Best Car Insurance for 40 year olds

Find Fantastic Coverage for your Fabulous Forties

What is car insurance at 40?


Casting aside your dirty 30s for your fabulous 40s reflects a momentous change in your own authority, responsibility, and personal growth. You’re starting to get past this idea of a “mid-life crisis” and are content to simply live your life as, well, a fabulous 40-something. With this perspective shift, your relationship with your insurance company will also most likely change as well. Getting married, buying a bigger home, adding a teen driver to your car insurance, and even adding some additional lines of coverage will have some important insurance ramifications. So, let’s get to it: this is your insurance guide for your 40s.





Cheapest car insurance companies for 40-year-olds


using a methodology outlined here, we can see that USAA is the cheapest car insurance company for drivers between the ages of 40-49. USAA is over $700 cheaper than the total group average with an annual premium of $1,185.


InsurerAverage Premium for 40-year-olds
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 USAA, Nationwide will be your next cheapest option. At $1,257, Nationwide will cost an average of $629 for a standard 6-month policy or $105 per month.





How your policy changes


Getting married

You might be surprised to learn that getting married can affect your car insurance premium—in a good way. To an insurance company, a married individual appears less risky than a single, divorced, or widowed person. This is because a married person 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/year.


NATIONAL AVERAGE ANNUAL INSURANCE BY MARITAL STATUS
Martial StatusCar Insurance Premium
Single$1,323
Married$1,249
Divorced$1,320
Widowed$1,297


Buying a house

Taking the plunge into homeownership might seem scary, but you might find some comfort in the savings you’ll receive from your insurance company. We found that homeowners pay around $110/year less for car insurance than renters for a couple of reasons. One, we’re factoring the idea of bundling your homeowners and car insurance policies. This will not only give you a much-coveted multi-policy/bundle discount but also it allows you to have all your insurance eggs in one basket, respectively. Likewise, insurance companies look at homeowners as more financially stable and thus less likely to file a claim than renters. Just like getting married, buying a home allows you to appear to your insurance company as a more stable client in terms of risk.


NATIONAL AVERAGE ANNUAL INSURANCE HOMEOWNER STATUS
RenterHomeownerDifference
$1,323$1,181$142


Getting your kids insured

If you have children and they are old enough to drive, you might find yourself adding them as a driver to your insurance policy—which, you’ll learn, is very expensive. Among 16 to 80-year-olds, 16-year-olds pay the most for car insurance (all other measures constant) at $6,491 per year in 2016. This figure, while high, is considering if the 16-year-old is entirely on their own policy. Adding a teenage driver to your policy, however, can still raise your premium by thousands of dollars.

As a 40-something driver who owns a home and is married, you appear to your insurance company as a stable and low-risk customer. But your newly licensed 16-year-old provides an entirely new set of risks. Statistically speaking, your teenage driver is more likely to be in an accident or receive a citation—all of which equates to a high likelihood of a claims payout for your insurance company.


AVERAGE PREMIUM WITH TEEN ON POLICY
AgePremium
16$2,617
17$2,485
18$2,315
19$2,037




What are some ways you can save?


Good student discount

If your driver has the grades (typically a minimum 3.0 GPA), you might want to consider the "good student" discount. Your insurance company would require proof, such as a transcript every policy period. Below are some estimates of the Good Student Discount and the Good Driver (explained below).


Savings for Good Student and Defensive Discount

AgeMaleFemale
16$439$248
17$348$222
18$338$197
19$278$160


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, so consult your insurance company for details!



Keeping a clean driving record

Because teens are already more likely to be in an accident or get a citation, it is imperative for your insurance rate (and really, their safety) to keep out 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 (on average the most expensive 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
DUI$1,051
Racing$1,009
Reckless Driving$938
Driving with a suspended license$630
At-Fault Accident - Greater Than $2000$538
At-Fault Accident - $1000-$2000$278
Speeding 16 - 20 MPH Over Limit$230
Speeding 21 - 25 MPH Over Limit$227
Speeding 11 - 15 MPH Over Limit$191
Speeding 6 - 10 MPH Over Limit$147
At-Fault Accident - Less Than $1000$94


Getting them their own policy

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, however, might not be possible for every insurance company as some will require anyone living in the residence to be on the same policy.



Umbrella policy

In keeping with this idea of adding a teenage driver, you may want to consider some additional coverage in the form of umbrella insurance. Your umbrella policy acts like it’s namesake; it creates an overarching roof over you, your family, and your assets in the event you are found legally liable for damages.

An umbrella policy can cover you in a couple of ways you might find useful. 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.

Furthermore, your umbrella will provide liability coverage in a few other areas that are usually excluded from typical liability coverage. Namely, 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 (or both), you can receive a bundling discount.





Additional Resources


After your 50s, your 40s will be the time you will statistically pay the least amount for car insurance. 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 companies in this industry is so high, you should always consider the fact you could be getting a better deal elsewhere. It is for this reason exactly, we recommend shopping for car insurance every 6 months.



Compare over 200 insurance companies at once!




Additional Resources:

Best Car Insurance for 40 year olds

What is the State of Auto Insurance in 2018?
What is the State of Auto Insurance in 2018?
Feb 06, 2018

Well, we’ve done it again. We’ve gone and gotten super curious about how car insurance is impacting the 250 million...

What Happens if You Crash a Zipcar?
What Happens if You Crash a Zipcar?
Jan 09, 2018

Car sharing services like Zipcar and Car2Go allow city dwellers to forego car ownership without losing all of the perks....

What I Learned After Totaling My Car 450 Miles from Home
What I Learned After Totaling My Car 450 Miles from Home
Jan 03, 2018

This past May, I took a road trip from Rhode Island to West Virginia to attend a friend’s wedding. Despite...

Do Keyless Ignitions Actually Put Your Car – and Your Life – at Higher Risk?
Do Keyless Ignitions Actually Put Your Car – and Your Life – at Higher Risk?
Dec 14, 2017

No broken windows. No lengthy process of wedging the door open. No hotwiring, no alarm, no concerned passerby dialing 911....

How to File a Car Insurance Claim: Steps, Timing, and Costs to Expect
How to File a Car Insurance Claim: Steps, Timing, and Costs to Expect
Dec 01, 2017

You get in an accident or your car is pummeled with hail. You need to figure out how to get...

Survey: Americans in the Dark about Car Insurance
Survey: Americans in the Dark about Car Insurance
Oct 24, 2017

“What you don’t know can’t hurt you…” … is an entirely false statement in the world of auto insurance. Car...

Introducing the Insurability Score: Your Insurance Risk Decoder
Introducing the Insurability Score: Your Insurance Risk Decoder
Oct 24, 2017

Today, The Zebra debuted the Insurability Score™, a personalized calculation which reveals to drivers what is affecting their insurance risk,...

6 Things to Know Before You Get Car Insurance
6 Things to Know Before You Get Car Insurance
Oct 04, 2017

Let’s get one thing out there. No one is especially psyched to get car insurance. You get it because it’s...

Editorial: A Need for Optionality in Insurance
Editorial: A Need for Optionality in Insurance
Sep 19, 2017

Today The Zebra announced that we closed a record-breaking $40 million Series B funding round, led by Accel Partners. As...

Car Warranty vs. Insurance: Which You Need and When
Car Warranty vs. Insurance: Which You Need and When
Sep 07, 2017

Anyone who has ever owned a “lemon” (a car that’s a dud) knows how stressful and costly car repairs can...

Religious Exemptions for Car Insurance: Are They Legal?
Religious Exemptions for Car Insurance: Are They Legal?
Aug 09, 2017

In nearly every conceivable scenario, if you’re driving around in a motor vehicle, there is no reason why you should...

Does Your Car Insurance Policy Cover Flooding?
Does Your Car Insurance Policy Cover Flooding?
Aug 07, 2017

If you don’t live in a flood plain, making sure your car insurance covers flood damage might be low on...

Can Your Bank Force You to Get Car Insurance?
Can Your Bank Force You to Get Car Insurance?
Aug 03, 2017

Wells Fargo is now finding themselves in hot water over the recent reports that they charged over 570,000 customers for...

How to Update Your Driver’s License When You Move to a New State
How to Update Your Driver’s License When You Move to a New State
Jul 28, 2017

Moving to a new state can be an exciting adventure. As with most moves, it requires a bit of paperwork...

When Can You Let Your Friend Drive Your Car (and When Shouldn’t You)?
When Can You Let Your Friend Drive Your Car (and When Shouldn’t You)?
Jul 26, 2017

It’s not uncommon for your friend to share your clothes, your skillet, or your favorite movie. And for those types...

Does Your Credit Score Affect Your Car Insurance Rate?
Does Your Credit Score Affect Your Car Insurance Rate?
Jul 19, 2017

You know you need good credit to take out a loan, a mortgage, or your friend with expensive taste. But...

What Are Your Options When Your Car Lease Ends?
What Are Your Options When Your Car Lease Ends?
Jul 17, 2017

Of course there are many reasons you might want to lease your car. Perhaps you like the idea of driving...

How Do Car Insurance Companies Determine Rates?
How Do Car Insurance Companies Determine Rates?
Jun 15, 2017

If you’re one of the 250 million drivers in the United States, you’re required by law to have car insurance....

CLUE Report: Why Does it Matter for Your Home and Auto Insurance?
CLUE Report: Why Does it Matter for Your Home and Auto Insurance?
Jun 06, 2017

When searching for an insurance policy, it’s important for consumers to do their due diligence and compare quotes before choosing...

Car Insurance for Seniors
Car Insurance for Seniors
May 26, 2017

Some senior stats for you: By 2030, one in five Americans will be over 65. The first of the baby...

Digital Insurance Cards: Which States Accept Them?
Digital Insurance Cards: Which States Accept Them?
May 19, 2017

You probably already take care of your banking errands on your phone (thanks, mobile check deposits!). You may have shown...

6 Reasons to Leave Your Car Insurance Company
6 Reasons to Leave Your Car Insurance Company
May 05, 2017

You might be familiar with a few scenarios that could make your auto insurance rates change: You bought a new...

5 Tips to Consider Before Financing Your Car
5 Tips to Consider Before Financing Your Car
Apr 21, 2017

Buying a new (or new-to-you) car can be an overwhelming process. First, you need to research all your options to...

7 Car Rental Mistakes That Could Cost You
7 Car Rental Mistakes That Could Cost You
Apr 11, 2017

Rental cars offer tremendous convenience. Whether you need a vehicle to help you explore a vacation destination or get you...

Car Insurance for First-Time Drivers: 6 Things You Should Know
Car Insurance for First-Time Drivers: 6 Things You Should Know
Apr 03, 2017

A driver’s license is more than just permission to take to the open road. To many, including first-time drivers, it...