How Age Affects Car Insurance

Did you know that your age can affect much more than just your ability to retire or purchase alcohol? Your age can also have a big impact on your auto insurance premiums and how much you have to pay.

How age affects car insurance depends on how young or old you are. Teenagers/young adults and senior citizens tend to pay more for their car insurance because people in these age groups have been found to be riskier drivers.

Since drivers under 25 or over 65 are statistically much more likely to be involved in automobile accidents and engage in risky driving behaviors, these drivers are resultantly charged more by insurance companies.

Teen Motorists

Studies have conclusively shown that new drivers, including teens, are likely more involved in crashes than experienced drivers.

Data issued by the Insurance Institute for Highway Safety, an independent nonprofit organization focused on reducing car accident-related losses in the United States, finds that crash-related fatalities are three times higher per mile for teens aged 16-19 than they are for motorists over 20. The accident-related fatality rate is also twice as high for drivers age 16-17 than it is for 18-year-olds and 19-year-olds. Furthermore, while teenagers are less likely to drive under the influence of alcohol than adult drivers, they are at a much higher risk of being involved in an accident when they do drink and drive.

The bottom line is, though they don’t travel as many miles as their adult counterparts out on the road, teen drivers nevertheless have significantly higher accident and fatality rates due to inexperience and greater tendencies for unsafe driving behavior, such as speeding, tailgating, and failure to wear seat belts.

It is this kind of data that results in teens being charged higher insurance rates than older motorists.

Lower Rates During the Midpoint of Life

In contrast, drivers 25 and older are likely to see progressive decreases in their auto insurance rates over time as long as their driving records remain clean.

In addition to age, other factors that affect rates for drivers in this age bracket include the type of vehicle they drive, where they live, and how many miles they travel.

Seniors On the Road

At the far end of the age spectrum are senior drivers.

Motorists 65 and older are likely to see hikes in their insurance rates due to impairments related to advancing years, such as reduced cognitive function, vision problems, increased use of prescription meds, and other physical issues related to older age.

Another factor in how age affects car insurance for elderly citizens is the fact that when they are involved in car accidents, seniors are more likely than younger persons to experience serious and more expensive injuries.