Why Car Insurance Rates Change as you Grow Older

Age affects car insurance rates. When you’re young, you’re often charged with high premiums (for a reason, of course!) The good news is that it goes down with age. But unfortunately, it goes up again in the later years. Here’s why!

The Reason for Changing Rates

Car insurance quotes usually depend on the type of car, the driver, as well as the location. Certain factors about the driver are considered too, like marital status and age. But why age? Well, the data shows it’s primarily because the very young and the very old get into more driving accidents.

Statistics show that accidents happen 2.2 times the national average for young drivers up to 20 years old, and 1.7 times the national average for ages 21 to 24. Accident rates for drivers above 74 years old are actually below average. However, that doesn’t consider the distance driven and how older people tend to drive less. But if these factors are considered, statistics show that fatal accidents are more than twice as likely to happen for drivers below 30 years old and those who are 80 to 85 years old. For those who are more than 85, on the other hand, the rate is approximately 5 times the national average.

Solutions to Age-Related Rate Changes

While it’s impossible to turn back time, there are ways in which drivers can reduce their car insurance quotes. Young drivers typically save money by:

• Enrolling in a driving course,
• Getting good grades for those who are still in school,
• Forgoing comprehensive and collision coverage if using an old car that isn’t worth much, and
• Reducing their liability coverage limits if they don’t have many assets to protect.

People who believe that they’re safer than the average young driver may want to consider looking into usage-based insurance. This type of insurance offers savings to those who avoid risky driving, drive limited miles and don’t drive during nighttime.

Older drivers, on the other hand, may save money by:

• Enrolling in safety driving lessons,
• Dropping comprehensive and collision coverage on older cars, and
• Getting usage-based insurance.

Bear in mind, however, that the type of coverage you get or drop should depend on your situation and needs. The benefits of forgoing should outweigh the risks. Before you decide on anything, talk to your agent first to discuss your options.

Robert Nichols Insurance Group specializes in providing reliable auto insurance coverage to the residents of Florida. You may earn discounts to save on your premiums! Don’t hesitate to talk to one of our agents and get quoted for free. Call us at (561) 406-6153 or visit us today.