Car Insurance Is Cheapest When You Reach This Age Bracket

For many drivers, auto insurance feels like a financial expense they have to endure, especially in states where car insurance rates are rising the fastest. These rates vary across different age groups and usually rise and fall depending on which group you fall into. Younger drivers are at the priciest end of the line and have to pay the highest premiums because inexperience is seen as a risk that informs insurance rates.

Over the years, a driver's driving record, claims history, and general life stability start working in their favor, especially in their late 20s. While some cars are cheaper to insure than others, some adults yield higher premiums than their neighbors. Someone in their early 20s could pay thousands more per year than someone in their early 30s. And while those age-based differences tend to get smaller the older you get, premiums usually continue to decrease until a driver hits their late 60s. It's around that point when rates tend to hit their absolute bottom before beginning to rise again in the mid-70s, when drivers become statistically more of a liability on the road.

Middle-aged drivers often assume they're at the top of the discount ladder, and compared to teens or 20-somethings, they are. But zooming out, despite the fact that insurance rates are climbing at a staggering pace, drivers aged 65 to 74 pay some of the lowest average premiums in the country. For example, Progressive reports they pay an average of $122.26 per month. A lot goes into getting a premium this low, such as a good driving records and access to more discounts.

However, this is only the beginning of the decline, not the final stop. Over the years, auto insurance premiums can drop in response to factors like how much someone drives or where they live. In some cases, the rates can actually climb up for older drivers who add a teenager to their policy. Adding an older parent to your policy can also impact your rates positively or negatively, depending on their driving record.

Safe driving programs and long-term policy holder status also contribute to the late-life dip in premiums. But no matter how many ways you find to decrease your rate, premiums do start to climb upward again in the mid-70s to better account for age-related factors like slowed reaction times, changes in vision, and cognitive decline. The earlier drop in cost toward the late 60s is a way to reward experience, consistency, and caution. During those years, insurers have the clearest and longest view of your behavior on the road.