Auto insurance rates do not depend only on factors such as the person's driving record, daily mileage, and the kind and type of car they drive. In writing premiums, car insurance companies will also base the rates on the driver's age considering the risk that a particular age group entails.
In the auto insurance business in the United States, young drivers who are in their teens and early 20s usually pays more for their premiums. Their cost of insurance will somehow decline when they reach their 40s until the early 60s. However, this will go up slightly when they reach 70 and above. To give a much clearer picture, a young driver may pay for around $2,000 and this may go down to around $1,000 when they reach the age of 40, and will go up a little bit, at around $1,400,when they are near 80 years old.
Experts view that the sweet spot for car insurance consumers is when they are in their 40s until their 60s. Upon reaching that age bracket, drivers are now viewed to be more matured and experienced. When they reach their 60s, they often have lower rates as people on that age tends to drive less than while they were young. However, as they grow older, their vision might already be impaired and may experience some medical conditions than contribute to having higher probability for insurance losses. It is in this reason why old people might have to pay more for their premiums.
To back that practice, a study from the Insurance Institute for Highway Safety will show us that fatal crashes and rates are more likely to increase on people who aged 70 and above. Older people too are more prone to having injuries after a car accident and such injuries can be more severe compared to younger people and may also have grave complications.
To augment the rising cost of insurance among older drivers, insurers have instituted some mechanics for senior citizen drivers to avail discounts and enjoy cheaper car insurance. These mechanics may include updating your information to your insurer and declare that you now driver lesser mileage, or that you have taken some driving courses that adheres to accident prevention. You can also opt to drive a much safer car as insurance companies also consider the type and kind of car people drive in writing premiums. Other means also to enjoy much cheaper auto insurance rates is to opt out other drivers in your policy.
