Does Age Play A Role In Auto Insurance Rates?

Have you ever wondered what information matters to insurance companies when calculating quotes? If you have ever called for a quote, you will probably remember that the agent asked a lot of questions, including your age. Your age is one of the leading factors that will affect the amount of money you must pay for coverage. Do you know why? Do you understand the effects of a person's age? You can learn more about this by reading the following three things.  

The Bottom Line: Age Affects Risk

Age definitely plays a huge role in the rates a person pays for auto insurance coverage, and this is primarily because age affects risk. Insurance costs are all about risks. When risks are higher, people pay more money. When risks are lower, people pay less money. Throughout the years, insurance companies have kept records of statistical information relating to age and risk. They have found that age affects risk levels more than almost any other factor. Because of this, age will affect the rates you pay for coverage.

The Age Categories Considered the Highest Risk

There are two main categories of ages that are considered the highest risk categories, and the first is teen drivers. A teen driver is a new driver, which means this is a driver who lacks experience. Due to the lack of experience, a teen driver has a greater risk of causing an accident. Teen drivers also are not as mature as other drivers, and this too can lead them to have higher risks of accidents. The other category is seniors. Seniors have a higher risk of causing accidents, too, and this is mainly due to impaired reactions and health issues. It is harder for seniors to see, in many cases, and their reflexes just are not as good as they once were.  

Ways to Reduce Costs When Your Age Results in Higher Premiums

People in high-risk age categories can still find methods that can help them save money on insurance costs, and one method is through bundling. If a teen or senior driver is on another person's policy, they might receive a discount for this. Taking a driver's education course is another option, and choosing an older, less expensive car might also help too.

If you would like more information about the costs of car insurance or ways to keep your costs down, make sure you talk to an insurance agency right away.