Age Affects Your Car Insurance Rates

insurance4-2Twenty-five is a big year for insured car owners. That’s the age that your insurance rates start to drop. And the good news is, they continue to decrease as you get older.

It makes sense when you think about it. New drivers and teenagers are some of the worst road hazards out there. Besides the really elderly, teen drivers and those in their early twenties cause the most accidents for their age bracket. Young drivers tend to think they are invincible, oblivious to the inherent dangers associated with driving. Car accidents are the number one cause of death among people aged 16 to 24.

Not all teen drivers are a problem on the road, but those that are make insurance companies uneasy and youth rates are appropriately higher. You can actually decrease your rates as a teen through some insurance providers if you prove you are a good student.

Some online sources suggest young drivers purchase cheaper cars. Although the insurance may be slightly higher as a teen, in the unfortunate scenario of an accident it may be cheaper to take the bluebook value of the car rather than pay for collision or comprehensive coverage.

As a parent, one can often add the teenager onto the policy which can help reduce the rates. But don’t be too cheap on vital coverage, and leave yourself paying for expensive medical bills or legal fees.

The best advice out there is to drive safe. But make sure you’ve bought good coverage from a reliable company.

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