The main reason why car insurance varies by age is because different age groups are associated with different risks. Well, old age could be a good thing when it comes to car insurance since rates are known to go down with age. Let's look at car insurance by age group in order to understand who is affected, how and why.
The first age group is for the very novice drivers who just received their driving license. These are young drivers between the age of 16 and 18. Most parents prefer adding their children, who have just received their license, to their own insurance policies. In such cases, many parents find themselves paying almost 100% of what they were paying for their own car insurance. The main reason for this high cost is because teenagers have very little driving experience. They tend to be at a higher risk of causing accidents than people who are way older say, 75 years. However, you can get a less expensive car with lots of safety features for your teenager if you want to pay less on car insurance.
When most teenagers turn 19, they go to college. At this age, you can save on insurance if you had taken a family policy since your child is unlikely to take his car to college. However, in case the child needs own car to go with to college, he may be prone to higher premiums because younger drivers are considered high risk. At age 19 to 23, you can save on car insurance by looking for attractive student discounts offered by a number of car insurance companies. You can even save by taking advantage of the low mileage discounts offered by various policy providers.
The price of car insurance by age group also affects people who have just joined the professional field. Most people start getting into a serious career between ages 25 to 39. Most insurers interpret this as less risk but the driver has to prove this by having a good driving record. Insurers will consider the number of accidents or tickets you have had over the years when calculating your rates.
The other thing an insurance company can also consider at this age is your marital status. If you are a married man, your insurer can consider you at lower risk than a single male. At this age, a good credit score can also help you to lower the price you incur on car insurance. Many insurance companies consider drivers with bad credits as high risk and therefore they get higher premiums.
As you grow older, your insurance rates decrease considerably. This is typically after age 40 when you have enough driving experience to prove if you are a good driver. In fact, many insurance companies offer the best rates between ages 40 to 60. They assume that you are a mature driver who understands different driving conditions and your driving skills are way better than those of a teenage driver. You can get even better discounts by enrolling in an advanced driving course. There are also insurance companies which offer special discounts for mature drivers. If you hardly drive at night, you can also get a great discount if you communicate this to your insurer.
Well, this is just a simple explanation of car insurance by age group. There are various other factors like the gender of the driver which are also considered by all insurance companies. You must look into the factors that affect your age group and find out what you can do to reduce the cost of car insurance.