Insurance companies believe that young drivers are more likely to take risks, drive recklessly and file claims. These trends make younger drivers more expensive than insurance customers. Men tend to pay more for car insurance overall, although the difference is slight, around 1%. The difference is most pronounced between teens and young adults.
Women tend to pay less for car insurance than men. And it should come as no surprise that young drivers pay the most. Age is correlated with driving experience and the risk of having a car accident. The risk to the insurer and the cost to the insured generally decrease as drivers age and gain experience.
Your driving record can lower or increase your premiums, although some insurance companies may even cancel it or refuse to insure you if they think you are at too high a risk. Factors that can increase your insurance rates include negative information, such as adding traffic violations to your driving record, driving more, increasing your insurance coverage and reducing your deductibles. In other words, insurers have found that boys and young men are more likely to have car accidents than other drivers, even more than young women. In addition, most insurers offer specific discounts to help reduce the cost of insuring a teenager, such as discounts for good students.
It's also important to note that car insurance is regulated at the state level, so all the factors that are used to calculate rates in every state may not be taken into account. However, insurers can still factor in driving and insurance histories, so teens still tend to pay significantly higher rates. Age is a factor in auto insurance prices in almost every state, although California, Hawaii and Massachusetts do not allow this practice. But if you live in California, Massachusetts, or Hawaii, you're in luck; they don't allow auto insurance companies to consider your credit score.
In most states, auto insurance companies can consider their gender when setting car insurance rates. Some insurers offer more discounts than others, but no insurer offers all of the discounts available. The most important factors affecting car insurance rates are state coverage requirements, age, and the make and model of the car. Record-breaking natural disasters, the increase in phone-related car accidents, high rates of insurance fraud, and the costly repair of car technology have increased costs for insurance companies.
With so many options for car insurance companies, it can be difficult to know where to start to find the right car insurance. Most insurers understand that car insurance can be expensive for certain age groups and offer discounts to help lower those premiums.