Why does my insurance company want to know my age?

Insurance companies rely on statistics, which show that risk of accidents fluctuates with age. You probably wouldn't be surprised to hear that teenagers are more likely to be in an accident than drivers who are 25 years or older, making teens the most expensive drivers to insure.

When  drivers reach the ages of 40 to 55, statistics show that they become the safest on the road, which means that drivers in that age span pay less. You should be aware that some insurance companies raise rates again for elderly drivers.