Why Car Insurance Rates Go Down After the Age of 25

One of the most well-known facts about car insurance is that younger drivers pay more. And we also know and assume that after the age of 25, rates are becoming better for any policyholder. But is it really so? Find out, by reading our blog. Also, if you want to compare auto online insurance quotes, our website has a free submit form. Use it well and notice the price difference for under and over 25 years old customers.

@ images (1)In general, auto insurance companies tend to offer lower car insurance rates once an insured driver has turned the age of 25.  This happens because statistically, it is considered mature and more responsible than its under 25 counterparts. But do not think that just by showing an ID card, you will get an instant discount. Car insurance providers don’t typically change your rates mid-policy term (unless you make changes like add a car, driver, etc.), so you’ll have to wait until your next renewal period to see a lowering of your premium.

Besides age, your driving experience until 25 will weigh heavily in lowering the car insurance costs. As you can easily imagine, having more time behind the wheels before reaching this desirable age, will make premiums cheaper.

Car insurance providers know that statistically young drivers are shown in reports by organizations such as the Insurance Institute of Highway Safety (IIHS), National Highway Traffic Safety Administration (NHTSA) and Center for Disease Control and Prevention (CDC) to be more prone to accidents due to immaturity and inexperience at operating a vehicle.

Drivers 25 or older are more inclined to be more responsible and that their risk of at-fault accidents has decreased.  So the base rate for your car insurance policy changes at this age because you’ve matured into a better driver class. So, just the base rate has lowered. For better rates, other factors will be counted in.

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