Are you a new driver looking to purchase your first car insurance quote? Or are you a senior citizen wondering if your car insurance rates are going to change?
Believe it or not, your age is a major factor when it comes to determining insurance rates. But this does have the potential to work in your favor.
Here’s what you need to know about how celebrating your birthday can impact monthly payments.
Teens and Accidents
The car accident rate among young people ages 16-19 is higher than that of any other group. Teens in this group are actually three times more likely to be involved in a fatal crash.
Generally, teens will see their car insurance rates decrease each year from the time they’re sixteen until the time they’re twenty. If teens can avoid speeding, follow traffic laws, and stay away from distractions like cell phones and music, they can expect to see a significant decrease in insurance rates by the time they turn twenty-five.
One of the main reasons teens get into accidents more often is inexperience. They may not yet have the judgment to make a left turn on a busy road.
Teens may also speed carelessly or get distracted by other drivers or their phones. Drinking and driving is a risk factor for young people in their teens. Many accidents occur among those driving at night.
Middle Aged Magic
You’ll probably notice a gradual decline in your car insurance premiums each year as an adult. In fact, they’re likely to drop by 68% for males and 64% for females by the time you reach fifty-five.
You can expect your rates to drop significantly if you’ve had a clean record with few traffic violations or accidents. Your premiums will be a bit higher if your driving history is less than perfect.
Senior Hike
While your car insurance rate should stay about the same throughout your 50’s and 60’s, those in their 70’s and 80’s will see their premiums go back up again, although not to the levels they are for teens. The rate increase as a senior is gradual and less extreme than the rate drop that happens as teens become young adults.
The reason for the cost increase is that insurance companies begin to see you as risker than middle-aged drivers.
Other Factors
While age is important, it’s not the only factor that will determine your car insurance rates. Your gender will also play a role, particularly among younger drivers. Car insurance companies view younger male drivers as more likely to take risks than females of the same age.
Believe it or not, your marital status can also have a minor impact on your insurance rates. Married drivers may get better rates because they’re sharing driving responsibilities.
Your driving record will also play a role. In particular, speeding tickets and DUI’s can really hike your insurance premiums.
Your years of experience behind the wheel can also impact the premiums you pay for. As you drive more often, your judgment and decision-making skills should be improving. Provided that your record isn’t mistake-ridden, your experience as a driver could help your insurance rates go down.
An auto insurance company could also be looking at your credit score, as this may give them insight into your level of financial responsibility. In general, drivers with poor credit are seen as a bigger risk because historically they file more claims.
Insurance companies will also be looking at your claims history. If you’re filing a lot of claims, you could be looking at higher premiums.
Lowering Your Car Insurance Rates
If your car insurance rates seem to be pricey, there’s a number of ways you can mitigate the charges.
Make sure you do some research before purchasing car insurance. Better rates don’t always mean better coverage. You’ll want, however, to know that what you’re paying is reasonable for someone with your driving record in your geographical area.
There also may be other discounts you can take advantage of, such as those for being a good student. You may also get a break if your car is equipped with anti-theft devices.
Your insurance costs could also vary depending upon the type of car you purchase. Make sure you consider insurance costs when you buy.
Defensive driving classes can also lower your insurance rates if they’ve gone up. You’ll be rewarded with a three-year premium discount. Many classes are very affordable and can be taken online.
Finding the Right Car Insurance
When choosing the right car insurance policy, make sure you do your homework. Choose a company that comes highly rated and gets good reviews online from customers. You can also check with friends and family who’ve used certain companies and get first-hand accounts of how pleased they’ve been.
Make sure you review your policy completely and make sure you have coverage for bodily injury and property insurance. You’ll also want to be protected in case of natural accidents, or if your car gets stolen.
Paying your premiums responsibly every month will ensure that you’ll get better rates as you move from young adulthood into maturity. It will also give you peace of mind knowing that you’re protected in case of an emergency.
Driving Forward
Age is an important factor when it comes to determining car insurance rates, although it’s not the only component. With safe driving, responsible payment history, and a little research, you could be getting better insurance rates in no time.
Don’t stop getting smarter about your car insurance now. For more information on quality car insurance, contact us today.
