Although there is no law stating at what age car insurance rates are lowered, in general the age is 25. Even though 18 is the legal adult age and 21 is the legal drinking age in most states, 25 is the age you have to reach before you can stop paying high premiums for being a “young driver.”
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Different ages signify different milestones, but to an insurance company, the age 25 signifies responsibility.
At 18, you are still a teenager, young and inexperienced. At 21, you are legally allowed to drink, but you may still make poor choices about drinking and driving.
Of course, many adults in various age ranges are not responsible drivers; however, the insurance companies need some sort of standard to classify young drivers and experienced drivers so that they can adjust car insurance premiums accordingly. At age 25, you are probably working or attending college and you may already be married.
The more responsibility you have, the more you can expect your car insurance premium to decrease.
Getting Car Insurance for a Young Driver
As soon as a young driver is ready to sit behind the wheel, it is time to get insurance. Everyone who drives needs car insurance. It does not matter if a student driver has a licensed driver with him at all times.
You most likely will not be able to insure a young driver on a policy by himself. Most insurance companies will not issue a car insurance policy to anyone who is under 25. However, you can add almost anyone to your existing policy.
In order to add a young person to your car insurance policy, you need to contact your insurance company. They need to know the name and age of the driver, and usually the relationship between the new addition to the policy and the policy holder.
Your policy most likely bans all drivers under the age of 25 from your car insurance coverage. In order to have someone explicitly covered, he or she needs to be named on the policy. This allows that specific young adult to be covered by your insurance policy as an exception.
While this allows your teenager or young adult driver to be covered by your policy, it does not allow any other drivers under the age of 25 to be covered. It is imperative that your young driver not let anyone else drive your car, even if they have their own insurance policy.
Reducing Car Insurance for a Young Driver
Young drivers are not considered to be the most responsible because of their age and experience. However, some young drivers are very responsible and are able to lower their car insurance premiums as a result.
- One of the most common ways to reduce car insurance for a young driver is to prove the student receives A and B grades. Most car insurance companies give Good Student Discounts to reward students for being responsible in school, figuring that the responsibility continues on to when he is behind the wheel.
- Driving safely may not help you reduce your premiums any further, but it keeps your premiums from increasing. If your teenager is caught speeding or driving recklessly your car insurance will go up and you may be facing court dates as well. Following the rules of the road is a great way to keep your premiums to a low.
How Age Affects Car Insurance
As you can see from above, 25-years-old is the age a person’s car insurance rates go down in most instances. By the time you turn 25, you may have graduated college, gotten married, started a family, and most likely began a career. Responsibility tends to accompany the aging process, resulting in a decrease in insurance premiums.
You also probably have 9 or 10 years of driving experience by the time you turn 25. Since experience is one of the best teachers, especially when it comes to driving, your car insurance goes down at this point. Of course, this is only the case if you have a good driving record.
If you maintain a good driving record and avoid moving violations and insurance claims, your insurance premiums can continue to decrease as you age.
However, once you become a senior driver, you may see a rise in your insurance premiums.
This is because there are several medical conditions that seniors are more prone to, such as heart attacks and strokes. Also, reflexes may be slower, affecting reaction times. Vision and hearing can also impact a senior’s driving ability. Senior drivers are considered a risk just as young drivers are, thus car insurance rates increase.
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