Auto Insurance Rates

How will my Insurance Premium Decrease after I reach 25?

Auto insurance premiums can vary over time due to a number of significant factors. Safe driving can see motorists rewarded with cheaper insurance while those involved in accidents or DUI offences will usually be punished when a policy is renewed. Young drivers can also expect to see prices plummet once the reach 25 years of age.

Which Factors Affect Insurance Rates

Although there are more young drivers who behave responsibly behind the wheel of a vehicle than those who drive recklessly, statistics still show that motorists between the ages of 16 and 24 are more likely to be involved in accidents. Even when a young driver reaches the 25 year-old threshold, premiums will not decrease if an extensive record of accidents and claims are present on their driving records. Until a driver reaches the age of 25, it is usually cheaper to opt for a policy with minimum coverage unless an auto payment loan is place on the vehicle being driven.

Rate Decrease

Male drivers with a safe driving history can expect to see a drop of approximately 20% in premiums once they eventually reach 25 years of age. Young female motorists will only experience an average drop of around 12%. This is because young female drivers are considered to be a lower-risk category than their male counterparts so they will play less than young male drivers at an earlier age.

Hitting 25

The price you can expect to pay for car insurance once you hit 25 will be influenced by your driving record and the type of vehicle you use. It will be an extremely rare occurrence if your rates don’t decrease a little, even if your driving record is less than perfect.

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