New study shows motorists aged 16 to 19 pay up to double the premiums of older adults.
The findings from a New York-based auto insurance study on teen drivers has shown that age is a vital element that helps to determine the way that premiums are calculated for vehicle coverage.
Young drivers with little to no experience pay far more than any other drivers on the road.
In fact, the report on the car insurance research findings indicated that some teen drivers are paying up to double the premiums that are being paid by motorists who are older and have more experience. Among those in the youngest age group, it is males who are having to fork out the most. Notably more than females with the same age and experience level.
Teen drivers from 16 to 19 years old pay an average annual premium of $2,999 just for liability coverage.
Comparatively, the average annual premium is $1,610 for drivers aged 35 to 39. The research suggested that the majority of insurers don’t start to decrease the rates until the age of 25, when they deem the driver as adequately experienced to reduce their risk. It was at this age that the rates plummeted from the $2,999 average for teen drivers, to $1,707 for motorists from the age of 25 to 29 years.
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The research also examined the link between insurance rates and age at the other end of the scale. It looked into the way that the premiums of older drivers are affected by their age. Though many people tend to think of elderly drivers as being more hazardous, the study actually found that they are also the motorists paying the lowest premiums of any age group.
Among drivers over the age of 75, the average annual premium for liability auto insurance was only $1,203. Statistics show that while teen drivers are the most commonly involved in auto collisions and crashes, motorists over the age of 65 have less than a 1 percent likelihood of being killed in an auto accident. It is believed that this is due to the cautious driving habits that seniors have in comparison with those who are younger, freshly licensed, and who are typically more reckless.