In the Market for Car Insurance? Understand How Your Driving Experience Impacts Premiums
If you’re applying for vehicle insurance, you may not understand that your driving experience impacts your premiums. While insurers look at a variety of factors to determine your rates, driving history is one of them. Here’s what you should know when looking for your next auto insurance policy.
Generally, the more driving experience you have, the less likely you are to get in a collision, all other things being equal. This is because you have knowledge of driving on the roads. If you have a long history of safely driving on city roads, then the insurance company is going to look at you more favorably than someone who has 2 years of safe driving experience. If you are more likely to file a claim, an insurer will raise your premium because there is more risk associated with you.
Young drivers obviously have less driving experience than older drivers. However, inexperience is just one reason why younger drivers are costlier to insure than older drivers. Young drivers are the riskiest group because they have proven time and time again that they get involved in or cause collisions. However, there is a blurry line between age and experience. Are young drivers poor drivers because they’re inexperienced or are they bad drivers because they’re group and don’t know any better?
Say you’re a 30-year-old driver who is applying for car insurance for the first time. You’ve never had an insurance policy before, but you’re also not considered a young driver. Unfortunately, the insurer may see you as a risky driver – almost as risky as a younger driver. That is because you have no verifiable driving history, which makes it look like you are inexperienced on the roads, even if you got your driving license at 16.
If you have 20 years of continuous insurance coverage with no history of accidents, then the insurance company sees you as a good, low-risk, experienced driver.
Ensure that you have the right car insurance that you can count on. Contact Action Insurance Group who can help you find reliable auto insurance for the right price.
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