How Much will Your Auto Insurance Premium Decrease after 25

November 7, 2013

Your auto insurance premium, which is the amount you pay for auto insurance, will change over time. The biggest decrease will come when you turn 25. At that point, you’ll pass out of the high risk category into real adult driving.

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Factors that Affect Rates

There are many more safe young drivers than those who take risks. However, the age group running between 16 years to 24 years is more likely to have accidents than any other. If you have a record of accidents, or if you have moved a great deal, then your rates won’t decrease much when you hit 25.

For many, car insurance for those under 25 can swallow a large chunk of any budget. The best way to keep down costs is to just take out the minimum coverage, although you’ll only be able to do this if you don’t have an auto loan.

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Rate Decrease

On average, you’ll find that the auto insurance premium will decrease by up to 20 percent for males when they turn 25. That figure is generally less for females and is usually between 12 percent and 15 percent. This is because young females are generally deemed to be safer drivers than young males and pay less at a younger age.

Over 25

The rates for car insurance for those over 25 will be dictated by your driving record and the type of car you drive. It will be rare that the rates don’t decrease even if your record is less than perfect. Expect to breathe a big sigh of relief when you receive your first insurance bill after your 25th birthday.

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