Is Age a Factor Regarding Auto Insurance Rates?

Searching for auto insurance can be complicated, as you are constantly looking for a policy that helps you save money. You also have to be aware of multiple factors that may impact your auto insurance rates. One of those factors could be your age.

A person’s age is one of the common factors insurance companies look at to help generate an auto insurance quote. Many auto insurance companies believe that a driver’s age is a key indicator of their experience and potential risks. Experienced drivers are viewed as less likely to be involved in an accident. Experienced drivers cost less to insure, so they get cheaper rates. Here’s how age is a factor impacting your insurance rates.

  • Age Data

    Research shows that young drivers and elderly drivers pay substantially more for auto insurance than middle-aged drivers. Once young drivers accumulate a few years of experience, their auto insurance rates drop. Once you reach 30, your rates should start to decline, .b until you reach your 60s. Once you reach your 60s, your insurance costs may start to rise again.

  • Is Gender a Factor?

    Your gender also plays a role in auto insurance costs. Research shows that men pay about 10% more for auto insurance over their lifetime compared to women. However, things even out as both men and women start to age.

  • Why Do Your Insurance Rates Increase Depending on Your Age?

    Research shows that drivers under the age of 20 are often involved in accidents. There is also a high likelihood that a teenage driver may be involved in a fatal accident compared to older drivers. As a young driver, your rates will be expensive because your insurer recognizes that there’s a higher chance that you will be involved in an auto accident.

    Experienced drivers have generally mastered their driving skills and understand road conditions, minimizing their chances of being involved in an accident. As you age, your rates will decline until you become a senior driver. Research shows that senior drivers have slower reflexes, which cause accidents. That’s why insurers may raise your rates again as you enter your mid-60s.

  • Some Possible Methods to Save Money

    You can save money on your auto insurance policy in multiple ways. Shopping around is the easiest way to save money on insurance costs. You should research multiple quotes for different insurance plans before making a decision. Looking up quotes online is the most efficient method. Research potential discounts. As you look for homeowners insurance near you, maybe you can find a discount for bundling home and auto coverages together. If you are a senior driver with a driving record, you may qualify for an automatic discount. You can also qualify for a discount by taking a defensive driving course.

If you are a young driver, you can qualify for a discount if you maintain good grades. Enrolling under your parents policy also allows you to qualify for a lower premium, because your parents share some of your risks.

While you may be concerned about how your age impacts your auto insurance rate, focus on practicing safe driving habits. You may also qualify for a few discounts. If you have any questions, contact our insurance experts at J. Archer Insurance Group, and we will assist you.

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