The cost of driving can vary significantly throughout life. When you first get your license, you’re likely to be grateful to get any car with four wheels and a working engine. But as you age, earn more and potentially start to grow a family, things will inevitably change. You may need a different car with a great focus on safety. And the amount you pay for auto insurance premiums will also fluctuate throughout the years, especially when compared with the size of your salary.
We looked at multiple data points to find how driving costs change as drivers age:
- Average annual auto insurance premium (from the zebra’s 2021 state of auto insurance)
- Average salary (from SmartAsset)
- Insurance costs as percentage of salary
- Collective auto loan debt by age (from the Federal Reserve Bank of New York)
Analyzing the costs of owning and driving a car based on your age helps you figure out what to expect in the near-term while also financially preparing for future stages of life