What age does the insurance cost decrease for a young driver?
What age does the insurance cost decrease for a young driver? Parents suffer every month when they have to pay for their child’s auto insurance. It’s no secret that the insurance for a young driver of 17, 18, or 19 years old can average around $300 per month.
Statistics show that younger drivers are more likely to be involved in accidents. On one hand, they lack experience, and on the other, many are risk and speed enthusiasts. These are factors that insurance companies take into account when offering their policies.
Fortunately, with time, we gain experience and age. That’s why it’s not unreasonable to ask, at what age do insurers consider a driver to be more reliable?
Although there’s no single answer, generally, insurance companies consider drivers to be more reliable starting from the age of 25, and they reflect this in their insurance contracts. According to statistics, a driver between 17 and 23 years of age pays an average of $7,000 per year for insurance. However, from the age of 25, the average premium price drops to $3,200 per year. “More than half.”
Some may now be thinking with a calculator in hand, “It’s worth waiting until 25 to have insurance.” However, it’s not that simple.
Firstly, even though auto insurance is cheaper from the age of 25, there are drivers who reach that age, and their insurance doesn’t decrease. This happens when their driving history hasn’t been the best – meaning they have had accidents or received speeding tickets. Therefore, insurers will still perceive them as risky drivers.
On the other hand, experience is a factor that influences insurance premiums. If someone waits until they’re 25 years old to get their driver’s license, their insurance premium will be as expensive as a novice’s, as they lack experience.
In conclusion, if your child has reached the age of 25 and hasn’t seen a substantial reduction in their auto insurance premium, call Univista Insurance, and you’ll get the cheapest policy in the market. What age does the insurance cost decrease for a young driver?