Does age affect your auto insurance premium?
Auto insurance is a minefield for most of us. You may be a motorist applying for auto insurance but you don’t have a lot of experience. Perhaps you’re an experienced driver with 40+ years of accident-free driving history and you’re looking for a discount. You may be wondering how important is driving experience when it comes to calculating insurance premiums? We take a look at how your driving experience impacts your auto insurance rates.
Inexperienced drivers generally pay more for insurance
Generally, the more driving experience you have, the less likely you are to get in a collision all other things begin equal. If you have a long history of safely driving on city roads, then the insurance company is going to look at you more favorably than someone who has 2 years of safe driving experience.
The number of years you’ve been licensed is a factor
Say you’re a 30-year-old driver who is applying for car insurance for the first time. You’ve never had an insurance policy before, but you’re also not considered a young driver. Unfortunately, the insurer may see you as a risky driver – almost as risky as a younger driver. That is because you have no verifiable driving history, which makes it look like you are inexperienced on the roads, even if you got your driving license at 16.
If you have 20 years of continuous insurance coverage with no history of accidents, then the insurance company sees you as a good, low-risk, experienced driver.