KNOW AT WHAT AGE DOES CAR INSURANCE GO DOWN
One of the major factors that decide on the rate of the car insurance is the age of the driver. It is a known fact that young drivers pay more for car insurance than those who are middle aged. There is also a belief that car insurance goes down at the age of 25. While there is some truth behind this belief, but if you really want to know at what age does car insurance go down, you will have to read till the end.
Factors influencing the car insurance rate
Before knowing about at what age does car insurance go down, you would need to understand the school of thought taken by insurance companies while they arrive at the figure which is being quoted to the customer as car insurance premium price. This figure is a derivative of various inputs, like the age of the driver, gender and marital status of the driver, the state where the driver lives, the credit history and driving records of the driver, etc. By factoring all these points, what the insurance carrier basically tries to ascertain is that whether the driver is a risk-prone driver or he is a safe driver.
The magic age is 25 years
Statistically it has been found that people under the age of 25 years get involved in more number of accidents than the middle aged drivers. Along with this, assuming a person gets a driver’s license at a tender age, it is anticipated that as he grows older, he or she would be gaining more experience as a driver and hence his chances of causing an accident will be fairly low. Keeping all these factors in mind, it is usually 25 years which can be treated as an answer to the question at what age does car insurance go down.
There is, however, no guarantee that your car insurance rates will drop as you hit 25. As mentioned earlier, there are other factors which decide the rate of the insurance along with the age of the driver. Also, if the insurance company finds that claims from the neighborhood where the driver lives are higher than other neighborhoods, it is most obvious that they would tend to increase the price of the insurance, even though the driver may be not as young as 18 years or 21 years. The bottom line is that whenever an insurance company finds itself at risk of paying out insurance amounts, it will tend to increase the rate of the insurance.
What else could decrease the insurance price?
Turning 25 or growing older is not the only way to decrease the auto insurance rates. There are other ways as well by means of which you would be able to make the auto insurance price go down. Some of the most effective ways are mentioned below.
• Get a cleaner driving record
• Switch to an area which does not have a trend of higher number of accidents
• Improve your credit scores
• Raise the deductibles in your policy. However you should do that only if you are confident about your driving and know that chances of getting in an accident is negligible
• Select the type of vehicle which is not prone to get into an accident
By doing these, you would be able to make the insurance price go down without having to know at what age car insurance goes down.
We have additional information in this subject you may be interested in reading : Do You Need Insurance To Get A License for Driving Cars and Does Car Insurance Go Down At 25 Or It Is A Myth?