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Car insurance for 40-year-olds
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Cheapest car insurance for 40-year-old drivers
Auto-Owners offers the cheapest minimum coverage insurance for 40-year-old drivers, based on Bankrate’s extensive research. Major insurers USAA, Geico, Amica and State Farm also made our list for offering cheap average rates to 40-year-olds.
We began our research by choosing the most popular carriers by market share and broke them down based on average annual premium for full coverage insurance, using premium data from Quadrant Information Services. On top of these low rates, these companies offer diverse discounts that could apply to you. We also assessed their J.D. Power customer service scores and A.M. Best financial strength ratings.
| Insurance company | Average annual minimum coverage premium |
|---|---|
| Auto-Owners | $376 |
| USAA | $433 |
| Geico | $463 |
| American Family | $523 |
| Travelers | $535 |
| Insurance company | Average annual full coverage premium |
|---|---|
| American Family | $1,513 |
| Auto-Owners | $1,645 |
| USAA | $1,673 |
| Geico | $1,732 |
| Travelers | $1,794 |
Auto-Owners is a super-regional insurer that provides minimum coverage for 40-year-old drivers for $376 per year on average. Auto-Owners offers gap and diminished value coverages that could help protect you financially if there are any differences in the car’s market value and its cash value. For the most robust coverage, some drivers opt for the Personal Automobile Plus package. It includes 10 coverages, including smartphone replacement and vehicle re-keying. Auto-Owners is represented by 46,000 licensed independent agents and offers auto, home and life insurance products in 26 states. The company carries an A++ (Superior) financial strength rating from AM Best.
USAA’s average annual minimum coverage insurance rate for 40-year-old drivers is the second-lowest cost on our list. However, USAA car insurance is only available to active-duty military, veterans and their eligible family members. If you qualify for membership, you can benefit from coverage options that include accident forgiveness and rideshare insurance. For active-duty members, USAA offers a 60 percent discount off your premium if you are deployed and store your vehicle. The company carries an A++ (Superior) financial strength rating from A.M. Best, the highest level possible.
Available in all 50 states, Geico provides generally affordable rates for minimum and full coverage car insurance. Tech-savvy drivers may be especially interested in the company’s highly-rated mobile app, which allows policyholders to make policy changes, make payments and download digital ID cards. When it comes to coverage, one of the most unique options from Geico is mechanical breakdown insurance, which generally can be purchased for leased or new vehicles less than 15 months old and with less than 15,000 miles. Once you add the coverage, car repairs are included for most everything except wear and tear with a $250 deductible. Geico is rated A++ (Superior) by AM Best.
American Family received a Bankrate Score of 3.8 out of 5, attributed to its competitive premiums for both full and minimum coverage and high customer satisfaction ratings. Although it lacks nationwide coverage, its financial strength rating from AM Best is A (Excellent). American Family offers standard auto coverage along with innovative features like KnowYourDrive, rewarding safe driving habits with potential discounts of up to 20%, and Diminishing Deductibles, providing policyholders with deductible reductions for each year of safe driving.
State Farm’s car insurance for 40-year-old drivers is available online or through the carrier’s exclusive network of 19,000 local agents (State Farm is the largest car insurance company in the U.S. by market share). State Farm agents live in the communities they serve, which means they could be more in tune with the unique needs of your local area. Additionally, State Farm customers might be able to bundle their auto insurance with other coverages, such as homeowners and life insurance, as well as get access to financial products and investor services for maximum savings and convenience. The company is rated A++ (Superior) by AM Best.
Car insurance rates by gender
Statistically speaking, men tend to get into more car accidents than women, and those accidents are usually more severe. For these reasons, men typically pay higher car insurance premiums. This is especially true when comparing average rates among young drivers — for instance, 16-year-old males tend to pay much higher rates than 16-year-old females. However, the gap between genders usually narrows the older the driver gets, as demonstrated by the table below:
Keep in mind that six states prohibit insurers from using gender as a rating factor. In California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania, your gender will not affect your premium.
| Average annual full coverage premium for 40-year-old male | Average annual full coverage premium for 40-year-old female | % difference |
|---|---|---|
| $2,549 | $2,535 | 1% |
How 40-year-old drivers can save on car insurance
Finding cheap car insurance when over 40 is easier than if you’re in your teens or 20s. But there may be even more ways to save. Besides choosing the most affordable car insurance company, there are other ways 40-year-old drivers can save on vehicle coverage:
- Bundle car, homeowners or renters insurance.
- Choose a carrier that offers accident forgiveness to help prevent your premiums from increasing after an accident claim.
- Sign up for a carrier’s usage-based telematics program that tracks and rewards you with a premium reduction if you drive safely.
- Shop for the best rate by getting several car insurance quotes to compare rates and coverages.
- Increase your comprehensive and collision deductibles, if your budget allows you to pay more out of pocket in the event of an at-fault loss. It’s important to note that while this may be an effective strategy, it’s important to choose a deductible amount you can easily pay with no warning; otherwise, you could be setting yourself up for financial hardship in the event of an at-fault accident or comprehensive claim.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2024 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
Age: 40-year-old drivers are rated as homeowners. Four states prohibit insurers from using age as a rating factor: California, Hawaii, Massachusetts and North Carolina.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
