How Does Age Affect the Price of Car Insurance?

Whether you’re 16, 70, or anything between your age has an effect on the cost of your car insurance. It’s one of the main factors that car insurance companies use to determine your premium.

The reason for this is that to the insurer, age is directly related to experience. This is why young or new drivers generally have the highest premiums.

On the other end of the spectrum, drivers who are 70 and older may be subject to higher costs as well.

This may seem like age discrimination on the surface, but these policies are based on statistical evidence that shows these age groups, along with new drivers, cause the majority of traffic accidents. Insuring these at risk groups comes at a greater risk to insurance companies, so higher rates are necessary.

The good news for young drivers is that the older you get, up until age 70, the lower your rates are likely to be. Insurers see mature drivers as less of a risk to insure, as the more driving experience you have, the less likely you are to cause an accident. Every insurance company uses their own to determine what age a driver is eligible to get a discount on their premium, but it generally begins at age. That seems to be the magic number that most companies use.

If you do fall into an age range that normally receives a higher premium, some good ideas to lower your rate are to complete driver’s education, drive a car that is rated highly for safety features, and most importantly, drive safely!

The cleaner your driving record, the lower your premium will be!