As you turn 16 your thoughts are probably more focused on the car you’ll be driving (or dream to drive one day), not insuring it. If you’ve done any research, you will see that Auto Insurance for young drivers can cost a lot – especially compared to the rates of more experienced drivers. After you put a few more years behind the wheel and build up a safe driving record, you will see that your rates may decrease. That’s why many look forward to lower insurance costs the day they turn 25. They’re hopeful what they’ve heard is true so they’ll see a drop in insurance premiums on that day.

Does my auto insurance go down on my 25th birthday?

For years, people have spread the word that you’ll see auto insurance discounts once you turn 25. The question is if this is the truth or simply a hopeful myth. Well, we know for sure there’s no insurance genie or magic agent.  Reducing rates on your birthday or any other day is a process. Here’s what the experts are saying about the “insurance discount on birthday” mystery.

It turns out there is truth to the belief that insurance rates drop around age 25. Insurance companies consider clients experienced drivers by age 25 or older. For that reason, you should see a considerable decrease in premiums. That is, as long as you’ve been a responsible driver. The premium decrease depends on whether you’ve maintained a good driving record.

How much does auto insurance for young drivers cost?

There is no one size fits all rate for auto insurance. Just like when determining discounts, the cost of your auto insurance depends on several factors:

  • Age
  • Driving Record
  • Vehicle Make, Model, and Year
  • Frequency and Distance Driven
  • Type of Coverage (Liability, Comprehensive, Collision, Uninsured Motorist, Medical, etc.)
  • Amount of Coverage
  • Amount of Deductible
  • Location Vehicle will be garaged/parked
  • Credit Score

This isn’t a blanket procedure for all companies. Some will use other information to calculate your rate. That’s the reason for the slew of questions they ask. Even your level of education and vehicle color can be on the list of questions leading up to an insurance quote. The bottom line is teens and young adults should expect to pay more until they’ve done their due diligence.

What can I do to get decrease my auto insurance rate?

The most important thing is driving responsibly. While that doesn’t guarantee auto insurance discounts, preventing accidents and tickets should help avoid a skyrocket. Look into bundle driver discounts, vehicle discounts, and policy discounts. From there you may find rate decreases for being a good student, bundling insurance products, or using a device to monitor your driving.

Cheaper isn’t always best. Still, expensive doesn’t necessarily mean they’ll take good care of you if you have an accident. Don’t be afraid to shop around. Many good companies are always coming up with new deals to attract clients. Look for a company with time and experience on their side. One you know will do right by you when you need them most.

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