Age and Insurance Rates

Does your Age Affect Your Insurance Rates?

   Certain age groups are considered to be higher risks than others. So, Yes, your age can affect your insurance rate, especially your Auto insurance rates. Insurance is all about the statistics. Research shows younger and older drivers are at a higher risk for accidents. This means they are more likely to cost the insurance carrier money. That is what drives rates in insurance.
   Most people will see a lower insurance cost once they reach 25 years old, unless they have a bad driving history of accidents and/or tickets. Drivers between the ages of 16 and 25 have proven, statistically, to be a higher risk. According to the DMV, these stats are based on:
* Male drivers in this age group have a driver fatality rate 4 times higher than the national average.
* 16 year old drivers have the highest driver fatality rate in the country.
* Fatal crashes are twice as likely for a 16 year old driving with passengers.
The rates may not be as high for someone in this age group if they are married. Statistics show married drivers are less likely to take risks.  The next highest risk group is the drivers over 75. If they have a clean driving record and good insurance history, the rates will not be as high as the 16-25 year old group. But most drivers will see an increase in premium after their 75th birthday.
   Drivers between the age of 35 and 55 are considered the safest drivers, statistically speaking. They will see the lowest of rates, all others factors being equal. Again, driving records and insurance history will also come into play when insurance carriers set rates.
   Home insurance rates can be affected by your age as well. Although this most likely will have to do with a lack of risk history. Younger, first time home buyers do not have much of a claims or insurance history, and they are often penalized for this. One way to counter this is to have Renter's insurance. This is considered a form of property insurance and can help show history. This can help your rates when you go to get a home insurance policy. 
  

Thanks for reading!
Nancy Brockman

Please contact  The Brockman Agency for quotes and answers to your questions about Home, Auto and Commercial insurance. We partner with 20 carriers, so we can do the shopping for you!