Car insurance is one of those nonnegotiable expenses you face as a driver. While many teens are covered by their parents’ plans, young adults often discover their insurance rates are higher than those for older adults they know. There’s a lot that goes into setting insurance rates, but age is often a factor. Sometime around the age of 25, you’ll probably notice the rates go down. Understanding why this happens and what you can do to save even more helps you get the most from your insurance policy.
Understand Why Insurance Is Higher for Younger Drivers
While you might be tempted to call this ageism, the truth is insurance companies take a look at a driver’s overall risk of having an accident. Research and history shows people under the age of 25 are more likely to get into vehicle collisions. This is partly due to inexperience, and younger people are more likely to make risky decisions such as speeding because their brains are still developing. By the time you reach 25, you’re more likely to have more experience as a driver. You may also have matured beyond the point of choosing to run a red light just because you want to catch up with your friends in the car in front of you.
Know the General Factors that Influence Rates
Insurance companies look at more than just age when they set your car insurance rates. Certain geographical areas are known for having more accidents, and your rates may go up or down if you move to a new location. People who drive long distances regularly may have higher rates because they’re exposed to more situations over time that pose risks for accidents. The type of car you drive, your marital status, and your driving history are all factors that influence your rates.
Keep Your Rates Low with Safe Driving
One of the biggest factors insurance companies consider is your driving record. Getting multiple traffic citations causes insurance companies to view you as risky, and the same is true if you have car accidents. Do your best to avoid having things on your driving record that could cause your rates to increase.
Find Other Ways to Get Insurance Costs Down
If you’re worried about insurance rates, you have options that can get yours lower. Bundling your car insurance with other types of coverage can help you save more money. You might also be able to change the amount of coverage you have along with the deductible. If you take a safe driving course, make sure to let your insurance provider know, since many companies offer discounts for people who are proactive about increasing their safety on the road.
For a detailed personalized quote on auto insurance, contact your insurance agent. If you’re looking for affordable car insurance and high-quality service, call on the trustworthy agents from Altra Insurance Services. We also provide dependable renters, homeowners, and motorcycle insurance. San Diego drivers of all ages should give us a call today at (800) 719-9972.