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FAQ: Auto Insurance Rates Explained
How does age affect auto insurance rates?
Getting a driver’s license is a milestone for most teenagers. Unfortunately, with this added responsibility comes added expense, such as a set of wheels and auto insurance. Young drivers typically pay the highest auto insurance rates of any demographic, with young males footing the largest bill.
Insurance companies charge inexperienced drivers— both male and female— higher auto insurance rates since they’re more likely to file an auto insurance claim or get a speeding ticket sometime during their young driving careers. Research also shows that young males take more risks behind the wheel, hence the higher auto insurance rates.
Esurance has good news for young drivers, however. Most auto insurance companies make young drivers wait until they turn 25 to benefit from lower auto insurance premiums. Esurance offers most young drivers a discount on their policy every term (assuming there are no traffic violations or auto insurance claims). If you’re in this category of drivers or you know someone who is, read
Teen Drivers and Their Auto Insurance to find out more about how to save on auto insurance.
We know students don’t have a lot of money to spare. That’s why Esurance tries to help out in any way we can. In several states, Esurance gives auto insurance discounts to students who are under 25 years of age, maintain a 3.0 ("B") grade point average or better, and are enrolled full-time in high school, community college, or university.
Mature drivers can see their auto insurance rates increase as they get older. To help combat this expense, Esurance offers a mature driver discount in many states. To qualify, you need to meet the age criteria for your state and take an approved mature driver safety course.
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