Average Car Insurance Rates By Age And Gender

Car insurance isn’t an expensive kind of insurance, but it sure is a mandatory one.

Legally, you can’t drive on the road without having insurance, so if you own a car, it’s best that you apply for auto insurance immediately. 

Auto insurance is a type of insurance that provides protection to your vehicle. Whether it be a car or a bike, you can easily get it insured. It is typically used to cushion the blow of an accident or mishap that you’re not able to afford financially. Your insurance company will cover the cost. 

Affordable Full Coverage Auto Insurance

Full coverage means that your insurance company gives full protection to you and the car and bears every expense that comes with it.

The policy that is outlined for you during the start naturally covers the following losses when you pay your premiums regularly. These coverages include:

  • Damage to your property: If your car is stolen and you’re not able to retrieve it back, or if there have been vehicle damages due to a road accident or some other physical harm caused to your car.
  • Legal requirement: Any legal action that must be taken against someone who has intentionally or unintentionally caused harm to your property will also be covered in the policy.
  • Liability: Damage that you’ve caused to someone else’s property along with yours. Also known as collision coverage. All of this is covered in an affordable liability auto insurance package which covers your expenses when you’re at fault in a road accident. 
  • Medical expenses: If there has been an injury or hospital bills need to be paid that have been caused by an accident, or if there has been a temporary loss of wages because of the accident will also be covered in the auto insurance policy.
  • Comprehensive coverage: This is if your car is damaged by a tree or a concrete pavement and you’re at fault. 

Auto insurance policy covers the damage done to your car either by you, or a family member or even a distant friend who was driving your car with your consent.

A personal auto insurance guarantees protection to the driver himself, whether he is driving his own car, or someone else’s- with their permission of course. But you can’t use your car for commercial purposes; only to be used for your own personal driving. We’ll talk about commercial insurance later in this article. 

Coverage type Study limits
Bodily liability $50,000 per person/ $100,000 per accident
Property damage $25,000 per accident
Uninsured/underinsured motorist BI $50,000 per person/ $100,000 per accident
Comprehensive & collision $500 deductible
Personal injury protection Min. when required by state

Note: Sample rates have been extracted online, courtesy of ValuePenguin.

Now that we know what auto insurance is and how it works, it is important to discuss all affordable auto insurance plans and know what matters while being light on the pocket.   

Average Car Insurance Cost per Month

A typical policyholder on average pays about $119 per month, for a clean driver with a relatively decent driving history and around 40 years of age.

Here is a breakdown of some of the most famous auto insurance companies of 2020 and their rates on full and minimum coverage.

Minimum vs. full coverage average annual rates by company

Company Full coverage Minimum coverage Annual difference
Geico $1,198 $478 $720
State Farm $1,511 $624 $887
Progressive $1,766 $774 $992
Liberty Mutual $1,778 $900 $878
Allstate $1,834 $784 $1,050
Farmers $1,865 $926 $939

Average Car Insurance Rates by Age and Gender

It is a well known fact that car insurance rates vary by age and gender. And while males pay more than females, and while a young person pays more than a senior driver, there are several factors that affect average car insurance rates.

Before we get into the reasons, let’s see how different car insurance rates are by age and gender.

Age Female Male
16 $2,374 $2,620
17 $1,868 $2,090
18 $1,573 $1,761
19 $1,125 $1,244
20 $992 $1,088
21 $821 $882
22 $766 $813
23 $709 $745
24 $671 $698
25 $614 $617
30 $572 $555
35 $569 $548
40 $564 $545
45 $560 $542
50 $539 $531
55 $528 $522
60 $529 $524
65 $551 $549
70 $587 $590
75 $651 $671
80 $726 $770

Which Gender pays the most for Car Insurance?

According to statistics, men are likely to pay for car insurance more than females. A study from the Insurance Institute for Highway Safety (IIHS) found male drivers of all ages are 63% more likely than female drivers to be involved in a fatal crash. Younger men are even more prone to fatal accidents, with rates for 16- to 19-year-old male drivers almost twice those for female drivers of the same age.

Fatal crash rate per 100 million miles driven

Age Males Females
16-19 6.4 3.3
20-29 3.9 1.6
30-59 1.6 1.1
60-67 1.5 1.0
70+ 2.8 2.1

Note: Sample rates are extracted online, courtesy of NerdWallet.

How does Age affect Auto Insurance Rates?

Once young drivers gain more experience and hit 25, their car insurance costs drop about 30%. Costs continue to generally decline with each birthday. Once drivers reach 50, they’ll see their best rates. Around age 60, however, auto insurance costs begin to increase and compare to what drivers see in their 40s.

The best rates will be given to a driver who is 40, has a clean driving record and has a lot of driving experience. Such a driver is the least likely to get into an accident, thus becomes a safe investment for insurance companies.

Affordable Auto Insurance for High Risk Driver

If you’re a high risk driver and are looking for auto insurance, chances are you’ll have a hard time looking for one.

A high risk diver is someone who is likely to make more claims down the road- meaning someone who will cost the insurance company money! A poor credit, history of road accidents or violations, a record of Driving Under Influence (DUI) will all lessen your chances of being insured. Because let’s be clear: high risk driver means higher premiums!

But don’t lose hope.

There are still affordable auto insurance rates available for high risk drivers. Here are all the companies that may be able to assist you.

Insurance company Drivers with a clean record Drivers with a recent DUI Drivers with a poor credit
Geico $642 $1,470 $3,950
Progressive $1,073 $1,320 $5,378
Safe Auto $1,406 $1,791 $5,695

Note: Insurance rates have been extracted online, courtesy of NerdWallet.

How can I avoid paying high risk driver rates?

The process is simple but time consuming. 

The only way you can avoid paying the insurance rates of high risk drivers is when you improve your credit score. This can simply be done to prove to the company and the State that you’re a safe driver. Try taking safety courses and have a clean record free of violations for some time. 

Never let your auto insurance lapse. Drivers who let their insurance lapse are considered high risk drivers and when they want to insure themselves again, they tend to pay higher premiums.

If you have a violation incident on your record, the best way to apply for new insurance is after 3-5 years- this will lead you to getting cheaper rates when you shop around for insurance.

There are ways and avoiding being a high risk driver is pretty much doable, but it will require time and consistency. 

Car Insurance Cost Calculator

Auto insurance can be confusing. An online auto insurance coverage calculator can help you discover the right level of insurance coverage for your situation. Just answer a few quick questions about yourself, your assets, and your driving habits to get an estimate.

Whatever policy you’re buying, make sure you read exactly what is covered in your policy and what isn’t. Even if you buy a half insurance policy, you will still be covered for liability and medical expenses; so if you don’t need full coverage, don’t opt for it!

Conclusion

Car insurance rates differ by age and gender, and the rate is more for males because it is proven that they are likely to get into fatal accidents. Getting auto insurance depends on many factors like your age, driving history, credit scores etc., and the rates naturally differ from state to state and company to company.

In today’s time when getting into accidents or even the slightest damage to your car can be so costly, it is important to have your vehicle insured. This will not only cushion you from financial charges but also give you the peace of mind that you and your car are under protection.

And looking for affordable auto insurance is a real challenge. There are companies who charge a lot for insurance and you end up paying very high premiums! A cost effective insurance plan is very important and there are insurance companies that do just that. 

Charles Bains

Charles Bains

Charles Bains started his insurance career as a marketing intern before pounding the pavement as a commercial lines agent in Orlando, FL. As an industry journalist, his articles have appeared in a variety of trade publications. His insurance television career, short-lived but glorious, once saw him serve as the expert adviser on an insurance-themed infomercial (yes, you read that correctly). Having recently worked for various organizations, coupled with his broader insurance knowledge, Charles is able to understand our client’s needs and guide them accordingly. He is a gem for Insurance Noon as his wide area of expertise and experience have been beneficial in conducting further researches to come up with solutions and writing them in a manner which is easy for everyone including beginners to comprehend.

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