While it is generally known that young drivers typically pay higher insurance prices, people often ask “Does car insurance go down at 25?” While there is some truth that around age 25 car insurance rates can begin to drop, not all drivers pay the same price and not all insurance companies offer the same rate.
Without getting a quote for your specific situation, it is impossible to give a general answer about how much car insurance will cost and how much it may drop once a driver reaches the age of 25. However, understanding how insurance rates are calculated can give you a better idea of what to expect.
In the article below, we will explain how insurance premiums are calculated so that you can get the best rate whether you are a young driver or over 25.
Car Insurance Premium Calculations
There are many factors taken into consideration for car premium calculations and age is just one of them. Where you live, the car you drive, the length of your commute and the type a car you own can all play a part.
Insurance companies look at a range of statistical factors and apply these across a range of people. While each and every statistic doesn’t always apply to every individual driver, the general risk factors are considered when calculating premiums. One of the most compelling statistics that cause premiums to typically be higher for young drivers is that drivers under 25, especially male, are more likely to be involved in car accidents.
Will Your Rate Drop After Turning 25?
Some drivers are disappointed to learn that after turning 25, their car insurance rates didn’t significantly drop. While insurance companies consider drivers over 25 full-fledged adults, there isn’t a rule or over-25 age policy that will automatically reduce your rate. When it is time to renew your policy, your age along with the other factors, such as your driving history and experience, that insurance companies review will be taken into consideration, which may result in a lower rate.
Getting a Better Rate
While age is a consideration, you will typically see your rates drop if you maintain a good driving record over the years. Some insurance companies will also offer a better rate for loyal customers, the longer you remain a customer. There are also other discounts which you may qualify for such as bundling insurance policies, belonging to a professional association, occupation, or even by having anti-theft devices in your vehicle.
When looking for an affordable car insurance rate, it pays to shop around as insurance companies have different prices. This can be time-consuming or difficult to accurately compare. At Bow Valley Insurance, we do the rate shopping and comparison for you. We can uncover discounts that you may qualify for and find the lowest rate possible for the coverage that you need. To get a free, no-obligation quote on car insurance, contact an experienced member of our team today.