Does auto insurance get cheaper when you’re over 21?
Most people know that drivers in their teenage years and early 20s pay some of the highest premiums for auto insurance. As we get older, however, you may find that car insurance gradually lowers to more affordable premiums. To help you understand more about car insurance premium costs, read on.
Generally, car insurance premiums decrease with age, dropping once you turn 25. The theory behind this is that you become a more experienced driver, and become less likely to make a claim. As long as you maintain a clean driving record, then your car insurance premiums should gradually drop from age 20 to 25.
The more experience you have, the less you can be expected to pay for car insurance. For example, if you received your license the day you turned 16 and maintain a clean record, you could see a significant decrease in premiums once turning 21. If you obtained your license at 18, you only have three years of driving experience by the time you turn 21, and so the decrease in premium may not be as significant.
Typically, it’s unlikely that your car insurance rate will rise with age. Statistically, drivers in their 40s, 50s, and 60s are some of the safest motorists on the road. A common reason why your premiums would rise with age is if you have a speeding ticket, an at-fault accident, a claim or other type of incident in your recent history.