Can you unlock auto insurance discounts when you turn 21?
As a young driver, you’ve probably heard that turning 25 gives you access to lower car insurance rates. While this is something to look forward to, you may be wondering if you can access savings earlier. For instance, you may be wondering if you can unlock auto insurance discounts when you turn 21. Here’s what you need to know about saving on your car insurance premiums.
- Why Young Drivers Pay So Much for Car Insurance
Drivers in their late teens and early 20s have the highest accident rates among all U.S. drivers. Your auto insurer bases your auto insurance rates on your overall risk. The greater your risk for an accident, the higher your insurance rates will be. Because young drivers have such high rates of accidents, they typically have to pay more for their auto coverage.
- Car Premiums Decrease with Age
Typically, drivers see the most significant insurance rate decrease when they turn 25. But are there opportunities to save before then? For instance, many drivers wonder if they will gain access to discounts when they turn 21.
Fortunately, most auto insurers will gradually start to drop your premiums as soon as you exit your teens. This means that drivers will start to see small rate drops at between the ages 20-24, with the most significant drop happening at age 25. Please keep in mind that these rate reductions only happen if you do not get into an accident, receive a moving violation, or file a claim during this time. Auto insurers will only reward responsible and safe drivers.
- Old-Age and Auto Savings
In general, it is rare for car insurance premiums to rise as you get older. This is because statistics show that drivers in their 40s, 50s, and 60s are some of the safest drivers on the road. Because more mature drivers are less likely to file a claim than younger drivers, they typically have access to the lowest auto insurance rates. So, once you turn 25 and see a rate decrease, you will continue to save as you get older, so long as you keep your driving record clean.
This is what you need to know about unlocking auto insurance discounts when you turn 21. Do you have further questions regarding your auto insurance? If so, then contact the experts at John E. Peakes Insurance Agency. We are ready to assist you with all your car coverage needs today.