Age is one of the significant factors that every Car Insurance companies look when calculating your premium car insurance rates, with this they will be able to figure out the risk for accidents based on the driving experience of the driver.
According to statistics, people who have more years of experience on the wheels are under less risk factor in getting into an accident and applying for an insurance claim. So which age group needs to pay the higher and what age groups are required to pay lower premiums?
Related: Buy Car Insurance from Compare4Benefit and Save up to 1200 AED on Car Insurance.
Let’s find the answer to the question in this detailed blog.
What is the Average Car Insurance Rates by Age?
After analyzing more than thirty Auto Insurance Companies quotes, it’s clear that the old age people and young aged people are experiencing to pay higher premium rates when considered to the middle-aged people.
There are many tools online to check out the Insurance companies quotes in your area. As per our analyzation with different tools, we have found that.
1. The teenagers are asked to pay three times the rate of a driver with a mid thirty age group, and four-time high when compared with a professional driver in mid-fifties.
2. Once teenagers become 25, their premium rates drop about 30%, and these rates get reduced with their every birthday, so as an overall people who are in their 50 to 60 age group, they experience to pay lesser premium rates.
3. Again the premium rate increases when their age rises above 60, they are asked to pay the same amount as per a teenager does.
In UAE, there are several factors that affect your car insurance rates namely
Drivers Age: The Drivers Age: If you fall under 23 to 25, then you will be added with 25% to the premium insurance cost, 15 % for the person who falls between 25 and 30. You get a discount of 10% if you fall in the age range of 30 and 60 years old.
Cost of the car: The average car insurance rate of a car that is more than 300,000 AED is 2.75% and 3% for the cars that range from 100,000 AED and 300,000 AED.
Related: Factors that affect the Car Insurance Rate
Auto Insurance Rates as per the Gender
Gender is also considered as the primary factor when calculating the premium insurance rates, as per the research males are paying more than a female pays, and the rate gets differed as per the age.
Males are paying 12% higher than a women pays for their Auto Insurance, when compared this with the age group the auto insurance rate differ entirely.
For, e.g.: if men paid 20 % higher than the women at their age of 21, then at the age of mid group the female has to pay 2% higher than the men.
Why Old and Young Drivers pay higher for Auto Insurance?
In the case of teenagers, they are just likely to start with car driving and therefore considered to be the beginners, so in this case, there are high chances for them to get into the accidents or crashes when compared to the other age group persons.
The IIHS (Insurance Institute of Highway Safety) has reported that people who are in the age group of 16 to 19 have caused three times higher car accidents rather than middle age groups.
They also have identified that young people between the age group of 15 and 20 have resulted in 10% of the car accidents and among them, only 7% of the drivers are found with licenses.
In the case of age group between mid thirty to mid fifty are well experienced and are aware of handling the things even in the case of any accidents and therefore people in this middle group is liable to lower premium rates.
Next comes the older age people above 60, they get aged and therefore reverse change is seen on them as per the young people do, they lose the control at times, get nervous due to the BP and other factors, etc., this results in higher car accidents. Auto Insurance Companies start to increase the premium when the drivers become 70.
Tips to save money on Car Insurance – For young and old drivers
There is some reliable way through which you can lessen the car insurance rates namely.
Shopping:
One of the efficient money saving technique to reduce your insurance cost as a young or old driver. From our analyzing and research we found Erie to be the affordable Auto Insurer and GEICO to be the higher car insurer for young and old drivers.
You need to quotes from different companies, compare them and then choose the better one, few of the auto insurance companies provide a tool online to compare their price with other auto insurance companies.
Discounts:
As usual, Discounts are one of the strategies to decrease the premium rates of young and old drivers, and you can take many defensive driving courses or other similar ones for to get 10% discount for the younger people.
For senior drivers, people who are retired will automatically get a discount of 10% in some countries.
Combining with your Parents Auto Insurance Policy
We have found that you can join your insurance with your parents auto insurance policy to lessen the premium insurance rates, this is because parents are allowing you to take a risk on their side and therefore they are provided with fewer premium rates.
In this case, your parent’s policy premium rates will get increased than your insurance policy.
Following the above steps efficiently will help in getting few ideas regarding the lessen premium rates for older and young people.
Any other ideas to reduce the premium auto insurance rates for seniors and young drivers? Let us know through the comment section below so that we can add it in our blog.
