Age is one of the most important factors in determining your car insurance rate, and since your risk as a driver decreases as you age, your premiums also tend to decrease. Comparing numerous car insurance quotes before buying or renewing an auto insurance policy increases your chances of finding the best rates. You could end up paying 70% more for car insurance than your co-worker, just because they drive a van and you drive a Tesla. Its effects on auto insurance rates can be seen from state to state, and younger drivers are the ones who always pay the most for coverage.
However, there are ways to save money on car insurance if you drive in your 20s, such as staying on your parents' policy or being entitled to discounts. If your insurance costs rise and fall according to this schedule, three states don't allow insurers to use age as a qualifying factor: California, Hawaii and Massachusetts. You might be able to stay on your parents' car insurance policy, which is a great way to save money on car insurance when you're 20 years old. Middle-aged drivers with road experience are the least expensive to insure because they have the lowest rates of accidents and claims, especially compared to older and adolescent drivers, who are the most likely to be involved in car accidents.
The cost of car insurance generally declines the most between 18 and 19 years of age, when rates drop by approximately 25% on average. Full-coverage car insurance is more expensive because it also pays for the repair or replacement of the car after it is damaged due to a crash or something other than an accident, such as an act of vandalism. The exact cost of car insurance for a 16-year-old also depends on a few other factors, such as their driving history, gender and type of vehicle. Car insurance rates are higher for teens and older people, on average, because they are considered high-risk because of the greater likelihood of accidents and costly claims.
Stronger policies, such as comprehensive coverage, collision coverage, and full-coverage auto insurance, cost more per month, but provide much more driver protection. Katie Powers is an insurance writer at Insurify with a license as a property and accident insurance producer in Massachusetts and experience in personal finance and auto insurance issues. But even if you don't qualify for an immediately lower rate, there are steps you can take to pay less for car insurance in the future.