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What Your Age Says About Your Premium Bill

In the typical American fashion, (or at least what the media would have you believe) aging is anything but ideal. Though with age comes wisdom, foresight and the liberty to have fun however you want, whenever you want. We can choose to eat ice cream for dinner or to go on an impromptu road trip just because we feel like it. Age even deals us a better hand when it comes to paying bills. When you assess average car insurance rates by age, it’s clear how awesome it is getting older. Turning 25 is a milestone! Depending on your driving history, some insurance carriers may offer better rates once you turn 25.

So let’s take a gander at the car insurance rate by age breakdown below.

Statistics Don’t Lie

Before deciding on a number, insurance agencies determine a client’s monthly premium based on their age. This is particularly true of drivers under the age of 25 and over the age of 65, according to findings made by the Department of Motor Vehicles (DMV).

While this can initially feel like a form of discrimination, a carrier’s policy is based on statistical evidence showing that motorists who fall into certain age ranges are more likely to get in accidents than others. The higher the chance of a traffic collision, the higher the insurance premium.

Teens (16-24)

As reported by the Insurance Institute for Highway Safety (IIHS), in the United States, the fatal crash rate of drivers between the ages of 16 and 19 was three times higher than the rate of drivers over 20 years old. And according to the Insurance Information Institute (III), motor vehicle collisions are the leading cause of death among teenagers 15 to 20 years old. Because teens are new drivers, they have a bigger proclivity for speeding and tailgating. Teenagers are also less likely to wear a seatbelt in the car. In fact, nearly half of the 2,439 teenage drivers and passengers who died in motor vehicle crashes in 2012 were not wearing a seatbelt. Because the driving practices of teenagers aren’t as stringent, their rates are higher.

Young Adults (25-55)

As people grow into their driving habits, they’ve had time to learn what does, and does not pass for safe driving. Drivers in this age bracket are considered low-risk and as a result pay a lower premium than their teenage counterparts. Why? Because adults between the ages of 25 and 55 have proven to be more careful behind the wheel. One theory for this change in driving is that adults in this age bracket have begun to settle down. With family in the car, they are more cautious on the road. However, take this information with a grain of salt. Some companies continue to charge higher insurance rates for motorists in this age bracket due to distracted driving statistics. As of 2013, it was found that nearly 40 percent of drivers between the ages of 20 and 29 were involved in accidents caused by distracted driving.

Middle-Age (55-65)

Like adults between the ages of 25 and 55, middle-aged adults between 55 and 65 are less likely to involved in a fatal accident than teenagers and senior citizens. It’s not until middle-aged adults begin to reach their sixties that their premiums start to rise once more.

Senior Status (65 and above)

According to III, 5,671 drivers 65 and older were killed in traffic collisions, while another 222,000 were injured in 2013. 75 percent of all U.S. traffic fatalities involved older motorists. Because senior citizens are involved in more accidents each year than young and middle-aged adults, their premiums climb back up. Though they do not pay as much in premiums as teenage drivers do, senior citizens are still considered a driving risk. Thus state laws mandate that seniors complete annual driving and eye exams to make sure they’re still safe to be on the road.

Every driver out on the road falls into one of the brackets. At CoverHound, we make it our job to find you the lowest premium cost we can no matter which age bracket you fall in. Compare and shop average car insurance rates by age when you visit our insurance comparison and shopping portal today.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.
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