Over your lifetime, your insurance premiums will fluctuate based on many factors. Age is one of the factors that you have no control over. Your age will have both a negative and a positive impact on your insurance rates at different times of your life.
Provided you don’t continue to be involved in accidents, receive traffic citations or show reckless behavior on the street over your lifetime; you can expect your insurance premiums to lower and raise in a predictable way.
Drivers in the United States usually start learning how to drive in their mid-teens. At 15, a learners permit allows most teenagers the right to start driving with a licensed driver in the car and 16 usually finds them getting an actual drivers license.
Younger drivers are at a greater risk of being involved in collisions and having traffic violations because of their inexperience behind the wheel. Not only are they inexperienced with motor vehicle operation and safety, younger drivers tend to be more reckless and take more chances. Life experience is limited and they don’t always make the best decisions in a timely manner.
In general, insurance companies tend to charge higher premiums for younger drivers until they reach the age of 25. Not all do, but most will based on statistics and risks associated with insuring someone with little or no driving experience.
At 25, drivers will start to see lowered premiums as they are more experienced now in their driving. Insurance companies also assess risks based on other factors. As we age, we tend to start to settle down. We get married, have children and become more stable in our lives. This is when we become a better risk for insurers.
As we continue aging and going through life, we continue to see lowered premiums and greater discounts. We have a longer period of safe and accident free driving and our rates are lowered. We accumulate additional assets that we then insure with our insurance company and they reward us with multi-policy discounts. We reach a point where we have proven ourselves safe drivers and we reap the financial benefit with better insurance premiums. Once you are in your ’30’s and ’40’s your insurance premiums drop significantly provided you have a good driving record and few or no accidents.
Once we reach the age of 65, we start to see our premiums increasing again. Again statistics say that older drivers are involved in more accidents. As we age and our health starts to decline, we start having judgment issues. We may not yield as we should. Our vision may fail or driving at night may be more difficult. Older drivers are a higher risk; therefore, we see higher insurance rates at that age.
Comprehensive Car Insurance Guide, Car Insurance For Older Drivers
New York State Website, 2007 Consumer Guide to Automobile Insurance
Wikipedia, Vehicle Insurance
Ohio Insurance.org, Factors That Affect Auto Insurance:Age and It’s Impact