Automotive

Why Does Your Car Insurance Rate Go Down After You Turn 25?

If you’re turning twenty-five, you’ve probably noticed that your car insurance rates go down. Not quite as much, but still a reduction. In most states, your insurance will go down by about 12%. The lower rate may come from several factors, including your gender, the type of car you drive, and your claims history. Here are a few of those factors. If you’re concerned about your age, remember that this is only a percentage.

If you got your license at 16 or earlier, your rates will be lower. But if you’re getting your license later, you might not qualify for a reduction at that age. It may take several years to convince your insurance company that you’re a lower risk. If you want to qualify for a lower rate, make sure to reduce your driving history by limiting the number of passengers, and try not to drink or eat while driving.

If you’re a good driver, your rate can go down as early as age twenty-five. This reduction is a big benefit, because most auto accidents result in higher premiums for all parties. Accident forgiveness may also be an option if you have a clean driving history. Liberty Mutual has a five-year accident forgiveness policy that helps drivers who have had a few accidents.

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