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Age may be just a number in many people’s eyes, but in the eyes of your insurance provider, it’s critical. And, when it comes to car insurance, it has a direct bearing on the price of your premiums. So how does your age affect the cost of your car insurance?

Crisis? What crisis? Car insurance is cheapest midlife

Well, there are some benefits to growing older, and paying cheaper car insurance premiums is one of them!

The age group that gets the best car insurance deals are the 30- to 60-year-olds.

The decades between 30 and 60 seem to hit the sweet spot – having lots of driving experience, but without the risks that come from failing eyesight and other health issues associated with subsequent decades. 

Blame the slowing reflexes that can have a negative effect on driver response times because, after 60, the premiums start to creep back up again, depending on your insurer, although many insurance providers do target seniors specifically – and that can mean some good deals, especially if your driving record is squeaky clean.

Young drivers pay for inexperience

The award for the highest premiums goes to young male drivers under the age of 25.

They pay the most because, statistically, they have the most accidents. Without years of experience (and with the impetuousness of youth?), they are more likely to make a mistake behind the wheel and be involved in a crash.

Lack of on-the-road experience is just one contributing factor that makes a difference to premiums, though.

With younger people more likely to live in high-density apartment complexes in inner-city neighbourhoods, risk of theft also increases premium prices.

How does gender affect car insurance premiums?

Have you ever had an argument about who is the better driver – men or women – and you said men? Turns out you really are wrong (well, generally speaking …) and the car insurance data doesn’t lie. 

It’s one of the rare times that the gender pay gap swings in favour of females but when it comes to Australian car insurance premiums, the difference can be marginal, depending on your provider.

Some calculations claim that, over their lifetime, men will pay an average of 6% more for full coverage car insurance, with men under the age of 21 paying an average of 10% more, before the gap shrinks later in life, when men pay around 1% less than women until the age of 50. The impact of so-called baby brain, perhaps?

Premiums vary across states and territories

To give you a clearer picture of how age changes what you pay for car insurance, take a look at this snapshot of car insurance average annual premiums in South Australia in 2022:

But once you start to age, prices rise again – and if you’re still driving when you’re 80+, you can expect to have premiums that cost more than they did when you were under 25.

The bottom line

No matter what age you are, there is usually always a better deal – unless you already have the very best! Shop around – and drive safely! Aside from your age, your driving record is one of the best ways you can help your bargaining power when it comes to the search for more affordable car insurance.

Go deeper: Does your car insurance cover your kids to drive?

Financial disclaimer

The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.