The differences between insurance premiums and their relation to the age of the driver are more than understandable, they are necessary. It should be noted, however, that not only young drivers but also older drivers have to pay more for their car insurance. Drivers who are 16-19 years old are more likely to be involved in a car accident (both in a non-fatal and fatal one); at the same time, drivers who are 60 years old or older also pay more for their insurance compared to drivers in their mid-thirties because of the influence of their age on their driving skills (Value Penguin, n.d.). Such drivers are affected by their slowed reflexes and concentration.
The reason why insurance premiums begin to drop after the person is 25 years old is simple: the driver has already gained some experience, is less likely to engage in dangerous behavior on the road, and will file fewer insurance claims compared to a 20-year-old driver (Adams, 2015). Insurance companies state that drivers who are older than 25 years old are more likely to correctly evaluate the situation they are in and wear the seatbelt while driving. Moreover, they seldom speed up their vehicle, especially if it is dangerous, and tailgate the car that is driving in front of them (Coverhound, 2015). Another important aspect to consider is that male drivers and drivers in urban areas are less likely to wear seatbelts as well (Coverhound, 2015). Thus, young male drivers are often charged more for their car insurance than female drivers (Value Penguin, n.d.). The necessity of such charges seems reasonable to avoid or mitigate the risks that young drivers can pose to others.
References
Adams, L. (2015). How age, gender, and marital status affect your car insurance. Web.
Coverhound. (2015). Getting better with age: Average car insurance rates at 25. Web.
Value Penguin. (n.d.).How age affects car insurance costs. Web.