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At what age will my car insurance premiums go down?

Car insurance for young drivers can be expensive. You might be curious about what age you'll have to hit before your premiums start to lessen. It is a common expectation from motorists that their premiums will lower after they reach a particular age. They receive something of a shock when their rates do not lower, and they are charged the same rate as usual. Just because you reach the age of twenty five, that doesn't necessarily mean that you will automatically receive the discount. Age is not the only factor that a car insurance company considers when determining your rates. The number of years that you have possessed your license is an influential factor as well. A twenty year old who has had their license for four years may pay less in premiums than a twenty five year old who has only had their license for two years.  

Once you have had your license for a minimum of three years, the discount will more than likely be extended to you if you qualify for a "good driver's discount". You can only receive this discount if you have an unblemished driving record. This means you have no more than one point on your driver's license record. Because an insurance company will usually issue a 20% discount for this, it can have a positive financial benefit. It gives a motorist something to anticipate with pleasure. Insurance providers will have their own guidelines about the information you must submit to prove your clean driving record. Some companies might automatically credit you with additional years of driving experience once you have hit your three year anniversary. For example, if you are twenty six when you obtain your license, you will be credited with ten years worth of driving experience. However, other insurance providers use your actual driving experience as a measure by which to give you your discount. This means that you will receive your discount on the three year anniversary of the date your license was issued.  

Once you reach a certain age, your age becomes a hindrance rather than a benefit when it comes to your insurance rates. Insurance companies commonly believe that an elderly person will be more likely to be involved in an accident. This belief is backed by statistical information, whether or not it may be true for the individual.

The amount of time that you have your license is not the only factor that affects your rates. Other factors include your driving history and your vital statistics. If you have an accumulation of tickets on your record, an insurance company will view this as a warning sign that you might be a risky driver. Your vital statistics, like your marital status, affect your rates because statistics show that those who are married have a lower loss ratio than drivers who are single do. Educating yourself about how these factors play a part in affecting your rates can help to understand ways that you can lower them.  



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