How Is Age Influencing Car Insurance Costs
Car insurance prices are elaborated using a complicated algorithm which uses numerous factors. And each factor weights differently in determining the price. To make things even more complicated, each company chooses to offer a higher or a lesser importance degree to each factor. Nevertheless, age is one important factor, used by all companies. Find out how age is influencing car insurance costs and get car insurance quote from our partners.
Age is one of the primary factors that insurance companies analyze when determining a car insurance estimate. To an auto insurance company, a driver’s age is a general measure of experience behind the wheel and accident risk. Based on insurers’ statistics and past experience insuring other drivers, the more years behind the wheel that a driver has, the less likely he or she is to get into an accident and submit a claim for reimbursement. A lower claim risk means cheaper premiums.
Teenagers and first-time-drivers will foot the highest bill for their car insurance. Young drivers are considered to be high-risk and inexperienced, Because of this, young drivers, especially young male drivers, have the highest auto insurance rates in the United States. Quotes for teenagers are 3.5 times more expensive than quotes for a driver in their mid-thirties, and cost nearly 4 times the rate for an experienced driver in their mid-fifties.
Once teenagers gain more experience and reach the age of 25, their car insurance costs drop about 60%. Costs continue to generally decline with each passing year, with drivers in their 50s seeing the best rates. Around 60, however, auto insurance costs reverse their trend and begin to increase slightly, although rates comparable to what drivers in their 40s get. After 65, drivers become to be considered a high-risk again.
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