How Your Age Impacts Car Insurance Rates

How Your Age Impacts Car Insurance Rates

There are various factors that go into car insurance rates. Insurance providers consider your driving record, your vehicle type, where you live, and many, many more elements when calculating your premium. However, one of the most important factors companies consider is age. Here’s how your age impacts car insurance rates throughout your life as a driver.


Insurance premiums are largely decided on how much potential risk is associated with a driver. With that in mind, it makes sense for teenagers—who are far less experienced behind the wheel—to have more expensive rates. The average insurance rate for teenagers is significantly higher than for any other age group. A 16-year-old with a brand-new license might pay over $1500 on a 6-month insurance premium, depending on where they live and who their provider is.

Young Adults

Once you reach your 20s, car insurance rates start to decline—especially when you hit age 22 and older. However, because they still don’t have an extensive driving history, premiums for drivers in their early 20s are still higher than those of older adults.

As always, these rates can go up after an accident or traffic violation. Additionally, once drivers reach the legal drinking age, they may be more likely to drink and drive. The resulting DUI may lead to an SR22 insurance requirement, which can raise your rates significantly depending on where you live. For example, the rates for SR22 insurance in Denver might be different than rates for the same situation in Las Vegas. Fortunately, you can keep your premium as low as possible by shopping around and taking time to find the best policy for your situation.


Car insurance rates drop significantly in your late 20s, and drivers enjoy the lowest average premiums throughout their 30s, 40s, and 50s. Of course, these rates still rely on other factors such as gender, location, and a clean driving record. Nonetheless, when it comes to how your age impacts car insurance rates, adults benefit the most. With their longer driving history and more stable circumstances—including marriage, a house, and a steady job—insurance providers view adults as the most responsible drivers and therefore the least risky to insure.


Rates increase again once a driver reaches their 60s. This period of life can come with a lot of major changes—such as retirement or downsizing a home after the kids have moved out—that can influence your insurance policy. Several physical factors cause insurance providers to view senior drivers as riskier clients. Impaired vision, arthritis, and regular medications can all affect you behind the wheel. Despite this, senior drivers still pay less than young adults and teenagers.