Posted by When Does Car Insurance Go Down? Most people who just got a car often seek answers to a myriad of questions since they are new to driving. If you seek answers as to when your car insurance will go down, best believe, you are in the right space to get all the information you need.
Auto insurance can go down due to several reasons, but the common reasons include your age and driving records. Your car insurance can go down as you get older or if there are no issues with your driving history. For those with good driving records, you can shop around and compare quotes from different auto insurance companies to get a better deal for you.
When Does Car Insurance Go Down?
As we have mentioned earlier, Auto insurance can go down due to several factors. In this section, we will be providing a detailed explanation of when the insurance on your car can go down.
Car Insurance Can Go Down As You Grow Older
For people who are yet to be above the age of 25, there is every tendency that your car insurance will go down as you embark into your 30s. Most insurance companies think that you get more driving experience as you age, so there is every possibility of your insurance going down the moment you grow older.
Younger drivers are prone to getting into car accidents and violating traffic rules compared to older drivers. This means that they are seen as high-risk drivers and because of this, they get to pay higher rates on their auto insurance policy. Purchasing car insurance is often expensive for teen drivers and the insurance will most likely decrease as they grow older.
Auto Insurance Can Go Down If You’re A Good Driver
If you have a good driving record, be rest assured that your car insurance will go down. In situations where you have been a good driver for the past three years of driving, you will notice that your Auto insurance will start decreasing.
Nevertheless, this timeline depends on your state law and the type of infraction. In some states, insurance companies may consider only three years of driving history while other states require a driving experience of 10 years. The most important thing is to know the law that guides auto insurance policy in your state, you can reach out to your insurance company to get detailed information about it.
Auto Insurance Can Go Down If You Change Companies
This is also one of the ways through which your car insurance can decrease. If you switch from one insurance company to the other, you will most definitely get a better insurance rate from the other company you are changing to. Regardless of your driving history or situation, you can still get reasonable insurance rates from different insurance companies. Shop around for auto insurance companies; ensure that you compare coverage and cost to choose the one that best aligns with your needs and budget. You can search for the following auto insurance discounts to find the best companies that complement your needs;
- New driver discount.
- Safe driver discount.
- Good student discount.
- New car discount.
- Defensive driving course discount.
- Teen driver discount.
- Military discount.
- Bundling discount.
Top Rated Insurance Companies for Young Drivers
If you are a driver under 25 years old, it is possible to get auto insurance from any insurance company of your choice in the state you reside. One of the top rates and cheapest insurance companies for new and young auto owners is GEICO. Other insurance companies offer affordable auto insurance if you are 25 or younger, they include the following;
- Progressive: 13% discount.
- Nationwide: 11%discount.
- State Farm: 10%discount.
- Allstate: 6%discount.
To get the best auto insurance for your unique need and situation, you can shop around to weigh your options. Is it noteworthy that, most insurance companies will calculate your rate based on your age, so, it is important to compare the cost of each insurance company before purchasing from them?
FAQs
At What Age Is Car Insurance Cheapest?
Getting auto insurance is more affordable for drivers between the ages of 35 and 55. Car insurance is very expensive for teen drivers because they are considered to be high-risk drivers. It is better to add them to a family policy to avoid higher premiums.
Other situations when car insurance becomes cheap are when drivers develop reliable driving habits.
Does My Auto Insurance Go Down If I Turn 25?
Yes, if you finally clock 25 years, your car insurance can go down because you are no longer considered to be a high-risk driver. Unlike teen drivers who have a higher risk of accidents, those who are 25 years of age are prone to fewer accidents while driving.
Does Car Insurance Ever Go Down?
Sure, auto insurance goes down as policyholders age. Aside just the age factor, auto insurance can be reduced if you switch your insurance company or if you have a good driving history.
Your car insurance can decrease if there are no violations or at-fault accidents on your driving record. In addendum, you may receive a loyalty discount if you stay with the same company you have been using for your auto insurance policy.