By Evan Kowalski · Editor
Published · Updated
Answer in brief
Age is the largest rating factor for drivers under 25 and a meaningful one again after about 70. A 16-year-old pays roughly three times what a 40-year-old pays; the premium falls steeply at 19, 21 and 25 and reaches its lowest point in the fifties, then rises gradually. Separately, insurers rate years licensed: a newly licensed driver of any age pays an inexperience surcharge for about three years. Both reflect crash data—the youngest and the oldest drivers have the highest crash and injury rates per mile.
The age curve
| Age | Relative premium |
|---|---|
| 16–17 | 280–320% |
| 18–19 | 220–260% |
| 20–24 | 150–200% |
| 25–34 | 110–120% |
| 35–54 | 100% |
| 55–69 | 95–105% |
| 70–79 | 110–130% |
| 80+ | 140%+ |
Why young drivers cost so much
Crash rates per mile for 16–19-year-olds are several times those of drivers in their thirties. Insurers also see more severe crashes—speed, night driving, passengers—in this group. The age factor fades as the data improves with each year.
Why rates rise again later
Older drivers crash less often per driver because they drive fewer miles, but per mile their crash rate rises after about 70, and injury severity rises with age. Insurers respond with gradual increases. Mature-driver course discounts and low-mileage pricing offset part of it.
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Years licensed
Separately from age, most insurers apply an inexperienced-operator factor for about three years from first licensing. A 35-year-old licensed last year pays more than a 35-year-old licensed at 16, though far less than a teenager.
Entries in this guide
Specific questions answered in more depth.
Questions & answers
At what age is car insurance cheapest?
Typically the fifties and early sixties, with a clean record.
Does insurance go down at 25?
For most insurers 25 is a meaningful band change, though the drops at 19 and 21 are often larger.
Why did my rate go up at 70?
Age-band factors begin rising around 70 to reflect higher per-mile crash and injury rates.
Terms used in this guide
- Age band
- An age grouping with its own factor. Highest for teens, lowest in the fifties, rising again after 70.
- Inexperienced operator
- A driver licensed fewer than about three years, rated with an additional factor at any age.
- Rating factor
- Any characteristic used to set a premium: record, age, years licensed, territory, vehicle, credit-based score, mileage, coverage.
Sources and references
Legal figures on this page (minimum limits, filing periods, statutory benefits) are checked against the primary law or the state insurance regulator listed below. Links and figures last verified Nov 2026.
- Teenagers — Insurance Institute for Highway SafetyIndependent researchTeen crash risk, graduated driver licensing research and vehicle recommendations for young drivers.
- Background on: Older drivers — Insurance Information InstituteIndependent research2023 fatal-crash involvement per 100,000 licensed drivers: 15.44 (65–74), 16.63 (75+), 24.38 all ages; state licence-renewal rules for older drivers.
- Older drivers — Insurance Institute for Highway SafetyIndependent researchCrash involvement, fragility and licensing research for drivers 70+.
- Trends and Insights: Auto insurance rates (June 2024) — Insurance Information Institute (2024)Independent researchWhy premiums rose 2021–2024: crash frequency and severity, repair and labour inflation, vehicle technology, attorney involvement.
- Facts + Statistics: Teen drivers — Insurance Information InstituteStatistical dataCrash and fatality statistics for drivers 16–19 and graduated licensing context.
- 2019–2023 Auto Insurance Database: average premium supplement — National Association of Insurance Commissioners (2025)Statistical dataCountrywide average expenditure $1,281 in 2023 (+13.98%); combined average premium $1,438; state tables for liability, collision and comprehensive.
- Facts + Statistics: Auto insurance — Insurance Information Institute (2025)Statistical dataNAIC countrywide average auto expenditure: $1,127 (2022), $1,282 (2023); most expensive states in 2023 were Florida, Louisiana and New York.
- What determines the price of an auto insurance policy? — Insurance Information InstituteConsumer guidanceRating factors: driving record, mileage, location, age, gender, vehicle, credit-based insurance score, coverage choices. Notes ZIP-code rating is prohibited in California and Michigan and gender rating is prohibited in seven states.
Practical guidance on this page is original editorial work. Cited sources support factual statements and do not endorse this site. Dollar ranges described as typical or illustrative are editorial estimates, not figures from these sources.
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