car insurance rates

Which Age Groups Have The Highest Car Insurance Rates?

Car insurance is an important thing to own and in many states, it is required. If you are shopping for auto insurance, you’re probably wondering how to get the lowest rate. Comparing different companies to find the best price is an option you have control over, but some factors are out of your hands. For example, people in certain age groups incur higher rates than others. To learn which groups have the highest car insurance rates, continue reading. 

Car Insurance Rates For People Under 20

If you are under age 20, you will have the highest auto insurance rates. This is because younger drivers are statistically more likely to be involved in accidents and make claims. The younger you are, the more coverage will cost, with teenagers often being charged annual premiums upwards of $5,000. 

By age 19, these rates may drop to around $4,000, which is still substantially more than the rates of people aged 25 and up. Fortunately, there are some ways that teens can save money on insurance. For example, some insurers offer discounts for students who have a GPA of 3.0 or higher. Installing a telematics device in your car can also lower your rates. Telematic devices monitor your driving, including braking and accelerating, to determine how safe you drive. By installing one of these devices, you may be offered discounts of up to 40%. 

Car Insurance Rates For People Age 20-29

Insurance rates drop dramatically when you turn 20. On average, expect a 20% decrease in annual premiums after your 20th birthday. This change occurs because a 20-year-old is likely to have more hours spent driving than a teenager, making them more equipped to drive safely. If you are age 20, expect premiums to sit around $3,000. This number decreases further as you get older, with 25-year-olds paying less than $1,500 in some cases. This means the rate for a 25-year-old can be half the rate charged to 20-year-olds. 

To save on car insurance at this age, you can bundle your car insurance with your renters insurance. This can save you up to $100 per year on your annual premiums. 

Car Insurance Rates For People Age 30+

Insurers see little difference between insuring someone age 29 and insuring someone age 39. Between ages 30 and 40, you’ll likely be the cheapest to insure out of any age group. While there isn’t a dramatic decrease in rates as with teenagers who just turned 20, you do get a modest reduction in rates. On average someone age 30 will pay around $1,300 for coverage annually. By age 40, this rate may drop by $100 or so. 

Beyond age 40, your rates will stay consistent unless you add more drivers to your policy. 

Find Car Insurance

Knowing what to look for can help you find affordable coverage, regardless of your age. If you need help collecting quotes on coverage, contact All Things Insurance at (763) 645-5450.