There are different factors that may affect your car insurance rates. Some of these factors include your driving history, your driving record, your vehicle, your gender, and even your coverage. However, it is also true that your age actually affects your premiums. This fact is seldom understood by drivers. How does age exactly affect premiums, and why? This is the question that this article tries to answer. However, drivers must first understand the basis of the companies determine the price of your premiums.
The fact is, whatever your age may be, you are still required to have car insurance. This is because of the fact that this is needed by drivers for them to drive legally, at least within the roads and the highways of the United States. Remember that the government would like to ensure utmost protection for their citizens. This include drivers, especially when every time that they hit the road. Therefore, as a way of ensuring property and life protection, state legislations required every driver to have a policy while driving.
This is where the importance of how your premium rates are being determines. Take note that insurance companies actually determine your policy on whether you are a safe and courteous driver, or you tend to get easily caught committing traffic violations, or are more likely to hit another vehicle every time you hit the wheels. This is called the “risk factor.” In this case, the riskier the driver may seem, the higher the premiums he /she have to pay. Likewise, the less risky the driver may look, the less premiums that he/she has to pay.
Remember that companies are also run as a business. Its main aim is to profit. In this case, whenever a driver is seen to be risky, the more chances that he/she will be involved in vehicular accidents. This will make more chances for companies to spend on that driver, lessening chances for profits. This is what car insurance companies avoid, making them seek high premiums from risky drivers.
This is also the reason why your age affects the premiums that you have to pay. Companies actually see safer drivers in specific age brackets. In this case, whenever you are a teenager, companies see that you are more inclined to be involved in car accidents. Not only is this due to the fact that maybe it’s your first time driving, or you are too youthful and excited that makes you get involved in accidents, or because you do not still realize your responsibility as a driver. This is mainly because statistics show that more teenagers are involved in road accidents.
Also, becoming a young adult, especially when ages 25-50, will make you have cheap car insurance. This is because of the fact that young adult are seen to be more responsible, experienced enough to become a safe driver, and are more courteous and obedient to traffic laws. In addition, drivers aged 50 and above will again se seen as risky driver, due to the fact that they are more prone to sickness that makes them become involved in road accidents.