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Why Age Affects the Cost of Auto Insurance
Your age plays a major role in how much you’re going to pay for auto insurance. How much your auto insurance policy premium is going to be depends on a lot of factors, such as local area demographics, vehicle year, make and model, driving record and even gender. Premium quotes will vary as these factors change for each person. Insurance companies need to assess each quote application by taking all of these factors and coming up with a computed solution for your auto insurance premium. And these insurance companies can determine a lot about their driver by simply fitting them into an age slash location bracket.
The Center for Disease Control and Prevention has all the facts and statistics about teenage driving as well as other ages. And the numbers don’t lie. The majority of drivers involved in accidents in the United States are people between the age of sixteen to nineteen by a ratio of four to one. And teenagers are more likely to get into a car accident in the evening and on the weekends when they aren’t in school (that statistic makes a lot of sense). Along with that, teenagers as well as older drivers with poor driving records such as points on their Department of Motor Vehicles report will be pushed into a higher risk category. Also, if you live in a high risk area of the United States, that also magnifies your risk factor in the eyes of your insurance agency.
As you get older, the idea is that you become a more experienced driver and therefore fit into a lower liability level with your insurance company. Thus your insurance premiums reflect the gain in experience. However, if you fail to learn from your mistakes and continue to cause problems on the road, your car insurance premiums will reflect your lack of learning and stay the same or, in a lot of cases, increase.
Preventative thinking teaches us to always drive careful. This is a mode of operation that will hopefully govern how you drive. Realizing that the roads are filled with many hazards and perils and you must safely navigate through will give you the assurance that your insurance premiums will stay at moderate levels.
Also, if you are a student or even over a certain age, insurance companies offer special discounts to drivers who qualify for their discount programs. Make sure you check to see if these discounts apply to you.