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Editor's Note: For the latest developments regarding federal student loan debt repayment, check out our student debt guide.

Students currently enrolled in college and graduate school are eligible to apply for forgiveness of up to $20,000 of the federal student loans they’ve received if they meet certain family income requirements, according to information posted by Federal Student Aid (FSA), an office of the U.S. Department of Education (DOE).

When President Joe Biden’s plan for one-time loan cancellation was announced in August, it was clear that college graduates with federal loans were eligible, as were those who had dropped out of college but still needed to pay back their federal loans.

Now it has become apparent that students enrolled in college before June 30, 2022, will also be able to apply for federal loan forgiveness.

“Borrowers are eligible for debt relief regardless of whether they’re in repayment, in school, or in grace, as long as they meet the income requirements and have eligible loans,” according to the FSA Fact Sheet “One Time Student Loan Debt Relief .”

Recommended: Student Loan Forgiveness: Programs for Relief and Mass Forgiveness

What Are the Requirements for Students to Apply for Forgiveness?

Current students can apply for forgiveness for federal loans if they received them before June 30, 2022. (Unfortunately, this means that freshmen who started this fall aren’t eligible.) If the students are dependents of their parents, FSA will be looking at the annual income of the parents to certify eligibility, not the student.

“If you were enrolled in school as a dependent student for financial aid purposes between July 1, 2021, and June 30, 2022, your eligibility is based on parent income. After you fill out your own application form, we’ll contact you so your parent can complete a Parent Income Form,” explains the FSA Fact Sheet.

Current undergraduates and graduate students can apply for forgiveness, as can those who did not complete their degree. “Current students and borrowers who have federally held undergraduate, graduate, and Parent PLUS loans that were distributed on or before June 30, 2022 are eligible for the relief, said Megan Walter, a policy analyst for the National Association of Student Financial Aid Administrators,” in U.S. News & World Report.

For dependent students, the important question is “What is the income of your parents?” The income cutoff for this one-time debt cancellation is $125,000 for a single parent or $250,000 for the household. If the student’s parents meet this eligibility requirement, then the student could receive up to $10,000 in debt relief.

As for the $20,000 in debt relief that has been announced, the only students eligible to apply for it are those who have already received a Pell Grant and whose parents’ household incomes do not exceed $250,000.

A Pell Grant is awarded to undergraduate students with low or moderate income. If you’re unsure, you can log in to StudentAid.gov to see if you received a Pell Grant.

Recommended: How to Apply for Biden’s Student Loan Forgiveness

When Will the Loan Forgiveness Application Be Available?

The application for one-time federal student loan forgiveness went live online on Oct. 17, 2022. After you apply, the DOE will determine your eligibility and will contact you if they need more information. Your loan servicer will notify you when your relief has been processed.

Nearly 8 million borrowers may be eligible to receive relief without applying for it because the DOE already has their income information. But if you are uncertain whether you fall into that group, it’s recommended that you fill out the application.

Qualified borrowers whose repayments are set to resume or start in 2023 are advised to apply without delay in order to receive relief before the pause on all federal loan payments expires after Dec. 31, 2022.

Which Federal Student Loans Are Eligible for Forgiveness?

Subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans held by the Department of Education (ED) are eligible for forgiveness programs. The following specific types of federal student loans with an outstanding balance as of June 30, 2022, also qualify for relief:

•   William D. Ford Federal Direct Loan (Direct Loan) Program loans

•   Federal Family Education Loan (FFEL) Program loans held by ED or in default at a guaranty agency

•   Federal Perkins Loan Program loans held by ED

•   Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, and graduate PLUS; and Perkins loans held by ED)

Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were ED-held loans and were disbursed on or before June 30, 2022.

Additionally, consolidation loans comprised of any FFEL or Perkins loans not held by ED are also eligible, as long as the borrower applied for consolidation before Sept. 29, 2022, says the FSA website.

What About Private Student Loans?

Private (non-federal) loans are not eligible for Biden’s debt relief. Also, if you consolidated federal loans into a private loan, the consolidated private loan is not eligible for debt relief. Once you refinance, you cannot apply for any of Biden’s forgiveness programs for that loan.

Will the Canceled Student Loan Debt be Taxable?

One-time student loan debt relief won’t be taxed at the federal level. Some states may be taxing this debt relief, however, so check with your state of residence for the latest information.

The FSA site said, “If you would like to opt out of debt relief for any reason — including because you are concerned about a state tax liability — contact your loan servicer by phone or email and tell them that you don’t want to receive one-time student loan debt relief.”

Recommended: What Biden’s Student Loan Debt Relief Means for Your Taxes

Is Federal Student Loan Relief a Certainty?

Biden’s debt relief plan may face obstacles. The burden placed on students by their large loans has been a burning controversy for years. Some 43 million Americans are paying down their student loans. The average student debt per person is over $37,000, with half of all student borrowers still owing $20,000 more than 20 years after they entered school.

When President Biden announced his student loan relief plan in August, he said, “In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.”

Biden has emphasized that the debt relief targets low- and middle-income families.

Nonetheless, the relief plan has met with opposition. Some say it will worsen inflation, others believe that Biden does not have the authority for a debt cancellation. And there are those who say that debt relief is unfair to people who made personal sacrifices to pay off their loans without government forgiveness.

Several lawsuits have been filed to try to halt the one-time debt cancellation. As of October 12, none had succeeded in stopping Biden’s relief plan.

Recommended: What You Need to Know About the Challenges to Biden’s Student Loan Forgiveness

The Takeaway

Current students are eligible for President Biden’s one-time student loan debt forgiveness of up to $20,000 if their federal loans were disbursed before June 30, 2022, and if income criteria is met. If the student is a dependent, the annual income the FSA will be looking at is that of the parents, not the student. That income can’t exceed $125,000 for a single parent or $250,000 for the household.

3 Student Loan Tips

1. Can’t cover your school bills? If you’ve exhausted all federal aid options, private student loans can fill gaps in need, up to the school’s cost of attendance, which includes tuition, books, housing, meals, transportation, and personal expenses.
2. Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.
3. Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.

Recommended: FAFSA Guide

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

How old do student loans have to be to qualify for Biden’s forgiveness plan?

Federal student loans received by a student before June 30, 2022 will be eligible for one-time relief as long as the income requirement for eligibility is met.

How long do I have to apply for debt relief?

Once the application is live, you’ll have until December 31, 2023, to submit your application for student loan debt relief.

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Photo credit: iStock/Drazen Zigic

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

In our efforts to bring you the latest updates on things that might impact your financial life, we may occasionally enter the political fray, covering candidates, bills, laws and more. Please note: SoFi does not endorse or take official positions on any candidates and the bills they may be sponsoring or proposing. We may occasionally support legislation that we believe would be beneficial to our members, and will make sure to call it out when we do. Our reporting otherwise is for informational purposes only, and shouldn’t be construed as an endorsement.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you’re the parent of a student driver, finding affordable car insurance is likely a top priority. Adding a college student to your insurance policy can drive up the cost of premiums, since they’re generally considered high-risk drivers. And students who purchase their own policies usually pay much more to get covered than when they’re added to a family policy. But there are ways to lower car insurance costs, from choosing a higher deductible to insuring your student based on mileage.

As you shop around, it’s important not to focus only on premiums. In case of an accident, coverage levels and deductibles can make an “affordable” policy suddenly seem quite pricey. We’ll walk you through the process so you can get the most for your money.

Recommended: How to Lower Car Insurance

What Is the Most Affordable Car Insurance?

There’s no one answer that applies to all drivers in all states, because insurers set different prices based on proprietary risk profiles and algorithms. But generally speaking, the cheapest affordable car insurance will be a policy with minimal coverage.

Finding affordable car insurance for college students can be especially challenging, since insurers tend to view them as being higher risk. A student doesn’t need to have accidents or tickets on their driving record to land in the high-risk category. They simply have a short driving history, which works against them.

A comprehensive policy will be more expensive than one that carries the minimum coverage required by the state. Although it can be cheaper to skip full coverage for a college student, keep in mind that they might incur higher out-of-pocket costs for repairs if they’re involved in an accident.

Recommended: How to Get Car Insurance

Does a College Student Need Their Own Car Insurance Policy?

One of the most important questions to ask for personal insurance planning with kids is whether your student will stay on your policy or get their own. The answer depends on their living arrangements while they’re in school. If you have a student listed on your policy and your home is their permanent residence, they should be able to remain on your policy — even if they’re temporarily living in a dorm or off-campus apartment.

Parents’ coverage can still apply to a student’s vehicle if they’re taking it with them to school, even in another state. The insurance company may, however, adjust the premiums for the vehicle based on where it’s located and being used, not where it’s registered.

If a student moves out of their parents’ home and sets up their own permanent residence somewhere else, then they need to purchase their own car insurance policy. Car insurance is typically priced based on the vehicle the student drives, so if they have an older car they may still be able to find affordable car insurance on their own.

Recommended: 10 Tips for the Cheapest Way to Rent a Car

How To Find Affordable Car Insurance for College Students

The best place to start is often with your current car insurance company. Your insurer can walk you through how much it might cost to keep your student on your policy versus having them purchase their own policy. They can also advise you on how much coverage is appropriate to have, based on your student’s driving history and habits, and the condition of their vehicle.

Next, you can shop online to compare car insurance options for students. Getting quotes from multiple insurers is helpful, since you can compare that to what you’re paying currently to see whether any cheaper options exist. You may find that it’s more cost-efficient to move your policy elsewhere so that your child can benefit from cheaper rates.

When weighing insurance carriers, don’t focus solely on the premiums. While that number is important, since it determines what you’ll pay monthly or annually for insurance, it’s not the only cost to consider. You’ll also need to weigh the deductible, which is an amount you or your student must pay before your coverage kicks in.

There are two basic types of deductibles: high or low. Choosing a higher deductible can reduce premiums but means you’ll pay more out-of-pocket if you need to file a claim. A lower deductible can be more manageable for a college student who doesn’t have much savings, but the trade-off is a higher monthly premium.

Even if you’re adding your student to an existing family policy, review the policy and costs with them in some detail. It’s a good opportunity for students to learn about car insurance terms, financial decision-making, and the price of living independently.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car

Ways To Save Money on Car Insurance

Car insurance costs aren’t necessarily set in stone. There are several ways parents and students can make it more affordable. Here are some practical tips on how to lower car insurance:

•   Ask about discounts. Many car insurance companies offer discounts for students who earn good grades or complete driver education training. Safe driving discounts may also be an option for students with a good driving record.

•   Keep up with maintenance. Keeping your student’s car in good shape can help reduce the risk of an accident caused by a malfunction. You can try saving on car maintenance costs by doing basic things like oil changes or fluid top-ups yourself.

•   Get insured by mileage. Some car insurance companies base their policies on how many miles you drive. If your student is staying close to home and has a fairly short commute to school and work, then you can potentially find affordable car insurance that prices policies based on mileage.

•   Look for group discounts. If you belong to a professional or business association, or an alumni group, for example, you may be able to get a discount on insurance just for being a member. Warehouse clubs can also offer car insurance discounts to members as well.

•   Encourage safe driving. Accidents can make your premiums skyrocket, so it’s a good idea to go over the basics of safe driving with your student. You may also want to enroll them in a defensive driving class to help them feel more comfortable on the road.

•   Look online. You might start your search for good affordable car insurance with your brick-and-mortar insurer, but it’s also helpful to consider what online insurance companies have to offer. You may be able to find cheaper rates on car insurance for students online versus traditional insurance companies.

Recommended: How Much Does Insurance Go Up After an Accident?

Consider Bundling Insurance for College Students

Here’s one more thing to add to your list of insurance tips for first-time drivers: Try bundling. Bundling car insurance with other types of insurance is another opportunity for college students to save money. If your student is getting their own car insurance, they can help keep costs down by bundling it with renters insurance or life insurance.

Renters insurance covers personal belongings when you live in rental housing. It can also provide personal liability protection and pay your day-to-day living expenses if you have to seek temporary housing because your rental unit is damaged.

Life insurance can pay out a death benefit to beneficiaries after the insured dies. A young, healthy college student may not see an immediate need for life insurance, but it can come in handy if they’ve taken out student loans. Students who cosigned loans with a parent, for example, can take out a policy and name their cosigner as beneficiary. That way, parents aren’t left having to pay back the loans themselves.

Recommended: How Long Do You Have to Have Life Insurance Before You Die

The Takeaway

Students who purchase their own policy usually pay much more than when they’re added to a family policy. Either way, you can offset higher premiums by considering less liability coverage, a higher deductible, or a policy based on your student’s mileage. And make sure to ask your insurer about discounts for good grades, defensive driving classes, and company affiliations.

You can simplify your search by getting a quote for auto insurance online with SoFi. We’ve teamed up with Experian to provide free car insurance quotes online so you can find a great deal. You can match up your current coverage to compare rates, pick the option that looks right, and buy coverage all in one sitting.

Get an auto insurance quote with SoFi in minutes!

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Photo credit: iStock/pepifoto

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Parents pay an average of $177 more monthly when they put a teen driver on their auto insurance policy, according to data from Quadrant Information Services. Insurance companies bump up teen driver rates because they represent significantly more risk for claims compared to older drivers. However, parents can help defray insurance costs by practicing safe driving with their teen and looking into the many available discounts.

We’ll do a deep dive into how much car insurance is a month once your teen starts driving. Keep reading to find a breakdown of costs by state and the factors that affect insurance pricing.

Why Auto Insurance Rates Are So High for Young Drivers

Many teens are highly responsible and conscientious behind the wheel. Unfortunately, statistics support the stereotype of young drivers being less safe: Beginner drivers ages 16 to 19 are almost three times more likely to get into a fatal crash than drivers 20 and older. Whether it’s due to recklessness or just lack of confidence and comfort on the road, youth often leads to more insurance claims.

As a result, auto insurance companies charge higher rates for inexperienced drivers. Parents who are doing some personal insurance planning should expect much higher premiums for several years.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car

Age at Which Car Insurance Rates Drop Significantly

As teens mature and gain experience on the road, rates drop. So, how much is monthly car insurance for a 16-year-old versus a 20-year-old? That depends on many factors, including their city, state, gender, and vehicle type.

On average, monthly coverage for a 16-year-old costs $534 for female drivers and $599 for male drivers on their own policy. When a driver reaches 20 years old, the rate drops to $258 for female drivers and $295 for male drivers. Once a driver turns 25, their rate will continue to decrease as long as they have few to no claims.

The cost will go on dropping until age 60, at which point prices may start increasing again. Just as younger drivers generate more insurance claims, the oldest drivers do as well.

Recommended: How to Get Car Insurance

Factors Besides Age That Impact Car Insurance Costs

Insurance companies use age as a primary factor in determining risk, but there are additional considerations. Keep these in mind if you’re wondering how to lower car insurance costs for your family:

•   Insurance types and limits. How much coverage you want or need will affect the cost. For example, collision, medical expenses, and gap coverages cost more than the barebones liability coverage required in many states. (If you’re unfamiliar with insurance terminology, this list of car insurance terms can help.)

•   Deductible amount. All types of deductibles in insurance have an inverse relationship with premiums. In other words, if you want a lower rate, you can opt for a higher deductible.

•   Past issues with insurers. For example, if you missed payments with other insurance companies or have gone without car insurance for months at a time, your current auto insurer will assess you as a higher-risk customer.

•   Insured vehicle. The costs to fix luxury and economy cars vary widely. In addition, some cars suffer theft more often. Your insurer will take your vehicle type into account when assigning an insurance rate.

•   Location. Your zip code affects factors such as weather, crime, and repair costs.

•   Personal characteristics. If you’re married and own a home, your insurer will likely charge you a lower rate. In addition, your education level, career, and gender can impact insurance rates.

Recommended: How to Lower Car Insurance

Is Age the Biggest Factor for Car Insurance Rates?

Typically, age will be the most significant factor for car insurance rates, regardless of driving record. Still, age is only one part of the calculation: A driver with a history of accidents and traffic violations will see their rates skyrocket, no matter their age.

Age influences rates more than other considerations partly because of teenage driving habits: Driving at night and on weekends, forgoing seatbelts, texting while driving, and drunk driving all correlate with younger drivers.

Another factor affecting car insurance rates is gender. Although several states have outlawed using gender to set auto insurance rates, insurers in the remaining states base rates on how often men and women get into accidents. For example, recent statistics show women are half as likely as men to die in auto accidents, so they often receive lower rates.

State Insurance Coverage Requirements

Each state has its own laws setting minimum insurance coverage for drivers. That’s one reason why car insurance rates vary significantly from state to state. Idaho, Maine, and Ohio lead the country in least expensive car insurance. At the other end of the spectrum, the most expensive states for car insurance are Delaware, Florida, and Louisiana.

One of the key insurance tips for first time drivers is to only pay for what you need.

Non-Owner State Minimum Liability Only

Not owning a car usually means you don’t need car insurance. But if you regularly rent or borrow vehicles, non-owner liability insurance can cover you in case you inflict property damage or bodily injury through an accident. Average non-owner premiums range from $14 per month in South Dakota to $83 in New Jersey.

State Minimum Liability Only

Every state varies in its stipulations, but usually, you will have to purchase an auto policy covering bodily harm and property damage. The level of coverage is indicated by three numbers.

California’s minimum required coverage, for example, is 15/30/5. That represents $15,000 of bodily injury coverage per person, with a maximum of $30,000 per accident, and another $5,000 for property damage per accident. That’s on the low side. Maine and Alaska have the highest minimum requirements, with 50/100/25.

Drivers in California will pay an average of $49 a month for minimum liability, while in Maine they’ll pay just $35 — despite the better coverage.

Recommended: How Much Does Insurance Go Up After an Accident?

50/100/50 Liability Only

This form of liability insurance covers up to $50,000 of bodily injury for others, with a maximum payout of $100,000 per accident. An additional $50,000 of coverage goes toward property damage for others involved in the accident.

100/300/100 Liability with $500 Comp/Coll Deductible

Also known as full coverage, this policy grants $100,000 for bodily injury with a maximum of $300,000 per accident. Plus, the policy will pay up to $100,000 for damage to other people’s property. Lastly, you’ll receive comprehensive and collision coverage with a $500 deductible.

How Much Is Car Insurance by the Month?

On average, car insurance costs $144 per month for full coverage and $53 per month for minimum liability coverage across the country. However, as noted above, your monthly car insurance premium will depend on a host of factors, including age, driving record, and state.

Average Car Insurance Rates for Young Drivers

When adding a young driver to a family policy, parents should brace themselves for a substantial increase. To give you an idea of what to expect, the table below shows the monthly insurance premiums for a 16-year-old girl in every state (boys pay a bit more). The first figure shows how much she’d pay on her own policy, and the second is the upcharge to add her to the family policy.

State	Teen Policy	Add-on to Parents’ Policy
Alaska	$428	$135
Alabama	$527	$134
Arkansas	$597	$164
Arizona	$618	$190
California	$521	$240
Colorado	$624	$167
Connecticut	$806	$129
Washington, D.C.	$576	$139
Delaware	$873	$128
Florida	$906	$264
Georgia	$554	$147
Hawaii	$126	$5
Iowa	$380	$93
Idaho	$443	$104
Illinois	$635	$162
Indiana	$440	$128
Kansas	$464	$124
Kentucky	$715	$206
Louisiana	$1,086	$343
Massachusetts	$589	$164
Maryland	$478	$181
Maine	$363	$125
Michigan	$683	$320
Minnesota	$408	$139
Missouri	$700	$235
Mississippi	$523	$153
Montana	$577	$147
North Carolina	$325	$166
North Dakota	$551	$100
Nebraska	$577	$135
New Hampshire	$452	$107
New Jersey	$750	$200
New Mexico	$499	$143
Nevada	$767	$202
New York	$512	$168
Ohio	$395	$107
Oklahoma	$597	$165
Oregon	$465	$139
Pennsylvania	$657	$164
Rhode Island	$843	$210
South Carolina	$544	$184
South Dakota	$479	$93
Tennessee	$533	$142
Texas	$670	$204
Utah	$622	$202
Virginia	$450	$160
Vermont	$331	$113
Washington	$476	$165
Wisconsin	$543	$209
West Virginia	$547	$166
Wyoming	$475	$135

Data courtesy of Quadrant Information Services.

Recommended: The Cheapest Way to Rent A Car

Is it Possible to Lower Car Insurance Rates for Young Drivers?

While putting your teen on your auto policy will inevitably raise your premiums, you can mitigate the rate hike in a few ways:

•   Maintain one family policy. Although adding a young driver to your policy is costly, opening up a separate policy for your teenager costs even more. Generally, having multiple drivers on one policy is cheaper than multiple policies. Ask your insurer for quotes for both scenarios to ensure you’re getting the best deal.

•   Rack up the discounts. Many insurers provide discounts to students who maintain at least a B average. College students can qualify for an additional discount, especially if they don’t have a car and their school is at least 100 miles away from home.

•   Compare policies. Shopping around for a better deal can save you hundreds, if not thousands of dollars.

Are There Discount Insurance Providers?

While there is no dollar store version of an auto insurance company (no, not even online insurance companies) most companies offer discounts to teen drivers:

•   Incident-free driving. Incident-free means no accidents or tickets.

•   Driver tracking. Many insurers have implemented programs that track driving habits through a device installed in your car. Teens who avoid speeding or braking hard can receive a discount.

•   Driver education. Teens who take courses in safe driving can earn money off their parents’ policy.

•   Student discounts. High school and college students can earn discounts for receiving good grades, or for going to school 100 miles away with no car.

The Takeaway

Younger drivers pay considerably more for car insurance than older drivers. For example, the nationwide average cost of insurance for a 16-year-old girl, when added to her parents’ policy, is $345 per month. That isn’t bad compared to what the same girl would pay for her own policy: $565 per month. Car insurance premiums tend to drop at ages 20 and 25, assuming drivers have a clean record. By the way, men generally pay more than women until age 35.

SoFi’s online tool makes looking for the best deal on auto insurance easy. Compare rates among the top insurers in your area, and see quotes in a matter of minutes.

See real rates, with no bait and switch.

FAQ

Does car insurance vary by age?

Yes. Car insurance costs vary by age because younger drivers present more risk for insurance companies. Statistics show that the older the driver, the less chance they have of getting into an accident or filing a claim.

At what age is car insurance cheapest?

Car insurance is cheapest for drivers in their 50s. Insurance costs typically decrease with age. However, upon turning 60, insurance costs start to creep up again.

Is male or female car insurance higher?

Typically, men are charged higher car insurance prices than women. Statistics show that younger men get into more accidents, speed more often, and drive under the influence of alcohol more frequently than women. However, starting at age 35, men and women receive almost identical rates.

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Photo credit: iStock/RyanJLane

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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