Which group pays the highest auto insurance rate?

Asked by: Mr. Gardner Runolfsson I  |  Last update: May 18, 2025
Score: 4.7/5 (36 votes)

According to the analysis, Black drivers pay, on average, 1.46 times more than white drivers, equating to an average annual premium gap of $326. Hispanic drivers pay 1.20 times more than white drivers, and API (Asian-Pacific Islander) drivers pay the same as white drivers.

What group pays the most for car insurance?

While adult men and women pay about the same amount for car insurance, the gap changes as drivers get older. While all teens pay more for car insurance than older adults, teenage boys pay the most of all.

Which group of people usually pays the highest insurance rates?

Key takeaways. 18-year-old drivers on their own policy pay the highest car insurance premiums out of the age groups Bankrate analyzed. The most significant difference in premiums by gender occurs at age 18. On average, 18-year-old males cost 9 percent less to insure than their female counterparts.

Who pays the highest insurance rates?

Your age – In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. Insurers generally charge more if teenagers or young people below age 25 drive your car.

Which is the most expensive car insurance group?

The Group Rating System categorises each car by an insurance group from 1- 50, with insurance group 1 cars being the cheapest to insure and those in group 50 the most expensive.

Insurance: Top 5 Cheapest & Top 10 Most Expensive Car Brands to Insure

15 related questions found

Which car insurance group is the cheapest?

Typically, group 1 insurance cars are smaller, cheaper models. They can be utilitarian rather than luxury and definitely won't be high-performance. Because of this, they can have some of the cheapest insurance premiums, making them a great bet if you're on a budget.

Who has the most reasonable car insurance rates?

Geico, Nationwide and Travelers are among the least expensive for car insurance.

Does credit score affect car insurance?

How credit-based insurance scores work. Most U.S. insurance companies use credit-based insurance scores along with your driving history, claims history and many other factors to establish eligibility for payment plans and to help determine insurance rates. Again, except in California, Hawaii, and Massachusetts.

How do you lower your car insurance bill?

7 ways to lower your car insurance premium
  1. Qualify for insurance discounts. Getting more discounts that lower your car insurance premium might be easier than you think. ...
  2. Increase your deductible. ...
  3. Reduce your coverage. ...
  4. Compare rates. ...
  5. Try usage-based insurance. ...
  6. Take a defensive driving course. ...
  7. Get a car that's cheaper to insure.

At what age is car insurance most expensive?

The Insurance Institute for Highway Safety reports that teen drivers are four times more likely to get into a car crash than drivers 20 and older. As a result, car insurance companies view young drivers as the most risky to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.

At what age does auto insurance go down?

On average, auto insurance rates for 25-year-olds are cheaper than rates for younger drivers. Auto insurance premiums tend to decrease as you get older, until about age 75.

Which gender pays more car insurance?

On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger. When they are older, women start to pay slightly higher rates.

Why is my car insurance so high with a clean record?

The simple answer is that more factors go into the cost of car insurance than just your driving record. Your age, credit score, location, and more can all potentially influence what you end up paying for car insurance coverage, no matter how clean your driving record is.

Does the age of a driver affect insurance rates?

The most substantial reductions in auto insurance rates typically come as teen drivers get older, usually when they hit 18 or 19 years old. Rates continue to decline as you age, particularly once drivers pass the age of 25.

What company will pay the most for your car?

Cars.com, Carvana, Peddle, and CarMax are some of the best places to sell a car online. Peddle is good for junk cars, Carvana is the most convenient, CarMax offers top value, CarGurus has a strong platform, and Vroom has an easy selling process.

What percentage do auto insurance agents make?

For auto and home policies, captive insurance agents earn about 5% to 10% of the entire premiums paid for the first year, while independent agents receive about 15%. Commission rates for renewals range between 2% and 15%, averaging around 2% to 5%, regardless of the type of agent.

What are 3 factors that lower your cost for car insurance?

Here are some ways to save on car insurance1
  • Increase your deductible.
  • Check for discounts you qualify for.
  • Compare auto insurance quotes.
  • Maintain a good driving record.
  • Participate in a safe driving program.
  • Take a defensive driving course.
  • Explore payment options.
  • Improve your credit score.

At what point should you drop full coverage on your car?

Your vehicle holds a low value: As with collision, consider dropping comprehensive coverage if your vehicle's market value is lower than a few thousand dollars. Figure in your deductible as well and the potential insurance payout may not be worth the price of the coverage.

How to fight auto insurance premium increase?

How to lower car insurance rates
  1. Pay your annual premium in full.
  2. Bundle home and auto insurance.
  3. Take advantage of discounts.
  4. Pay-per-mile car insurance.
  5. Improve your credit score.
  6. Ask for a higher deductible.
  7. Car insurance FAQs.

Does State Farm check credit for car insurance?

Most major car insurance companies like GEICO, Progressive and State Farm factor in your credit score when giving you a quote. Some smaller, regional insurers skip credit checks, though their coverage options (and available online information) can be limited.

What is a good credit score?

For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.

What affects car insurance rates?

Auto insurance premiums reach their low point in a driver's mid-50s before rising for older drivers aged 70-plus.
  • Driving and claims history. This rating factor is straightforward. ...
  • Credit score. ...
  • Location. ...
  • Other personal demographics. ...
  • Coverage levels and deductibles. ...
  • Vehicle type. ...
  • Annual mileage. ...
  • Ownership status.

Who is #1 in auto insurance?

State Farm is the largest auto insurance company in the U.S. based on written premium, or the total amount it bills customers. Progressive is the second-largest car insurance company, followed by Geico and Allstate.

What is the cheapest car insurance for seniors over 60?

Nationwide — the most affordable company for seniors

At $77 a month, Nationwide is the cheapest car insurance company for drivers in their 60s and can cover all of your bases when it comes to coverage.

What is the cheapest car insurance group?

So it's important to understand insurance groups – after all, there are 50 of them in total. Cars in group 1 are the least risky from an underwriter's perspective and the cheapest to insure. Those in group 50 are the riskiest and most expensive – usually higher performance models and luxury SUVs.