As a rule, car insurance rates drop as the age of the car increases. However, this isn’t always the case, and some drivers may have to pay more to get a lower rate. For example, a twenty-year-old male driver might pay over $1,500 for standard liability coverage. But by the time he hits thirty, the cost has dropped to $552. And what’s more, a brand-new driver can expect to pay over $1,500 for coverage. That’s because statistics show that young drivers have a higher risk of getting into an accident than older drivers, so their premiums are higher than the average car owner.
While the age of a car affects its insurance cost, the exact number depends on a variety of factors. Insurance companies’ algorithms use many different factors, such as the likelihood of an accident, to calculate the premium. They then use those numbers to distribute the premiums over the car’s lifetime, allowing drivers to pay a lower premium as the car gets older. However, the same isn’t true for classic cars.
Young drivers’ age is a huge factor in car insurance rates, but as they gain driving experience, their premiums start to decrease. Then, they start to increase as they reach their fifties and sixty. By the time they reach the age of 25, however, they’ll have experienced a significant drop in their premiums. And the same goes for those who are over 65.