Auto insurance policies are typically more expensive for younger, inexperienced drivers than they are for those who are older. Most policies will decrease your insurance rate when you turn 25 years old. At Coastal Wealth Insurance, LLC, serving the greater Fort Lauderdale, FL area, we are often asked why this is. Here are a couple of the reasons why auto insurers decrease insurance rates when drivers turn 25.
Studies Have Shown This is When Fewer Accidents Occur
One of the reasons why many auto insurance companies reduce their rates when drivers turn 25 is because studies have routinely shown that drivers under the age of 25 are more likely to be involved in an automobile accident. But this risk decreases when drivers are over the age of 25. When the risk of an accident decreases, your auto insurance rate also decreases.
This is When Most Drivers Have a Complete Driving Record
The second reason why many auto insurance companies reduce their rates when drivers turn 25 is because most drivers have a full or complete driving record by the time they turn 25. Driving records typically go back seven years. When you are a new driver, the insurance company doesn’t have enough data on you to determine whether you are a safe driver or whether you like to speed. As such, they charge all young drivers higher rates. But when you reach the age of 25, you typically have a complete driving record so that they can base your rates on your excellent driving record.
When you are looking to obtain an auto insurance policy, it is important to get quotes from a variety of different companies to effectively compare policies, regardless of what your age is. When you are looking to obtain a quote for a new auto insurance policy in the greater Fort Lauderdale, FL area, call Coastal Wealth Insurance, LLC and let us help you get started on an auto policy.