WalletHub, Financial Company
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No. Safe and risky drivers are not charged the same price for car insurance. Safe drivers – those with a clean driving record – pay an average of about $1,400 per year for car insurance coverage. On the other hand, risky drivers – such as young people and those who need an SR-22 – pay an average of roughly $1,700 to $5,000 per year, depending on the severity and time frame of their offense.
Several factors, like where you live, your personal driving record and what kind of car you drive, are used by auto insurance providers to calculate how much of a risk you pose. This is why drivers aren’t all charged the same price for car insurance. The rates for safe and risky drivers can vary greatly from one insurance company to the next, as well.
Why Safe & Risky Drivers Aren’t Charged the Same Price for Car Insurance:
- Driving Records – The better your driving record is, the safer you seem and the less you’re charged for car insurance.
- Claims Histories – The more claims you’ve filed, the riskier you appear, increasing your car insurance rate.
- Age – Teenagers, young adults (18-25) and seniors (65+) are generally considered high-risk drivers.
- Years of Driving Experience – Drivers with fewer years of active driving experience are considered riskier than drivers with more time on the road.
- Continuous Insurance Coverage – Drivers who have never had car insurance or have had a lapse in their coverage are considered riskier than those who have maintained continuous auto insurance coverage.
- Location – Where you live is one of the main factors in determining your risk for filing a claim.
- Credit Histories – Drivers with low credit scores are considered riskier than those with high credit scores.
- Miles Driven Annually – Customers who drive more miles annually, or use their vehicles for business, are considered higher risks.
- Vehicles – Certain car models are considered less safe than others. For example, sports cars are riskier than minivans from an insurer’s perspective.
Remember, safe and risky drivers aren’t charged the same price for car insurance. If you find yourself paying a higher-than-expected car insurance rate because you’re considered a risky driver, focusing on driving as safely as possible moving forward and taking other steps, like upgrading the safety features on your car or improving your credit score, will help your chances of paying a lower rate in the future.
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