Why are auto insurance rates higher for younger drivers?

Colorado drivers who are under 25 may find that they will have to pay a higher premium on their auto policies than older drivers. It may not seem very fair that you are penalized in the form of higher insurance rates because you are a young driver. If you are 22 and have never been in an accident or had a speeding ticket, why should you pay more than a driver who is 35 or 45?

This is not a case of discrimination. Age plays a factor in many of the things we buy. Parents pay full price while their young children are charged less to go into the movies. Kids eat for less in many restaurants. If you are a senior citizen, you get discounts just for reaching a certain age. Young drivers may be charged more for car insurance because they fall into a higher risk group because of their age.

Age is just one factor that helps determine the amount of your premium. It makes sense that someone who has five accidents on their record, no matter their age, may be classified as a high-risk driver. It does not seem so obvious that you should automatically pay more just because you happen to be young.

Age is a factor because it is an indicator of maturity. It has been shown in numerous studies that younger people, as a group, drive more aggressively and engage in riskier driving habits than older, more mature, drivers. Only time can give you the experience you need to be a better driver. Distracted driving and using poor judgment are probably the two issues that cause most accidents.

As a young driver, you probably do not have too much experience behind the wheel. If you drive safely, avoid accidents, and don’t get any tickets, you will build a good driving record. While you may have to pay a higher premium for a year or two, that will change when you move into the next age group.