Does Your Age Really Affect Your Car Insurance?

We’ve all heard the talk about whether your age affects your driving ability or your likelihood to get into a costly accident. The truth is, age is one of the most important factors in determining car insurance premiums. Exactly how much you’ll pay will largely be affected by your age range.

If you are worried about your age causing costly premiums for you, do not despair. You can contact your New Jersey Personal Auto Insurance provider so see what discounts you may qualify for even if you are part of one of the costlier age groups. Let’s take a look at these different age groups and factors that affect your car insurance.

New & Teenage Drivers

New drivers typically pay quite a bit more for car insurance than other drivers. Statistics confirm that young drivers are a much higher risk than experienced drivers since they’re more likely to be in accidents. Even though teenagers drive fewer miles on average than adults, they have much higher incidences of both crashes and crashes resulting in death. They’re three times more likely to get into accidents than 20-year-olds are. And while they are less likely to drink than adults, they have a higher incidence of being involved in a crash when they do.

This is mostly due to inexperience. Teenagers are more likely to speed and tailgate, and less likely to wear safety belts. They are also more likely to underestimate the gravity of the situation that they’re in. For those reasons, teenage drivers pay substantially higher car insurance premiums than other age groups. 

Ages 20-24

Car insurance rates begin to drop at around age 20. By how much, depends on a variety of factors, including how long you’ve been driving as well as your history of being involved in accidents or in committing traffic violations. If you’re a new driver age 20 or older, expect to pay more for car insurance than those the same age who have been driving for several years. In the 20 to 24-year-old age bracket, car insurance premiums began to decline, but only slowly. The real difference occurs between the ages of 25 and 30.

Ages 25-65

This is the age range at which car insurance premiums become more affordable and the decline in price can be pretty significant. At this point, you have reached adulthood, and if you have reached this age without anything substantial on your record, you have proven yourself to be a safe, reliable driver.

Obviously, premiums are contingent upon many factors, such as a clean driving record, kind of car you drive, and how much you drive. However, once you reach age 30, car insurance premium rates become relatively stable, declining only slightly through age 65.

Over 65

The situation begins to reverse once you reach your 65s. Car insurance premiums begin to rise slowly from that point forward. It’s not so much that older drivers are more reckless, but rather that their driving is affected by physical changes related to age.

For instance, many older drivers experience impaired vision, particularly at night and may be dealing with various physical conditions, such as arthritis. Many are also using prescription medications, which may impair their judgment. While there is no evidence that older drivers get involved in more accidents, they are more likely to sustain serious injuries as a result of the accidents that they’re involved in. 

About Provident Protection Plus

At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.