Auto insurance companies have a complete data sheet where
insurance algorithms are predefined. There are a number of factors that
determine what premium quote you are likely to receive from the auto insurance
company.
Age is one of the major risk factors which form the basis of
premium calculation from the insurance companies. While at first glance, it may
look like that premiums are biasedly calculated or age discrimination is
highlighted in insurance policies. But if you look deeper in to the case, you
will find that the age premium policy is based on firm evidences.
Insurance policies
for teenagers and new drivers:
The auto insurance companies will set a higher premium for a
teenage driver. Teenagers are known for their agility, their adrenaline pumped
energy and their total disregard to car speed limitations or the implications
of fast driving. Along with this they have a tag of ‘inexperienced’ attached to
their names. This makes them more susceptible to damages and fatal road
accidents. Therefore, the premium prices are higher for this group. A research
done by Insurance Institute for Highway Safety disclosed that the age groups
16-19 are considered the dangerous age groups which are four times more likely
to be in crippling car crashes than middle age drivers. According to one
research conducted by CDC, it was deduced that a 20 year old pays 41 percent
more auto insurance than a 25 year old driver.
Insurance policies
for middle age drivers:
A study done by Insurance Institute for Highway Safety
(IIHS) discovered that drivers around 30-69 years old were proclaimed as the
safest drivers. Cautious, experienced and careful of rules and regulations,
this age group drivers tend to drive with superior ease, have lesser tendency
to break speed limits and are more likely to wear seatbelts while driving in
comparison to teenagers, new drivers and senior citizens.
Insurance policies
for senior citizens:
Insurance premium rates are again likely to rise as the
person’s age advances to 70 years and above. This is because as drivers get
older, the change reverses. Their instincts are weakened, hand eye coordination
gets poorer and vision impairs to a certain degree. Therefore, they are now at
a greater risk of getting in to a car crash. But discounts can be obtained if
you have been on the road for almost all your life or if you are driving your
car to your work every day.
