You might be wondering, “How much will my car insurance go down when I get older?” The answer is not necessarily as straightforward as you might think. The insurance company bases premiums on hundreds of different factors, including your age and driving record. The type of coverage you purchase also has a significant impact on your premiums. Whether you’re looking for a moderate sedan or a van is a better option than a brand-new one.
While Massachusetts does not allow age to determine car insurance rates, most states do. Insurers use your driving experience to determine your rate, and younger drivers typically pay higher rates. This is because the younger you are, the less experienced you are. As a result, young drivers tend to be more at risk for accidents than their more experienced counterparts. Therefore, premiums should decrease as you get older.
When I turn twenty-one, my car insurance rates drop by around 20%. After that, they continue to drop each year, until they stabilize at twenty-five. This age-related discount may vary a lot depending on your driving history, gender, and other factors. It’s best to compare quotes when you’re 20-years-old to make sure you get the most competitive rate.
If you’re a student, your car insurance rates will likely drop when you reach the age of twenty-one. If you’re a good driver, your rates may go down as you mature. Depending on the details of your policy, the reduction may be more substantial, however, and you’ll need to contact your insurance carrier. It is possible for you to get a lower rate if you turn twenty-one without any changes to your driving record.
