A lot can be said about milestone birthdays. At age 18, individuals are considered adults. At 21, they can legally drink. After those milestone ages, it may seem as if nothing really happens again until retirement age at 65. When it comes to car insurance, however, there is another milestone age; 25 and car insurance go hand in hand together to form lower rates and satisfied drivers.
Not all drivers realize that when they turn 25, their car insurance rates can become cheaper. Drivers have likely been behind the wheel for a significant amount of years by the age of 25 and most have proven themselves to be good and safe drivers.
18-24 year olds also may have noticed that renting a car is not possible until the age of 25. This is because insurance rates are lower for people 25 and over. Statistics show that drivers become much safer by the age of 25 so rental companies have made 25 their lowest age allowed.
When it comes to age 25 and car insurance, insurance companies have used every piece of information they can find to profile drivers. Where the driver lives, their gender, age, job, age, credit history, make and model of the car and many other factors go into how the company determines risk. The more risk the driver presents, the higher the premium will be. Once a driver hits the age of 25, the overall risk lowers and so does the premium cost.
Drivers who have reached the age of 25 may notice that their rates automatically drop. If they do not, it is time to investigate. There may be other factors involved that need to be taken into consideration. If a driver has recently switched cars, had an accident, moved, filed a claim or any number of other things, the rates on the premium may not drop at age 25.
Inflation and the overall cost of health care have also caused premium costs to go up over time. Instead of seeing the rates rise, a driver who just turned 25 may simply seem them level out. Some insurance companies even require that drivers ask for special discounts and changes. It never hurts to ask when serious money and savings are in question.
For those who are 25 and above with a nice, clean driving background, there are plenty of discounts on the market. If insurance seems too high for someone who does not have any accidents in their background, it may be time to shop for a new company. Age 25 and car insurance can be easily compared with online quotes. If the current company does not offer age 25 and car insurance discounts, there are plenty that do. Take a look at several quotes and find a policy that meets every need, including price.