Without a history of reckless or dangerous driving, many individuals wonder why their auto insurance policy is so high. According to Coverra Insurance Services serving Sparta, Tomah, and Holmen, WI, there's one cost factor that many drivers overlook: Age. Below, the specialists explain why this factor affects your premium as well as how you can counteract such expenses.
How Age Affects Your Auto Insurance
Individuals under 25 and over the age of 65 usually experience the highest premiums. The rates are a result of the underwriting process, which determines a driver's risk based on various factors, including age. Drivers that fall into a teen or senior demographic are statistically involved in more crashes than vehicle operators in the mid-age range.
According to the Center for Disease Control and Prevention (CDC), drivers between the ages of 16 and 19 experience the highest number of crashes of any group. This increased risk seems to be attributed to inexperience as well as lower seat belt usage. Teenagers also showcase a higher rate of speeding.
Seniors, on the other hand, have the highest rates of seat belt usage, yet are prone to injury and death as a result of crashes. Part of the issue is that they're more susceptible to broken bones as a result of aging. Older adults are also more likely to suffer from heart attacks and cognitive ailments, like dementia, which can decrease their reasoning skills and lead to collisions.
How to Reduce Your Insurance Costs
While you can't change your age, you can take measures to reduce your auto insurance costs. If you're planning to buy a new vehicle, do your research and choose a model with high safety ratings. Providers typically give lower rates to drivers with those cars because they lower your risk of injury.
Most companies also offer a wide range of discount opportunities to both young and senior drivers. These include education discounts for good grades as well as savings for retirees. You can also achieve substantial price reductions by taking driver's education or defensive driving courses.
Facing higher auto insurance premiums as a result of your age is frustrating, but there are ways to counteract these costs by working with the agents at Coverra Insurance Services. Their team works with clients to find a plan that meets their unique circumstantial and budgetary needs. Learn more about their policies online, or request your quote by calling (608) 269-2127 today.