Chart of the Week: How do auto insurance premiums vary by age?

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Feb 11, 2020
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Chart of the Week

From Zebra State of Insurance report: 

Questions:

  • Using data from the chart above, explain why 16-17 year olds pay the highest insurance premiums? 
  • What age group has the lowest premiums? Why do you think that is the case? 
  • Based on the data above, at what age do you think driving skills first start to deteriorate? 
  • As cars continue to add safety features, what impact do you think that will have on accident rates? on premiums? 

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Thanks to NGPF super intern Anch for compiling the last 20+ Charts of the Week in this document. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.