In case you are an experienced car owner you’ve probably noticed that auto insurance rates tend to change with time even if you keep driving the same car and don’t modify your policy. Of course, driving the same vehicle for decades is something that is very rare these days. But still, even if we take the case of a driver who keeps the same car for 15-20 years, his or her rates will still change as the person ages. That’s because age is one of the factors that influence the premiums charged by the insurance company. So let’s take a closer look at the link between insurance rates and the driver’s age.

Insurance companies are all fixed on risk and use different methods and statistical data to determine the risk of insuring different drivers. It was observed that insurance claims tend to fluctuate in frequency among different age groups and insurance companies have instantly adopted the driver’s age as one of the things that can influence their rates. Nowadays, by simply belonging to a certain age group you will get different rates no matter what driving skills and claim history you have. Of course, these things will also influence your rates too but this will be an addition to the age-related rate fluctuation.

Things start a bit bad because the youngest drivers usually get the highest car insurance quotes. That’s because this group of drivers lacks the necessary experience and skill but also tends to drive more aggressively, especially younger males. Drivers aged less than 25 tend to get in serious accidents far more often than all other age groups, that’s why they get the highest rates.

Once you get closer to the age of 25 the car insurance quotes you’ll get will start to decrease and there will be a drastic slope after you turn 25. That’s because with age young drivers tend to accumulate more skills and learn how to drive correctly. This effectively reduces the number of insurance claims filed by this age group and respectively lowers the cost of auto insurance.

The downward slope of car insurance quotes continues onward up to the age of 55-50. During this period other factors have more importance when determining a driver’s rates. Moreover, there are usually serious changes in a person’s life like marriage, moving to another place of residence, buying a different vehicle and so on. So the age won’t be playing an important role here.

However, once the driver reaches the age of 60-65 the rates starts going back up. The increase isn’t very serious at first, but as the person gets older and reaches the age of 75 car insurance quotes usually get really expensive. This is mainly due to the health condition senior citizens are known for. The speed of reaction in an older body decreases yet the risk of having an accident due to inaccuracy or health complication increases. Older drivers tend to file claims often because they end up in accidents caused by their health condition more often. And that’s why the insurance companies charge them with much higher rates.

You’ve purchased your first car and now have to buy an insurance policy to be able to drive legally in most states. In some places you should do this before registering your plates, otherwise it will be impossible. Of course, at this point auto insurance may look complicated and confusing and your main intent will be to purchase the first policy you’ll be offered with. However, by doing this common mistake you risk ending up with an expensive policy that will only drain your wallet. Don’t worry, it’s not as hard as it looks. And if you follow these simple tips buying insurance will be easy and you’ll end up with an adequately priced policy.

Determine your needs

All those coverage types and options will certainly look confusing for the uninitiated. However, you don’t really need to become an insurance expert in order to get the right policy for your needs. The main factor determining the type of policy to get is how you finance your vehicle. If you’ve used a loan then you’ll have to purchase a fully comprehensive policy, which is more expensive. If you’ve paid out of own pocket then you can get more affordable third party policies. For the start this should be just enough.

Consider the discounts

Nearly all insurance companies offer various discounts to different types of car owners. Being a new car owner you can consider the following discounts: good student, multiple car and multiple policy discounts. Good student discount will appeal to those who are still in school or college and applies in case you have an average of B and higher. Multiple car discount will certainly interest those who have several cars in their household. As for the multiple policy discount, it is available with companies who provide different insurance services like health, house and car insurance. Buy buying all these policies from the same provider you can get a really good cut in rates.

Adjust the deductible

Deductible is the amount of money you have to pay upfront before the actual coverage kicks in. The lower you set the amount the more expensive your policy will be since your insurance company will be forced to cover even minor damage to your car that you can pay for on your own. Now, when you increase your deductible your rates get lower. Usually the deductible is around $100-$250 and by increasing it to $500 you get 10-15% off your current rates. You can go up to $1000 and higher, however you should always make sure that you can actually pay the deductible if needed. Otherwise you won’t be able to get any coverage at all.

Do some comparison shopping

Comparison shopping is a must when buying a new policy. Companies have different methods of calculating their rates and you can get different premiums for the same policy type from two different providers. That’s why you should always compare car insurance quotes when buying a policy. There are plenty of sites you can do this online for free instead of dealing with an agent or searching for a company yourself. And by comparing car insurance quotes you will be able to find an affordable policy that will meet all your needs.

In some cases, the idea of looking inside the gift horse’s mouth to see how old it is and judge its health is bad manners. The generous person making the gift would be insulted if you were seen to question the value of the gift. But when you’re looking at a commercial transaction, it’s an idea to have the horse go through a full physical from an independent expert in veterinary science to ensure you’re not buying a pig in a poke. Remember there are a lot of scam artists out there who want your money and would give you nothing in return. Checking you are about to receive what’s being promised is always a good first step to protecting yourself. So have you seen the latest offer from GM? This once-great company is out to rebuild volume sales. To tempt people back into the showrooms, it’s packaging insurance with the car. Yes, friends, if you live in either Oregon or Washington, you can buy one of GM’s new models and get your first year’s insurance without paying another cent. All you have to do is sign up for a new model before September 2011, and you can drive the car off the dealer’s lot the moment the ink is dry on the sale contract. This sounds like a good deal. Is it?

The unknown is how much GM is paying for the insurance. Let’s say you go into a dealership and negotiate a discount in the list price of the vehicle you want to buy. Who’s to say that saving will not pay for your first year’s insurance? The problem with this offer is that you have to buy at the list price or walk away. You cannot refuse the insurance cover and buy the vehicle at a discount. So, if you have a low premium rate on your current car, it may well be worth buying a different new car and staying loyal to that insurer. But, if you are unlucky enough to be a member of a high-risk group, e.g. you have a conviction for driving while intoxicated, this promotion could be good value for you. Let’s assume you still hold a valid license. Instead of being forced to pay the top rates, you get insurance without question. GM guarantees you will be insured when you drive away no matter what your claims record or risk profile. This is not to say the insurer will continue covering you should there be an extravagant claim or claims. But, if you can afford to buy new, you will at least start off with cover.

GM also claims this will reduce the number of uninsured drivers on our roads. This is not real. If people can afford to buy new, they can afford the insurance. The majority of the uninsured are from low-income families who usually buy secondhand. Putting all this together, this could be a good offer for everyone currently paying high car insurance rates. Check out the list prices and see whether you can get discounts that would cover the premiums. If not, buying a new car through this program will save money on your cover. At the end of the year, hopefully with no claims, get multiple car insurance quotes. Hopefully, they will be more affordable.

It’s a fact of life that, as we age, our bodies slow down. The reflexes we relied to get us out of trouble are no longer so sharp. Worse, the eyes of a hawk that helped us spot danger on the horizon now need spectacles. We can still see but, with reaction times slowed, the risk of accidents increases. Yet, because public transport remains so poor, particularly in the rural areas, we need to continue driving. It’s what keeps us independent. Everyone wants to stay behind the wheel of a car for as long as possible.

The national statistics show insurance is cheap up to the age of 55. Then insurers begin increasing the rates. It’s a slow increase at first, but once you cross 65, the premium hikes are more real. If you want to continue driving after 75, the rates start to match those charged to teens. This reflects the accident rates. Although the damage tends to be less because we all drive more slowly as we get older, most insurers prefer us not to drive at peak times. Hence, there are discounts for low mileage during limited hours of daylight.

The most common discounts are offered to older drivers who go through defensive driving courses. This would be a genuine gesture toward improving safety on the roads if all the courses were behind a wheel. Unfortunately, insurers are currently prepared to accept online courses as satisfying the requirements. This means you can get a discount simply by logging time in front of a computer screen. Most of these courses take between four and eight hours to work through with the most popular being offered by the AARP. There are two major problems with this.

First, there’s no check on the identity of the person sitting in front of the screen. No doubt there are grandchildren with the right skills who will work through the courses for a few dollars. This lack of security makes a nonsense of the discount requirement if it’s intended to promote real safety. Yet, this is the way insurers currently work. The second problem is about learning outcomes. Ask anyone who’s studied education theory and they will tell you people who study practical skills using books or online materials, rarely benefit. The only way to learn a practical skill is by doing and receiving immediate feedback on performance. Older people are more set in their ways and it takes longer for them to change their behavior. Only by sitting with an instructor in a car can seniors be given the level of training necessary to change the way they drive. Except this is relatively expensive.

At present, twenty-eight states have special licensing requirements for older drivers, i.e. renewing the license more frequently or taking a driving test. For now, you can save money by going through online driving courses, typically up to 15%. Talk with the insurers when you get the next set of car insurance quotes. With online courses cheap, savings often exceed $100 a year. But, if you want to be a better driver, pay the extra for one-to-one tuition behind the wheel. You know you should. Cheap car insurance should be about more than you paying less.