Auto insurance is full of complex language and rules that can confuse many people, primarily when it comes to how much it costs. One of the most frequently asked questions young adults ask us here at Saferoad Insurance Services is, "Does my car insurance go down when I turn 25?"
This article will reveal why car insurance rates go down when you turn 25, how much your insurance rates drop, and some factors that might prevent your rates from going down.
Why Does Your Insurance Go Down?
You may be wondering, "why does my car insurance go down when I turn 25?" Most people begin driving at 16, meaning you have been on the road for about nine years. Once you turn 25, you have enough experience behind the wheel to be less of a liability on the road.
Having a clean driving record will also give you the upper hand when you turn 25. If you manage to keep a good record, you should contact your insurance provider and work with them to get your policy updated.
How Much Does Your Insurance Go Down at 25?
It is hard to predict the exact amount your auto insurance will decrease when you are 25. It is a fact that younger drivers will pay significantly more than drivers between the ages of 25 and 65. However, the average 25-year-old's car insurance in California will reduce by about 17%.
Factors That Prevent Your Rate From Decreasing
Some 25-year-olds will not see a change in their insurance premium. The following instances can affect your rate from reducing once you reach the age of 25:
- Credit History - A significant factor affecting your rate is having a good credit score.
- Experience - If you began driving at 25 and bought car insurance for the first time, you would pay more than the 25-year-old who started driving at 17.
- Driving History - If you are a ticket or accident magnet, insurance companies may deem you a high-risk driver and charge you more than a low-risk driver.
- Location - Your zip code can influence your rates. If you live in an area with a higher chance of incidents, accidents, vandalism, or theft, your rates may be higher.
If you just turned 25, congratulations on the lower insurance rates! However, you must have a clean driving record to obtain and maintain the privilege. Saferoad Insurance Services provides affordable auto insurance in Anaheim, Long Beach, and California with over 18 years of excellence. Contact us today at 877-945-7233 to learn more.