At What Age is Auto Insurance the Cheapest?

The age of a driver is a huge factor when it comes to calculating their auto insurance rates. As you age, you may see fluctuations in your car insurance premiums. This is because auto insurance rates are primarily calculated based on the driver’s risk of filing a claim. Certain age groups are statistically more likely to be involved in an accident, meaning they may pay higher rates of car insurance. 

The most at risk age group are teens and drivers generally under the age of 25. These drivers tend to pay the highest rates of car insurance and may only see an age-related drop in their rates after their 24th birthday. Age should then play a little factor year to year after 25, remaining generally stagnant until the driver nears their 70s. Then the driver may see a small rise in their car insurance rates again, as elderly drivers are another high-risk group for car accidents. 

This means that your cheapest auto insurance rates in regard to age are generally between the ages of 25 and 60. 

Keep in mind, however, that age is only one factor when it comes to your car insurance rates. 

Other Factors Influencing Your Car Insurance Rates 

Aside from age, factors that may influencing your car insurance rates include: 

Gender 

Since men tend to be statistically more likely to be involved in accidents, they tend to pay more for car insurance than women. 

Driving Record 

Your driving record has perhaps the biggest affect on your car insurance rates. A history of accidents can raise your premiums by a significant amount and many accidents will remain on your record for a few years. A basic at fault accident may last on your record for three years, for example, while a violation such as a DUI can last for 10 years on your record. 

Credit Score 

Insurers view your credit score as an example of how reliable you will be in paying your insurance premiums. A low credit score may mean higher insurance premiums. You can build your credit score by paying off credit cards, loans and other debts. 

Coverage Limits 

As expected, the more car insurance coverage you have, the more you will pay for it. This doesn’t mean that you should cut back on coverage, however. It is important to have the right amount of car insurance to cover your vehicle.