Does Car Insurance Go Down at 25? | Bankrate

car insurance rates for young drivers are often more expensive. If you have a birthday coming up, you may be wondering, does your car insurance go down at 25? According to Bankrate’s study of average premiums, it could be. To give you an idea of ​​how much your premium could be, the average cost of car insurance at age 25 is $2,176 per year for full coverage and $654 per year for minimum coverage.

How much does car insurance go down at 25? it will likely depend on personal, household, and other characteristics, including your driving record and claims history. Understanding how age and other factors can affect the cost of your auto insurance can help you make informed decisions for affordable rates at any age.

Reading: How to review car insurance after turning 25

does your insurance go down at 25?

When comparing the average cost of auto insurance based on data from Quadrant Information Services, auto insurance for a 25-year-old tends to be more affordable than for younger drivers. however, each case is personalized, so while auto insurance may go down to 25 for some, that may not be the case for all 25-year-old drivers.

average rates for the largest auto insurance companies by market share support this trend. The table below shows the average cost of a full-coverage policy from these insurers for 25-year-olds and how the rates compare with 24-year-olds and 18-year-olds.

*Rates reflect a 25-year-old renter on their own policy, a 24-year-old renter on their own policy, and an 18-year-old renter on their parents’ policy.

how much do the rates for 25 year olds drop in each state?

based on bankrate sampling of average fees in the us. In the US, young adult drivers with clean driving records can expect reductions in auto insurance costs at age 25. The amount of premium savings will vary by state and by insurance carrier, and may depend on factors such as your coverage options, type of vehicle, and how much you drive.

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The five states below have the largest percentage reduction in average premiums among drivers ages 24-25.

  • montana: -22%
  • Vermont: -21%
  • Wyoming: -20%
  • Pennsylvania: -19%
  • michigan: -19%
    • average decreases by state

      how gender affects auto insurance rates at age 25

      Insurance companies may also consider gender when it comes to auto insurance rates, although in some states it is excluded as a rating factor. Statistically, female drivers tend to be less likely to engage in risky driving behaviors than male drivers, including fewer duis and less severe accidents. This means that auto insurance companies generally consider female drivers less likely to file a claim, as evidenced by the lower average premiums for 25-year-old female drivers compared to 25-year-old male drivers below:

      ways to save on car insurance as a 25-year-old driver

      While teen drivers can lower their auto insurance rates by staying on their parents’ policy, young adult drivers may not be able to stay on their parents’ policy if they move house. If you’re a 25-year-old driver, speaking with a licensed auto insurance agent can help you find the best auto insurance for your needs, including ways to save on auto insurance as a 25-year-old driver.

      Discounts are a common way for drivers of any age to save on car insurance. If you have a clean driving record, you may be eligible for safe driving discounts and incentives, such as accident forgiveness. Purchasing a homeowner’s or renter’s insurance policy from the same company as your auto insurance company may also earn you a package discount. each operator may offer different discounts. speaking with a licensed insurance agent could help you identify discounts you may qualify for with a specific company.

      Other savings strategies that may help include shopping around before your policy renews and making sure you have the right types of coverage and amounts for your needs. many insurance professionals recommend getting quotes from other companies before your policy renews to see if another insurer can offer a cheaper rate for your needs. This may also be a good time to make sure you’re not paying for any coverage options you don’t need. For example, if you have roadside assistance coverage but also pay for separate towing and labor service, you may be able to remove that option from your insurance. just be sure to review your changes with your agent first.

      why you might not save on car insurance when you turn 25

      Although average auto insurance premiums show that 25-year-old drivers typically receive lower auto insurance rates compared to 16-24-year-old drivers, this may not always be the case. some of the scenarios below could be attributed to why your rates have not decreased as expected.

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