Why do men under 25 pay more for car insurance?

Asked by: Prof. Elna O'Hara DDS  |  Last update: May 17, 2025
Score: 4.3/5 (35 votes)

Age is one of the most important factors in determining your car insurance rate. This may seem unfair because there are good drivers in every age group, but younger drivers are generally more likely to have accidents or take risks on the road.

Why do males under 25 pay more for car insurance?

Gender: Statistically speaking, men are more likely to get into an accident than women; thus, male drivers often pay slightly more for insurance than female drivers.

Why do guys have to pay more for car insurance?

Why do insurance providers charge men more? While the practice of setting rates based on gender raises questions of discrimination, data from the IIHS supports insurers' positions that males are a higher risk on the road. Fatal accident rates among men are much higher than among women.

Is car insurance more expensive for under 25?

States Where Age Does Not Affect Rates

Although most people in the U.S. will find their prices change according to this timeline, there are a few states in which insurers can't use age to determine your rate. In California, Hawaii, and Massachusetts, age won't have a direct effect on how much you pay for car insurance.

Why is insurance so high for a 20-year-old?

Insurance is about assessing risk. Young drivers have less experience, which puts them in a higher class of risk for insurers. As a result, car insurance rates for a 20-year-old are higher than those for a more experienced driver, though a 20-year-old driver is still less expensive to insure than a teen.

Why Do Men Pay More for Auto Insurance? : Auto Insurance FAQs

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At what age is insurance most expensive?

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.

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 can I lower my insurance under 25?

How to get the best car insurance rate for teens and new drivers under 25
  1. Add your teen or new driver to an existing policy. ...
  2. Choose a higher deductible. ...
  3. Check for Good Student discounts. ...
  4. Check for multi-policy discounts. ...
  5. Provide documentation of driving school or a defensive driving course. ...
  6. Always drive safe.

Can I stay on my parents' car insurance after 26?

There is no age limit that prevents you from staying on your parents' car insurance policy as a listed driver, as long as you live at home or if you're a full-time college student.

How much is insurance for a 26 year old?

How much does health insurance cost for a 26-year-old? A Silver health insurance plan through the marketplace costs an average of $468 a month for a 26-year-old. You may qualify for ACA subsidies if you earn between $14,580 and $58,320 a year ($30,000 and $120,000 for a family of four).

Is it legal to charge men more for car insurance?

Some states don't permit gender to impact insurance rates

There are a few states that explicitly forbid insurance companies from considering gender when it comes to insurance rates. Those states are: California.

What age does car insurance go down?

Both male and female drivers see the biggest drop in average annual car insurance premiums between the ages of 18 and 19. This is because younger drivers are seen by most auto insurance companies as riskier to insure due to their overall inexperience behind the wheel.

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.

How long do accidents stay on your record?

In the state of California, most vehicle accidents will stay on your record for around 3 years. However, more serious traffic violations will follow you for longer. For example, a DUI conviction will stay on your record for 10 years.

Do married couples pay more for car insurance?

Does being married get me better car insurance rates? Yes, married couples typically pay lower premiums than single people. In general, insurance companies view married people as financially stable and safer drivers. That can mean fewer accidents and claims.

Are you automatically kicked off insurance at 26?

If you're covered by a parent's job-based plan, your coverage usually ends when you turn 26. But check with the employer or plan. Some states and plans have different rules. If you're on a parent's Marketplace plan, you can remain covered through December 31 of the year you turn 26 (or the age permitted in your state).

Should I put my adult child on my car insurance?

According to Lynch, a child living at home or going away to college or graduate school will be allowed to remain on their parents auto policy with no additional fees until age 24, unless he or she has purchased a separate insurance policy.

What age are you kicked off car insurance?

Unlike health insurance, which can have an age limit of 26, you can stay on your parent's car insurance policy indefinitely if you live in the same house. Now, if you move out, you'll probably need your own.

Why is car insurance so expensive under 25?

Drivers under 25 have less driving experience than older, more experienced drivers. To compensate for the increased risk of causing an accident, car insurance companies typically charge a higher rate for recently licensed drivers.

How can I lower my son's car insurance?

Fortunately, parents and teens can keep the rate as low as possible with these tips.
  1. Qualify for the Good Student Discount. Teenage drivers' grade point average will impact their insurance rates. ...
  2. Sign up for Steer Clear. ...
  3. Insure the right vehicle. ...
  4. Give teen drivers experience. ...
  5. Drive Safe and Save.

How much is full coverage insurance under 25?

Drivers younger than 25 pay an average of $258 per month for full-coverage insurance and $127 per month for liability-only insurance. Despite the expensive average premiums, plenty of insurers offer more affordable rates.

Does State Farm run your credit?

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.

Does paying rent build credit?

Your payment history is the most important factor in determining your FICO® Score , the score used by 90% of top lenders, so having rent payments reported to the credit bureaus can have a significant positive impact on your credit profile.

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.