• How Different Stages of Life Affect Auto Insurance Rates

    One very important factor in auto insurance rates is the age of the driver. Auto insurance affects many of us at almost all stages of our lives, from youth to old age. Here’s how auto insurance issues travel along with individuals as they get older, to help drivers think about how they can manage their auto insurance costs.

    The Teenage Driver

    It can be practically impossible for new teenage drivers to get good auto insurance rates. Much of that is because the new driver lacks a history that insurers can use to verify a lower risk. It’s also because, according to car crash statistics the teenage demographic has been shown to be involved in so many accidents relative to other age groups. A lot of what goes into modern risk assessment makes auto insurance a lot more expensive for teenagers, students and all younger drivers who lack of few years of experience on the road. Established families can get better rates on liability coverage, property damage coverage, and all other parts of an auto policy for a teenage driver by adding that person to the family’s collective auto insurance policy. However, this only lasts so long. When a young driver on a family policy leaves the home and goes to live elsewhere, he or she will have to negotiate individual auto insurance rates with car insurance companies.

    The Middle-Aged Driver

    Those in between the opposite ends of the age spectrum will generally be using vehicles to commute to work, helping to run a small business or for all the errands needed to keep the household running smoothly. These drivers tend to put a lot of miles on vehicles. Many of them profit from lower insurance rates due to good credit scores, property ownership, clean driving records, multi-driver policies (covering spouses and children) and more.

    The Elderly Driver

    America’s seniors are in a unique situation when it comes to seeking auto insurance. Some will benefit from low rates, but for others, premiums will be edged up due to any marks on a driving record. Many small accidents happen to seniors as a result of some health conditions that decrease alertness or concentration. Elderly drivers who only use their vehicle rarely can profit from what’s called pay as you drive auto insurance to get better rates. However, for many who are in advanced aging situations, there’s the issue of being gently taken out of the driving community when some health conditions really interfere with a person’s ability to drive safely. Drivers who know that they are approaching this milestone should take every measure to find other solutions like public transit, rides from family members, or other ways to help adapt when risk has become a critical factor in their auto insurance rates.

    For many Americans, the lifetime journey through auto insurance policies follows this kind of trajectory. It’s helpful to think about where you’re at in terms of age at any given time to try to negotiate the best auto policies possible from your insurer.