Newly licensed drivers and drivers who have a few years of experience are generally required to pay high insurance premiums because they are classified as high risks. If you are currently under the age of 25 and you are tired of paying high-risk auto insurance rates simply because of your age and driving experience, you may be wondering when you will be granted some relief. Fortunately, there are rating bands and even some discounts that can lower your premium before or after you turn 25. Read on, and find out when you should expect your rates to go down.
Believe it or not, insurance companies use dozens of different rating factors to calculate your personalized rate. The most influential rating factor that is used is not age, but rather driving experience. More and more companies are shifting their focus from age to years licensed when it comes to pricing policies. The reason for this switch, aside from the fact that some states have made age-based rates illegal, is because not everyone is licensed at the same age.
When you are rated based on driving experience, it is common for the insurer to give you a break in your rates after 3 years and then again after 5. The biggest rate drop is after you have been licensed for 9 years, which is why many drivers experience their best rates at the age of 25. If you were licensed later, you may receive your break later.
So what can you do to enjoy cheap automobile insurance in San Diego if you’re not even close to your 9 year experience marker? If you maintain a clean driving record, you may also qualify for discounts off of your premiums. Good Driver and Safe Driver discounts are generally applied after 3 years of safe driving. You will only receive these discounts if you are accident and ticket-free.
As you can see, rates have the potential to decrease at 25. As you gain more experience behind the wheel you should notice your rates go down. The decline could be gradual, or you may notice a large drop at your renewal around your 25th birthday if you were licensed at 16. Price shop and keep this in mind or contact American Tri-Star at 1-866-475-1101 to speak to an expert agent. Whether you are looking for affordable auto insurance, motorcycle insurance or even home or business insurance in San Diego, we can help you build the customized policy to meet your individual needs.