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How Age Affects Your Premiums
Statistics play a huge role in the rates that people pay for their automobile insurance policy. Younger drivers tend to be seen as more inexperienced, and senior citizen drivers are also seen as being riskier. Using the data available, car insurance companies assign risk to drivers that are looking for policies. Higher risk drivers pay higher rates.
Regardless of your age, shopping around and looking and for the best rate can save you quite a bit of money. For the most part, car insurance premiums are the lowest for drivers in their 40s, 50s, and 60s. These drivers are seen as having the highest maturity and most experience on the road.
Your Age And Auto Insurance
Drivers that are under the age of 25 generally pay some of the highest rates for automobile insurance. This is mostly due to their inexperience and the fact that they are statistically more likely to get into an accident than other age groups. This makes them a more high-risk driver to insure. For drivers who are age 16, the rates can be up to $1500 or more above the rates of people who are 22. For drivers that maintain a safe record, insurance averages go down each year.
Average Auto Insurance Rates Per Age
Many variables go into automobile insurance rates, but age has a large effect on what people pay for their premiums. Depending on the state minimum limits for insurance, each state can also vary quite a bit in terms of automobile insurance prices. Additionally, with each state utilizing different variables and different ways to determine the rates people pay on their car insurance premiums, there can be a lot of variation in prices.
Drivers that are age 16 can pay as much as $2600 or more for their automobile insurance coverage. Because of this, many people look into other ways to save money on their car insurance policies. Take a look at the average automobile insurance rates in your state by age and consider additional ways that you can save money on your plans.
Teenagers vs. The Elderly
Teen drivers are among the most expensive to insure, due to statistics showing they are the most likely to be involved in accidents. Even drivers in their 20s pay higher rates, however, and it generally stays that way until people reach age 26. The good news is that this means that younger drivers have lower prices to look forward to. The bad news is that they will be paying higher rates for the next few years. If they focus on safe driving habits, however, and maintain a good driving record, their rates will go down. It is important to remember that a large variety of variables go into prices. Focus on all of the things that can help you save money.
After people pass the age of 60, car insurance rates tend to go on the rise again. Older adults see changes in their ability to react to situations quickly and to see them coming. As people get older, they are not as physically able as they used to be And their hearing on their eyesight is likely to begin to go. These are some of the variables that are attributed to rates increasing. In reality, however, it still all comes down to statistics. People in older age ranges are statistically more likely to get into an automobile accident, and this makes them higher risk drivers. The higher risk a group of drivers has, the higher their automobile insurance premiums will be on average.
How to Save Money on Car Insurance as a Young or Old Driver
There are a number of ways to save money on car insurance, regardless of your age. Younger and older drivers can benefit from driver safety courses, which can help hone skills and keep people educated about new updates to laws and safety. As drivers get older, they may decide to stay with the same company for a longer period of time in order to receive accident forgiveness, vanishing deductibles, and loyalty discounts. Younger drivers can focus on their grades, as many auto insurance providers offer discounts to good students. They can also focus on maintaining a good driving record.
The car people purchase also has an impact on rates, and for younger and older drivers it can be beneficial to research insurance rates when looking to buy a new car. Selecting a safe and reliable car can help younger and older drivers decrease their rates. Policyholders can also look to adjust their deductibles, coinsurance, and limits, in order to save money on their premiums.
Taking the time to research companies, discounts, and car insurance needs, can all help people save the most amount of money possible on their automobile insurance. The tools on this site are here to help, make sure to take advantage and start counting the savings that result.