Average Car Insurance Rates By Age And Gender in India, 2023


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Updated on Apr 30, 2023

Car insurance is an important document without which you cannot think of driving your car on the roads in India. Do you know if your car insurance premium is affected by your age and gender? Let’s find out!

Yes, when you talk about car insurance policy rates, the age and gender of the policyholder does have an impact on the rate or premium of the policy. Young men below the age of 25 are charged with a higher premium as compared to matured men. The rates of auto insurance for men becomes low if they are of 25 years and above. The key reason behind this is because young men are likely to be more energetic and impulsive in terms of their driving skills. Thus, they are more likely to take up long journeys in rugged and rocky terrains and in greater frequency and speed.

Also, young males within the age group of 18 to 25 years of age are levied higher premiums as compared to their female counterparts. So, females within the same group would be paying a lesser premium as compared to men. This is again because, the young males are more likely to be involved in rash driving and accidents as compared to women.

Similarly, men with clean driving records within the age group of 50 to 60 years are likely to levy less premium or may get better premium rates as compared to men who are over 60 and beyond. So, beyond 60 years men are likely to pay more premiums. Let’s discuss the average vehicle insurance rates by age and gender in detail.

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Why do Young Car Insurance Policyholders Pay More Premiums as Compared to Older Ones?

It has been confirmed by the Ministry of Road Transport and Highway that most victims of road accidents are mainly in the age group of 18 to 35. Despite the changing number of accident victims, the age profile of the people dying in accidents have remained more or less constant. The maximum number of such victims were within the age group of 16-24 years.

Further, it has also been observed that the frequency at which these young people drive and the distance that they travel is also more as compared to people of other age groups. Thus, these young people fall in the category of the ones who are prone to accidents and to cause liabilities for the insurance companies.  Thus,  to restrict young drivers, insurance companies levy more premiums on policyholders of this age group. So, in case you fall within this category you may be paying more premium for your vehicle insurance.

On the other hand, drivers in the age group of 30 to 50 years are regarded as experienced or matured and thus they are regarded as better drivers. The accident rates of such people are also low as compared to youngsters.

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Why are Males Levied with Higher Premium Rates than Females?

Males who are young and carefree within the age group of 18-25 years are generally levied with more premium for car insurance than their female counterparts. So, young men may be levied with higher premiums than young women.

In insurance, the premium amount becomes low as the gender gap reduces. So, in other categories or age groups, women are likely to pay more than males. However, this disparity becomes miniscule for both sexes when they reach around the age of 35 and beyond. After that age, both sexes are levied with almost the same kind of premiums.

However, some insurance companies might allow female drivers to enjoy low premium rates after a certain age as compared to men. Insurance companies term men as more risky than women and thus males pay more premium than females. Further, men drive at greater speed and cover long distances and thus are prone to risks as compared to women. Be it drink and drive cases, rash driving, and not driving with seat belt on etc, men are more likely to disobey rules than women.

Read More: Best Car Insurance Companies in Claim Settlement in India

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Car Insurance Premium Rates for Elderly Drivers

After the age of 65, elderly people are considered a risk by insurers and thus their premium goes high.  People in their mid-70s, especially men, pay 21% more in car insurance premium than men in their mid to late 50s. The reason is age because with age the risk of drivers getting involved in car crashes becomes more. Thus, insurers levy them with over 16% higher premium for their car insurances.

The factors which cause high premiums for elderly are vision changes, fitness related conditions, ability to give quick reactions on the road to different situations etc. These factors are generally considered while offering car insurance policies for senior citizens.

5 Factors That Impact Car Insurance Premiums:

Besides vehicle insurance rates by age and gender, there are many other factors that affect the cost of car insurance premium of best car insurance policy in India, such as:

  1. IDV or Insured Declared Value of your car
  2. Location of buying policy
  3. Make and Model of Car
  4. Engine Type
  5. Security Fittings fitted in the car etc.

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To Conclude

It takes a lot of time and research to buy the best car insurance policy and thus it is better to buy insurance online from the best insurer offering the best price. Here, you can compare different insurance companies to choose the best insurer that meets your requirements.

Further, unlike earlier there is no need to visit the branch office of your insurer or any agent to buy a policy. You can simply do everything from the comfort of your home by buying your car insurance policy online.

Also Read: What Is Return To Invoice Cover In Car Insurance In India? | CNG Car Insurance in India – Benefits and Impact on Premium – Know in Detail

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Sep 20, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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