Auto Insurance Cost by Age
Auto insurance is the reliable protection of your car, so when you finally decided to purchase it, there is a necessity to pay attention to auto insurance cost by age. It is not a surprise that the age of the driver plays one of the most important roles in the determination of protection rates. This bears out when you look at average car protection costs by age.
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Thus, age is one of the most important factors that companies assess when it comes to a protection quote. Any auto insurance company considers driver’s age as some kind of general measure of driving experience and accident risk.
Why does age affect the cost?
Since older or too young drivers on average cause more damage, there is a driver age function that reduces the premium for middle-aged drivers and increases for other age categories.
For example, auto coverage for people under 25 years of age is typically quite high. As young drivers are inexperienced on the road and they are more likely to become a reason of an accident than other age groups. All this makes them a high risk to protection providers. High risk equals high rates.
Middle-aged drivers have the cheapest rates. Therefore, premiums become higher at age of 70. This is due to the fact that older drivers are considered as risky customers, so almost all policies take extra fees.
Auto Insurance Rates for Young drivers (16-19 years old)
Young drivers pay the highest coverage premiums as they are probably the riskiest group of drivers. For example, the average car premiums for a 16-year-old teenager is $5,473 per year. The high cost has its reasons. The statistics proves that drivers of this age group cause significantly more accidents because of lack of experience.
As a result, the average cost for drivers of such age category is $4,255 per year. The rates keep falling fast until you are 19-year-old. Enough experience will lead to the lower premiums.
Nevertheless, if you are sure that your driving will not lead to fatal results, there is an optimal option. For novice drivers there is an opportunity to insure the vehicle as the second car of parents.
Automobile Protection Rates for Adults (20 – 39 years old)
Having a driving experience, drivers of this category can count on a lower cost of the policy. The average level of premiums for a 20-year-old driver is $2,599 and for a 30-year-old adult — $1,458. As we see, with age protection premiums significantly keep falling.
Car Protection Rates for Middle-aged drivers (40 – 50 years old)
Middle-aged drivers are considered as the most experienced and safe drivers. Also, there is a huge amount of discounts because of home ownership, improved credit score, profession and owning a safe family car. As the result drivers of such age category may enjoy the lowest level of premiums. The average cost for 40-year-old driver is $1,369 per year and for a person at the age of 50 — $1,278 per year.
Seniors. As people of such age group are known to be slow in driving a car and reacting to dangers. That is why there is a big possibility of the occurrence of accidents. Premiums rate are going up at the age of 70 years. As a result, the average cost for drivers at the age of 60 is $1,221 per year and at the age of 70 — $1,316 per year.
Seniors are not considered as children for auto protection companies, but they seem like teenagers - at least in terms of high contributions which they must pay for their obligations and security for vehicles.
Nowadays, it is necessary to compare auto insurance rates every day, as often there are huge price differences between the most expensive and cheapest offer. Thus, even for the novice driver it is important to invest now in order not to be annoyed later because of high protection premiums. Those who choose carefully and regularly compare or use car insurance calculator, can save a few hundred dollars a year.