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Getting My License at 16 Will Lower My Insurances Cost Later On. Is That True?
December 12, 2019
There are both positive and negative impacts to consider
Having a youthful operator get their New York State driver’s license at a young age is a double-edged sword.
The upside:
Getting a driver’s license earlier in life means that the driver will be earning potential experience credit earlier than one would otherwise.
It used to be that many insurance companies provided a break to youthful operators who had three (3) years driving experience. Today, carriers slice and dice premium calculations on a much more granular basis. The benefits of The benefits of getting a license early is less and other factors are given more weight.
The downside:
The younger you are, the more expensive your auto insurance will be. Starting younger results in a higher premium for a longer period of time.
Every insurance company’s rating scheme is unique. The factors used to develop auto insurance premiums are proprietary to the carrier.
With access to many more data points than in the past, any benefit of starting younger and earning experience earlier is likely outweighed by the other factors that influence car insurance rates.
The question is valid. However, the decision points related to when a young person should obtain their license have more practical implications than what the long-term result will be on one’s car insurance premium.
Would you like to discuss the best way for you to get the right car insurance at the right price? We here for you. Give us a call at 607-324-7500, or request a quote online: https://www.ryanagency.com/request-a-quote
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Part 7 – Designing a Value-Driven Insurance Plan
Part 6 – Advice, Advocacy, and Answers
Part 5 – Can Your Company Deliver?
Part 4 – Custom Coverage = Real Protection
Part 3: Coverage Limits - "The Ceiling You Don't Want to Collapse"
Part 2 – The Risks of Chasing Cheap
Part 1: What Are You Really Paying For?
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