How Age Affects Car Insurance Costs? - Discussed by Age Groups

How Age Affects Car Insurance Costs?

Age is the prime factor in deciding the rates of car insurance. There are various parameters defined by DMV that make it easier to understand that why does the age has an impact on the rates of car insurance.

There are brackets of ages as teenagers, adults and senior citizens in which human life has been segregated. According to those age brackets, only the car insurance companies discuss the terms of car insurance with their buyers.

The car insurance companies want to reduce their own levels of risk while providing insurance to any citizen; this is one of the reasons for the varying prices in the insurance of various age groups.

Let us discuss here how age affects car insurance costs


The teenagers and the new drivers are considered to be in the same category (owing to the fact that people usually learn to drive in teenage, however, it is not a rule).

Although their learning skills are fast and adaptable in this age group, there are facts that support that teenagers are more prone to accidents. Therefore, the cost of insurance for teenagers is on the higher side.

There have been statistical data of research and observation that has led to a higher cost of car insurance for teenagers.

It is stated that the teenagers have been involved in much higher rates of accidents and crashes even though they would have driven fewer miles than anyone else.

There have been cases of drink and driving in the case of teenagers without any supervision and monitoring that have often led to on the spot death of the teenagers during most of the road accidents.

The teens in this age are more fascinated by high speed and thrills of adventure on the road. Many of them do not follow the rules while driving which is a serious threat to not only their own life but for the other people on the roads too.

They are often not very mature enough to understand the difficulty of a situation while driving and do not realize until it gets problematic. Also, they are not often capable of handling troublesome situations while driving which can be hazardous.

It has also been observed that the teenagers often do not follow the rules that everyone should abide by- such as not wearing the seat belt, jumping off the lights.

These factual data have stunned the authorities and it has led to very high cost for insurance for the teenage drivers.

People in their early 20s: although there seems to be no separate grouping for these people the cost of insurance is quite on the higher side for this age group as well.

Young drivers of this age group are also vulnerable to all the above-mentioned aspects considering there is not much difference in the lifestyle. The difference comes gradually with the age and change in their roles and responsibilities as they grow up towards the mid-’20s.


People who fall into the age category of 25 to 65 years are considered in the group of adults. The facts support that in this segment of the age group the drivers are more responsible and experienced.

By the time they enter this time period, they have their own learning and adaptabilities on the road that makes them less prone to accidents. The level of maturity helps them to handle various situations while driving.

Therefore they can avail all the regular car insurance plans. However, the cost factor may vary for them considering the following points:

  • Which car do they drive
  • Which part of the country is living in
  • And how much distance they usually cover in a given span of time

These factors have a mild impact on the cost of the insurance that they can discuss with the insurance providing companies. Sometimes agent themselves suggest their customers about ways that can help them in reducing the cost of car insurance.

Senior Citizens

As we age, there are various factors that affect our lifestyle and behavioral patterns. It is sometimes the environmental factors that readily affect our health or sometimes the post-retirement blues are there!

The mental state of people in this group entirely depends on their situation. This reason has been one of the prime factors in increasing the cost of car insurance for people in this age group.

It is not only the mental state sometimes it is the deteriorating health too that may cause the driving discomforts for people in this age group (above 65 years) such as blurring vision, poor coordination in hands and mind known as cognitive abilities, unrest while seating in one position, etc.

Medication is a very usual phenomenon with the people in this age group. Prescription medicines have serious effects on the normal awareness and alertness of people as some of them contain drugs to relax the nerves.

With these factors, our senior citizens are more susceptible to accidents. Therefore they have to pay higher prices for purchasing car insurance. But there is a brighter side too. With their experience of years, abilities and clean driving record they can easily look for some cost-reducing strategies.

If they are in the best of their health and not impacted by the grievances of old age, they can also produce their medical examination certificate. The insurance companies demand a medical certificate to ensure the health condition of the buyer.

It is interesting to know how the age of a human being has a varied effect on the cost of car insurance. The factors that affect the various age groups are detrimental in deciding this variation.

However, there are strategies for every age group that can help in reducing the cost. These strategies can work mostly in 2 conditions:

  • Good health
  • Clean record in the past

If one maintains these two conditions distinctively then they can definitely look forward to the ways of reducing the car insurance through all these ages.

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