Does turning 25 guarantee you a better car insurance rate?

Turning 25 can affect your car insurance rate but it’s not guaranteed. Here’s what you need to know about factors that can impact your car insurance rate. (iStock)

There are several factors that can influence your car insurance rate, with age being one of them. Young drivers often look forward to their 25th birthday, which is when car insurance rates are typically expected to decrease. 

But turning 25 doesn’t mean your rate suddenly drops. Depending on your driving record and how much time you’ve spent behind the wheel, you might not see much of a rate decrease after all. 

If you're in the market for car insurance and wondering how much you could save, head over to Credible ​who has partners to give you a free quote.​ It only takes two minutes.

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Why can car insurance rates improve when you turn 25?

One of the biggest determining factors for the cost of car insurance premiums is age.

According to the National Highway Traffic Safety Administration, more than 1,700 drivers ages 15 to 20 died in motor vehicle crashes in 2018. Young drivers accounted for 5.3% of all drivers in the U.S., yet made up 8% of all drivers involved in fatal crashes that year.

It's more expensive to insure younger drivers. Teens and young adults are more expensive because insurance companies see them as high-risk drivers who are more likely to get into an accident and file a claim.

Generally, rates will slowly drop over time until the age of 25, as the driver matures and gains more experience. Age stops being a determining factor until drivers reach age 65, which is when insurance rates can start going up. 

Car insurance rates vary based on a variety of factors — from your credit score to driving habits. Use Credible's free tools to shop around and lower your car insurance premium today.

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Does turning 25 guarantee you a better rate?

Your car insurance rate doesn’t change overnight as soon as you turn 25 and it’s not a guarantee that your rate will necessarily improve. There are other determining factors that make it hard to predict whether your rate will lower as you approach the age of 25.  

If drivers fall within the following categories, they may not see a decrease in rates:

  • Drivers with accidents or violations on their driving record – If you have an accident, speeding tickets, moving violations or other insurance claims on your record, your car insurance rate is likely to increase.
  • Inexperienced drivers – If you got your license at the age of 25, you’re likely to pay higher premiums than a 25-year-old who got their license at the age of 16.

Comparing multiple auto insurance quotes can potentially save you hundreds of dollars per year. And it’s easy ​to get a free quote in minutes​ through Credible’s partners.

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What factors can impact my car insurance rate?

Your age, experience and driving record are the biggest factors that influence your car insurance rate but they aren’t the only ones. Here are some other factors that may influence your rate:

While some factors are out of your control, being a responsible driver and comparing insurance companies can help you get lower rates. 

Already have good car insurance but want to make sure you're alerted when you can get a better deal? Credible’s partners ​can send you free quotes if they find you a better rate.​ All you need to do is get started here.

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