How Your Age Affects Your Car Insurance


Higher rates for young drivers is a fact of life

How Your Age Affects Your Car Insurance

Your license is in hand, and it’s time to hit the road in your new-to-you used car. As a young driver, you’ve learned quite a bit about the etiquette of the road. Turn signals, right of way, and hazards – all good lessons to get you started. But there’s still a great deal to learn, and those lessons come through experience. To that extent, your foray into seeking an auto insurance policy might have come as a shock. Young driver’s car insurance rates are above the national average for those with good driving records, and understanding the ‘why’ is important to your continued safety and driving habits on the road.

Young Driver’s Car Insurance

A driver’s car insurance rate is based upon a series of variables that calculate the risk someone with a company’s policy might pose. A middle aged driver with 20 years experience behind the wheel and only an incident or two on their record is a low risk policy holder, and less likely to need coverage from their insurance policy. On the other hand, a middle aged driver with a track record of insurance claims will find it difficult to locate a reasonable rate for their policy. An auto insurance policy takes into account the history of a driver to determine premium rates, so when a young driver applies for a policy, there is no history to gauge a rate on. With no history, and a presumed lack of experience, it is in the insurance company’s best interest to increase the rate with the expectation the policy holder will make a claim.

Decreasing Car Insurance with Age

As a driver matures, it is in their best interest to periodically re-visit their policy to ensure they are being charged a fair rate for their experience and driving record. An annual revisit is recommended, but even shorting the span of time and checking every six months can pay off with reduced rates for good driving behavior. Once a track record is firmly established, start by soliciting quotes from other insurance companies with your policy requirements in mind. Once your research is done and you’ve found a policy that saves you money and maintains or even increases your coverage types, return to your current insurance company and ask if they would be able to match the quoted rate. In most cases they will, and you will start to see a decrease in your rates over the years if you continue to maintain a safe driving record.


Image Credit: Leonid Mamchenkov

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