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Why do younger drivers pay more for Insurance?

High school and college students typically pay significantly higher rates, on average, for auto insurance. Whether you’re a teenager with a parenting policy or a young driver with your own policy, you may be wondering when my insurance rates will start to drop. From ages 16 to 30, fees will generally decrease, as long as you don’t add accidents, speeding tickets, or DUI to your record. Let’s look at some of the factors that go into determining your auto insurance premiums and what you can do to keep them as low as possible.


There are several key factors the insurance company uses to determine how much you will pay for auto insurance. These factors include:

Your age
State you live in
Driving record. Credit score. The type of car you have
Your marital status
In general, drivers under the age of 25 pay much higher premiums than those who have reached this age. Typically, your rates will stay roughly the same from ages 30 to 40 through 65, and then usually they will start to rise again. Here is a breakdown of the average cost of auto insurance by age:

Under 18 (added to parent policy): $ 2,300
18 years: $ 5,334
19 years: $ 3,995
20 years: $ 3,593
21 years: $ 2,626
22 years: $ 2,714
25 years: $ 2,038
30 to 39 years: $ 1,556

Young and older drivers are statistically more likely to be in an accident than middle-aged drivers, but the accident rate for teens is much higher than for older drivers. This is primarily why car insurance is so expensive for teens, and why having a teenager added to a parent’s policy can help mitigate the cost. Teens are also the least experienced drivers on the road and are least likely to have encountered other drivers, inclement weather severe enough to affect their ability to drive, or other factors that can contribute to an accident. On your own policy, the rates are typically the highest for 17- and 18-year-old drivers.

Drivers 20-24
During this period, most drivers will see that maximum costs will gradually begin to decline as they approach age 25. While the rates are likely to be lower than those seen in adolescence, the cost remains significant, especially at a time when drivers are also spending independent living or college tuition. Taking advantage of safe driving or good student discounts and comparing provider rates is essential to finding affordable insurance for drivers in this age range.

Drivers 25 – 55
Drivers in this category are what insurers look for. They have accumulated driving experience and generally fall into the lowest risk category from life circumstances. Car insurance rates for those in this age range are generally lower than for any other age range. As drivers move into senior years, they may see rates rise a bit, but generally not to the same extent as teen drivers.

When your car insurance rates go down
Although rates tend to gradually decrease from age 20 onwards, once you turn 30, your auto insurance rates will likely be at their lowest. Lower accident risk, a more stable lifestyle, and an overall driving experience contribute to the reduced rates. At this age, you may also own a home and be able to take advantage of a bundled policy discount.

With so many variables contributing to the cost of insurance, age is one that will generally always cause your rate to decrease over time, at least until you reach retirement age.

How to Reduce the Impact of Age on Your Auto Insurance Rates
If you are still a teenager or under 25, there are several things you can do to lower the cost of car insurance.

Good Student Discount – Many insurers will offer a discount to students who maintain a certain grade point average, such as B or better.
Safe Driving Program: This program can help young drivers detect potential causes of accidents before they happen and be more alert to potential dangers when driving. Completing the program often results  program often results in a nice discount that varies by provider offering the program.

Monitoring app or device – Helps determine rates based on driving behaviors and associated risk.

Multi-car discount – If you or your family insures multiple cars under one provider, you may see additional savings.

Autopay discount – This is especially helpful if the driver can pay for insurance for 6 months at a time.

Safety equipment discount – Rewards drivers whose vehicles include features designed to reduce possible damages and injuries in an accident.

Away from home discount – Particularly applicable to college-aged drivers.

ways to save on car insurance

Several other things you can do to save money on your car insurance premiums that do not depend on your age.

  • Reducing or dropping your collision coverage and carrying only liability insurance if you have an older car.
  • Taking a defensive driving course. Similar to the safe driving program listed above, this type of course is relatively inexpensive and can sometimes net you a discount on your insurance, depending on the provider. 
  • Electing for an economy vehicle.
  • Raising the deductibles on your collision and/or comprehensive insurance coverage. If you can establish an emergency fund of cash that has at least enough money in it to meet your increased deductible in the event of a claim, you will likely see a lower monthly premium. 
  • Avoid any speeding tickets on your record. Tickets will generally make your insurance go up. so if you have one and can take defensive driving to have it removed from your driving record, you can potentially avoid a costly insurance spike.

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Peter Wilson

Owner / Agent

Barbra Gouaille

Owner / Agent

  • 702-867-0049
  • 702-660-9067
  • bgouaille@thewilsongrp.net
  • pwilson@thewilsongrp.net

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