Average car insurance rates range from $1,424 per year for drivers who are 65 years old to a high of $7,001 per year for drivers who are 16 years old. Car insurance rates vary so much by age group because some groups are statistically riskier to insure than others, due to a higher likelihood of accidents and expensive claims.
The youngest drivers tend to have the most traffic incidents and display more reckless behavior than older drivers. They are the most expensive to insure, on average, as a result. Prices drop off for adults all the way into middle age, as they gain more experience behind the wheel and get into fewer accidents compared to teenagers. This trend continues until drivers reach their seventies, at which point costs begin to rise again.
National Average Car Insurance Rates by Age
| Age | Average Annual Cost |
|---|---|
| 16 years old | $7,001 |
| 25 years old | $1,768 |
| 45 years old | $1,490 |
| 65 years old | $1,424 |
Each driver pays a different amount of money per year, based on what their insurance company decides is a good cost for their risk profile. A wide variety of factors come into play, like your driving record, zip code, and the amount of coverage you buy.
However, age is ultimately one of the biggest factors. Its effects on car insurance rates can be seen from state to state, with the youngest drivers consistently paying the most for coverage.
Average Car Insurance Rates by Age and State
| State | Age 16 | Age 25 | Age 45 | Age 65 |
|---|---|---|---|---|
| Alabama | $7,768 | $1,723 | $1,479 | $1,409 |
| Alaska | $5,989 | $1,618 | $1,318 | $1,316 |
| Arizona | $6,841 | $1,741 | $1,533 | $1,459 |
| Arkansas | $7,755 | $1,936 | $1,550 | $1,452 |
| California | $7,656 | $2,609 | $2,018 | $1,848 |
| Colorado | $7,939 | $1,901 | $1,733 | $1,613 |
| Connecticut | $10,694 | $2,392 | $1,914 | $1,846 |
| Delaware | $8,520 | $2,022 | $1,736 | $1,668 |
| Florida | $8,829 | $2,964 | $2,502 | $2,313 |
| Georgia | $8,195 | $2,023 | $1,638 | $1,684 |
| Hawaii | $1,547 | $1,287 | $1,287 | $1,287 |
| Idaho | $5,847 | $1,390 | $1,105 | $1,054 |
| Illinois | $5,979 | $1,488 | $1,208 | $1,160 |
| Indiana | $6,264 | $1,455 | $1,237 | $1,147 |
| Iowa | $4,647 | $1,323 | $1,054 | $978 |
| Kansas | $6,267 | $1,680 | $1,408 | $1,291 |
| Kentucky | $10,120 | $2,027 | $1,682 | $1,561 |
| Louisiana | $11,797 | $2,851 | $2,547 | $2,565 |
| Maine | $4,643 | $1,096 | $879 | $854 |
| Maryland | $6,891 | $1,865 | $1,615 | $1,721 |
| Massachusetts | $5,443 | $1,626 | $1,469 | $1,159 |
| Michigan | $14,612 | $3,166 | $2,900 | $2,720 |
| Minnesota | $5,714 | $1,508 | $1,233 | $1,178 |
| Mississippi | $7,084 | $1,840 | $1,400 | $1,305 |
| Missouri | $6,810 | $1,583 | $1,350 | $1,211 |
| Montana | $6,418 | $1,727 | $1,530 | $1,463 |
| Nebraska | $5,624 | $1,436 | $1,230 | $1,125 |
| Nevada | $9,452 | $2,402 | $1,905 | $1,773 |
| New Hampshire | $7,050 | $1,383 | $1,159 | $1,212 |
| New Jersey | $6,871 | $2,004 | $1,595 | $1,434 |
| New Mexico | $7,815 | $1,627 | $1,387 | $1,327 |
| New York | $5,806 | $1,935 | $1,777 | $1,743 |
| North Carolina | $3,461 | $1,243 | $1,150 | $1,126 |
| North Dakota | $5,993 | $1,366 | $1,155 | $1,039 |
| Ohio | $5,391 | $1,188 | $997 | $941 |
| Oklahoma | $8,050 | $2,095 | $1,812 | $1,642 |
| Oregon | $7,769 | $1,712 | $1,504 | $1,391 |
| Pennsylvania | $5,755 | $1,732 | $1,503 | $1,434 |
| Rhode Island | $10,898 | $2,286 | $1,939 | $2,279 |
| South Carolina | $6,537 | $2,041 | $1,653 | $1,590 |
| South Dakota | $6,753 | $1,517 | $1,226 | $1,107 |
| Tennessee | $8,533 | $1,555 | $1,214 | $1,169 |
| Texas | $7,378 | $1,973 | $1,618 | $1,589 |
| Utah | $6,713 | $1,499 | $1,267 | $1,205 |
| Vermont | $4,947 | $1,274 | $1,004 | $1,000 |
| Virginia | $4,715 | $1,186 | $929 | $919 |
| Washington | $6,187 | $1,574 | $1,269 | $1,224 |
| West Virginia | $6,073 | $1,588 | $1,351 | $1,309 |
| Wisconsin | $6,703 | $1,378 | $1,148 | $1,058 |
| Wyoming | $5,327 | $1,577 | $1,384 | $1,314 |
Note: Averages reflect annual costs, based on data from Quadrant Information Services.
Does Age Affect Car Insurance Rates More Than Other Factors?
Age isn’t the only factor that has a big impact on car insurance rates. Fortunately, some of the others are actually within your control.
Age vs. Gender: Age affects car insurance rates more than gender. Male drivers under the age of 18 pay the most of any demographic – almost 50% more than teenage female drivers. But 16-year-olds of any gender pay an average of 80% more than older drivers. And by the time men and women are in their 30’s, they pay comparable rates.
Age vs. Location: Age affects car insurance rates more than location. Young drivers pay significantly more than older drivers, and regardless of where a driver lives, their rates will drop steadily as they get older.
Age vs. Vehicle Type: Age affects car insurance rates more than vehicle type while a driver is young – between the ages of 15 and 25. After that, a driver’s choice of a car affects their premium more noticeably than their age. You could end up paying 70% more for car insurance than your coworker does, just because they drive a minivan and you drive a Tesla. A car’s insurance cost is influenced by its safety ratings, its likelihood of getting stolen, and average repair costs for that model of car, among other factors.
Age vs. Driving Record: A person’s driving record affects their car insurance rates more than their age does. Even the youngest, most untested drivers aren’t as much of a liability as drivers with a DUI. High-risk drivers with a poor record can see an increase of anywhere from 50% to 300% above standard costs for their age group.
Age vs. Credit Score: A driver’s age affects their car insurance rates more than their credit score does. In some states, it’s actually illegal for companies to use your credit score as a factor in your insurance costs.
How Much Should I Pay for Car Insurance?
A good rule of thumb is to buy as much car insurance as you can afford. You might be tempted to skimp and buy only your state’s minimum car insurance. But many optional forms of car insurance are worth considering, often providing benefits worth far more than the amount they add to your premium.
Neither comprehensive insurance nor collision insurance is required, but both are smart choices. Comprehensive insurance covers damage from non-collision accidents, like vandalism or theft. Without it, you’re stuck paying all the bills if a tree falls on your car during a storm, for instance. And collision insurance handles your car repair bills, even if you caused an accident. You might also consider buying medical coverage if your health insurance has a very high deductible.
Finally, whether you’re 16 years old or 65, make sure to shop around for the best deal on whatever coverage you decide to buy. This will ultimately allow you to afford higher coverage limits