Home Finance How Age Affects Car Insurance?

How Age Affects Car Insurance?

source: zadluzenia.com

You want to know how? Here is a summarized answer made especially for you; Humans tend to increase and get better in ways of thinking and ways of putting thoughts into action as they get older.

Therefore, the car coverage providers assume that younger drivers may be driven by childishness and inexperience into driving in a very risky manner; more risks means more claims and more claims means more cost for the insurance company. Since they can’t stop the youngsters to drive cars, insurers alternatively increase the rate to make up for expected losses. Continue reading for more comprehension.

Accordingly, the same thing applies to the senior drivers; “senior drivers” here means old drivers around age 65-85. At this age group, reflexes, agility, hearing ability, and driving energy depreciates. All these factors contribute to the downswing and upswing of car insurance rate.

Insurers still consider old drivers driving to be unsafe, even if they had previous expertise and safe driving method, due to the explained reasons. However, we can still get you a very cheap one, no matter your age, just visit https://www.americaninsurance.com

Average Auto insurance rate per age

source: kiplinger.com

Initially, the average car insurance rate was mostly determined by details such as your driving history, how loyal and reputable you’re, and your driving ability. Subsequently, these factors are becoming less significant to standard coverage providers. Other determining factors like age, gender, location, relationship status are now receiving more reasonable concentration than later factors.

If you’re among the mid-age group(40s, 50s, 60s) then you have the opportunity of saving up to $1,243 in a year, you’re the luckiest! But wait, the car insurance rate will eventually become more expensive at the clocking of age 70 upward. We have brought to you an estimation view of the average car insurance rate per age in the U.S.


AGE (State minimum)


16 $2,593
17 $2,179
18 $1,870
19 $1,260
20 $1,102
21 $875
22 $794
23 $732
24 $684
25 $608
35 $522
45 $525
55 $494
65 $515
75 $630
85 $775

Why teens and seniors pay more?

Why teens pay more?

source: mwfbic.com

The major reason is, teens, are natural “risk takers” and are more liable to be involved in car accidents, this leads to more claims and more money being paid to you by insurers; insurance companies don’t like this. These are factual and non-factual information acknowledging that.

2014-2015 research made by AAA Foundation proves the fact that there is more possibility of car fatality occurrence at the hand of a teenager compared to most age groups. Furthermore, the report stated drivers of age 16-17 are 9 times more inclined to be involved one-way or the other in a car accident than adults.

They’re also 6 times more likely to be in brutal crashes than adults. This confirms the fact that teens are riskier drivers than other age groups. Higher driving risks definitely means a higher claim for insurance, which results in coverage providers spending a lot just for an individual. A recompense to this is teens paying higher auto insurance rate.

If you ask for people that have high eagerness to get behind the wheel, speed and do sort of stunts with cars, you will find teenagers putting up their hands. Nonetheless, some teenagers went to driving lessons before eventually getting on car seats to drive. However, having knowledge about something is good, but putting the knowledge into actions is better and harder, experience matters a lot when it comes to driving, teenagers naturally lack that.

The AAA Foundation also reported that secondary accidents do occur as a result of overreaction when there are emergencies. The State of Alaska has the highest rate of car accidents that involved the teens, up to 11.6%. It’s expected that teenagers pay more for insurance in Alaska.

Why Seniors pay more?

source: aarp.org

Insurance companies don’t care except some that install devices in your car to monitor your driving habits, the speed, breaks and any measurable through their device. They use this method to reduce the rate, give discounts and to serve as a form of encouragement for safe driving habits.

Apart from such a few policyholders, most insurance companies do care less about your driving expertise while you were a youngster like have said before now, they do not care if your driving record is still free of missteps or you still stay at your location, your car insurance rates will gradually increase as you move from one age range to another.

Therefore, drivers around the middle age(40-50) tends to pay less; for having obtained several years of driving experience, loyalty discounts, while still maintaining optimum driving energy.

Additionally, regardless of how fatal car accidents is, drivers that are more elderly; senior drivers, suffer more severe fatalities and graver wounds than youngsters. Treating such a wound brings about higher monetary expenses, resulting in higher insurers’ claim charges that will be passed on. All these contribute to the increase in car insurance rates for seniors.

How gender affects car insurance rates

The rising and falling of insurance rates either by age, location, gender, and other factors are mostly based on studies and statistical facts. The same research was made and it was discovered that men will pay 21% more than women for car insurance.

However, this won’t last forever. When the age gets to the range of 35 downward, the reverse will be the case even though the difference in rate is very small.

The allowance of using gender as a determining factor for auto insurance rates vary across different States, States like Pennsylvania, Massachusetts, Michigan, Montana, and some other States. Conclusively, statistical reports of higher accidental rate make gender affects the car insurance rate.

How to save money on car insurance as young or old drivers

source: everybuckcounts.com

One of the initial steps that should be taken is to choose the best car insurance company, what insurer you decide brings about a significant difference in the auto insurance premiums you will obtain.

The reason being that, coverage providers use different tactics and schemes in calculating the rate you will be given to pay. However, in respective of your gender, marital status, location or age, American Insurance can still help you save a lot of money by you comparing quotes from different types of coverage providers. If you’ve chosen a company already, this is how you can still save your money:

– Being a good driver: When you maintain an impressive driving record with minimal accidents, it reduces your car insurance rate positively and sustains the good driving reputation. You may be rewarded discounts if this is maintained.

– Driving lower Miles: This works better for a senior driver because most job retirements start at age 65, therefore, you can change your driving status from employed to retired. Traveling less will reduce the probability of an accident to occur which may result in a decrement in your insurance rates. For this reason, the majority of insurers will discount for teenagers who drive less than 8,000 miles in 365 days.

– Taking accident prevention training: you being a teen, middle-aged, or senior driver, several insurance providers give discounts to individuals that have concluded a certified driver’s education training somewhere else, or in the driving course insurance companies arranged themselves.

– Monitoring Device: If your insurance company have this feature, you can smartly request for the insurance driving device. It’s a new technology, where a device will be attached to your automobile to observe and monitor your manners and habits of driving. A good report from this device will help you save your money either as a teen or as a senior.