Best Car Insurance for 40-Year-Olds

Drivers in their 40s enjoy relatively affordable car insurance. Learn how to find a cheap policy.

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Car insurance rates in your 40s: how much should you pay?

Casting aside your 30s for your 40s can be a momentous change, sometimes accompanied by shifts in family life, income level, and living situation. As these changes occur, your relationship with your insurance company may shift, as well. For the most part, drivers in their 40s enjoy relatively affordable auto insurance premiums based on their years of experience behind the wheel and safe driving habits. In fact, drivers typically earn a discount of $25 per year on auto insurance just by celebrating their 40th birthday — with a similar discount each year of the decade.

Here's how insurance rates in the 40s stack up against other age brackets:

 

AVERAGE AUTO INSURANCE RATES BY AGE
Age BracketAverage Annual Auto Insurance Cost
16-19$5,023
20-29$1,989
30-39$1,532
40-49$1,474
50-59$1,365
60-69$1,384
70-79$1,611
80-89$1,880

 

Getting married, buying a bigger home, adding a teen driver to your car insurance, or even purchasing additional lines of insurance coverage can have important — and costly — insurance consequences. So, let’s get to it: this is the comprehensive guide to auto insurance in your 40s.

 


 

What's the cheapest car insurance for drivers in their 40s?

Using a methodology outlined here, USAA is the cheapest car insurance company for drivers aged between 40 and 49. USAA's auto insurance policies cost $700 less than the group average, at an average annual premium of $1,185. That compares favorably to more expensive companies' higher premiums — see the data below.

 

Insurance CompanyAverage Cost of Insurance: 40-year-old Driver
Allstate$2,410
Farmers$1,981
GEICO$1,665
Liberty Mutual$2,171
Nationwide$1,257
Progressive$2,268
State Farm$2,308
USAA$1,185

 

If you do not qualify for coverage through USAA, Nationwide could be your next-cheapest option. At $1,257, Nationwide charges an average rate of $629 for a standard six-month policy — just $105 per month.

 

 


 

How does car insurance change when you turn 40?

A few frequent 40-something life changes could necessitate insurance policy alterations. Check out below a few of the most common situations and how to deal with the insurance ramifications.

 

Marriage

You might be surprised to learn getting married can affect the cost of car insurance — in a good way. To an insurance company, a married individual seems less risky than a single, divorced, or widowed driver. This is because a married driver is statistically less likely to file a claim and more likely to share driving responsibilities with their partner. On average, when a single person gets married, their insurance premium drops by about 5.6% — or $74 per year.

 

NATIONAL AVERAGE ANNUAL AUTO INSURANCE RATE BY MARITAL STATUS
Martial StatusCar Insurance Premium
Single$1,548
Married$1,450
Divorced$1,545
Widowed$1,501

 

Homeownership 

Taking the plunge and purchasing a home might seem scary, but you can take solace in the savings you’ll receive from your insurance company. Homeowners pay slightly less for car insurance than renters for several reasons:

  • Homeowners and car insurance policies can be bundled, leading to cost savings via a coveted multi-policy discount.
  • Insurance companies see homeowners as financially stable and less likely to file a claim than renters. Much like marriage, homeownership makes you look less risky to your car insurance company.

 

ANNUAL AVERAGE CAR INSURANCE COST — BY HOMEOWNER STATUS
RenterHomeownerDifference
$1,548$1,515$33

 

Insuring kids behind the wheel

If you have children of driving age, you might need to add them to your insurance policy. This isn't cheap. Among 16- to 80-year-olds, 16-year-olds pay the most for car insurance, at $6,633 per year. This figure, while high, is the rate for a 16-year-old driver with their own auto policy. The more cost-effective option is to add your child to your policy (it will still cost a pretty penny). 

As a 40-something driver who owns a home and is married, you make for a stable, low-risk auto insurance customer. But a newly-licensed 16-year-old poses an entirely different set of risks than does an older driver. Statistically speaking, a teenage driver is more likely to be involved in a collision or receive a citation, equating to more likely claims payouts for an insurance company.

 

AVERAGE PREMIUMS — SHARED POLICY WITH TEENAGE DRIVER
AgePremium
16$2,617
17$2,485
18$2,315
19$2,037

 

 


 

How to save on car insurance in your 40s (if you have a young driver on your policy)

 

Good student discount

If your driver has the grades (typically a minimum 3.0 GPA), you might want to consider a "good student" discount intended for younger drivers. Your insurance company would require proof, such as a transcript provided every policy period. 

 

Defensive driver discount

Another option is what’s called a defensive driver discount. Young drivers who have taken a professional driving course are less likely to receive a citation or get into an accident. The exact requirements and specifications for this discount vary. Consult your insurance agent for details.

GOOD STUDENT/DEFENSIVE DRIVING DISCOUNTS
AgeMaleFemale
16$439$248
17$348$222
18$338$197
19$278$160

 

Keeping a clean driving record

Because teens are more likely to run into trouble on the road, it is imperative for your insurance rate — and everyone's well-being — to steer clear of trouble. Texting while driving, speeding, or being in an at-fault accident can seriously affect your premium. In a state-by-state breakdown, DUIs, and racing (the costliest citations) raise insurance premiums by at least 40%. Moreover, most insurance companies offer a good driver discount which is dependent on a clean driving record.

AVERAGE PREMIUM INCREASE BY VIOLATION IN 2018
Accident/ViolationPremium Increase
Racing$1,131
DUI$1,099
Driving with Suspended License$1,043
Reckless Driving$1,038
At-Fault Collision - greater than $2,000$767
At-Fault Collision - $1,000-$2,000$686
Speeding - 21-25 MPH over limit$460
At-Fault Collision - less than $1,000$456
Speeding - 16-20 MPH over limit$385
Speeding - 11-15 MPH over limit$337
Speeding - 6-10 MPH over limit$320

 

 

Insuring your teen separately

If you are less concerned about the price and more about your teenage driver affecting your policy, you may consider getting a separate policy. Any accident, ticket, or claim would fall on their policy and thus only affect their rate. This might not be possible with every insurance company: some may require any driver living at a residence to be listed on the same policy.

 

Umbrella policy

Consider additional coverage in the form of umbrella insurance. Your umbrella policy acts like it’s namesake, creating a coverage roof over you, your family, and your assets in the event you are found legally liable for damages caused in an incident.

An umbrella policy provides coverage in several ways. It extends the additional liability coverage for your homeowners, auto, and other lines of insurance which apply after the policy limits have exhausted themselves. For example, you or your teenager cause an auto accident and it causes $300,000 in bodily injury damages. In the event your auto policy has a maximum limit of $150,000, your umbrella policy would cover the remaining half.

An umbrella policy furnishes liability coverage in a few areas usually excluded from typical liability coverage, including false arrest, libel, slander, and some liability coverage on a rental you own. In terms of how much of umbrella insurance you should receive, it is recommended the coverage amount should be equal to your combined household income. An additional bonus of adding an umbrella policy is that if you purchase it with the same company as your auto or homeowners policy, you can receive a bundling discount.

 

 


 

Learn more

Your 40s are one of the cheapest decades for car insurance rates. You're entering a phase of your life where you're financially stable, a safe driver, and adding more lines of insurance all of which equates to a profitable investment to an insurance company.

 

Because your appeal to auto insurance companies nears its peak in your 40s, stay on the lookout for ways to save. The best way to save on auto insurance, no matter your age, is to compare rates every six months.

 

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