Why Auto Insurance Rates Go Down at Age 25

Teenagers are seen the highest risk drivers for many reasons. They are young, daring and have no driving experience that they can get into accidents faster than they realize. The statistical evidence is strongly against the teenagers. They are four times more likely to cause an accident compared to a mature driver over the age of twenty five year old. This makes this particular birthday extra special for drivers.

girl driverYoungsters get the highest rates in their first year of driving because this is the most difficult year. Many people have accidents in their first year. Practicing with an instructor is a lot safer and they have to make decisions on their own once they pass their driving license tests. Apparently, they make a few wrong decisions that lead to accidents. That is why companies try to avoid them unless you offer sack load of money as a premium payment.

After the first year you should start to see your first driving related discount if you don’t make any claims or have traffic tickets. If you have a serious traffic violation like speeding you are back to the jail house as far as insurers concerned. If you have a DUI forget driving for another year or so and may be longer if you don’t have a rich dad or you are not head hunted by a Wall Street firm.

This gradual decline of premiums is very important to keep your focus on. You don’t have to wait to be a full grown adult to get discounts on automobile insurance. As mentioned above as early as next year you can start enjoying discounts. You may enjoy other discounts for being a good student or even paying the full premium at once in the meantime.

However, year twenty five appears to be the milestone for auto insurers. They put conditions on the policy that exclude any driver below the age of 25 and so on. They clearly see drivers mature at this age and don’t need to be specially whetted to be allowed behind the steering wheel of a car owned and insured by someone else.

You may see a special bonus at this age but it may not be huge especially when you have been getting all sorts of discounts already as a result of your good driving history. Good motorists are recognized even when they are still young. If you have been driving since 16 and had no accident so far it is a pretty good indicator that you have a level head over your shoulders. And it is a good indication that you will carry on like this from now onward. Considering you are young and you have many years of premium paying life ahead of you most companies would be keen to sign you on.

On the other hand, you cannot expect much savings even when you are 25 if your driving history is crap and you have a few claims and traffic tickets to your name. These are real evidence of driving skills and capabilities and not just your age.

June 18th, 2012 Uncategorized Comments Off on Why Auto Insurance Rates Go Down at Age 25