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Does Your Age Affect Your Car Insurance?

Learn about the impact of age on car insurance rates, including how premiums change over time and factors influencing insurance costs.

  • 12 Apr 2024
  • 2 min read
  • 72 views

When buying four wheeler insurance, age, gender, and other factors are considered. The following passage explores how car insurance prices vary by age and the reasons behind such variance.

Let’s explore this interesting subject further.

Understanding How Age Impacts Car Insurance Premiums

Car insurance rates by age usually remain high during young age and low in senior years. You may wonder why we must pay higher premiums at a young age and lower as our hair turns grey. Let us understand the reasons in the subsequent passages.

  • Research says people at a young age, say in their 20s, are more open to taking unnecessary driving risks, causal driving with friends or partners, rash driving under the influence of alcohol or other intoxicants, etc. The ratio of accidents is higher among younger people compared to their senior counterparts.
  • Insurance companies inflate car insurance prices by age after considering risk factors. Prominent risk factors among young people are lack of skills and experience, neglect of wearing seat belts, getting distracted while driving, speeding, and low adherence to traffic rules.
  • These characteristics among people in their 20s and early 30s put them into the high-risk category and affect car insurance approval and premiums.
  • Let us come to senior people. Most insurance companies offer affordable car insurance products for experienced people in their 40s and 50s. Married people with driving experience are less likely to get into accidents; they are expected to be more responsible drivers and abide by traffic rules on the road.
  • These factors make senior people low-risk car insurance applicants, and insurers charge lower premiums. However, the premium might shoot up again at more advanced ages, such as 65 and above, because of age-related issues.
  • To sum up, insurance companies offer high-premium four-wheeler insurance to people between 18 and 25 years and starts decreasing after 25 years. Those in their 40s and 50s get the best car insurance products. People in the late 60s get counted in the high-risk category again, and the premiums shoot up.

For example, the premium for a 16-year-old driver can be as high as 16% at INR 4,000. This rate goes down as the driver’s age increases; at 22 years, the premium more than halves to 7% to settle at INR 3,000.

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Conclusion

These are the prominent factors that define how age determines four-wheeler insurance. Consider the risk elements insurers take into account and apply for your first car insurance to get the best premium rates. Drive safely and responsibly.

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