It may not be one of the ages normally considered a milestone but in terms of auto insurance it is. Most companies would automatically reduce the rates when the policyholder reaches twenty five. You just have to sit tight and wait your turn. Just remember that many people would rather pay high premiums if they could go back to their teen years.
Car Insurance Costs and Age
Younger drivers are high risk for auto insurers because of age related tendencies and inexperience in life and driving. In time they learn to slow down and observe the road ahead and other drivers. The one learn from near misses turn out to be good drivers. The others who love the thrill of dangers will keep doing the same mistakes and remain high risk. Until it is proven companies have no idea how a particular teen driver will turn out to be.
Make no mistake that age is one of the factors in premium calculations. The younger a driver is the higher the rates will be. After twenty five they come out of high risk group of drivers and go into safer driver category. This cycle is repeated in reverse once the policyholder reaches the age of 75 and the rates once again start moving higher. The reason is the same because older drivers start getting into more accidents due to slowing reflexes and ageing body. For example, they may not be fast enough to brake and avoid an accident.
Why Age of Drivers Listed in the Policy Affects Vehicle Insurance Costs?
Age is a statistically significant data for vehicle insurers. When they look at the accident and claim numbers they see that younger drivers are topping the chart. They cause a lot more accidents and they tend to be a lot more serious and fatal. Therefore, it is no surprise companies like to stay away from young drivers unless they are seriously compensated for taking high risks by high premiums.
Another problem with the teenage drivers is that they have no history to tell if they are good or bad drivers. As they start building good driving records they see their rates going down gradually. The age 25 is significant because rates drop more once they reach this age. Also, this is the age most companies look at when they are considering a particular risk. For example, some companies may not insure drivers under the age of 25 with sports cars.
Does That Mean Youngsters Cannot Get Discounts?
Companies always look for signs and take them into account. For example keep good grades at school can qualify a youngster for much appreciated discounts. There may also be other discounts that everyone can claim regardless of age. For example, paying the full premium at the start or completing an advance driver course would qualify them for discounts too.
Shopping around is another good way of bringing the premiums down no matter what age you are. There could be sizeable differences between auto insurance quotes. It is an open market and every company sets own rates. While one company is very cautious about youngsters the other may make it their business to insure this group of people predominantly.