How does your driving experience affect auto insurance rates?
Proof of driving experience for insurance isn't mandatory, but the more driving experience you have the lower your auto insurance rates likely will be. Driving experience for auto insurance rates also depends on how many years you've been licensed for, but being older isn't always better. Drivers under the age of 25 and over the age of 65 pay more for car insurance regardless of driver experience.
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
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UPDATED: Jun 24, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 24, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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So you’re applying for vehicle insurance – but you don’t have a lot of experience.
Or maybe you’re an experienced driver with 40+ years of accident-free driving history and you’re looking for a discount.
How important is driving experience when it comes to calculating insurance rates? How much of an effect does experience have on the cost of your insurance? Keep reading to find out more.
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Inexperienced Drivers Typically Pay More for Insurance
Age Versus Experience: Do Younger or Older Drivers Pay More for Car Insurance?
Young drivers obviously have less driving experience than older drivers.
However, inexperience is just one reason why younger drivers are costlier to insure than older drivers. Other reasons include higher rates of impaired driving and higher rates of dangerous driving behavior – particularly among younger men. Overall, the rate of crash-related deaths per mile is 2 times higher for 16 and 17 year old drivers than it is for 18 and 19-year-old drivers, and the rate of crash-related deaths per mile is 3 times higher for 16 to 19 year old drivers than it is among 20 year old drivers. Young drivers, put simply, are some of the worst drivers on the roads.
This is where there’s a blurry line between age and experience. Are young drivers bad drivers because they’re inexperienced? Or are they bad drivers because they’re young and don’t know any better?
Of course, experience doesn’t always mean you pay less: eventually, older drivers will actually start paying more for car insurance due to risk factors unrelated to experience.
Here’s what it all boils down to: at most insurance companies, you’re going to pay more for car insurance when you’re under 25 or over 65 years of age.
The Number of Years You’ve Been Licensed is a Huge Factor
So you’re a 35 year old driver applying for car insurance for the first time. You’ve never had an insurance policy before, but you’re not considered a young driver. How much will you pay for insurance?
Unfortunately for you, the insurance company sees you as a risky driver – almost as risky as a younger driver. That’s because you have no real verifiable driving history. In the eyes of the insurance company, you haven’t driven a vehicle in 15 years – and that means you’re relatively inexperienced (even if you got your driver’s license the day you turned 16).
Different insurance companies put different weights on continuous insurance coverage. Some companies put a huge emphasis on having continuous years of insurance coverage.
If you have 20 years of continuous insurance coverage with no history of accidents, then the insurance company sees you as a good, low-risk, experienced driver.
On the other hand, if you haven’t had your own insurance policy in 20 years, then the insurance company has no real way of knowing your driving history. That makes it difficult for them to assess your risk as a driver. When an insurance company doesn’t know your risk factor, they err on the side of caution and charge a higher price for your car insurance.
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Insurance Companies Need to Verify Your Prior Driving History
Here’s why driving experience is so important: insurance companies need to verify your previous driving history. If they can’t verify your previous driving history, or if you don’t have a previous driving history, then you could end up paying insurance rates as high as a brand new 16 year old driver.
This gets messy for drivers traveling between countries. You might have 20 years of driving experience in Canada, for example, but your new American insurance company struggles to verify that driving history. Sometimes, this can even happen when drivers are moving from state to state – particularly with smaller insurance companies with unique recordkeeping systems.
Conclusion: Compare Insurance Quotes to Find the Perfect Price
Experience has an enormous impact on your car insurance. In general, drivers with experience are safer drivers who are less likely to file claims. That means they pay less.
However, not all insurance companies place the same emphasis on experience. Some companies will charge relatively cheap rates to younger drivers and relatively expensive rates to experienced drivers, while other companies do the opposite. Compare auto insurance quotes online today to make sure you’re getting the best deal.
Frequently Asked Questions
How does driving experience affect auto insurance rates?
More driving experience usually leads to lower insurance rates. Younger and older drivers generally pay more regardless of experience.
Do younger or older drivers pay more for car insurance?
Younger drivers usually pay more due to less experience and riskier behavior. Older drivers may also pay more for other reasons.
How does the number of years licensed affect rates?
Having more years of continuous insurance coverage can lead to lower rates. Lack of history may result in higher rates.
Why is prior driving history verification important?
Insurance companies need to verify history to assess risk accurately. Lack of verifiable history can lead to higher rates.
How can I find the best insurance price based on experience?
Compare quotes from different companies online to find the best deal based on your driving experience.
What counts as driving experience?
Driving experience refers to the length of time a person has held a valid driver’s license and actively operated a motor vehicle.
What does driving experience mean?
Driving experience signifies the amount of time a driver has spent behind the wheel, typically measured in years since obtaining a driver’s license.
What does the chart indicate about the importance of driver experience when it comes to car accidents?
The chart illustrates that driver experience is inversely correlated with the likelihood of car accidents. In other words, more experienced drivers tend to have fewer accidents compared to less experienced drivers.
What is an experienced driver?
Someone is considered an experienced driver when they have accumulated a significant amount of driving experience over time, usually several years or more, demonstrating proficiency and familiarity with various road conditions and situations.
What is proof of driving experience?
Proof of driving experience may include documentation such as a driver’s license, driving history report, or insurance records that demonstrate the length of time a person has been licensed and actively driving.
How long are you considered an inexperienced driver?
The duration of being considered an inexperienced driver may vary among insurance companies and jurisdictions. Typically, individuals are considered inexperienced drivers for the first few years after obtaining their driver’s license.
How long are you considered an inexperienced driver in NC?
In North Carolina (NC), drivers are often considered inexperienced for a specified period, commonly the first three to five years after obtaining their driver’s license.
How many years of driving experience do you have?
The number of years of driving experience refers to the length of time since a person first obtained their driver’s license and began driving. It indicates the level of familiarity and skill acquired over time.
Does driving less lower insurance?
Driving less can potentially lower insurance premiums, as it reduces the risk of being involved in accidents or incidents on the road. Some insurance companies offer discounts or usage-based insurance policies for drivers who travel fewer miles annually.
Compare over 200 auto insurance companies at once!
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.