Most likely, yes. Auto insurance companies generally lower rates when a driver turns twenty-five years old. While some companies choose to lower rates little by little for young drivers, most major insurance companies still use the 25-years-old test to start lowering rates from the high rates younger drivers must pay.
When to Expect Reduced Rates
Your car insurance company won’t likely come knocking at your door to let you know you deserve a rate reduction, assuming of course you have had a clean driving history. Most policies will show a reduction once your next renewal period comes up, rather than in the middle of a policy period. If you don’t see a rate reduction at your next renewal be sure to ask or shop around for a company that will give you one.
How Much Will My Rate Go Down?
There are many factors that are used to determine car insurance rates and your age is just one of them. If you have a clean driving history and no accidents though, you may see a reduction of as much as twenty percent.
Why Insurance Companies Lower Rates at Age Twenty-Five
Insurance companies have spent many decades figuring out how to avoid risk. So, the fact that the age of twenty-five is used to trigger a drop in rates is not arbitrary. Statistics have shown that drivers under the age of twenty-five have more accidents due both to a lack of experience with driving and to immaturity.
In addition, it has been shown through statistics that drivers who are older than twenty-five tend to be more responsible and have fewer at-fault accidents. So, your insurance company is not simply giving you a birthday present for reaching the age of twenty-five. They are giving you a break based on solid statistical data.
What Else May Help Me Lower My Rates?
There are plenty of other ways you can help to get your premium rate down. The most important factor is your driving history. If you keep a clean record, with no tickets or accidents, you have the best chance of paying the lowest rate. Other factors include the type of car you drive, where you live, whether you are married or single, and your credit history.
Even if you don’t get much of a reduction in your rate for turning twenty-five, you might still want to shop around to make sure you are paying the lowest rate possible for the type of coverage you need. In addition, once you turn twenty-five there may be other carriers who want your business, those who do not cover drivers under twenty-five. You may just find a cheaper rate with another company.
You can use the InsuranceWins form to quickly get quotes from major carriers and see how much you can save just for having a birthday!
