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Does Car Insurance Lower at a Certain Age?

Does Car Insurance Lower at a Certain Age? - Many people wonder at which age auto insurance becomes cheaper. Policyholders often expect their rates to go down after hitting a certain age and then contact their company when their renewal premium comes in at the same price.

It is often believed by many that when a driver turns 25, they will automatically get a discount for their age. Although at any given age, a policyholder can see an instant rate reduction, prices are not based on "age", but on the amount of years they've been licensed. For example, a 25 year old driver who just got their license purchases a policy, it is more likely that they will be quoted a higher rate than a younger driver, say 22, who has been driving since the age of 16.

Once a driver hits three years licensed, they are likely to get a discount since they may be now qualify for a "good driver discount" given that their driving record is clean, meaning no violations. If there is something to look forward to as a young driver, hitting three years licensed should be it. Car insurance can significantly go down with the application of a good driver discount since it can range in the area of 20%.

Each insurance company has it's own guidelines about proving driving experience. Some will automatically give you full driving experience since the age of sixteen once you hit three years driving. For example, if one is 25 when they become licensed, at age 28, they will get credit for 12 years driving experience. (since age 16) Other companies will use "actual driving experience" which will be the exact length of time based on the issue date of the license.

At one point, too much age would raise rates instead of lowering them. For example, if one approaches the later years in life, they may be more probable to an accident. Through statistics, insurers may raise rates for those in their senior years.

Does Car Insurance Lower at a Certain Age?
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Unknown said…
the best insurance out there.iam saving like almost 400 a year and thats 2 cars and house insurance.before i couldnt afford house insurance with the company i was with now i can with grey power.in fact when i told the company i was with i could no longer pay the rate i was paying that i was looking for a new company. the advice i was given from my old insurance was that if i was to cancel my collion on my cars it would save me 400 a year. i didnt see that has a good move.now i have 2 cars and house insuranced with grey power at a way lower rates before with my old insurance i couldnt even get house insurance, my rate was for 2 cars only.with my old insurance.and now iam total insured with grey power and way cheaper rates.love gp thank you gp
10:10 AM
Anonymous said…
After paying $300 a mo. w/Allstate, we could finally no longer afford it. I switched to Reliant just to get enough coverage to drive around with @ only $56 a mo. for both cars. Just last month (after 1 1/2 yrs.)they lowered it to $45. Now that I can afford the minimum, I will be adding full coverage.
9:33 AM
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