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Home » How Does Age Impact Your Auto Insurance Premiums?
January 26, 2021
Agency

How Does Age Impact Your Auto Insurance Premiums?

girl holding  keys inside carGetting older is not something you can avoid, and as much as you might not notice it day to day, it will begin to catch up with you. As wonderful as it is to reach another milestone birthday, age also has its drawbacks. One that many people don’t think about is its impact on your auto insurance eligibility and premiums.  

Car insurance provider price their plans based on the specific risk factors that a customer poses to them. Age can be a factor in that risk determination. While it is not the only risk factor an insurer might use, it can still have a big impact on your premiums. Take a closer look. 

How Does an Insurer Assign Risk to a Driver? 

When you file a claim on your auto policy, your auto insurer will have to pay you a settlement. Therefore, the more likely you are to file a claim, the more you are likely to cost the insurer. 

When you apply for auto insurance, your prospective insurer will want to know their risk of having to pay out on your behalf, and if your risk is on the high end, then you will likely have to pay more for your coverage. Age will often be included among the numerous factors that an insurer examines to determine your risk rating and premium. Here’s why. 

Young Drivers Don’t Have A Reputation for Safety 

If you are a newly licensed teen driver, then you don’t have the experience that only comes with years of driving. As a result, you might be much more likely to have an accident that is your fault.  

Your age and inexperience are working against you when it comes to getting auto insurance, which is why teen drivers often pay among the highest average auto insurance rates in the country. However, as you age from teenager to young adult, you will gain more experience and your overall driving risks will drop. Provided that you avoid racking up tickets, accidents and insurance claims, you will often see your rates drop over the years. 

However, getting older only helps to an extent. Once you pass middle age and begin to face old age, you will begin to face new challenges behind the wheel. On one hand, you have the experience to know what you’re doing. Still, declining eyesight, more immobility and other risks might not only make you a more insecure driver, but also increase your risk of having accidents that might cause your car insurance rates to skyrocket. 

All in all, age isn’t something you can control. However, you can commit to being a safe driver at any age. A clear accident history and driving record will keep your car insurance rates down, and even help you continue to qualify for discounts and other beneficial pricing options. 

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