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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
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
