As a person grows in age, it is assumed that he becomes more mature and the same is reflected in his driving and spending habits. Going by the logic, auto insurance premiums will also vary based on driver’s age. Accordingly, drivers under the age of 25 will be charged much higher premiums as compared to senior and more matured drivers. This is because insurers presume younger drivers to be more risky propositions to insure as their likelihood of filing claims is high than any other category of driver age groups. Besides, there could be some other factors that influence premiums.
Apart from age of a driver, the following parameters may also affect the overall affordability of car insurance premium rates.
Majority of the insurers will charge premiums for car insurance based on age of driver, his residential location and type of vehicle that he drives. Age is one of the most important factors in calculation of auto insurance premiums. Young or new drivers are more likely to meet with accidents mainly on account of their inexperience behind the driving wheel.
The National Highway Traffic Safety Administration, in a recent report, revealed that accident rates for drivers under 20 was 2.2 times higher than the national average and about 1.7 times higher than the accident rates for drivers in the age group 21 to 24 years. Furthermore, drivers over 74 years had lower accident rates but it might be due to the fact that they drive less number of miles annually. The observations are also in tune with the statistics which have been released by the Insurance Institute for Highway Safety.
It is possible to secure the best and lowest average car insurance age rates by engaging yourself in comprehensive shopping. By getting and comparing multiple free no obligation quotes offered by several different insurers, you can identify the right type of auto insurance company for your specific driving needs and budget. But make sure that the coverage levels are adequate for the prices being charged. It is always desirable to buy more coverage than what is prescribed by state laws.
Young as well as old experienced drivers can save up to 10% money on auto insurance premium by passing out a training course for learning defensive driving techniques. Most of the insurers provide premium discount to safer and responsible drivers.
If you are a college student then you can qualify for an extra discount if you have maintained good grades in your academics with an average B or GPA that is 3.0 or above on a consistent basis for the last 3 years. Insurers may also offer discount to retired drivers who are above 55 years and drive cars less frequently.
Besides, to save money on premiums, drivers under 20 can get their names added to parent’s auto insurance policies.
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