Age Matters For Cheap Auto Insurance

Auto insurance rates vary for a number of reasons and people are constantly trying to obtain the lowest rates possible. Such factors as a positive or negative driving record and the type of car a person drives can affect the auto insurance rates of an individual. However, one of the most important factors that affect what you pay is a person’s age. Whether you are young or old, you are likely to see an increase or decrease in your premiums based on your age. Knowing how age can affect your costs can help you to make more informed decisions about obtaining dirt cheap auto insurance.

Everyone knows that the younger a person is the higher their insurance rates. This cannot be avoided as young individuals present a higher level of risk to an insurance company. Younger individuals have less driving experience and more likely to participate in activities that can cause accidents. It has also been proven that young individuals represent the highest number of auto accidents and fatalities. These are all reasons why younger, inexperienced individuals pay more. There are ways to lower  rates for younger people. Many insurance companies offer safe driver programs for teen drivers that will assist in improving driving techniques. These same companies also offer good student discounts which provide car insurance discounts to teenagers that maintain at least a B average. These are just a few ways that a young driver can lower his or her premiums. Ultimately, a good driving history and age will help to lower rates for young drivers.

Once individuals reach the age of twenty-five they can expect to pay less than younger drivers. Most insurers assume that individuals have gained a significant amount of driving experience by the age of twenty-five so rates will begin to decrease around this time. It is very important during this time to maintain a positive driving record to maintain lower payments. Many car insurance companies are willing to offer reduced auto insurance rates to individuals that have avoided major accidents within a certain time period and have maintained a positive driving record. As long as individuals avoid major traffic violations and unfortunate instances such as DWIs and DUIs which can have a very negative impact on a driving record then they can expect to benefit from lower insurance costs throughout most of their adult years.

Finally, as people enter their senior years auto insurance companies are willing to reduce auto insurance rates even more. Individuals age fifty-five and older can qualify for significant reductions. Some companies are willing to offer discounts for reduced driving based on the limited number of miles a senior citizen drives. There are companies that are also willing to offer discounts to senior citizens that take defensive driving classes. Because of the number of auto insurance benefits available to senior citizens, it is recommended that senior citizens re-evaluate their auto insurance needs periodically to ensure that they are receiving the lowest payments available.

The bottom line is that age matters when it comes to finding cheap auto insurance. Does this mean you shouldn’t let your teen or grandparent drive your car? Of course not, but it does mean they should be extra careful and vigilant.

This entry was posted on Tuesday, May 11th, 2010 at 8:34 am and is filed under Auto Insurance Costs, Cheap Auto Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.