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Car insurance for 40-year-olds
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Your age can affect your average car insurance premium in every state except for Hawaii and Massachusetts. Generally, younger drivers tend to pay the highest rates due to an increased chance of being involved in an accident. 40-year-olds, on the other hand, get to enjoy some of the most affordable premiums of all age groups. Based on our analysis of average rates from Quadrant Information Services, the average cost of car insurance for 40-year-olds is $2,014 for full coverage and $622 for minimum coverage. Using this data and our decades of agency experience, Bankrate’s insurance editorial team curated this car insurance guide to help 40-year-old drivers find the best carrier for their specific needs.
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 the latest 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.
Auto-Owners is a super-regional insurer that provides minimum coverage for 40-year-old drivers for $325 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.
Learn more: Auto-Owners Insurance review
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.
Learn more: USAA Insurance review
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.
Learn more: Geico Insurance review
According to J.D. Power, Amica consistently earns some of the highest scores for both customer and claims satisfaction. Amica car insurance is available in every state except Hawaii and offers convenient coverage packages which could help streamline your shopping experience. The company’s most robust package (Platinum Choice Auto) offers options such as $0 deductible glass repair, new car replacement coverage and credit monitoring. On top of its low average rates, the company has many discount opportunities, including a hefty bundling discount of up to 30 percent for bundling your auto and home. Amica has an AM Best rating of A+ (Superior). If you are interested in getting a quote from Amica, you can visit its website at amica.com.
Learn more: Amica Insurance review
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.
Learn more: State Farm Insurance review
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|
How 40-year-old drivers can save on car insurance
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
Bankrate utilizes Quadrant Information Services to analyze 2023 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 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
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.