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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