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How Age Affects Your Premiums

15.04.20
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Insurance companies use statistics to assess the risk factors that a person will get into an accident or file a car insurance claim. As people get older, their auto insurance rates are affected by the time they have spent on the planet. Other factors are also taken into consideration, including a person’s driving record, credit history, and the make, year, and model of their vehicle. Age can be a significant variable in determining rates, however, and knowing that you can shop around to multiple car insurance companies to compare prices is vital. Each car insurance company uses different formulas to determine a person’s rate, allowing for fluctuations in pricing depending on the company.

A Person’s Age And Auto Insurance

Some age demographics are statistically more likely to be involved in accidents and file claims. These demographics are more likely to pay higher rates for car insurance overall. Teenagers, as an example, are more likely to be first-time drivers or have a relatively small amount of experience on the road. Due to this, they are more likely to get into accidents and generally have the highest bills for car insurance on average. Teen drivers are considered to be high-risk drivers. Their inexperience leads them to have the highest car insurance rates in the US on average.

Also, younger drivers are statistically more likely to be reckless while they are driving. Both male and female drivers in this age demographic are more likely to file a claim or get a traffic violation. With a higher rate of speeding tickets as well, drivers in this age range often have to wait until they are 23 years of age before their car insurance rates go down much.

Average Auto Insurance Rates Per-Age

Each age range has average rates that they pay for car insurance. For liability coverage amounts of $100,000 for bodily injury liability insurance per person per accident and $300,000 total bodily injury liability insurance per accident total, as well as $100,000 property damage liability insurance per accident, these are the average rates for automobile insurance coverage. Other types of car insurance coverage are not included in these averages.

Also, keep in mind that these averages can vary from one state to next, as different states have different laws regarding automobile insurance coverage. The age group between 16 and 19 average $3,000 per year for car insurance. For ages 20 to 24, the rates go down on average to $2,100 per year. Age 25, all the way through age 29, the average prices for car insurance is $1,700. Rates hover around $1,600 on average between ages 30 and 44. At age 45 to 55, insurance rates go down by a few hundred dollars. Insurance rates tend to rise again, starting at age 60, as people get older and are less able to drive safely. The rates do not go up a drastic amount, however, due to these drivers not traveling very many miles, among other reasons. 

Teenagers vs. The Elderly

Also, elderly drivers do not drive nearly as fast. The experience that they have on the road gives them an advantage overall. As people learn their limitations on the road, they take fewer risks. While rates can go up for elderly drivers, they are still well below what teenage drivers pay for automobile insurance.

How To Save Money On Car Insurance As A Young Or Old Driver

There are many ways a person can save money on car insurance policies, but comparing rates between companies is one of the best ways. Some car insurance companies provide better rates for younger drivers on average, while others are focused more on middle-age drivers or older drivers. Depending on the formula the company uses, rates can change drastically from one company to the next. It is recommended to get automobile insurance quotes from at least three companies when comparing policies.

Also, there are ways people can get discounts on their auto insurance plans. Younger drivers can qualify for good student discounts, as an example. Drivers of all ages can also use additional defensive driving courses to help lower their rates. A person’s vehicle affects the prices they pay for auto coverage, so purchasing a car that has lower rates on average can also help. Some people choose to raise their deductibles to save money on premiums, while others choose to lower their limits. It is essential to get a deductible that you can afford, however.

DriversInsurance brings multiple car insurance companies together so you can easily compare auto insurance rates from multiple companies. The best prices for car insurance available can be found using the free quote tools on this website. Keep more money in your pocket and be well protected on the road with a valid auto insurance policy from DriversInsurance.

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