You may not expect it, but your age plays an influential role in determining your final car insurance rate.
Both teenagers and senior citizens, more often than not, shell out more money for their insurance policy than any other demographic.
The reason why this demographic pays more than middle-aged individuals boils down to one concept: risk
With that said, age is not the only factor in assessing your final car insurance premium. Car insurance providers look at your entire profile to determine your level of risk and make a quote off on that.
Let’s take a closer look at the age classification behind car insurance prices as well as other criteria that can influence car insurance rates.
Car Insurance Age Classification
Drivers applying for a car insurance policy from Rollin or other insurance providers will first be classified into different age profiles by their car insurance provider.
This breakdown typically goes as follows:
1. Young Drivers (16 to 24 years old)
Teens and young adults, being the youngest demographic, tend to be the most inexperienced drivers on the road. This puts them at greater risk of finding themselves amidst vehicular accidents.
In particular, young men have a substantially higher chance of being in a vehicular accident than young women.
The most probable reason for this is that young men are more prone to engage in risky and reckless behaviour. Their brains are also still developing up until their mid-20s.
Couple this lack of biological maturity with little relative experience on the road, then there’s a naturally high likelihood of men getting into car crashes.
Given this fact, car insurance policies tend to be naturally higher for people in this age range since they’re likely to make policy claims.
It’s especially higher for teenagers or adults who have newly acquired their licences or are still in their probationary period.
2. Experienced Drivers (25 to 39 Years Old)
Once you’ve reached this age bracket, you’re likely accustomed to driving safely on the road. You’re also likely to start a family and settle down at this age range, which can play a part in shaping the way you drive.
Experienced drivers in this age range are among the least likely to file an insurance claim. As such, they also make up the demographic who pays the least in their insurance claim.
That said, if you are in this age range and have a dent in your driving history, you’ll likely pay more than someone who maintained a spotless driving record. But if you’ve maintained a clean record throughout, you can enjoy the lowest car insurance rates in your life.
3. Middle-Aged Drivers (40-64 Years Old)
Similar to the “experienced driver” bracket, middle-aged drivers enjoy the lowest car insurance rates over the other demographics.
This is because they’re already very used to driving cars and navigating the road, and the poor driving history that they may have encountered during their youth has likely already elapsed.
That said, in this age range, you can also have your teenage child or your senior parent in your insurance policy, which can increase your annual premium.
That said, it’s typically cheaper overall for dependents to be a part of your plan than for them to have a separate plan.
4. Senior Drivers (65 Years and Above)
When you’re older, your senses and cognitive faculties tend to slow down considerably. Your vision can start to worsen, for starters.
Furthermore, you may also become more prone to lethargy, sleepiness, and fatigue when driving. Aging can also make you develop a slower reaction time overall, and this can be dangerous on the road where every second matters.
All these factors considered, senior drivers tend to have a higher car insurance rate than their younger counterparts. Not as high as the most inexperienced lot, but high enough to snag the second-highest annual car insurance rate.
Additional Criteria Influencing Car Insurance Rates
While age is a big factor that influences car insurance rates, it’s not the only one.
Multiple factors can influence car insurance rates, including:
- Driving record: If you have a history of accidents, you may have to pay more for your policy.
- Type of coverage: Are you getting partial or full coverage? Do you have any deductibles? These affect your car insurance policy.
- Location: Where you’re currently located plays a role in how much your total car insurance policy would be.
- Type of car: Car model, type, and safety features can influence your car insurance provider’s final rate.
- Mileage: Your car’s current mileage can be telling of a car’s current build quality, which can further influence the car insurance policy price.
- Gender: Single men tend to pay more than women for their car insurance.
- Credit score: People with a poor credit history may pay more for their car insurance compared to people with cleaner records.
- Car insurance provider: Finally, the insurance provider you get a quote from can have different rates based on their assessment and discounts.
How to Lower Your Car Insurance Rate
If you want to decrease your car premium, take a look at the tips below for some insights on how to achieve a lower car insurance rate.
1. Choose An Insurance-Friendly Car Model
Some car types are prone to being victims of car theft or are built for speed and with lacklustre safety features. These car models tend to be associated with a higher insurance rate than traditional, family-friendly sedans or 4-wheelers.
2. Stay Clean on the Road
Practice the appropriate safety rules when driving. This is not only for your and your passenger’s safety, but it’s for your long-term financial health as well.
You should follow road signs whenever possible, maintain an appropriate distance from other vehicles, and stay within the speed limits of the road you’re driving on.
By doing so, you can keep your records clean, which can be a boon when you’re applying for a cheaper annual car insurance policy.
3. Refrain From Getting Car Modifications
Major car modifications can render an insurance policy null. Refrain from modifying your car if you want to guarantee your ability to claim your insurance when the time comes.
If you do decide to get a modification, get in touch with your provider to assess whether such a modification is still within the bounds of your existing policy.
4. Shop Around and Compare Rates
Different car insurance providers offer different annual rates and coverages. Be sure to take the time to look for the best deal for your specific case in your local area. Some providers may even provide discounted rates for bundled insurance plans.
Once you’ve secured a potential candidate, check reviews and look at its customer policies. If everything looks to be in order, then you can pick your car insurance provider with confidence.
5. Join Your Parents Policy
If you’re a teenager, you can start getting insured by being a part of your parent’s policy. This way, you won’t necessarily have to pay out of pocket and can even save more, as one policy with a dependent is often cheaper than two separate policies.
Photo Credits
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