Age affects your car insurance rates, but why? Certain age groups are more likely than others to be involved in car accidents according to actuarial data. In general, car insurance rates are the highest for teenagers and young adults (under age 25), and typically decrease until the age of about 70, when they begin to increase slightly. Drivers in their 40s are 4.5 times less likely to be involved in a car accident than drivers ages 16 and 17. As a result, car insurance premiums for 40-year-old drivers are lower than rates for younger drivers on average.
The average cost of car insurance for 40-year-olds is $1,674. However, your rates will vary depending on numerous factors and your personal information and driving characteristics. Bankrate’s editorial team compiled some of the best car insurance options for 40-year-old drivers.
Cheapest car insurance for 40-year-old drivers
Erie offers the cheapest full coverage insurance for 40-year-old drivers, based on Bankrate’s extensive research. Major insurers USAA, Auto-Owners, Geico 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.
|Car insurance company||Average annual premium for full coverage|
Full coverage car insurance with Erie averages $1,233 per year but can come with added perks. Erie, a super-regional insurer, generally offers pet coverage (when transporting your pet in an insured vehicle) that pays for up to $500 of vet expenses per pet injured in a covered accident, 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. Erie may not be an option for many drivers as its auto coverage is only available in 12 states and Washington, D.C. However, the company is fiscally strong and carries an A+ (Superior) financial strength rating from AM Best.
Learn more: Erie Insurance review
USAA’s average annual insurance rate for 40-year-old drivers is the second lowest-cost on the list. However, USAA car insurance requires membership, which is exclusive to active-duty military, veterans and their eligible family members. If you can qualify for membership from the fifth-largest auto insurer based on market share according to the Insurance Information Institute (Triple-I), you can benefit from coverage options that include accident forgiveness and rideshare insurance. For active-duty members, USAA offers a 60% 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
Auto-Owners is a super-regional insurer that provides full coverage for 40-year-old drivers for $1,351 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
Geico, the second-largest U.S. auto insurer based on market share, provides generally affordable rates for full coverage car insurance. 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
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 U.S. car insurance company with 16.2% market share, according to the Triple-I. With State Farm, you can bundle your 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
Cost of car insurance for a 40-year-old
When you take a closer look at the cost of full coverage 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. Based on our research, Maine, Vermont and Idaho are typically the cheapest states for 40-year-old drivers. Louisiana, Florida and Michigan are the most expensive states on average.
|State||Average annual premium for full coverage for 40-year-old drivers|
|District of Columbia||$1,855|
Car insurance rates by gender
Statistically, women tend to get into fewer accidents, have fewer driver-under-the-influence accidents (DUIs) and—most importantly—have less serious accidents than men. So all other things being equal, women often pay less for auto insurance than their male counterparts, according to the Triple-I. Keep in mind that seven states prohibit insurers from using gender as a rating factor. In California, Hawaii, Massachusetts, Michigan, Montana, 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.
Frequently asked questions
What car insurance discounts are available for 40-year-old drivers?
The best discounts for 40-year-old-drivers will vary based on individual circumstances and which deals apply to you. If you recently purchased a car with safety features such as anti-lock brakes or side airbags, you may qualify for a safe car discount. If you sign up for a telematics program that monitors your driving in real time, you may be rewarded for safe practices with discounted premium. If you’re a member of certain professional or alumni groups, car insurance companies like Geico may offer you a discount. If you’re unsure where to start, your insurance agent may be able to help you find the discounts that apply to you.
What is the cheapest car insurance for 40-year-olds?
Bankrate analyzed the largest insurance companies by market share and found that the cheapest car insurance companies for 40-year-olds are Erie, USAA, Auto-Owners, Geico and State Farm. However, these companies may not be the cheapest car insurance providers for you. Your car insurance premium may be influenced by several individual rating factors including your motor vehicle record, auto claims history, credit-based insurance score (in most states), vehicle make and model, annual miles driven and coverage type. To find the cheapest car insurance for you, you may want to search for discounts that apply to you and compare quotes from multiple providers.
What does full coverage car insurance include?
Full coverage car insurance means that a policy includes both comprehensive and collision coverage. Comprehensive insurance typically protects your vehicle against theft, fire, bad weather, vandalism and damage from striking an animal. Collision insurance typically covers your car if it is damaged or totaled in a crash.
How much car insurance is recommended for a 40-year-old driver?
How much car insurance you need will vary based on your individual circumstances. As a first step, you may want to check your state’s minimum insurance requirements. However, you may want to consider purchasing higher liability limits to provide greater financial protection. If you have a loan or lease, you will likely be required to carry full coverage insurance. If you have a new vehicle, you may want to consider purchasing new car replacement coverage or gap coverage.
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.
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Four states prohibit insurers from using age as a rating factor: California, Hawaii, Massachusetts and North Carolina.
Gender: Seven states prohibit insurers from using gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.