Many of us know that younger drivers have to pay higher insurance rates when they first get their license. Most of the cost is attributed to the risk insurance companies take with less experienced drivers on the road. However, insurance costs don’t just increase for the young. There are a few ways age (and other factors) can impact your insurance rates. Here’s what you need to know.   

How Are Insurance Rates Really Determined? 

It’s not just about the driver’s age; a few other factors contribute to how your insurance premium is calculated. This includes:    

• Your personal driving history – do you have a lot of speeding tickets or at-fault accidents? These incidences will help determine how much of a risk you are for insurance companies.  
• The kind of vehicle you’re driving – the more luxurious or sporty your vehicle is, the higher your premiums will be because these cars are more expensive to fix or replace when something happens.  

• Your annual mileage – the thinking here is that the more you drive, the more likely you are to get into an accident, which is a more significant risk for insurance companies.  
• Your coverage – the more coverage you want to have with your insurance, the more it’s going to cost you in premiums. If you financed your vehicle, you might be required to purchase complete collision and comprehensive as part of your financing agreement.   
• Your age – for the youngest drivers, they (or their parents) will pay the highest premiums for insurance coverage. This is because younger drivers are statistically at the highest risk for accidents, speeding, and driving under the influence.   

Does Age Always Impact Insurance Rates? 

The short answer is yes. As a young driver, you can expect to pay higher than normal premiums until you turn 25 (providing you do not have a poor driving record or a lot of accidents during that time). When you turn 25, you can expect to see a drop in your insurance rate, and it will probably continue to drop each year (again, pending no major issues on your record) until you are in your late 50s to early 60s. After that time, you will likely start to see an increase in premiums again.  

This may seem odd – you likely think that as you age, you continue to gain driving experience, so you’ll be less of a risk, right? Well, kind of. As we age, things like our response time and eyesight tend to decline, which are vital for driving safely. Unfortunately, this means that we can be at a higher risk of causing accidents in our golden years.   

How Can You Save On Auto Insurance? 

There are a few easy ways to save on your car insurance if the premiums you are paying are just a little too high.   

• Before buying, give your insurance provider a call to see how your rate would change if you purchased a specific vehicle.   
• Avoid sports and luxury vehicles – if you can – as they tend to be more costly to insure.   
• Try to find discounts – many insurance companies will offer discounts to people who have their auto and home insurance policies with them, for example. You may also get a discount from certain companies for not driving between 11 pm to 6 am or installing an app on your phone to make sure you aren’t speeding and are driving safely.   

Contact ICD Insurance Today! 

While age is a factor in determining your risk as a driver, other things can impact your premiums every year as well. If you think you are paying too much with consideration to your driving record and vehicle, give us a call to discuss your insurance needs. We may be able to help you find better coverage or a lower rate.