You're 20 and Your Auto Insurance Is Going Down: Why?
It's hardly ever a problem to see the price of your auto insurance go down. But, you may wonder why it is happening. What could it mean that you are now paying less for the car insurance you need?
As you get older, your rates are likely to continue to fall. It all has to do with risk. How much of a risk are you to your insurer at the age of 20?
Getting Older Means, Statistically, You're a Safer Driver
Teenage drivers are usually a high risk. These individuals often have little to no experience behind the wheel. Most of the time, these drivers are also either very scared or overly confident.
These factors may produce the results that most insurers don't like to see happen. That is, these drivers are more likely to be in an accident. As you get older, you gain experience. You mature. And, you may see a correlation with your car insurance costs falling.
It has to do with the amount of risk you present to the insurer. Statistically, higher risk drivers are more likely to cause an accident. They are more likely to be in an accident. This makes them more expensive to insure. Insurance agencies conduct large-scale research to determine when individuals are a high risk. Teens typically rate high on that scale.
Those who are in their 20's, on the other hand, are less likely to be in an accident. They may rate lower than teens on the risk scale.
What About 10 Years from Now?
Most often, auto insurance peaks during the late teens in terms of costs. It will often fall further as you get older. It may begin to rise some when you enter your 60's, however. Older drivers face other risks that may prevent them from safely driving.
However, This Is Individual
If you are a 20-year old driver involved in two speeding tickets and an accident, your rate is not going to go down. Instead, it is likely to rise in the coming years. You'll be able to potentially lower your rate if you maintain better driving habits.
If you are unsure if your rate will change, contact your car insurance provider. Ask questions about how to lower your current rates. And, if you find it is not possible to see a drop in your rate, take steps to improve your driving habits. Sometimes, you do not even have to ask for a discount. The insurer gives you the best rate available.