How Age Plays A Huge Factor In The Cost Of Your Auto Insurance

The rates you pay for your auto insurance are determined by many things, but the main factor is risk. An insurance company will not offer a quote to you until they determine what risk category you are in, and a huge factor that affects your risk level is your age. Insurance companies track age with tickets, accidents, and claims; and through this, they have determined that a person's age has a lot to do with the probability that an accident will or will not occur. Here are a few things to know about age and the rates you pay for auto insurance.

Teens are the highest risk to insurance companies

Insurance companies use three main categories to classify a person's risk, and people with the highest risk are placed in the high-risk category. Teen drivers automatically fall into the high-risk category, and this is because statistical information shows that teen drivers have the highest chance of getting in accidents.

People between 25 to 65 are the lowest risk

Another category of risk used by insurance companies is called preferred risk, and these are people that offer the lowest level of risk to insurance companies. People between the ages of 25 to 65 are often labeled as preferred risk drivers; however, it takes more than just being a certain age to fall into this category.

If you turned 25 recently and have not asked for a new auto quote, you may want to do so now. If you have a good driving record, turning the age of 25 may offer a way for you to get a discount on your auto insurance policy.

You can save money in other ways

Age plays a huge role in your risk level, but there are ways to save money on auto insurance even if you are in a high-risk category. The goal is to look for ways to get discounts, and here are some options you could consider looking into:

• Take a defensive driving class – Just taking a class like this may open up opportunities for you to qualify for discounts on your policy.
• Look into bundling all your insurance policies – If you can do this, it is usually a good way to qualify for a discount.

Auto insurance is a competitive field among insurance companies. If you feel you are paying too much right now, call a different company and request a free auto insurance quote to find out if you can find a lower rate.