How Does Age Affect my Auto Insurance Premiums?

Age can have a profound effect on the amount you pay for car insurance rates. Generally, insurance companies first classify drivers based on their age range. Younger drivers, those under 25, and older driver, those over 59, usually pay more for car insurance. While this is unfortunate, this is one of the ways in which insurance companies decide on their rates. Of course they will also rely on a host of other factors, but most companies will consider age to be one of the prime factors in deciding premium amounts. Even though it might count against them, drivers should endeavor to be honest about their age. There are other ways for drivers, no matter what their age, to get discounts on automobile insurance. So some of the increased prices associated with age can be offset by other available discounts, not including drivers licensed point affected auto insurance policies.

Young Drivers

Younger drivers pay more for insurance premiums than most other drivers. This is due to the lack of experience they have on the road. Generally, drivers under the age of 25 are inexperienced, and many of them like the idea of driving fast, new cars. Insurance companies frown on this kind of behavior, and it is part of what leads them to believe that younger drivers are more of a risk to insure. Insurance companies do rely on accident statistics as well, and these numbers generally confirm their suspicions that younger drivers are more prone to being involved in car accidents. Drivers under the age of 25 will normally pay higher rates, but they may be able to offset some of this by being responsible in other areas. Young drivers can get discounts on their auto insurance by doing well in school or by completing driving courses.

Older Drivers

Older drivers often have to pay higher premiums once they pass the age of 59. The statistics that insurance companies rely on suggest that older drivers are more likely to be involved in accidents. This is because with age mental and physical faculties decline. That means that older drivers are more likely to suffer from poor reflexes and delayed reaction time. While this is not true of every driver, these things do affect a lot of older drivers and then the entire group is judged based on these instances. Keep in mind, though, that all insurance companies are different and that the age where increases in premiums begin is often different for every company. Some may increase rates at a slightly earlier age, while others may wait until later. In fact, some companies may not increase rates at all, if you’ve kept a clean driving record for the last several years. Older drivers can also try to prove their responsibility to insurance providers by completing defensive driving courses or other driver’s education courses.

The most important thing for younger drivers and older drivers to do is to compare car insurance rates. That is the best chance that both groups of drivers have at finding affordable policies that will fit their budgets and their needs. While your age affects car insurance rates, there’s no reason to be down about it. There are a myriad of ways that you can offset the high costs that younger and older drivers often face, but it means that you have to be proactive and look around for discounts. All companies will offer different kinds of policies and different discounts, so comparing a few different quotes from different providers is the best way to ensure that you’re choosing the best option.