New drivers, young drivers, older drivers? Why do auto rates start high and eventually end just as high?
I call it the “Insurance inverted bell curve” . When you are a young or a new/inexperienced driver, rates are high . As you gain experience, build a quality driving record, credit, and ability to pay, the rates slowly but surely decline until you are paying the best rates EVER in your late 30’s thru early 60’s. YET WAIT FOR IT…as your age increases past age 60, rates will slowly again increase.
The ” surprise” increase is based on long-term data collected about drivers. It is shown as drivers get older, the reflexes slow a bit, eyesight may not be what it once was…yet the confidence in your ability remains at an all time high. Eventually this leads to accidents and hence higher rates. Like any demographic, there is clear exceptions to this rule, but as a whole, this is the thought process in rating….food for thought.