Can age determine car insurance rates?

Being under 25 comes with its perks— student discounts, potential savings on travel, and sometimes even special rates at events or for services. However, when it comes to hitting the road, one significant drawback often hits hard: the soaring car insurance costs. Unfortunately, for many in this age bracket, TPL and comprehensive car insurance prices can skyrocket!

Here’s everything you need to know about how age impacts car insurance prices in Saudi Arabia

What should young drivers be aware of when buying car insurance?

Generally, younger drivers, especially those under 25, tend to face higher insurance prices due to statistics that show they are more likely to be involved in accidents.

New and inexperienced drivers often pay higher premiums because they are perceived as higher-risk individuals by insurance providers. As drivers gain more experience and reach middle age, typically between 30 and 65, insurance rates tend to decrease. Older drivers may experience slight increases in rates again as they get into their senior years due to potential changes in reaction times and overall driving abilities.

Why does age determine car insurance rates in Saudi?

Insurance rates are directly related to a driver’s age, the reason behind this is:

1. Knowledge: Older drivers have a better experience on the roads of Saudi Arabia. They have spent more hours driving on the road. Furthermore, older drivers might be better acquainted with roads and Saudi traffic regulations compared to young drivers.
2. Insurance company records: Most car insurance companies in Saudi keep a record of all their customers’ details and claims which helps in determining the renewal rates and percentage discounts, with new drivers no records are available. Thus, this could affect your car insurance rates.

Finding affordable insurance at a young age

The main principle of getting an insurance policy is to protect yourself as a driver from any roadside risks. Also, insurance reduces the financial burden and legal liability of the driver towards the third party in the event of accidents. In general, finding cheap car insurance quotes for young drivers isn’t always easy, but it’s still possible! In truth, getting better rates is not about getting older, but being wiser. Check out 6 costly car insurance mistakes to avoid!

Don’t be too concerned, as a young driver with high rates for an insurance policy, insurance companies in the Kingdom of Saudi Arabia do provide discounts in the form of a No-Claims Discount(NCD), to policyholders who have not had any claims for a year or more, regardless of the age category. Drivers can get a discount percentage between 10% to 50% on their next car insurance rate. Best of all, young drivers can get a no-claims discount on comprehensive insurance and third-party insurance. On the condition that no claims on accidents have been claimed after a year of driving.

Quote and Save!

Cheap car insurance for young drivers isn’t always easy to find, but it’s out there for drivers who are willing to search! The key to securing the best car insurance offers in Saudi is to run a search and quotes and offers from different car insurance providers. An online car insurance platform can help you find a car insurance policy customized to your own needs and fits your budget.