Many individuals are appalled when they see their car insurance rates increase year after year, and they wonder when they will receive a break on the fees they are paying. It is a common belief of most motorists that their insurance premiums will lower after they have passed a certain age limit, such as the age of 25. The motorist is surprised when their insurance premiums remain the same after passing this mile marker. At any given point in their driving career, a motorist may see a reduction in their rates.
This is due to the fact that discounts on insurance rates are not based upon one's age; but rather, on the amount of years the individual has possessed their license. For example, a motorist who has recently obtained their license at the age of 25 will most likely pay higher insurance premiums than a motorist who, at the age of 23, has possessed their license since the age of 16.
After a motorist has possessed their driver's license for over three years, he or she will qualify for discounts from their insurance carrier if their driving record has remained "clean". The definition of a clean driving record means that there is an absence of tickets, accidents, and other moving violations. A good driver discount can reduce your car insurance rates by up to 20% of the total cost of your policy. Each insurance company possesses its own guidelines about how they define driving experience. Most insurance companies credit your driving experience beginning at age 16. Other insurance carriers will define your driving experience by the actual number of years that you have possessed your license.
At the young age of twenty five, age is not a deciding factor in when your car insurance premiums will be lowered. That determination will be made based upon your driving history. However, later in life, your age, as a senior citizen, will raise your rates, rather than lowering them. It is a common belief of car insurance companies that a person's mental and physical capacities diminish with age. This fact, therefore, is believed to increase the chances that one will have of being involved in an accident.
It is a commonly known fact that, until a motorist reaches the age of twenty five, he or she is not able to rent a car. Why does this discrepancy exist? It is due to the fact that most car insurance companies believe that, after this mile marker, a person becomes a much safer driver. Insurance companies use every available iota of data about a motorist to develop a profile predicting what type of motorist they will be. Some factors, such as the make and model of your car, you will be able to control. Other factors, such as age or gender, you will be unable to influence. However, understanding the most common factors that insurance companies use to ascertain car insurance rates will allow you to manipulate what factors you can in your favor.
As aforementioned, your age, gender, and marital status are all take into account by an insurance company when determining what you will pay in car insurance premiums. Female drivers are considered to pose less risk to an insurance company than male drivers. Middle aged, married women are the segment of motorists that enjoy the lowest rates on car insurance. Young adults, under the age of 24, typically have some of the highest insurance premiums in the country.
However, there are discounts available to this age segment in the form of good driver discounts, good student discounts, and the completion of a defensive driving course. The make and model of the vehicle you drive will also influence how high your insurance rates are. Certain models of cars are considered "attractive" to thieves, and there is a higher risk that they will be vandalized or stolen. Sports cars and luxury vehicles also command higher insurance premiums based upon the expense that is involved in fixing them in the advent of an accident.
Additional factors that will affect what you pay in insurance premiums include your driving history, the amount of the deductible you are willing to pay on your insurance policy, and the anti theft or safety features that your car contains. These are factors that you can manipulate in your favor to lower your insurance premiums.
This is due to the fact that discounts on insurance rates are not based upon one's age; but rather, on the amount of years the individual has possessed their license. For example, a motorist who has recently obtained their license at the age of 25 will most likely pay higher insurance premiums than a motorist who, at the age of 23, has possessed their license since the age of 16.
After a motorist has possessed their driver's license for over three years, he or she will qualify for discounts from their insurance carrier if their driving record has remained "clean". The definition of a clean driving record means that there is an absence of tickets, accidents, and other moving violations. A good driver discount can reduce your car insurance rates by up to 20% of the total cost of your policy. Each insurance company possesses its own guidelines about how they define driving experience. Most insurance companies credit your driving experience beginning at age 16. Other insurance carriers will define your driving experience by the actual number of years that you have possessed your license.
At the young age of twenty five, age is not a deciding factor in when your car insurance premiums will be lowered. That determination will be made based upon your driving history. However, later in life, your age, as a senior citizen, will raise your rates, rather than lowering them. It is a common belief of car insurance companies that a person's mental and physical capacities diminish with age. This fact, therefore, is believed to increase the chances that one will have of being involved in an accident.
It is a commonly known fact that, until a motorist reaches the age of twenty five, he or she is not able to rent a car. Why does this discrepancy exist? It is due to the fact that most car insurance companies believe that, after this mile marker, a person becomes a much safer driver. Insurance companies use every available iota of data about a motorist to develop a profile predicting what type of motorist they will be. Some factors, such as the make and model of your car, you will be able to control. Other factors, such as age or gender, you will be unable to influence. However, understanding the most common factors that insurance companies use to ascertain car insurance rates will allow you to manipulate what factors you can in your favor.
As aforementioned, your age, gender, and marital status are all take into account by an insurance company when determining what you will pay in car insurance premiums. Female drivers are considered to pose less risk to an insurance company than male drivers. Middle aged, married women are the segment of motorists that enjoy the lowest rates on car insurance. Young adults, under the age of 24, typically have some of the highest insurance premiums in the country.
However, there are discounts available to this age segment in the form of good driver discounts, good student discounts, and the completion of a defensive driving course. The make and model of the vehicle you drive will also influence how high your insurance rates are. Certain models of cars are considered "attractive" to thieves, and there is a higher risk that they will be vandalized or stolen. Sports cars and luxury vehicles also command higher insurance premiums based upon the expense that is involved in fixing them in the advent of an accident.
Additional factors that will affect what you pay in insurance premiums include your driving history, the amount of the deductible you are willing to pay on your insurance policy, and the anti theft or safety features that your car contains. These are factors that you can manipulate in your favor to lower your insurance premiums.
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