Why Car Insurance Companies Consider Your Age When Deciding Your Premium

Insurance Navy Auto Insurance Why Car Insurance Companies Consider Your Age When Deciding Your Premium More Info

When shopping for car insurance companies who provide proper coverage, you’ll run into quite a few options. Although specific policies and requirements may vary from insurer to insurer, there are common factors these companies will take into account when deciding your rate. When giving you an insurance quote, the rate you’ll pay depends on a number of factors including your date of birth. So, let’s dive into why age is so important when deciding insurance rates.

The Benefits Of Experience

The reason age matters so much to insurance companies is that each age demographic comes with its own set of benefits or risks. According to the Insurance Information Institute, generally “drivers over the age of 55 are more courteous, and more likely to obey speed limits and follow the rules of the road.” Because of this, drivers of a certain age can score some very helpful insurance discounts for their policy.

The Insurance Information Institute also notes that retirees tend to “drive many fewer miles than when they commuted to work on a daily basis.” Because of less time on the road and fewer miles traveled, drivers who fit that criteria are considered less of a risk than a younger driver who commutes to school or work daily.

The Risks Associated With Younger Drivers

When I say “younger” drivers, I’m referring to drivers at the age of 25 or younger. Some people become drivers later in life for any number of reasons. But, generally, younger drivers are considered to be drivers between the ages of 16 and 25. As mentioned above, “older drivers” tend to be folks in their fifties or higher.

Given how certain regulations and requirements can vary between insurers, it’s good to find out how the specific companies you are looking at will take your age into account. Though, generally, car insurance companies will use your age as discussed in this blog.

The big reason for newer drivers having to pay higher premiums is that, simply, they are less experienced. This lack of experience behind the wheel presents a higher risk to insurance companies, as opposed to a driver who has been on the road for years. However, after having more experience on the road, your insurance rates could potentially drop over time. There are other factors that could hinder that, such as how clean your driving record is or how good your grades are in school, but experience is a great way to earn discounts regardless.

If you’re a new or younger driver, don’t feel stressed about the fact that you already have risks associated with you before even getting your first insurance policy. There are still many factors that car insurance companies consider when giving you a quote for coverage–including gender, location, marital status and more.

More Information

Do you have any additional questions about insurance coverage? Would you like to make sure you’re paying the best price for your coverage? Our insurance agents and customer service team are here to help with your coverage needs. Call us today at 1-888-949-6289 or visit your nearest Insurance Navy location. Our offices are open from 8 a.m. to 9 p.m. CST, 7 days a week. Insurance Navy also has a strong presence on social media.

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If you’d like to take a look at more helpful blogs about proper car maintenance or coverage, we have many of them on our website. Consider taking a look at these insightful write-ups before you leave:

Insurance Quotes–What Do Car Insurance Companies Need To Find You A Quote?

Full Coverage Auto Insurance–What’s Included In Your Policy?

How To Protect Yourself From Buying/Leasing A Recalled Vehicle

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