Personal Finance

Car Insurance Gets More Costly When You Reach This Age

60 total views
Photo by l i g h t p o e t /

Adult drivers generally see their car insurance rates drift lower for decades — until they hit their 60s.

At that point, rates climb — and continue to do so for the rest of your life, according to the 2021 The State of Auto Insurance report from The Zebra.

Rates are highest when you are young. In fact, drivers who are 16 years old and have their own policies pay a jaw-dropping $5,744 a year for car insurance, on average. That is about four times the average for all drivers between the ages of 23 and 85.

Things get better for drivers in their remaining teen years, but not by much.

The Zebra found that people in their:

  • Teens: Pay $4,573 per year for car insurance, on average
  • 20s: $1,887
  • 30s: $1,449
  • 40s: $1,394
  • 50s: $1,298
  • 60s: $1,315
  • 70s: $1,523
  • 80s: $1,765

It’s no secret why rates are higher at the beginning and end of your driving years: That’s when accidents are most likely to occur.

As has pointed out about senior drivers:

“Older, senior, drivers as a group are more accident-prone than their middle-aged counterparts. The reasons for this include age-related changes in hearing or vision, slower reflexes, health conditions and medications.

In addition, regardless of accident severity, older drivers suffer graver injuries and more fatalities than younger people. This makes seniors more expensive to treat following an injury. These factors can increase insurers’ claim costs, and those costs are passed on.”

Rates are falling

The good news for drivers of all ages is that car insurance rates have fallen in the past year.

Overall, auto rates have decreased for the first time since 2013, dipping 4% compared to 2020. The Zebra notes that rates usually fall when customers as a group file both fewer and less expensive claims.

Since the emergence of the coronavirus pandemic, people have been driving less. In fact, the number of miles logged by U.S. drivers has dropped 14% from 2019-2020.

Getting lower car insurance rates

Regardless of your age, you can almost always get a better deal on car insurance if you look around and comparison shop. While you can do such shopping on your own, using a service like The Zebra or Gabi might be easier. These services gather quotes for you so you can pick the best rate.

Money Talks News founder Stacy Johnson tried Gabi, and found it worth his time. He wrote in “How I Found $546 in Car Insurance Savings in Under 10 Minutes“:

“I’m currently insuring two cars with USAA at a combined cost of about $2,400. Gabi said Progressive could give me the same coverage for 22% less, saving me $546. All I had to do is give Gabi the go-ahead and my driver’s license number. Then, Gabi would confirm the rate and even do the switching for me.”

For more help in cutting auto insurance costs, be sure to read:

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Share this Post

About Us

What started as a mission to share what's happening in the insurance world today has grown into your daily go-to for insurance, financial planning, and retirement planning news.

Logic Bar Text Click Here