We react to things differently depending on our maturity and wisdom that comes with it. We are very excited about every little thing when we are young and much settled in our older years. This is reflected in our driving habits. Automobile insurers are known to look at every small detail and relevance of age to risk appetite hasn’t escaped them.
It is common knowledge that teenagers are considered the highest risk group in their books and they let it be known loud and clear with the rates they charge them. They have plenty of reasons for it. To start with youngsters, cause a large portion of the fatal accidents. That means a lot of money to be paid out. Lack of driving experience and life knowledge makes them highly ignorant to what might happen on the roads.
Progression of Premiums Charged
Essentially, premiums start at a cliff top and move downwards for a while until it starts rising again. You can follow the progression of average car insurance rates by age on the table presented there. A typical 16-year-old pays about 4 times more than a 30-year-old. It is a lot of money for someone who probably doesn’t even earn money yet. Still, it isn’t worth wishing you were older.
Then, it starts going down at a slow pace until you are 21, although you aren’t out of the woods yet. Turning 25 makes a real difference in premiums. Then, you are charged close to a mature adult. From here onwards, you really don’t see much of a change. You neither get charged a surcharge for being young or get a discount for being one year older any more.
That is until you turn 65 and you start seeing your auto insurance going the other direction this time. The main reason for it is slowing reflections, deteriorating eyesight, hearing and muscle movement. Nevertheless, the rates don’t get out of hand like when you are younger. Senior motorists know how to police their actions and they usually drive slower and therefore the accident they are involved in is not usually major.
The Ways to Deal with High Premiums
Often young drivers stay on their parents’ policies and get experience and avoid high prices when they are just getting the hang of things. Their parents’ policies could go up significantly, even twice at times. Yet, it is much less than what they would be charged on their own and parents would still pay their own. It is part of a deal with children.
If you want an acceptable vehicle insurance price you need to be extra careful with your first car while you are still a teenager. Go for the safer and commonly available models. They are usually a lot more economical to insure for several reasons. First of all, they don’t have powerful engines as they don’t need it for everyday driving. Secondly, their parts are widely available and cheaper.
If it is an older model, you may not even need original parts to repair it. The choice of automobile is the most important factor in early years for someone who likes to save money or avoid paying a sack load of it. Always keep this in mind when you go down to your local dealership. You can actually get car insurance quotes for your choices before making a purchase and know exactly where you stand.
Another alternative may be that you add an older driver to your policy as a second driver. This helps a little and it is legal to do so. The other way around isn’t actually acceptable or ethical. You cannot get someone else to insure your car for you because it is cheaper that way. The person who drives it the most should be the policyholder. Then, you can list other people who live with you in the same household or are likely to drive the vehicle insured.
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