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Do Car Insurance Rates Go Down When I Turn 25?

You may have been under the impression that once you turn 25, your car insurance rates will go down. This is not always the case. There are many different factors that affect the amount of your premium, not just your age. Premiums actually decrease between the ages of 22 to 25, not solely at age 25.

Higher Premiums For Ages 16-24

Why are car insurance rates higher for those between the ages of 16 and 24? This is because drivers between those ages are involved in/cause more wrecks. This increases the risk of the individual insured. Insurance companies counter this by increasing premiums. 

16-year-old drivers are actually 150% more likely to die in an accident than an 18 or 19-year-old driver. These statistics do not improve as drivers enter into their early 20s. According to 2018 data gathered from the Insurance Information Institute, drivers aged 16-20 died in more automobile accidents than any other age group. 

Factors That Affect Your Insurance Rates

There is a list of factors that affect the high rate of accidents in teenagers and young adults, including:

  • alcohol
  • inexperience 
  • not wearing seatbelts
  • driving during peak accident periods

*Peak accident periods are typically considered weekends from 9 P.M. to 6 A.M. Texting and driving, as well as distracted driving, play roles in higher insurance rates as well.

How To Save On Insurance Rates When You Turn 25

Once you enter your mid-twenties, you are typically known to be more mature than your younger counterparts. This maturity, paired with factors such as a good driving record and having no tickets will help lower your insurance rates at age 25. It also helps to avoid using drugs and/or alcohol, as well as practice driving defensively. 

How Not To Save On Insurance Rates When You Turn 25

If your record is not clean, such as having multiple at-fault wrecks on your record, then your insurance rates will not decrease when you turn 25. This is also true if you receive your license when you are older, such as 19 or 20. You will more than likely still be considered an inexperienced driver. Your insurance rate is also affected by the type of car you drive due to the fact that it costs more to insure a newer one. Your insurance rates may even increase at 25 if your driving record is extremely poor!

What Else Affects My Insurance Rates?

It is true that your age does affect your insurance rate. It is not the only thing that affects it, though. The area you live in and your credit history play a determining factor, as well as how often you drive your vehicle. Other factors include:

  • gender
  • marital status 
  • your driving history
  • your vehicle’s make and model

If you want to learn more about what impacts car insurance rates, contact us today!