Experienced drivers are less likely to file accident claims, which means their insurance costs less. In Progressive, the average driver premium tends to drop significantly, from 19 to 34 years, and then stabilizes or decreases slightly, from 34 to 75.
Car insurancecompanies use many factors to determine your premium, and in most states, your age and gender are among the most important. Car insurance is generally the most expensive for teens and young adults. These higher rates reflect the greater statistical likelihood that these drivers will be involved in an accident due to lack of experience behind the wheel.
In addition, men may have higher rates than women because of a greater propensity to drive in a risky way. When you look at average car insurance costs by age, you might see a trend. Coverage starts out relatively expensive for teens and young adults. Over the years, premiums generally decrease as drivers gain more experience behind the wheel.
However, as drivers reach old age, premiums may rise again. In general, this is due to the risk factors associated with each age group. In addition, the state in which you live, your driving history, credit rating, claim history, and the types of coverage you choose can also affect your premium. Overall, men are statistically more likely to drive in a risky way, but this doesn't automatically mean that men pay more than women for coverage.
When you receive a car insurance quote, your insurance company uses several criteria to assess your level of risk and calculate your rate. If you practice safe driving habits, maintain good credit, take advantage of discounts and look for annual quotes, you can probably find a policy that easily fits your budget. Mandy earned her bachelor's degree in Business Administration and Management from the University of Baltimore and her master's degree in Business Administration from the University of Southern New Hampshire. She uses her vast knowledge of the insurance and personal finance industry, combined with her experience as a writer, to create engaging, easy-to-understand content that helps readers make smarter decisions with their budgets and finances.
While age is one of the biggest factors in car insurance costs, it's still one of many, including location. Assuming that the driver's record is clean, the cheapest car insurance rates usually go to middle-aged drivers around 50 years old. Generally speaking, younger drivers should see a gradual decline in their car insurance rates as they age, up to age 70. Most insurers understand that car insurance can be expensive for certain age groups and offer discounts to help lower those premiums.
Therefore, this compensation may affect the way, place and order in which products appear in the ad categories, except where prohibited by law for our mortgage, home equity and other home loan products. According to the CDC, men ages 16 to 19 are nearly twice as likely to die in a car accident as women of the same age. While age is a major factor affecting car insurance costs, it's just one of many that are used to determine rates.