Which factor can lead to higher premiums based on an applicant's profile?

Age is a significant factor that can impact insurance premiums. Insurers often consider age as an indicator of risk, especially in auto and life insurance. Younger individuals, particularly teenagers and those in their early twenties, typically have less driving experience and may exhibit riskier behavior, leading to a higher likelihood of accidents. Consequently, this can result in higher premiums for these age groups.

Conversely, older individuals, especially those with a long history of safe driving, may be seen as lower risk and could enjoy lower premiums. This age-based approach to insurance underwriting helps insurers assess the overall risk associated with an applicant's profile, thus influencing the cost of the coverage provided. In the context of personal lines insurance, age serves as a critical metric for determining premium rates.