Car insurance for 40-year-olds

1
Westend61/Getty Images
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Age is one of the biggest factors that affects your car insurance premiums. Teen drivers are statistically involved in more car accidents, most likely due to their lack of driving experience. Car insurance rates decrease as you age. How much is car insurance for a 40-year-old? The average cost of car insurance for 40-year-old drivers is $1,674 per year.

Cheapest car insurance for 40-year-old drivers

Out of the most popular carriers by market share, these are the cheapest options for 40-year-old drivers:

Car insurance company Average annual premium for full coverage
USAA $1,255
Erie Insurance $1,233
Geico $1,405
Auto Owners $1,351
State Farm $1,457

USAA

USAA’s average annual insurance rate for 40-year-old drivers is the lowest-cost on the list. However, USAA car insurance requires membership, exclusive to veterans, active-duty and retired military personnel and their eligible family members. If you can qualify for membership, coverage includes accident forgiveness and the option to add rideshare insurance to your personal policy.

Erie Insurance

Getting full coverage with Erie Insurance averages $1,233 per year but comes with plenty of added perks. Erie generally officers pet coverage that pays for up to $500 of vet expenses per pet injured in your car, physical damage coverage for belongings in the vehicle, roadside assistance, locksmith coverage up to $75 per incident and deductible-free auto glass replacement or repair.

Geico

Geico is the cheapest car insurance company for minimum coverage on average. It also provides affordable coverage for full car insurance. One of the more unique options from Geico is mechanical breakdown insurance. It 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 small, $250 deductible.

Auto Owners

Auto Owners Insurance provides full coverage for 40-year-old drivers for $1,351 per year on average. Auto Owners offers gap and diminished value insurances that help protect you financially if there are any differences in the car’s market value vs. insured value. For the most comprehensive coverage, consider the Personal Automobile Plus package. It includes 10 coverages including smartphone replacement and vehicle re-keying.

State Farm

State Farm’s car insurance for 40-year-old drivers is available online or through the carrier’s network of 19,000 local agents. It is the #1 company for car insurance in the country. In addition, you can bundle other coverages such as homeowners and life insurance, as well as access financial and investor services for maximum savings and convenience.

Cost of car insurance for a 40-year-old

When you take a closer look at the cost of car insurance for a 40-year-old driver, you will find that premiums may be more (or less) expensive than the average of $1,674 per year, depending on the state you live in. Louisiana, Florida and New York are the most expensive states for 40-year-old drivers. Maine, Ohio and Idaho are the cheapest.

State Average annual premium for full coverage
ALABAMA $1,623
ALASKA $1,559
ARIZONA $1,547
ARKANSAS $1,914
CALIFORNIA $2,065
COLORADO $2,016
CONNECTICUT $1,845
DELAWARE $1,775
DISTRICT OF COLUMBIA $1,855
FLORIDA $2,364
GEORGIA $1,982
HAWAII $1,127
IDAHO $1,045
ILLINOIS $1,485
INDIANA $1,254
IOWA $1,260
KANSAS $1,698
KENTUCKY $2,128
LOUISIANA $2,724
MAINE $965
MARYLAND $1,877
MASSACHUSETTS $1,223
MICHIGAN $2,309
MINNESOTA $1,643
MISSISSIPPI $1,782
MISSOURI $1,661
MONTANA $1,737
NEBRASKA $1,531
NEVADA $2,245
NEW HAMPSHIRE $1,275
NEW JERSEY $1,757
NEW MEXICO $1,419
NEW YORK $2,321
NORTH CAROLINA $1,325
NORTH DAKOTA $1,264
OHIO $1,034
OKLAHOMA $1,873
OREGON $1,346
PENNSYLVANIA $1,476
RHODE ISLAND $2,018
SOUTH CAROLINA $1,512
SOUTH DAKOTA $1,642
TENNESSEE $1,338
TEXAS $1,823
UTAH $1,306
VERMONT $1,207
VIRGINIA $1,304
WASHINGTON $1,176
WEST VIRGINIA $1,499
WISCONSIN $1,186
WYOMING $1,495

Car insurance rates by gender

The average cost of car insurance for 40-year-old female drivers is typically lower than a male’s. Rates are cheaper for women because they are statistically less involved in accidents than men of the same age range.

Average annual premium for 40-year-old male Average annual premium for 40-year-old female % difference
$1,597 $1,649 3.3%

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 prevent your premiums from increasing after an accident claim.
  • Sign up for a carrier’s telematics program that tracks and rewards you with a premium reduction if you drive safely.
  • Review your rates annually by getting several car insurance quotes to compare rates.
  • Raise your deductible.

Frequently asked questions

What car insurance discounts are available for 40-year-old drivers?

Some discounts that could help you save on car insurance include loyalty, safety equipment, new vehicle, safe driver and telematics program.

What is the cheapest car insurance for 40-year-olds?

Bankrate’s findings of cheapest car insurance for 40-year-olds narrows the list of carriers down to USAA, Erie, Geico, Auto Owners and State Farm.

What does full car insurance include?

Full car insurance builds on basic liability coverage by adding comprehension and collision coverage. Comprehensive insurance protects your vehicle against theft, fire, bad weather, vandalism and striking an animal. Collision insurance covers your car if it is damaged or totaled in a crash.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 20-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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.