When Does Auto Insurance Drop?
Posted by: info | May 12, 2007
Drivers across America feel the pain of high auto insurance rates. To some of these drivers it cost more for car insurance than a car payment. A driver under 21 insuring a sports car can pay $200-$1200 more per six month policy than a 40 year old driving the same exact make and model. How can this be, and at what age can drivers expect to see a significant drop in insurance rates?
Insurance companies have the data and stats to prove that younger drivers are more likely to be involved in accidents, get tickets and speed. Auto Insurance companies have very good reasons for charging higher rates for these drivers. However, sometimes auto insurance companies increase rates for reasons everyone can disagree with.
Some examples of higher rates not understood by the public could be, raising rates just because of bad credit, location of where you need insurance and marriage. Other people can’t understand why it is cheaper to be put on their parent’s policy. What difference does this make? Either way the parent or guardian will not be able to control their kids at all times.
Who is to say that the parent who has a child on their policy will be more involved or make their child more responsible? This doesn’t seem to make much sense. Maybe this is more of a loop hole than anything else. People all over would like to hear the insurance companies reasoning for this.
There is no exact age or time when your insurance rates will drop. So don’t wait until you turn 25 and expect to cut your bill in half, it won’t happen. Your rates will start decreasing gradually over time. You may see 5-15% discounts over every premium you receive until you reach 30 or so. So if you take a look at your policy when you are 24 and compare it again at 32, you will notice significant savings as long as you have a good driving record. We would love to hear what you may be able to add.
Tags: auto insurance, companies, policy, rates, drivers, discounts, significant savings, parent’s policy, good driving record
Posted in: Insurance, General |
2 Responses to “When Does Auto Insurance Drop?”
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May 12th, 2007 at
Drivers get lower rates when on their parents policy because of financial reasons. Insurance companies carry a lower risk of non payment and have established credit.
May 12th, 2007 at
What financial reasons are you talking about? Insurance will pay for all damages except for the deductible. They will not pay for damage beyond the coverage amount a driver carries, but this does not have an impact on an insurance company. They may look at credit or payment history, but this couldn’t be that much of a difference.