It may not seem just, but age is the most significant factor of your car insurance rate. Statistics indicate that certain age groups are more likely to suffer injuries or damages. It seems to be one of the cosmic truths of life that the younger you are, the more you pay for auto insurance.
Unfortunately, this isn't just a perception, either. Age is one of the most important considerations in the calculation of auto insurance rates.
Why is Middle Age the Best Time to Buy Insurance?
Insurance firms do not like risk. They use car accident figures to set premiums. According to most studies, younger drivers are less conscious of hazards and engage in dangerous behaviors. The statistics also prove that the correlation between age and the probability of accidents is relatively high.
This means that the youngest and oldest drivers would pay more, even though they adopt healthy driving habits. You can't say that the premiums will go down over time. Factors such as your driving record and credit background also affect your insurance premium. When you know how insurance providers set the premiums, you can stop premium rises by adopting safe driving habits.
Why is 30 Considered the Right Age to Buy Car Insurance?
30 is considered the right age to buy car insurance because of the following reasons:
- Level-headed: Psychological studies show that people in their 30s can make good decisions in difficult situations. People take up new responsibilities like jobs, marriage, or children during this age, making them more cautious. Hence, buying car insurance while you are in your 30s will be an informed decision.
- Financially independent: People in their 30s have already been working for quite some time and have become economically independent individuals. Since a car is one of the most important assets you own, it makes sense to purchase car insurance in your 30s.
- Fewer liabilities: As people reach their 30s, education loans, mortgages, rent liabilities, etc., start to decrease as people settle in their lives. It creates an opportunity for you to invest the extra money into insuring your car. Hence, buying car insurance in your 30s is advisable.
How to Get the Ideal Car Insurance Policy?
Buy the right car insurance policy
Car insurance policies are three types; comprehensive car insurance policy, third-party car insurance policy, and pay-as-you-drive car insurance policy. The premium in a pay-as-you-drive car insurance policy depends on the number of kilometers you go. On the other hand, a comprehensive car insurance policy considers many factors like the car's condition, your driving record, and your age.
The comprehensive car insurance policy covers any damages to the vehicle, to the owner, and any third party which has suffered due to the owner's mistake. While buying a car insurance policy, you should be aware of these facts to choose the right plan for yourself.
For instance, if you know that you are not a frequent user of your car, buying a pay-as-you-drive car insurance policy might be the best choice. Whereas, if you are a regular user or live in an accident-prone area, purchasing comprehensive car insurance policy might be in your best interests.
Buy only appropriate add-ons
It is well known that the price of premium increases with the number of add-ons you buy. Purchasing add-ons depends a lot on your usage pattern and the condition of your vehicle. For example, purchasing a no-claim bonus add-on if your car is older than five years does not make sense because it would be subject to more breakdowns as it has been in use for a long time. On the other hand, for a new car purchasing a new claim bonus add-on is one of the essential add-ons that you can buy.
Buy online
It is no secret that the cost of premiums varies with the policy, add-ons, and vehicle condition. Thus, it would be best to compare the premium prices online for various companies to get the best deal. The premiums provided on the online portals are usually 30% to 70% cheaper than the premiums offered offline.
This is because of a reduction in the overheads associated with the commissions provided to the agents. This saving on cost by the companies is subsequently passed on to the consumer in lower premiums.
Look for a company with good CSR
The claim settlement aspect of an insurer is measured using the Claim Settlement Ratio. It is the number of claims settled divided by the total number of requests. It is essential to choose an insurer who has a good claim settlement ratio.
Easy renewal or cancellation process
Any car insurance policy is only issued for one year. After one year, you are required to renew the car insurance policy. You also have the option to cancel the current plan and shift to a new plan or a new insurance provider. Since this process is an annual process, it is essential to choose a car insurance provider with easy renewal and cancellation procedures.
Good customer care services
Prompt and efficient service is also a prerequisite while choosing an insurer. This will help in clearing your doubts effectively and quickly.
Conclusion
Buying car insurance is an essential part of owning any vehicle. It helps us mitigate any risk in return for a premium that is highly affected by our age. Car accident statistics show that younger people and older people are more prone to accidents and pay a higher premium for their car insurance plans.
Furthermore, the 30s are considered the ideal age for buying car insurance. People in their 30s and level-headed have fewer liabilities and are more cautious. Some guidelines will help you to choose your perfect plan.
These include selecting the right policy, the correct add-ons, an insurance provider with a high car insurance claim settlement ratio and effective customer grievance service, and so on. Hitting your 30s? Now is the time to insure your car!
