Drivers aged 40 and above could save more on auto insurance - study

Drivers aged 40 and above could save more on auto insurance - study | Insurance Business

Drivers aged 40 and above could save more on auto insurance - study

A new study by insurance comparison site Lowestrates.ca has found that auto insurance rates tend to decline as the driver gets older – but some insurers offer much better rates than others.

Lowestrates.ca’s report found that a person’s early 40s is when auto insurance prices start “diverging significantly” among the different insurers. The study also found that over the course of 26 years, beginning at age 49, choosing the cheapest auto insurance could save customers as much as $14,700, depending on which province they live in.

The study also noted that it is at age 50 that many auto insurance companies consider drivers as “mature,” and thus eligible for more discounts.

“Most car insurers start rating you as a mature driver at age 50, and around that age is when people often make lifestyle changes that can contribute to a reduction in insurance rates,” commented Lowestrates.ca co-founder and CEO Justin Thouin. “If you’ve dropped your adult children as secondary drivers, for example, or you retire and downsize, it’s the perfect time to shop around for car insurance.”

Thouin explained that, typically, auto insurance is most expensive for a driver in their teens and 20s. But after that, rates begin to gradually decline.

“When we examined the rates from several different car insurance companies in Alberta, Ontario and Quebec, it became clear that some companies offer much lower premiums to older drivers,” the CEO added. “Those who don’t compare auto insurance rates are losing out on thousands or even tens of thousands of dollars worth of savings as they age.”