Age is one of those things in your life that you really don’t have any control over, and yet it’s also one of the things that can have a massive effect on your insurance rates? Why? Well depending on your age the reasons can vary, but in this article we’ll lay it all out as simply as we can.
Under 25
The first insurance category you can fall into is what we’ll class as “too young”. Generally speaking drivers under the age of 25 are considered to be new drivers and therefore at a greater risk of being involved in an accident. To compensate, insurance companies charge a much higher premium to drivers under this age, and especially to drivers who haven’t yet received a full G license.
Mature Age
Once you pass 25 you should see a decrease in your insurance premiums, this is because beyond this age you’re considered a “mature driver” with the assumption that you’ve been driving since you’ve been legally able to. As a mature driver age becomes less of a concern when thinking about your insurance premium however there are still other factors you’ll need to be thinking about.
A good rule of thumb when it comes to insurance in this phase is the 10 year milestone rule. Basically you should check and compare your insurance rates every 10 years to see if you’ve qualified for better rates because of your age and experience driving.
Over 70
It’s not all sunshine forever however, once you reach the golden years post retirement you may start receiving retiree discounts, however you may also see a hike in those rates as well as the older you are you also start to be considered a higher risk driver. Even if you have none of the health problems that often make you more dangerous on the road like sight problems you may still see this price hike.
If you do have the health issues that make you a risk then you may risk having your licence taken away.
Other Factors You Can’t Control
Age is not the only factor outside of your control that can have an effect on your insurance, there are several others to be aware of. Gender can have an effect and males are typically considered to be higher risk drivers on the road and therefore may pay slightly more insurance.
Where you live can have a massive effect on your insurance, especially if you live in a dense urban environment with lots of traffic. This is considered a higher risk location to drive and therefore will increase your premiums.