Ageism and car insurance

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Don’t like how much you’re paying for car insurance? There’s one surefire way to pay less: Get older. Did you know that people ages 56 and older pay an average of $4,492 less in premiums each year than someone younger than 18?

If you’re wondering how and why your age affects car insurance, compare car insurance rates by age to find out how much the “youth tax” could cost you.

Then, check out how those rates compare to car accident statistics for different ages. After all, the fewer car accidents you have, the less car insurance companies have to charge you to make a profit.

Car insurance costs by age

Age is a top factor that insurers look at when deciding how much you’ll spend on car insurance every year. The reason young people pay more for car insurance is that they’re less experienced and more likely to get involved in a car accident than people older than 26. The good news is that it all gets better with age.

Age	Average car insurance premium
Under 18	$6,932
18-21	$3,858
22-25	$2,819
26-30	$2,555
31-35	$2,541
36-45	$2,592
46-55	$2,465
56+	$2,440

How we got these rates

• 20+ providers available in New York state
• All NY ZIP codes
• Currently insured
• Sedan — 2017 Toyota Camry LE
• State minimum coverage
• Good credit

When do insurance rates go down?

Drivers over 55 pay the lowest annual premiums at an average of $2,440. However, drivers between the ages of 26 and 45 have access to the lowest minimum rates of any group — between $596 and $601 a year.

Those rates vary depending on your insurance company. Our research found that Allstate is cheapest for drivers younger than 21, while Travelers offers most other age groups the cheapest coverage. If you’re planning to add a young driver to your policy, you might be better off with Allstate.

Once you hit 18, you could save a whopping $3,074 on average for a standalone car insurance policy. The bad news is that you’ll still pay about $3,858 a year. Your next price drop for car insurance comes between the ages of 22 and 25, where you’ll save another $1,039 in premiums.

How a driver’s age affects car accidents

Experience combined with driving record tells insurance companies a compelling story about how safe of a driver you are. You’re less likely to get in an accident as you get older since age and experience go hand in hand.

By sheer numbers, 21- to 25-year-olds see the highest number of car accidents, both nonfatal and fatal. This age group averages nearly 1.5 million nonfatal accidents and 5,900 fatal accidents per year. Following, 16- to 20-year-olds see the second-highest number of nonfatal crashes at 1.3 million per year. Meanwhile, for fatal crashes, 26- to 30-year-olds come in second with about 5,000 fatal crashes per year.

We sourced these car accident statistics from the National Highway Traffic Safety Administration (NHTSA), looking at data from 2010 to 2019.

Total car accidents by age

• Drivers in nonfatal car accidents
• Drivers in fatal car accidents
• Table

Speeding-related car accidents by age

As a common theme, 21- to 25-year-olds bring the most speeding-related car accidents of any age group. This age category is followed by 26- to 30-year-olds who also tend to drive above the speed limit.

However, accidents caused by zooming around town decline sharply for drivers over age 35.

• Drivers in nonfatal speeding accidents
• Drivers in fatal speeding accidents
• Table

Drunk driving accidents by age

By no surprise, 21- to 25-year-old drivers cause the most drunk driving fatalities compared to other ages. This group causes 2,187 fatal drunk driving accidents every year.

Coming in at a close second, 1,825 drivers from ages 26 to 30 are involved in deadly drunk driving accidents each year.

However, what’s most surprising is the 9,820 drivers under the legal drinking age who also get into fatal car accidents.

• Graph
• Table

Ages most likely to be without a seatbelt during an accident

It turns out that buckling up isn’t second nature to everyone. Over 47% more 21- to 25-year-old drivers get thrown from their vehicles in nonfatal crashes than any other age. In fatal crashes, over 31% more 21- to 25-year-old drivers get thrown from vehicles over other ages.

Getting ejected from a vehicle can happen when a driver or passenger doesn’t wear a seatbelt. We looked at the number of drivers ejected in this case.

• Graph
• Table

Collision types

Across all collision types, 21- to 25-year-old drivers experience each type of collision the most.

For fatal accidents, collisions that don’t involve other moving vehicles are most common. 21- to 25-year-olds are involved in this fatal crash over 25% more than other ages.

For non-fatal accidents, rear-end collisions are the most common. Here again, 21- to 25-year-olds most often end up in this fender bender.

Thankfully, numbers for all types of accidents start dropping off when drivers turn 36.

• Graph
• Table

• Graph
• Table

Time of day

Contrary to popular belief, most people get into car accidents during the day, especially nonfatal accidents. In fact, drivers across most ages experience nonfatal crashes two to three times more during the day than at night.

However, fatal accidents are a different story. Drivers from ages 16 to 35 get into fatal accidents most often at night. Around age 36 is when the numbers switch to more fatalities during the day versus night.

• Graph
• Table

• Graph
• Table

Day of week

Friday stands as the worst day for car accidents across most age groups. However, on any day of the week, 21- to 25-year-olds see the most car accidents of any age.

The disparity between this group and other ages is the greatest on Saturday. On Saturdays, 21- to 25-year-olds get in an average of 192,000 accidents per year, over 15% more than other ages.

• Graph
• Table

Why older drivers pay less on car insurance

The reason older drivers pay less on average for insurance — leaving younger drivers ages 18 to 22 to pay some 50% more on premiums — comes down to statistics.

According to the Insurance Institute for Highway Safety, drivers between the ages of 16 and 19 are three times more likely to be involved in a fatal accident than those older than 20. Young drivers are also less experienced and more likely to speed.

All of this informs why insurers charge those younger than 18 over 50% more than someone between the ages of 18 and 22. But what can you do to spare your wallet if you’re younger than 18?

How you can save on car insurance

While getting older saves you money on car insurance, cut down on the cost of premiums at any age by comparing your options. And when shopping around for car insurance, keep an eye out for discounts that include:

• Good student
• Pay in full
• Safe driver
• No-claims bonus
• Multiple cars
• Mileage based
• Safety devices
• Homeowner
• Loyalty
• Antitheft