Age Ain't Nothing But A Number

Most younger drivers ask me if turning 25 makes a big difference if their car insurance rates. The quick answer is yes, but not as much as you may think. Just like driving a red car has nothing to do with your rate anymore, this is one of those things that used to make a big difference, but doesn’t really matter that much anymore.


Car insurance companies today use a dynamic rating system that compares all the variables of a risk to determine an appropriate rate. There are thousands of available price points depending on how each of your individual characteristics interacts with each other.

When it comes to age, most insurance companies will gradually lower your rate each year you get older. Because the rate changes are gradual, most drivers don’t see a noticeable difference between 24 and 25.

Another reason I advise younger drivers to not get to excited about age is because from the time you’re 16 to the time you’re 25, many things change about you that may negate any rate difference based on age. Some of those common things are, driving history, getting a new vehicle, wanting more coverage, changing from a family policy to your own, even where you live will make a difference.

Here’s a useful tip. If you pay for your insurance monthly, it’s a good idea to shop around for new insurance 30 days prior to your birthday. Most companies will give you credit for being a year older 30 days in advance. And, since most policies don’t renew on your birthday, shopping around will help you get a lower rate prior to your renwal, as well as set up a policy more inline with your birthday to help you get the most accurate rate with each renewal.

Even though your age will make a slight difference in your rate, the two most important things you can do to help keep your rates low is drive safely and maintain insurance continuously. One speeding ticket or a small lapse in insurance can increase your rate 20-40% percent.
If you’re looking for tips on how to save or would like a quote be sure to contact me.