How Age Affects Your Car Insurance Rate and What You Can Do About it

When car insurance companies look at your risk profile, they take a number of factors into account. From your driving record, to your coverage amounts, to your credit score, an insurance company wants to get an idea of how likely it is that they will have to pay out on a claim on your behalf.

One of the factors that insurance companies look at when setting premium amounts is your age.

If you want to save money on your insurance premiums, it helps to understand how age affects what you pay.  There might not be a lot you can do about it, since you can’t change your age, but you can compensate for your age.

Let’s take a look at how age affects your car insurance and what you can do about it.

If You’re Young

One of the factors considered in determining your insurance premium is how young you are.  Generally, inexperience is attached to a young age — especially if you are young enough that you are just barely beginning to drive.

When you combine age with other factors, such as gender, there can be even bigger problems.  The base cost of insuring my younger brothers when they began driving was higher than the cost of insuring me.

In any case, male or female, the cost of inexperience is a higher insurance premium.

Age and your auto insurance

You age has a major impact on your car insurance costs.

It is possible to offset some of those costs, though.  My parents had a multi-car discount, and when I first married, my husband and I got life and rental insurance through the same company that provided our auto insurance coverage, enjoying a tri-line discount.

Another strategy is to get a good student discount.  Many car insurance companies offer discounts to young drivers who get good grades in high school and college.

This show of responsibility can sometimes result in changing the risk score of a young and inexperienced driver.

Make sure you take advantage of driver safety/defensive driver courses as well.

If You’re a Senior Citizen

As humans age, we see our abilities affected.  Hand-eye coordination is reduced, reaction time slows, and ailments can affect hearing and vision.  These are all changes that can affect the way we drive.

Senior citizens are, therefore, considered to be at a greater risk of getting in an accident.  As a result, you might find an increase in your auto insurance premiums as you advance in age.  It’s important to stay on top of these changes.

It’s a little more difficult to offset some of the premium increases that can come with an older age, but it is possible to get discounts for multiple cars, and tri-line (homeowners and life along with auto) policies.  In some cases, you might be able to get a little lower rate by passing a driving test every couple of years, and by making sure you that you keep up to date with your physicals, and that you wear hearing aids and corrective lenses that are up to scratch in order to keep the senses you use for driving relatively keen.

If you are retired, you may be able to get a discount because you aren’t driving your car to work every day (if you drove to work, that is).

Make sure you check with your insurer about discounts for being in professional organizations and alumni groups.  Being a member of AARP can yield you discounts as well.

Just as with younger drivers, defensive driver/safety courses can also help lower insurance costs.  These courses usually only last a few years so make sure you take another course as needed.

Bottom Line

Insurance companies care about your age.  While age might not be the biggest factor in determining your car insurance premiums, it still makes a difference.

It is worth it to consider your age if you need car insurance, and look for discounts that can help offset higher premiums.

What other ways can you reduce car insurance costs due to age?

You could save 15% or more on car insurance by switching to GEICO.

Free Newsletter to Keep you Free From Broke!Name: Email: We respect your email privacyPowered by AWeber email marketing
Published or updated November 5, 2012.


  1. Tony @ Investorz Blog says:

    I know that car insurance companies are really considered about teenagers because they tend to get into accidents.
    That’s why I advise kids not to drive when they’re young because
    a) the insurance is really expensive
    b) there’s a big chance to get into a crash. You wouldn’t want to risk your life, right?

  2. There classes you can take as a senior to offset the increase and perhaps even earn a discount. It is a safe driver course. The car choice also affects your insurance costs too.

What Do You Think?