Throughout the life of your policy, your auto insurance premiums may feel like a moving target because they are subject to change due to a number of factors. Many drivers are curious as to whether their car insurance will go down or not. The cost of your car insurance typically goes down depending on your age and driving records. Most insurance companies consider the driving habits of policyholders, as well as their age, to determine whether to raise the cost of coverage or not.
If there are no issues on your driving record, you can qualify for lower premiums from your insurer. On the other hand, as a good driver, you can get the best auto insurance offer just by shopping around and comparing quotes from multiple insurance companies.
Notwithstanding, it is essential to have an understanding of situations and factors that can make your car insurance go down. In this article, we have helped to curate comprehensive information on everything you need to know about car insurance and factors that affect its cost.
When Does Car Insurance Go Down?
From the introductory paragraph, we have established that several factors can lower the cost of car insurance. One of the most influencing factors that determines the cost of car insurance is the age of the individual.
Teen drivers are often charged a higher premium because of their likelihood to engage in risky behaviors and get into accidents. On the other hand, older drivers are considered less risky to insure; hence, they enjoy lower premiums. Nevertheless, your car insurance can go down if
• You’re a good driver
One of the easiest ways to qualify for lower premiums from your insurance company is by having a good driving record. Those with good driving records are given more preference than those with bad driving records.
If you don’t have previous offenses or convictions on your record, there is a great chance that your car insurance will go down as time goes by. Once your insurer notices that you have been a good driver for a couple of years with fewer claims made, you will notice a reduction in the cost of your auto insurance.
However, unlocking lower premiums as a good driver largely depends on the state in which you reside. Your state and your insurer determine the number of years you must have on your driving record to be considered for lower premiums. It is essential to have an understanding of the law that guides auto insurance in your state, just to be on the safe side.
• You switch insurance companies
Another wise way to lower your auto insurance premium is by exploring options from other insurance companies. You can potentially decrease the cost of your insurance if you switch from one company to another.
Irrespective of your driving history or individual circumstance, you can get the best offer just by shopping around, comparing quotes and coverage options from multiple insurance companies. There are several insurance companies that offer discounts for drivers; you can take advantage of those discounts to lower the cost of coverage.
You may qualify for a new driver discount, a new car, a safe driver discount, a good student discount, and even a defense driving course discount. The discounts available in auto insurance are not limited to these alone. While doing research on insurance companies to switch to, inquire for discounts that you may qualify for as well. By doing this, your insurance premium will decrease in time.
You’re growing older
The older you get, the more your car insurance will go down. As you slowly journey into your 30s, be rest assured that the cost of your car insurance will reduce. This is because insurance companies use driving experience to set premiums, and old people tend to have more experience than younger ones. In essence, as you age, you get more driving experience, and so, because of that, the cost of your car insurance will go down due to less perceived risk.
Typically, young drivers are more expensive to insure than older ones because they have a high tendency of violating traffic laws and getting into accidents. So, automatically, younger drivers pay more for coverage than older ones. But the good side is, once you grow older, your car insurance premium is likely to go down.
Apart from being growing older, being a good driver, and switching insurance companies, there are other reasons that can potentially lower the cost of your car insurance. For instance, changes in individual situations affect how high or low insurance premiums will be. If you add a teen driver to your auto insurance policy, as soon as they begin to grow older, be rest assured that your premiums will also go down.
In addition, there are certain insurance companies that offer loyalty discounts for policyholders who have worked with them for a very long time. This type of discount usually takes a few years before it can be utilized. So, you may have to wait for a specific period of time before you can take advantage of the loyalty discount.
FAQs
Does car insurance ever go down?
Most definitely! One of the promising factors for a lower car insurance premium is the age of the policyholder. As you grow older, your car insurance also decreases. Beyond the age factor, if you have a good driving history or you explore other options by switching insurance companies, your insurance will also go down.
At what age is car insurance cheap?
If you are within the age bracket of 35 and 55, you can get the most affordable and competitive car insurance policies. If you also have a reliable driving habit, you can access lower insurance rates from several companies.
Will my car insurance go down when I turn 25?
Fortunately, if you are age 25 or soon-to-be, your car insurance has a great chance of going down. This is because insurance companies no longer consider you risky to insure.
