drivers, and around age 70, auto insurance rates start to rise again. Due to accident trends and data, men are riskier to insure than women and often pay higher rates. Hawaii and Massachusetts prohibit the use of age as a rating factor, and California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania prohibit the use of gender as a rating factor.
In the following table, you can see the average annual rates for male and female drivers in a range of ages:
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*Rates for 16 and 17 year olds reflect the additional cost of their parent’s full coverage auto insurance policy. additionally, 25+ rates are based on the driver as the renter, while 30+ rates reflect drivers as owners.
how age affects your auto insurance rates
When you look at average car insurance costs by age, you may notice a trend. coverage starts out relatively expensive for teens and young adults. Over the years, premiums typically decrease as drivers become more experienced behind the wheel. But as drivers age, premiums can go back up. In general, this is due to risk factors associated with each age group.
- Teenagers: Teenagers are considered some of the riskiest drivers to insure. Teen drivers are three times more likely to be in a fatal car accident than older drivers. Insurers often charge more to insure teen drivers to offset the higher costs associated with teen driving claims.
- Adults: The cost of auto insurance coverage typically begins to decline when a driver reaches their 20s. at 25, drivers could see a pretty significant drop in their premiums. Throughout adulthood, as long as drivers have a safe driving record and no insurance claims, premiums typically continue to drop as drivers gain more experience.
- Seniors: Unfortunately, the downward trend in insurance premiums generally comes to an end when drivers reach their 70s. Age-related factors, such as vision or hearing loss and slower response time, can make older people more likely to be in accidents. however, while seniors may see their insurance premiums rise, they likely won’t pay the high rates of teen drivers again, assuming their driving record is clean.
- Status: Your location can determine whether your gender will affect your auto insurance premium. Currently, six states do not allow the use of gender as a rating factor: California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania. in these states, the rates for men and women should be approximately equal if all other qualifying factors, such as vehicle type, driving record, etc., are equal.
- Credit Score: In many states, your credit-based insurance score will affect your auto insurance premium. So, for example, a male driver with bad credit will probably pay more for car insurance than a male with good credit. On the other hand, a female driver with poor credit may pay more for car insurance than a male driver with good credit. however, this is also location dependent. Insurance companies in California, Hawaii, Massachusetts, and Michigan cannot use credit-based insurance scores as rating factors.
- Driving history: Another factor that affects auto insurance premiums is driving history. drivers with a history of accidents, speeding tickets, or other traffic violations typically pay the highest rates. For example, a female driver with a DUI or other serious violation will likely pay a higher rate than a male with a clean driving record. Maintaining a good driving record is one of the best ways to get a low rate for both men and women.
how can I find the best car insurance for my age and gender?
How do I get cheaper car insurance if I’m a young driver?
Besides age and gender, what factors do insurers use to set my premium?
bankrate uses quadrant information services to analyze 2022 rates for all zip codes and carriers in all 50 states and washington, d.c. rates are weighted based on the population density of each geographic region. Rates quoted are based on a 40-year-old male and female driver with a clean driving record, good credit, and the following total coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine the minimum coverage limits, Bankrate used a minimum coverage that meets each state’s requirements. our base drivers own a 2020 toyota camry, commute five days a week, and drive 12,000 miles a year. these are sample rates and should only be used for comparison purposes.
age: rates were calculated by evaluating our base profile with ages 18-70 (base: 40 years) applied. Depending on age, drivers may be renters or owners. Age is not a contributing qualifying factor in Hawaii and Massachusetts due to state regulations.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Teenagers: Rates were determined by adding a 16 or 17 year old teenager to a 40 year old married couple’s policy. the rates shown reflect the additional cost to the parent’s policy.
Most insurers understand that auto insurance can be expensive for certain age groups and offer discounts to help lower those premiums. Common discounts for young drivers include good student discounts and driver training discounts. older drivers can get discounts for company loyalty or membership with organizations like aarp.
Regardless of your driving record, you should expect your auto insurance rate to change with age in most states. That said, it’s still important to avoid tickets and accidents. you should be proactive about keeping your rate low, even as you age.
how gender affects your auto insurance rates
In most states, gender is used as a qualifying factor when determining auto insurance premiums. In general, men are statistically more likely to engage in risky driving behavior, but this does not automatically mean that men pay more than women for coverage. Although the general trend in premiums shows that men pay more than women, this depends on many factors.
Although your gender will affect your auto insurance rate (in most states), it doesn’t necessarily mean your premium will be higher than average or extremely expensive. Gender is just one of the factors that contribute to your auto insurance rate. If you practice safe driving habits, maintain good credit, take advantage of discounts, and shop around for quotes annually, you can probably find a policy that easily fits your budget.