One of the main factors to consider when getting a quote from an insurance company is your age. You need to know how car insurance age affects your price, so you can shop around for the most suitable coverage and budget accordingly. Read our guide on how to get a better deal on your motor insurance depending on your age.
What Affects Car Insurance Rates
There are many factors that car insurance companies take into consideration when giving you a quote. Age is one of them. Your age is closely related to your driving experience and your risk-taking behavior.
Age is, however, not the only factor that will impact your car insurance cost. Companies use different algorithms to calculate your risk. Generally, additional circumstances are looked at, such as:
- Where you are registered as a resident.
- Your marital status and living conditions.
- Your driving history and previous accidents or claims.
- Your credit score.
- Your vehicle age, make, and model.
- How many miles you cover annually.
How Age Influences Your Auto Insurance Cost
As you get older and your driving history adds up, you will see that your cost of insuring your vehicle changes too. The younger the driver is, the higher the risk category insurance companies will assign to them.
Generally, teenagers will be paying the most for car insurance, as they are new to driving and they pose a higher risk. According to The Zebra, a teenager might pay up to three times more compared to someone in their thirties, and up to four times more than those over fifty. The older the driver is, and the more driving history they have, the lower their car insurance cost will be up to the age of sixty, when it starts going up again.
Younger drivers are likely to pay more, based on statistical data showing that they are more likely to have accidents. However, those over sixty are paying more than drivers in their forties due to slower reflexes that come with getting older. Someone with extensive driving history at eighty-five might even pay more than a twenty-five-year-old would.
Teenagers Car Insurance Prices
Teenagers are the most expensive drivers to insure. They have limited driving experience, and don’t have the knowledge and skills to predict danger. Hence they will pay double or triple the price of those in their twenties or thirties.
The average cost of car insurance for seventeen-year-olds ranges between $1,527 with USAA and $4,255 with Progressive. However, teen or parents’ plan policies for six months are a bit more affordable, at $1,492 for fifteen-year-olds and $1,150 for nineteen-year-olds.
Lowest Cost of Car Insurance for Teenagers
According to The Zebra, GEICO and USAA are the cheapest auto insurance companies for teenagers, compared with other providers.
To get the best price on teenage car insurance, it is important that you shop around and compare different quotes online. Some companies will provide discounts and others will be specialized on young driver insurance, so they can provide better prices.
There are also various discounts insurance companies offer for teenagers, such as:
- Safe driver discount
- Paid in full (paying upfront
- Bank transfer discount
- Safety equipment discount
- Student discounts for good grades
To get a good price, it might be a good idea to install Telematics in young drivers’ vehicles. These devices will monitor the teenager’s behavior behind the wheels and report back to the insurance company. Having this equipment installed will reduce the risk for the insurance company and save drivers hundreds of dollars.
Telematics programs can save you between five and forty percent on the original quote of the car insurance.
Joining a policy of a parent can also help young drivers save on their insurance. However, if you have a teenager, you will need to ensure that you trust them, as if they cause an accident your insurance premium will go up, too.
Car Insurance for Drivers In Their Twenties
As you enter your twenties, your car insurance cost might drop by up to twenty percent. As you build up years of driving history, the company will start to get to know and trust you more.
On average, for six months you are likely to pay $1,480 at the age of twenty, and only $815 when you reach twenty-nine.
For twenty-five-year-olds, the cheapest car insurance company is USAA, and the most expensive one is Allstate for a six-month policy.
How To Save On Car Insurance – General Rules
It is important to keep a clean driving record to get the best price on car insurance, especially for young drivers. What you drive will determine the risk and the cost of the insurance, too. If you can settle for a lower-value vehicle with a lot of safety equipment, it will help you get a better price.
Avoiding accidents is something every driver should aim for—not only for their own safety, but also to protect their car insurance premium price. If you have an at-fault accident, your car insurance will be increased almost immediately. Having driver assistance features and collision mitigation systems will help you stay safe on the roads.
Finally, taking an advanced driving course as a new or experienced driver will also help reduce the cost of the premium.
To get the best prices on car insurance for all ages, follow these simple tips :
First, you will have to choose a vehicle that is not too expensive to replace or repair. This will reduce the risk for the car insurance company. Next, you should take advantage of different bundle policies, such as homeowner or multi-policy. You also have to be smart when deciding which cover to get. If you find the quote too high, you can always raise your deductible amount. Finally, it is crucial that you consider whether or not it is worth making a claim based on the repair quote from your mechanic.
The best way to save on motor insurance policies is to shop around and compare rates based on your driving history and personal circumstances.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Car Insurance Rates by Age
Car insurance rates by age
How Age Affects Car Insurance Costs
Average car insurance rates by age
Age Car Insurance Rates Go Down
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