How Does Age Affect Auto Insurance Rates?

There are many variables attached to how insurance rates are determined for drivers and age is definitely one of those variables. Since driving is a new adventure and an entirely new set of responsibilities for young people, their novice status is taken into account. The lack of experience, coupled with a young driver’s excitement and sense of freedom behind the wheel, make for a higher risk in the eyes of insurance companies. Young drivers –both male and female, though males pay even slightly higher rates– do foot a larger auto insurance bill in order to legally drive.

Whether you live in Greenbelt, Maryland City or Cloverly, Maryland, New England, or most anywhere in the United States, you must have insurance to drive legally. The time when young people will begin to naturally see lowered insurance rates is at age 25 and older.

While you can’t get around the fact that age does affect insurance rates until you reach the age of 25, some companies reward responsible young drivers and reduce rates based on factors such as good grade point averages at 3.0 and better while enrolled in university or community college. Proving to your insurance carrier that you are a responsible driver will generate discounted insurance rates well before the time you reach 25 years of age.