Generally speaking, car insurance premiums tend to be lowered when a driver turns 25 years of age. Statistically speaking, those young people who are under age 25 tend to get into more accidents due to their immaturity and inexperience at driving. Those in the insurance world known as risk assessors feel that those young people who are 25 years of age or older tend to think more responsibly thus decreasing their risk of getting into an accident that was their fault.
When a driver turns the age of 25, the auto insurance company will put the driver in a different driver class thus lowering his or her auto insurance. Car insurance companies at least partly determine their car insurance premium rates on driver classes.
Age, marital status, sex and accident statistics all help to classify drivers. The rating systems can differ from one car insurance company to another, so you would have to check with your current car insurance provider to ascertain if your premiums will decrease once you turn 25.
It has been noted that some rates have decreased by as much as 20% when the driver on the car insurance policy becomes 25 but that is only if that person holds a clean driving record. If the person's driving record is tarnished by accidents and various traffic violations, then the rates may not be any lower once the driver reaches the age of 25 simply because the bad driving record will cancel out any lower rate.
If you have recently turned 25, you may notify your car insurance carrier but it is not the usual case to adjust premiums mid-term. You will have to wait until the car insurance policy is up for renewal or you may notice a difference if you take out your own policy instead of being one of the drivers on your parents' policy. If you do not live within the United States, the age at which premiums may be lowered may be somewhat older such as 30. Always check with your insurer to determine their driver classifications and their rating system.
Here is another thing to ponder for your parents. Make your child wait to get his or her license. Newly licensed, young drivers are more prone to get into an accident, and when that happens, the insurance company will adjust their premium accordingly. If you allow your child to get his or her driver's license at the age of 16, you are going to have to pay the premium and you may be shocked to see what that will be! Sure, it may drive your kid batty to wait to drive, but if the insurance bills are already wearing a hole in your pocket, then that may be the more prudent choice. Rates will usually come down a little once the driver turns 18, and then the price really plummets at the age of 21 or 25.
Here is something else you may not have thought about. Build good credit! There seems to be a statistical correlation between a person's credit rating and the number of claims a person may be expected to file with his or her car insurance company. Depending upon where you live, there are many insurance carriers that will charge you more if you have bad credit, but they will reward you by giving you a discount if you have good credit.
All of these things will help you to have lower insurance premiums, but you may have to be patient and let time run its course.
Kian Chew is a car insurance expert and owner of Car Insurance Hot Zone. Car Insurance Hot Zone helps those who wish to lower their car insurance cost for life by using a few basic rules and some strategies which few people know. You can instantly view the secrets by visiting http://www.CarInsuranceHotZone.com |
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