By June 27, 2007 2 Comments Read More →

Car insurance rating demographics

Reader question:

Which demographics have it best/worst when it comes to auto insurance, and why?


Well, it’s like this…

As is known, car insurance companies base the rates they quote you on statistics that have been compiled for whatever demographic groups you and your car are in. You might be in a group of males, 30 year olds, drivers of sports cars, and people with a good credit rating. All of these factors go toward your final car insurance rating, which determines how much your premium quote will be. Different groups affect your policy in different ways, and some are rated better and worse than others.

The worst demographic to be in, putting aside things that you can control, like your driving record and your credit rating, are males under the age of 25. Getting insurance when you’re young is hard enough already, because the prices are just so high, but it’s even worse if you’re a male. The reason for this is, according to highway statistics, males under the age of 25 are much more likely than other drivers to participate in acts of reckless driving. This includes speeding, driving under the influence of alcohol, not paying attention to the road, and showing off while driving. All of the above can lead to car accidents, and car insurance companies don’t like anyone who is likely to get into a car accident, so naturally the rates for people in this group are going to be higher.

The best group to be in, then, is that of drivers between the ages of 55 and 70. The reason that insurance companies like this demographic is because, for one thing, many of them are retired yet still at an age when their bodies are in good health, so they are less likely to be driving very often but at the same time still able to function well enough to drive safely. It’s also said that wisdom comes with age, and drivers in this age group are less likely to participate in driving that puts them at risk. They are less likely to speed, talk on their cellphone and text message while driving, blare their radio. They are much less likely to get into a car accident, and they have plenty of experience being out on the road.


Fashun Guadarrama.

Posted in: Auto Insurance

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  • Kimmy

    Im just so glad im above 25 years old :) Thanks for the tip! And I love your blog, btw.

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