Auto insurance providers examine a number of factors when determining risk and rate for each driver. According to a recent InsuranceQuotes.com report, age and marital status have a significant impact on car insurance costs – costs decrease every year until age 60, for example, except in states where insurance companies are not permitted to factor age into rate calculations.
Per the report, the sharpest drop in costs is from age 20 to 25 – a whopping 41 percent decrease. From age 25 to 60, rates drop another 18 percent. Senior citizens do not experience large penalties as they age; 75-year-old drivers may pay just up to 17 percent more than 60-year-olds, the report found.
Getting married young can save a great deal on car insurance, as well, except in states where insurance companies are not permitted to factor marital status into rate calculations. According to the report, a married 20-year-old pays 21 percent less than a single 20-year-old for the same policy. At age 25, the average marriage savings falls to 7 percent.
Published with permission from RISMedia.