Cheapest Car Insurance for Drivers in Their 40s [2025]

I am in the final months of my 30s, which is strange and gulp inducing. But, being a finance-minded person, there is one perk I can look forward to: Car insurance premiums tend to be lower for drivers in their 40s.

When you're in your 40s, you likely have more experience behind the wheel, and you may be able to take advantage of discount programs like homeownership discounts or multi-policy discounts to lower your rates.

For drivers in their 40s, USAA, State Farm, Root, and Allstate were among the cheapest insurers based on their average rates for full coverage policies, but which insurer is best for you depends on where you live, your coverage needs, and your budget.

How we evaluate products

To decide on the cheapest car insurance companies for drivers in their 40s, I considered the average rates for full coverage and liability-only policies (based on data from Insurify), the locations where the insurance company is available, as well as company discount programs, and customer satisfaction ratings. I prioritized companies that issue policies in most states.

Company name	Average monthly full coverage cost for drivers in their 40s	Average monthly liability-only cost for drivers in their 40s
State Farm	$105	$49
USAA	$88	$42
Root	$139	$88
Allstate	$124	$59
Data provided by Insurify

State Farm

State Farm is the largest private passenger auto insurance in the country based on direct premiums written, and it's highly rated for customer service. In the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, it was ranked sixth out of 21 insurers, with a score well above the industry average.

State Farm typically had some of the lowest rates for drivers in their 40s for both full coverage and state-minimum liability policies. It also has extra coverages, including rideshare insurance and insurance for antique or classic cars.

That said, State Farm isn't for everyone. It doesn't issue policies to residents of either Massachusetts or Rhode Island, and people who have past driving infractions — including speeding tickets, at-fault accidents, or driving under the influence (DUI) convictions — tend to pay higher-than-average rates.

Learn more in our State Farm review.

USAA

USAA tends to offer the lowest premiums for eligible drivers in their 40s. For full coverage policies, USAA averages $88 per month, less than half the national average for that age group.

USAA is a highly rated company. Although it wasn't ranked in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, it was evaluated and scored, and USAA scored well above the industry average.

USAA's main drawback is that not everyone will qualify for coverage. USAA only issues policies to military service members, veterans, and their families. And, USAA has a smaller number of discount programs than some other companies, so you may not qualify for as many discounts.

Learn more in our USAA review.

Root

For those looking to reduce their car insurance premiums, Root could be a good choice. Root offers UBI or telematics policies, basing its premiums on personalized driver data and ongoing driving habits. Those who drive safely — obeying speed limits, limiting distractions, and avoiding hard accelerations or braking — could slash their premiums. According to the company, some drivers save up to $900 per year.

In our analysis of Insurify's rate data, we found that Root's policies were lower than the national average for drivers in their 40s. With Root, the average premium for full coverage policies was $139 per month — significantly less than the national average for that age group.

Root is a relatively young company — it's only been around since 2015. As a newer company, it's more limited than other insurers. It doesn't operate in all 50 states, and it has more limited coverage options compared to other insurance companies.

Learn more in our Root review.

Allstate

According to Side Hustle Nation, 50% of millennials (those between the ages of 29 and 44) and 40% of Gen X (those between the ages of 45 and 60) workers have a side gig, such as driving for Uber or Lyft. If you're one of the millions of people in their 40s who drive for a rideshare or delivery service, you'll likely need rideshare insurance to adequately protect yourself and your vehicle.

Not all insurance companies offer rideshare insurance. Allstate is one of a limited number of companies that allows policyholders to add rideshare coverage to an existing personal auto policy.

Allstate has several coverage options, including GAP coverage, and it tends to have lower-than-average rates for drivers in their 40s.

However, Allstate has a lower rating for customer satisfaction in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study and ranked below the industry average.

Learn more in our Allstate review.

What coverage do you need in your 40s?

It wasn't until I was in my late 30s that I started feeling like I was on more solid financial footing. With the sky-high cost of — well, everything — that's not uncommon. But, as you enter into your 40s, you've likely accumulated more assets.

Previously, you may have gotten by with an inexpensive liability-only policy, particularly if you had an older or high-mileage car. Now, you have more at risk, so you likely need more extensive car insurance. Depending on your situation, you may need a combination of the following coverages:

Liability

There are two types of liability insurance:

• Bodily injury: Bodily injury insurance pays for injuries and medical expenses caused to another driver and their passengers in an accident.
• Property: Property damage protection pays for the other driver's vehicle or property that's damaged in an accident.

Collision

If you're in an accident that you caused, collision insurance pays for the repairs or replacement of your own vehicle. If you own a newer car that would be expensive to replace, collision coverage ensures that you can get back on the road after an accident.

Comprehensive

Comprehensive insurance is an optional form of coverage that pays for damages to your vehicle that occur outside of a collision with another car. For example, comprehensive insurance comes into play if your car is stolen or if a tree falls on your windshield. This form of protection is useful if you have an expensive or newer car, so you're not on the hook for repairs out of your own pocket.

Guaranteed asset protection (GAP)

Drivers between the ages of 35 and 64 make up the vast majority of new car sales. According to Experian, the majority of new cars are purchased with auto loans.

With how rapidly cars can depreciate, GAP insurance could provide critical protection. If your car is totaled, GAP insurance pays for the difference between your vehicle's current market value and the remaining loan balance.

Ways to make your car insurance cheaper

As you enter into your 40s, there are several ways you can reduce your car insurance premiums:

Sign up for telematics

If you have a short commute, work from home, or are a stay-at-home parent, you may benefit from signing up for a telematics or UBI policy. These policies base your car insurance premiums on your actual mileage and driving habits, so you may be able to save money by enrolling and agreeing to track your driving with a mobile app or plug-in device.

Bundle coverage

As you reach your 40s, you may have more assets, such as a home, boat, and car. As a result, you may have several forms of insurance. If you purchase multiple forms of coverage from a single insurer — for instance, homeowners and car insurance — you may be eligible for a mult-policy discount.

Think about your kids

If you're a parent and your child has begun driving, talk to your insurance company about potential savings programs. Your child may qualify for a discount by maintaining good grades or by completing a safe driving course.

Adjust your deductible

People in their 40s tend to be more established. According to Experian, those in their 40s have larger savings account balances than younger people.

If you're on stable financial ground and have tucked money away into an emergency fund, consider increasing your deductible. The deductible is how much you have to pay before the insurance company will begin paying for your repairs or damages. Increasing the deductible, such as raising it from $250 to $1,000, can reduce your premiums.

Ask about homeowner discounts

People are becoming homebuyers for the first time at a later age than previous generations; according to the National Association of Realtors, in 2024, the average age of a first-time homebuyer was 38.

If you buy a property in your 30s or 40s, contact your agent or insurance company and ask about potential discounts. Some insurance companies give homeowners a discount on car insurance (even if you don't purchase homeowner insurance through that company).

FAQs

Bottom line

One benefit to getting older: Drivers in their 40s tend to pay less for car insurance than younger drivers. If you're looking to save money, USAA, State Farm, Root, and Allstate are good options, but it's a good idea to compare quotes from several companies, including smaller regional insurers. Our list of the best car insurance companies is a great starting point.