How Much Can Age Affect Auto Insurance Rates?






Almost everyone knows that the age of a particular driver can affect how much he or she pays for automobile insurance. What many people don’t realize, however, is just how much age affects premium rates. A driver can be affected by age so very much that policies become almost unaffordable. As such, it’s important for you to know, especially if you’re a young driver or have a young driver on your policy, what is fair and just in the automobile industry as it relates to age and what you can do to lower your car insurance premium no matter what your age may be.

In most states in the United States, drivers generally begin driving around the age of fifteen. Typically, they get their learner’s permits around this age and then progress to a provisional license of some sort and then, finally, a real driver’s license. During this period of becoming a new driver, you can expect insurance rates to be extremely high, even with a perfect driving record. If a teen driver does have an accident during this phase, then rates will go up even more. Male teenage drivers are deemed more likely to be involved in an accident than female teenage drivers, so their rates tend to be higher than female’s. One thing that can help any driver, male or female, during this phase is to qualify for a good student discount. Any student who is enrolled full time at a high school or college and who maintains at least a “B” grade point average can typically qualify for a hefty discount from the automobile insurance company.

Fortunately, these exorbitant rates don’t continue for too long. Once drivers obtain five years of experience or reach the age of 21, depending upon the state in which they live, their rates automatically go down, even if accidents have occurred. Of course, if you are a young driver who has had a ton of accidents by this point, the break probably won’t help much. If, however, you have been responsible and safe, this break can take a huge financial burden off of your shoulders, so it’s definitely something to look forward to. You are also still eligible for the good student discount at this point in your life, and both of these breaks together can really add up to save you a big sum of money.

When a driver reaches the age of 25, he or she is finally considered an “adult” driver. As such, rates drop down to around the average for most other drivers. Sometimes, though, people become “adults” long before they reach the age of 25. This is when car insurance discounts geared toward those engaging in more “grown-up” activities can help. There are discounts for married individuals, no matter what their age, because married people are believed to be more responsible drivers; discounts for those who install safety features on their cars; and discounts for those who have life insurance policies or rental insurance policies through the same provider. As a young driver, anything you can do to showcase your high level of responsibility will help to decrease your premium.


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