Most people don’t enjoy paying their auto insurance premiums each and every month! So, they often look forward to scheduled rate decreases, such as at the age of 25.
Why do car insurance rates decrease at this age? Well, because the majority of crash claims are filed by young (ages 16 through 24) and older drivers. As a driver matures, they become less likely to become involved in a crash according to statistics, so to offer an incentive for drivers to stay with a particular insurance company, discounts are often offered at the age of 25.
While it is generally true that auto insurance rates will decrease at the age of 25, it isn’t always the case. Drivers can expect their car insurance rates to decline at the age of 25 assuming the following remain constant- their driving history, incident history, and the make and model of their car. If all of these factors remain the same, male drivers can expect a premium discount as high as 20%, while female drivers can expect a 12-15% discount on their rate.
Keep in mind that the above discount ranges are averages; there isn’t currently a standard amount of deduction that can be expected; rate decreases will depend not only on the driver’s history, but the insurance company, the type of coverage selected and the overall state of the economy.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Auto rates are based on state law. In California there isn’t any change in the rate because companies are not allowed to rate based upon age. In California they rate based upon experience. Drivers who have been licensed recently pay more than those who were licensed many years ago. Rates are changed at renewals but not based upon attained age In California.
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Why do car insurance rates decrease at this age? Well, because the majority of crash claims are filed by young (ages 16 through 24) and older drivers. As a driver matures, they become less likely to become involved in a crash according to statistics, so to offer an incentive for drivers to stay with a particular insurance company, discounts are often offered at the age of 25.
While it is generally true that auto insurance rates will decrease at the age of 25, it isn’t always the case. Drivers can expect their car insurance rates to decline at the age of 25 assuming the following remain constant- their driving history, incident history, and the make and model of their car. If all of these factors remain the same, male drivers can expect a premium discount as high as 20%, while female drivers can expect a 12-15% discount on their rate.
Keep in mind that the above discount ranges are averages; there isn’t currently a standard amount of deduction that can be expected; rate decreases will depend not only on the driver’s history, but the insurance company, the type of coverage selected and the overall state of the economy.