Does Car Insurance Cost Go Down As You Get Older?

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We all have a large stack of bills we have to pay each month. From rent or a mortgage to home and car insurance, there is no shortage of bills! So when there is a chance for your monthly insurance premiums to go down, that can be quite excited.

One of the ways you can reduce your monthly premium for car insurance is through time. Yes, time. As part of many companies like Geico, Progressive and The General you will actually see a reduction in your monthly premium when you hit 25.

Why would car insurance companies do this?

It’s simple. They think you are more responsible once you are over 25. Their advanced algorithms which contains hundreds of thousands if not millions of records, tell them drivers over the age of 25 are less likely to be in an accident. It also is a time in your life when you begin managing your finances more responsibly, so there may be an itch on your end to shop around for insurance. If insurers are proactive in providing you with a reduction, they may be able to prevent you from shopping around.

So the answer is yes. Car insurance does go down after you are 25. So rejoice, just because you are getting older, doesn’t mean it is all bad!