You may have heard (and not believed) that there are benefits to getting older. Well, here is one for sure: lower car insurance costs.
That’s right, it turns out that when it comes to driving, older people are less risky, so insurance companies cut them a break; It could be a break worth thousands of dollars too!
Let’s take a look at how your age matters when it comes to car insurance and why.
Factors that determine your auto insurance premium
There are many factors used by car insurance companies to decide on your rate like location, the type of car and your driving history or record. But, one of the most important factors is your age. To insurers, some age groups, such as the young and the old, are higher risk customers. Statistically, they are more likely to have an accident, so it stands to reason that their rates will be higher.
The reason young people pay more for car insurance
If you fall into the young category, the reason you are paying more is simply because of your lack of experience and a driving history. Young people do have more accidents, statistically. And insurers don’t have a long enough history to know if you really are a safe driver or not.
When your auto insurance rates decrease
Don’t expect to hit a magic date, after which your car insurance cost will decrease. Generally, you should start seeing a decrease in premiums by the time you turn 25. The insurance industry has a lot of driving history data on you by that point and, if you are a safe driver, will reward you.
However, realize that if you don’t get your license until you’re 30, you will be paying much higher rates than other 30-year-olds who have been driving since they were sixteen. In this case, experience is a more important factor than age.
And you should know that any decreases in premiums happen on your next policy renewal, not on a date during your current policy period.
And then what happens?
As long as you stay away from accidents and tickets, you should see your rates go down for a good portion of your driving life. But, once 65 comes around things start to change again. Statistics are not in your favor again as more accidents occur once a driver reaches age 65.
Things don’t get much better from there, but many people have decreased their driving significantly by the age of 70. Although, as people generally age better and better, the statistics will likely reflect the improved driving of 70-year-olds over previous generations.
To find the coverage you need at the lowest rates, let InsuranceWins help you. Fill out a few questions and let us find the best car insurance rate today, no matter your age.