How Age And Gender Affect Car Insurance Rates – Forbes Advisor
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How Age And Gender Affect Car Insurance Rates – Forbes Advisor


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When it comes to buying car insurance, age and gender can affect rates.

Women pay less for car insurance than men. And it should be no surprise that young drivers pay the most. Age is related to driving experience and car accident risk.

The high car insurance rates paid by young drivers begin to decline at age 25. Assuming you have a good driving record, you'll get the best rates in the 50s and early 60s. Then auto insurance rates start increasing again around age 65.

Connected: Average Car Insurance Cost

Average Car Insurance Rates by Age and Gender

Source: Quadrant Information Services, based on a driver with a clean record, $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability, plus uninsured motorist coverage and any other coverages required in the state Also insures the Toyota RAV4. The rate also includes collision and comprehensiveness with a $500 deductible.

Connected:Car Insurance for 17 Year Olds

Is there a gender difference in car insurance rates?

Our analysis shows that female drivers are paid less than male drivers.

As drivers age and gain more driving experience, the gender difference in rates narrows to negligible. In some age groups, women pay slightly more than men, but around age 35 the average rates are the same.

As drivers age, female drivers begin to be paid less again.

One reason why men pay more for car insurance than women is that men tend to be riskier to insure. According to the Insurance Institute for Highway Safety (IIHS), men generally drive more miles than women and are more likely to engage in risky driving behaviors such as speeding, driving under the influence of alcohol, and not wearing a safety belt. Keep.

Men are twice as likely as women to die in car crashes almost every year from 1975 to 2019, according to an IIHS analysis from the U.S. Department of Transportation's Fatality Analysis Reporting System. In 2019, 71% of all motor vehicle crash deaths were men.

Six states prohibit the use of gender as a pricing factor in auto insurance:

  • California
  • Airport
  • Massachusetts
  • michigan
  • North Carolina
  • pennsylvania

Risky teen drivers pay significantly higher rates

Our analysis found that the average rate for teen drivers on their own auto insurance policy is approximately $6,800 per year. This is a huge number compared to middle-aged drivers who pay a fraction of the cost.

If you are the parent of a teen driver, it is usually much cheaper to have them on your policy. Still, adding a teen driver won't be cheap, which is why it's a good idea to shop around to find affordable car insurance for teens.

Teenagers are more likely to be involved in serious car accidents due to inexperience and risky behavior. According to the Centers for Disease Control and Prevention (CDC), teen drivers ages 16 to 19 are nearly three times more likely to be involved in a fatal crash than drivers age 20 and older.

Here are common risk factors for teen drivers:

  • Inexperience. Teens are more likely than older drivers to not recognize or underestimate dangerous situations on the road.
  • Driving at night and on weekends. According to the IIHS, in 2019, 40% of fatal car crashes among teen drivers and passengers ages 13 to 19 occurred between 9 pm and 6 am. More than half (52%) of fatal car accidents occurred on Friday, Saturday or Sunday.
  • Not using seat belt. Seat belt use is lowest among teenagers and young adults compared to other groups. According to the National Highway Traffic Safety Administration (NHTSA), nearly half (45%) of teen drivers who died in 2019 were unbuckled.
  • distracted driving. One in three teens who texted admitted to texting while driving, NHTSA reports.
  • Walking fast. According to NHTSA, in 2019, speed was a factor in 27% of fatal car crashes involving teen drivers ages 15 to 18.
  • alcohol abuse. According to NHTSA, in 2019, 24% of drivers between the ages of 15 and 20 who died in car crashes had a blood alcohol concentration (BAC) of .01 or higher. And 82% of those drivers had a BAC of .08 or higher.

Car Insurance Rates for Senior Drivers

As you approach age 65, you can expect your car insurance rates to start increasing. Our analysis shows that a 75-year-old male driver pays 21% more for car insurance than a 55-year-old male driver. And once you reach your 80th birthday, there's another increase in rates starting at age 75 (an average increase of 9% for women and 12% for men).

As we age, our risk of being injured or killed in a car accident increases, which translates into higher car insurance premiums.

Nearly 7,700 adults ages 65 and older died in car crashes in 2018, according to the latest data from the CDC. More than 250,000 adults age 65 and older were treated in emergency rooms for car accident injuries. This means that 20 older people die and 700 are injured in car accidents every day in the US.

NHTSA recommends that older drivers assess age-related changes in vision, physical fitness, attention and their ability to react quickly to sudden changes. The USAA Educational Foundation, AARP, and NHTSA have a guide Driving Safely While Aging Gracefully Helping older drivers recognize the warning signs of declining driving skills, with tips on how to remain a safe driver.

Connected:Auto Insurance for Senior Citizens

Tips to Save on Car Insurance

Age and gender are just two factors that affect your car insurance rates. Here are some time-tested ways to save on car insurance:

  • shop around. It's smart to compare car insurance quotes from multiple companies to find the best deal. Car insurance rates can vary widely between insurers for the same coverage and the same driver.
  • Ask for a discount. Insurers have a wide variety of car insurance discounts, such as price discounts for good drivers, good students, vehicle safety equipment and purchasing multiple policies.
  • Get rewarded for safe driving. Some insurance companies offer usage-based insurance programs, which track your driving behavior and reward good drivers with better rates.
  • Enroll your teen in a safe driving course. If your teen completes an approved safe driving course, you can save on your auto insurance. Here are some insurance programs that help teen drivers.

Connected: Calculate Car Insurance Coverage

Methodology

We used data from Quadrant Information Services, insurance data and analytics provider. Rates are based on a driver with a clean record, a Toyota RAV4 with $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability, uninsured motorist coverage and any other coverages required in the state. Insures. The rate also includes collision and comprehensiveness with a $500 deductible.

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