One of the major factors that car insurance companies take into consideration when adjusting insurance premium is the amount of risk that you can give to the company; the higher the risk factor, the higher the insurance premium. For example, the higher the probability that you would be involved in car accidents, or if you are likely to get claims from the insurer, or if even it is likely that others would file a claim against you, insurance companies would see higher risk against you, therefore base insurance premiums would be higher. Likewise, if car insurers see that you are a safe, cautious and responsible driver, this would entail less risk, and it is likely that you can see your insurance rates to fall down.
In this case, insurance companies do a very detailed profiling work, to be able for them to take an effective glance to all these factors. They closely monitor and profile person al information that they deem essential to calculate several risk factors. This includes data about your age, gender, marital status, job, location, and even credit history. This is the time where your 25th birthday becomes a milestone for your car insurance policy. Not only does turning 25 years beneficial for renting a car, but also for insuring it. Generally, car insurance companies view this age as the time when drivers are more likely to become safer and more responsible drivers. If in your 16th birthday you may become a sweetie, and your 18th and 21st birthday you come into being a young adult, your 25th birthday is the most likely time when you will finish your college studies, look for a job, and start a family and a career. Insurers view this as a significant time where you will be more responsible driving your car and getting out of trouble. That poses less risk to insurance companies.
Of course, this is not automatic. There are some instances wherein even if you turn 25 years old, you would witness the decrease of your insurance rates. Well, there are many other factors to be considered. Risk factors here play again a significant role. For instance, if you change your residence and settle in a more busy and fast-paced location requiring frequent road travels, in increases the risk of you being involved in an accident. Or if you suddenly switch you vehicle and buy a brand new SUV, there is higher risks that you would be involved in a rollover accident, and chances are you insurance premium will increase 10-20%. But if you are a driver with a clean, spotless record, and do not make significant changes on your location, job and car, being 25 would bring your insurance rates down.
