This post is for our millennials out there, the young folk who are paying higher car insurance rates… Now older folk don’t feel left out… Trust us on this one – you WANT to be left out.
Hate to break it to all the young and single men and women but you are likely having to pay higher car insurance rates because of your smooth and youthful skin and the lack of a ring on your finger.
In fact, a 20-year-old who is married pays 21% less for a car insurance policy than their single counterpart, according to a new report from insuranceQuotes.com. In other words, you could save a decent amount of money on your car insurance by booking a wedding with Elvis up in Vegas sooner rather than later. But until then you will pay higher car insurance rates… We’ll help send out invites.
This savings opportunity is at its peak in your early 20s. By the time you reach age 25, you’ll save just 7% on a car insurance policy by being married… By age 30, this savings has diminished to about 2%…. If you like it then you shoulda’ put a ring on it… seriously.
Of course, your age contributes to the higher car insurance rates in the first place… being bright eyed and bushy tailed behind the wheel costliest for young drivers, who are proven to be particularly accident-prone, and gets cheaper with each birthday you celebrate until you retire.
None of this should be particularly surprising considering you can’t rent a car until you’re 25 AND if you wait to buy a car at 25 instead of 20, you will pay 41% less to insure it….
Seems unfair and perhaps opposed to ideological standards to get hitched over… well… car insurance!
But in nearly every state, insurance companies are allowed to consider your marital status and age when calculating your rate. The exception is Hawaii and in California, insurance companies are required to ask for the number of years you’ve been driving rather than your age.
“Plenty of families worry about when grandma or grandpa should stop driving, but the data shows that drivers in their teens and early 20s are much more risky,” says Laura Adams, senior analyst at insuranceQuotes.com.
Men also tend to pay higher car insurance rates than women, according to the study. A 20-year-old man will pay 22% more than their female counterpart. But by age 25, he’ll only pay 3% more.
Now before some of you raise arms against this new found knowledge… Or before some of you do run off to Vegas (we were only kidding!), there are a few strategies to reduce the bill on your monthly car insurance.
For instance, for you studious, single students, you can save money by qualifying for the good student discount, signing up for pay-as-you-drive programs and completing driver safety courses.
We encourage you to reach out to your current car insurance company (especially if you are registered with one of the bigger names) and see what they have to offer you. Work with them to help reduce your monthly rate and stay single for a little while longer 🙂
This information may get some young and single folks riled up, however, some may agree with the reasoning behind these high insurance rates.
As auto accident attorneys in Arizona, we see a lot of auto accident case resulting in serious injuries.
When it comes to insurance, we advise that in addition to obtaining just the “bottom line” premium rate, drivers consider getting the best coverage for their situation. Often times, more coverage really only results in paying a few extra dollars a month (literally).