Is there a magic number or age when it comes to how much you pay for your car insurance?
You may have heard people complaining about higher insurance premiums for people below the age of 25. While this is true, 25 isn’t necessarily the magic number to end all of your insurance woes, and in fact older drivers can also face high premiums.
Car insurance premiums are the result of a number of factors- including where you live, the type of car you own and what your driving history looks like.
Despite the common auto insurance myth you don’t suddenly make savings just because you’re 25. The reason a driver’s premium will decrease after the age of 25 is down to the number of years they have been driving.
Say a person starts driving at the age of 17, by the time their 25th birthday rolls around they will have secured eight years of driving experience. If this is coupled with a clean record, they can expect to see their premium shrink noticeably.
While Ontario’s insurance system includes the driver’s age as a major risk factor, provinces including BC, Saskatchewan and Manitoba all have public auto insurance programs where age is not considered a factor when it comes to premium pricing.
While all younger people will expect to see a higher rate, this is especially true of male drivers under the age of 25. Insurance companies base payables on statistics alone- and unfortunately statistics show that young, male drivers simply get into more accidents than females.
The motor vehicle death rate for male drivers and passenger’s ages 16 to 19 is almost double that of females, according to the latest CDC statistics. It is suggested that this is down to young men being more reckless when driving. Furthermore, when it comes to traffic violations, the rate at which they occur among men almost doubles that of women according to findings from Stastic Brain.
In many cases with age comes experience, and insurers are happy to reward this, with lots of drivers between 55 and 70 receiving lower premiums. However, similar to travel insurance, once a customer hits 70 there is a high chance their premium will start its accent into a high-risk zone. Much like young people, accidents are expected to happen more frequently, with the cost of settlements becoming an expense to the insurer.
While age may be a factor when deciding your premium, it is important to remember that this is not the ultimate factor, which determines the cost you pay. Car make, model and age, how often you drive, where you live and your track record could mean you are eligible for a discount. It is also helpful to shop around, as you can make big savings company to company.