Why do your insurance rates go down by the time that you turn 25?


One of the most special birthdays of a person is his/her 25th birthday. Not only would this age indicate that you are coming into maturity. In addition, whenever you are going to drive your car, and have car insurance, this may actually be important, because of the fact that it actually makes your insurance premium cheaper for you. In these hard economic times, having cheaper car insurance is a great deal. Remember that you cannot be able to drive your car legally whenever you do not have car insurance. It is a fact that states actually require you to have car insurance before you can drive your car. In addition, of course, you would not want to take chances, for you will never know when you will be involved in vehicular accidents.

The reason why it is more likely that you will realize having lower car insurance by the time that you reach the age of 25 is because of the fact that most companies actually realize you to become a safer driver. Remember that there are a lot of vehicular accidents that was caused by careless driving. In this case, whenever you turn into 25 years old, surely, most car insurance companies would think that you are a more mature person, with many responsibilities, in which it will likewise reflect in your driving. In short, they would see you as a more responsible driver.

Of course, you should remember that the main determinant of car insurance premiums is risk factor. Meaning, the more risky the driver is, the more chances that he/she will be involved in vehicular accidents. In this case, being involved in vehicular accidents would mean more costs for car insurance companies to pay for. Therefore, whenever you are a high-risk driver, more probably, you would cause insurance companies to pay more, making them seek higher insurance premiums from you.

However, the time that you turn 25 years old, expect that you can have much lower premiums. At a time when you will bear more responsibilities, more likely, you will be less involved in accidents. However, it is not always true that being 25 brings in lower premiums. Whenever you have an ugly driving record, or when you have a luxury vehicle to drive, you can expect that your insurance premium will not significantly become lower. But, when you have a spotless driving record, more likely, you can enjoy lower premiums at 25.