How Auto Insurance Rates Vary With Age

Written by Callis Insurance on . Posted in Uncategorized

Man driving car

Teenagers and young adults attract some of the highest auto insurance rates because they are the riskiest drivers according to auto insurance companies. Here are some of the reasons for this high risk.

Lack of Driving Record

Auto insurance companies use your past driving history to predict future driving behavior. Teenagers don’t have driving records that auto insurance carriers can evaluate. Insurance carriers err on the side of caution and raise rates for this age group for the carriers’ protection.

Recklessness

Many young adults live what they consider carefree lives, but the insurance carriers consider reckless lives. Young adults behind the wheel are more likely to make reckless moves than mature drivers. The inclination to risk increases the risk of accidents.

Peer Influence

Teenagers respond more readily to peer influence than other demographics. In a car full of teenagers, for example, some of them can encourage the driver to engage in risky behaviors, and the driver may respond. They may engage in road rage, race other motorists, or drive over the speed limit.

Inexperience

The ability to drive safely comes with experience. Teenagers and young adults don’t have this experience. Thus, they are likely to make mistakes on the road. Teenagers do cause disproportionately more accidents than other age groups.

Mature Adults

Mature adults, specifically those between the ages of 25 and 65, enjoy some of the best auto insurance rates. Here are some reasons mature adults pay low rates.

Experience

Many people learn how to drive as teenagers. Thus, by the time someone reaches the age of 25, they have driving experience of many years behind them. This experience translates to safe driving, which reduces the risks mature adults pose to insurers.

Levelheadedness

Mature adults are generally levelheaded and likely to make better decisions than their younger selves. They also don’t respond as much to peer pressure and know how to handle emergencies.

Family

Many people have families in this age group. Most people become careful in all aspects of their lives, including driving, when they start families. This careful living reduces the driving risks for mature adults.

Homeownership

Many people get their first homes as mature adults. Many auto insurance companies offer discounts to those who own homes. The rationale is that homeowners are stable, responsible, and not likely to cost accidents.

Senior Adults

Senior adults, those over the age of 65, don’t pay as much for auto insurance as teenagers and young adults, but the senior adults also don’t enjoy low rates like mature adults. Despite the solid driving experiences of senior adults, the following factors raise their rates slightly.

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