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Insurance companies view any new driver as an increased risk because of less experience behind the wheel. To compensate for that, you can expect higher rates based on how long you’ve been driving. However, you can still save on your premium.
Similar to your personal age, how long you’ve held a license shows your experience level to insurance companies. That means those that wait longer to get a license may pay higher rates than other drivers their age.
Also, drivers who wait past a specific age in their state may not have to take driver safety training, which could factor into higher insurance rates.
However, your license age will only be a big factor for the first few years of driving. By the time you hit your late 20s, you shouldn’t see much of a difference whether you got your license at 16 or 17.
Insurers may increase your premium until you’ve held your license for several years, but how long depends on the insurance company and possibly the state you live in.
The average car insurance rate across all drivers is about $1,300 per year. However, teenage drivers with little to no experience could pay over $6,000 for insurance. Those who hit age 21 with several years of driving experience could pay between $2,700 to $2,900, a huge decrease due to perceived experience level.
Another factor that may play into that rate is the requirements your state has to get a license, such as minimum licensing age. According to the Insurance Institute for Highway Safety (IIHS), studies show that strict requirements and higher licensing age do lead to fewer collision claims. That means states with high standards may also offer lower rates for inexperienced drivers.
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The age of your license may help companies determine risk based on your driving experience. Age and driving experience have a huge influence because young, less experienced drivers have statistically been shown to get into more accidents.
No. Insurance companies can rightfully use your license age to determine driving risk. However, pay-as-you-go insurance can help companies track your driving habits and rate you more individually. This could work in your favor if you’re a safe driver but can’t get good rates due to your age.
Even though your driving abilities are just now budding, you don’t have to settle for high insurance rates. You can look into several simple ways to save.
Pay only for the miles you drive, plus enjoy app services you won’t find everywhere like claims and car health updates.
Similar to your personal age, license age tells an insurance company how much driving experience you have. That’s why you may see an above-average premium for your age if you got your license later than other drivers.
However, the exact premium can differ a lot as you shop multiple providers.
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