How Age Affects Car Insurance Needs

family responsibilities and age affects car insurance needsWith age comes many life changes. You may begin a career, make more money, and have more financial and familial responsibilities. With all of these changes should also come a change in your car insurance coverage. Many people don’t realize how age affects car insurance needs and costs. Here are some things to consider.

Policy Limits

All car insurance policies have limits per person and per accident. Most states have minimum requirements for coverage. If you are in an accident and the damages exceed your policy limits, you may be held personally liable for that difference. This risk is obviously higher if you are involved in a major accident or one that causes severe bodily injury. You can be sued for medical bills, loss of income, and even pain and suffering. All of this can amount to a substantial amount of money.

At any age, you run a risk of being sued as a result of an accident. As you age, you begin to accumulate more debt and have more responsibilities to care for children and other family members. The impact of a lawsuit is even more devastating. Your car insurance policy should be increased to better protect you and your family for the different stages of life.

Human nature often leads us to purchase the minimal and most basic car insurance coverage in order to save money. However, doing so can have a larger financial impact in the long-run. The cost of increased coverage is very small in the scale of things.

How Age Affects Car Insurance Needs and Rates

age affects car insuranceAs you grow older, the cost of car insurance actually decreases. Young drivers (age 16-25) are more inexperienced, have faulty judgement, and take more risks. This leads to a higher accident rate among that age group. Insurance companies believe that drivers older than age 25 are not only more experienced but also more cautious.  The decreased rate of car insurance as you age should allow you to easily increase your coverage without spending a lot more money.

Getting the Right Car Insurance Coverage

Car insurance covers your liability if you or any family member is sued as the result of a car accident. In many states, it also covers you and passengers in your car for medical bills and loss of income. The best way to determine how much car insurance coverage you need is to discuss your personal situation with your independent agent. Your agent can further explain how age affects car insurance needs. They can also evaluate your income, assets and the amount of driving you do each year.