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How Does Age Factor Into Your Insurance Premiums?

Perhaps you are a young adult, finally getting your hands on that automobile you always wanted. Or perhaps you’re a father, watching your children finally getting their very own car keys (while heaving a sigh of relief, because you know your car won’t be abused any longer). Whatever it is, have you ever wondered, as the auto insurance premium bill comes along, why youngsters pay so much more for auto insurance coverage? How does age affect auto insurance rates?

How Does Age Affect Auto Insurance Rates: Who Pays What?

First, let us take a look at who pays what; on average, how much do people of each age group pay for insurance?

how age affects auto insurance rates

These three people pictures above will definitely pay less when it comes to auto insurance. But just how much? Continue reading this article to discover how age factors into your auto insurance rates.

  • Age 16 – 19: $3,000
  • Age 20 – 24: $2,050
  • Age 25 – 29: $1,700
  • Age 30 – 44: $1,600
  • Age 45 – 49: $1,500
  • Age 50 – 54: $1,300
  • Age 55 and up: $1,200

From this, one thing is clear: youths below the age of 25 pay a lot more than the other age groups. Indeed, drivers below the age of 20 pay up to 3 times the amount paid by seniors 55 years and above! So, why is this so?

Age And Its Affect On Auto Insurance Premiums: Why Do Younger Drivers Pay More?

To understand this, you must understand that in determining auto insurance premiums for their clients, auto insurers take into account the probability of the insured getting into an accident. As such, clients with impairments that prevent them from driving at the best of their abilities are liable to be treated with higher insurance rates. Also, DUI offenders and traffic rule flaunters will also be given higher premiums because they are seen as a riskier client to insure – insurance companies are profit-oriented, after all, and don’t want to go bankrupt because of too many claims!

The age factor isn’t free from this calculation; insurance companies tend to view younger drivers and teens as drivers that are riskier to insure! This is because young drivers are often seen as more rash and aggressive in their driving habits. In addition, it has been statistically proven that younger drivers are more prone to accidents; the incidence of accidents amongst those below the age of 25 is much higher than in other age groups.

Because of this, younger drivers are classified by insurance companies as a “high-risk driver”, along with DUI offenders and repeat traffic rule breakers. They thus hedge themselves against the risk of constant pay-outs and claims by setting a higher premium for these drivers.

How Age Factors Into Car Insurance: What About Senior Citizens?

Although not reflected in the chart above, seniors do pay higher car insurance rates than the other age groups. Indeed, because of age, our hand-eye coordination and reaction time decreases. Although seniors are blessed with a wealth of experience from driving, such declines in their bodies does mean that they are more susceptible to accidents and the like.

Of course, if the senior has a clean record, and he paid his premiums on time, the spike in auto insurance premiums shouldn’t be too high. In fact, the auto insurance company may even continue to decrease his or her premiums because of his good driving records!

Age and Auto Insurance – What Do My Premiums Look Like?

Well, to know that, you’ll need to start getting quote from auto insurers – and we have just the tool for that! Just because you are 16 does not need you have to pay outrageous amounts for auto insurance.  Even if you are the ripe young age of 96, you still shouldn’t have to pay out your teeth (or dentures). To see how much age does affect your auto insurance rates, just key in your zip code into the auto insurance calculator found at the top of the page, and we’ll have the quotes for you in no time at all!

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