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  • Writer's pictureJay A. Hines

Breaking Down Ageism in Car Insurance: How Your Age Affects Your Premium

As we age, our car insurance premiums tend to increase. While this may seem like a straightforward correlation, there is often more at play than simply the number of candles on our birthday cake. In this article, we will explore the ways in which age impacts car insurance rates, including age-based pricing models, legal considerations, and statistics on ageism in car insurance. We will also discuss ways to combat ageism and reduce car insurance rates as you age.

Introduction to Ageism in Car Insurance

Ageism is defined as discrimination based on age, and it is a pervasive issue in many industries, including car insurance. In the world of car insurance, ageism manifests in the form of higher premiums for older drivers. While this may seem like a logical pricing model at first glance, there are many factors at play that impact car insurance rates beyond age.

How Age Affects Car Insurance Premiums

Age is just one of many factors that car insurance companies take into consideration when determining premiums. Younger drivers are often charged more due to their lack of experience on the road, while older drivers may be charged more due to declining vision, slower reflexes, and other age-related factors.

However, it is important to note that not all older drivers are high-risk, just as not all younger drivers are low-risk. Insurance companies must strike a balance between charging fair premiums based on risk and avoiding age discrimination.

Age-Based Car Insurance Pricing Models

Age-based pricing models are commonly used in the car insurance industry. These models typically charge higher premiums for younger and older drivers, with the assumption that these age groups are higher risk. However, these models have come under fire for perpetuating ageism and discrimination.

Some insurance companies are moving away from age-based pricing models and instead using driving behavior and other risk factors to determine premiums. This allows for a more individualized approach to car insurance pricing, rather than relying solely on age as a determining factor.

Statistics on Ageism in Car Insurance

Statistics show that ageism is a real issue in the car insurance industry. According to a 2017 study by the Consumer Federation of America, drivers aged 75 and older pay an average of $433 more for car insurance than drivers aged 25 to 74. This is despite the fact that older drivers are statistically less likely to get into accidents than younger drivers.

Additionally, the study found that some insurance companies charge significantly higher premiums for older drivers, with some companies charging up to 300% more for drivers aged 75 and older.

Legal Implications of Age-Based Pricing

Age-based pricing in car insurance may also have legal implications. In some cases, age-based pricing may be considered discriminatory and in violation of anti-discrimination laws.

In 2018, the California Department of Insurance reached a settlement with Farmers Insurance over allegations of age discrimination. The settlement required Farmers Insurance to pay $225,000 and change its pricing practices to eliminate age as a determining factor in premiums.

Ways to Combat Ageism in Car Insurance

There are a few ways that drivers can combat ageism in car insurance. One way is to shop around for car insurance and compare pricing from multiple providers. This allows you to find a provider that offers fair pricing based on your individual risk factors, rather than relying solely on age.

Another way to combat ageism is to take advantage of discounts for senior drivers. Many insurance companies offer discounts for drivers over a certain age who have completed defensive driving courses or have a safe driving record.

Factors That Impact Car Insurance Rates Beyond Age

While age is an important factor in car insurance pricing, there are many other factors that impact rates as well. These factors include driving record, type of car, location, and more. Drivers can reduce their insurance rates by maintaining a clean driving record, choosing a safe and reliable car, and living in a low-risk area.

Insurance Discounts for Senior Drivers

Many insurance companies offer discounts for senior drivers, as these drivers are often considered low-risk due to their experience on the road. These discounts may be available to drivers over a certain age who have completed defensive driving courses or have a safe driving record.

It is important to note that these discounts may vary by state and insurance provider, so it is important to check with your specific provider to see what discounts are available.

Tips for Reducing Car Insurance Rates as You Age

As you age, there are a few tips you can follow to reduce your car insurance rates. One tip is to maintain a clean driving record. This means avoiding accidents and traffic violations, as these can raise your insurance rates.

Another tip is to choose a safe and reliable car. Vehicles with high safety ratings and low theft rates are often charged lower insurance rates. Additionally, living in a low-risk area can also help reduce insurance rates.


Ageism is a real issue in the car insurance industry, but there are ways to combat it. By shopping around for car insurance, taking advantage of senior driver discounts, and following tips for reducing insurance rates, drivers can ensure they are paying fair prices for their coverage. Additionally, as insurance companies move away from age-based pricing models and towards more individualized pricing based on risk factors, ageism in car insurance may become less of an issue.

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