How state laws impact auto insurance rates
In the U.S., each state has its own unique set of laws that govern car insurance, and these laws can significantly impact the rates drivers pay. The laws determine minimum coverage requirements, meaning some states may require more insurance, raising the cost.
Some states have “no-fault” laws, where each person’s insurance covers their injuries, regardless of fault, often leading to higher rates. The rules around teen driving, penalties for not having insurance and requirements based on weather and road conditions also play a role. Even the use of credit scores in determining rates varies by state. These state-specific laws create variations in insurance costs, making it essential to understand your state’s regulations to find the best policy for your needs.
Compare auto insurance quotes by age
Car insurance rates for drivers between 30 and 60 are the lowest because they are generally considered the safest age group. Drivers in this age range pay an average of 11% less per year for car insurance than 25-year-olds. The difference in rates is even smaller for drivers between 30 and 60, with a 60-year-old only paying $108 less per year than a 30-year-old.
Comparing car insurance quotes for teen drivers
Teen drivers are a high-risk group for insurance companies. They have the highest crash rates of any age group, and they are more likely to be involved in accidents that result in serious injuries or death. As a result, auto insurance companies charge teen drivers significantly higher rates than older drivers. open_in_new
For example, a typical 25-year-old is charged 62% less for car insurance than a typical 18-year-old. This is because insurance companies know that 18-year-olds are more likely to make risky driving decisions, such as speeding, driving under the influence of alcohol or drugs or not wearing a seatbelt.
Teen drivers can save money on car insurance by being added to a policy with a parent open_in_new or guardian. This is because insurance companies view teen drivers as a higher risk than older drivers, and they charge them higher rates as a result. However, when teen drivers are added to a policy with a more experienced driver, their rates are typically lower.
There are a few things to keep in mind when adding a teen driver to your car insurance policy. First, make sure to compare rates from multiple companies. Second, see if any companies offer discounts for families with teens who maintain good grades or complete an approved driver education course. Finally, be sure to keep your teen’s driving record clean, as even one at-fault accident can significantly increase your rates.
Other companies that offer cheap car insurance to 18-year-olds open_in_new and other teen drivers: American Family, GEICO, Erie and Mercury. Erie is only available in 12 states (plus the District of Columbia), though, and Mercury in 11 states.
Comparing car insurance rates for senior drivers
Senior citizens typically pay higher car insurance rates open_in_new than middle-aged drivers. This is because insurance companies view senior citizens as a higher risk than middle-aged drivers, due to factors such as slower reflexes, decreased vision and increased medical conditions.
The increase in rates is gradual, with a 65-year-old driver only paying 2% more for car insurance than a 60-year-old. However, the rate increase becomes more significant as drivers age. A 75-year-old driver pays 22% more for car insurance than a 60-year-old.
American Family and Progressive are also affordable options for seniors, with average monthly rates of $68 and $78, respectively.
Cheapest insurance companies for 65-year-old drivers Company Average annual rate 
State Farm $799 
American Family $814 
Progressive $933 
GEICO $1,040 
Nationwide $1,106 
Travelers $1,267 
Allstate $1,357 
Farmers $1,421 
USAA* $529 Rates are for minimum-coverage car insurance for a 65-year-old male with a good driving record.*USAA is only available to current and former members of the military and their families.
