One of the biggest financial factors in driving is the cost of car insurance, which relies heavily on your age. Generally, younger drivers and seniors pay more for vehicle insurance. Costs typically decrease after your teens and early twenties, until you hit sixty when your rates rise again.
Car insurance premiums are generally highest among drivers in the 16 to 24-year old range. According to recent research, the average car insurance costs are highest from 16 years of age to 21 years of age. At 25, vehicle insurance costs tend to decrease sharply and continue declining as you get older. After the age of 55, car insurance premiums slowly start creeping back up, especially between the ages of 60 and 65, typically returning to the rates 25-year-old drivers are charged. Guy Hurley McNeil explains why below.
Why Teens and Seniors Pay More For Car Insurance
Car insurance in Rochester Hills, MI or metro Detroit is more expensive for teenagers and elderly drivers because statistics indicate that those demographics are more likely to get into car accidents than other age groups. In fact, according to the Insurance Institute For Highway Safety, drivers between the ages of 16 to 19 are three times as likely to be involved in a collision than those from 20 to 50, even though they only account for 7 percent of licensed drivers.
When it comes to older drivers, the fact is that aging is often behind many accidents. Older drivers generally have slower reflexes and poorer eyesight, which can affect their driving ability. Insurers often charge senior drivers age 70 and above as much as they would charge a driver who is 25 as a result. Of course, your driving record and number of accidents you’ve been involved in will also impact your insurance rates.
To find the best automobile coverage for your age group, contact the Rochester Hills, MI insurance experts at Guy Hurley McNeil today.