Car Insurance Costs: How Much Does Age/Experience Matter?

Of the dozens of different factors used to determine your Greensboro car insurance costs, age/experience is primary. To an insurance company, the age of a driver represents general measures of both driving experience and accident risk.

Insurance company statistics show that, on average, the more years a driver has had behind the wheel, the less likely they are to have an accident and make a claim on their car insurance policy. According to the Insurance Institute for Highway Safety (IIHS), teen drivers (ages 16-19) have crash rates of four times that of drivers 20 years and older. Since insurers believe that young drivers are more likely to have accidents and make claims, teens' insurance rates are going to be more expensive.

What Adds to Higher Teens' Risk

Teen drivers are considered higher risks by insurance companies for a number of reasons. Their immaturity can lead to risky behaviors, such as speeding, and being inexperienced at driving makes them less likely to respond well in hazardous situations. Alcohol also plays a role in many teen crashes. While they may be less likely than adults to drink and drive, their accident rate is higher when they do drink and drive because of their relative inexperience with both driving and drinking.

Age Matters, Both Young and Old

This risk assessment continues on for a certain number of years. Assuming one is licensed at 16 years old, by the age of 25, you'll see your Greensboro car insurance costs drop significantly, to where they're only about one-third of what they were when you were 16-17. They'll continue to drop until you're about age 55, at which point they'll typically be as low as they can go. Drivers in their mid-30's to late 50's represent the lowest driving risk to insurers due to their greater road maturity and driving skills.

Typically, once you enter into your 60's, your insurance rates will again begin to climb. Aging brings with it slower reflexes and reaction times, which pushes seniors into a higher risk category in the eyes of insurers.

Saving on Your Insurance as a Younger Driver

There's nothing you can do to add years of experience to save on insurance premiums but there are some things that can be done to lower your insurance costs. Being added to your parents' policy, if they're willing, may cost half as much as taking out a policy on your own. Also, apply for all discounts available.