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Can You Update Your Car Insurance After Turning 25?

Yes, you can update your car insurance after turning 25 to get potential savings. Learn how age affects premiums and ways to lower your rate.

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You might think that when you turn 21, the big rights of passage are officially over. However, there are a few more milestones to look forward to. You might already know about restrictions-free car rentals after age 25 or falling off your parents' health insurance plan at age 26. But what you might not know is that car insurance for 25-year-olds is less expensive.

If you're wondering, "Can I update my car insurance after I turn 25?", the answer is yes. And it's a very good idea to do so.

Do Car Insurance Rates Drop After Turning 25?

Insurance companies very often lower average rates once you turn 25 because drivers become statistically safer after this age. With reduced risk of accidents and insurance claims, drivers become safer to insure. But you still need to remember to update your policy.

Expected Rate Reductions

Your potential rate reductions depend on a series of factors. First off, if you live in California, Massachusetts, or Hawaii, you may not see any rate reduction since these states prohibit insurance companies from considering age as a factor for insurance premiums.

In other states, your rate reductions will depend on your driving experience, a clean driving record, your credit score, your current auto insurance premiums, and your eligibility for any available discounts or bundles.

Differences By Gender

Historically, female drivers have paid more than male drivers for car insurance in most states, despite the fact that men are responsible for more accidents. However, recent numbers from Quadrant Information Services suggest men are actually paying slightly more than women. Ultimately, your driving record and credit score will be more important factors for determining a rate reduction. And if you're in California, Massachusetts, Hawaii, Florida, Michigan, North Carolina, Ohio, or Pennsylvania, insurance companies may not use gender to determine rates.

Why Your Rates Might Not Drop

You may not be eligible for lower auto insurance premiums because you may already have them. Certain states, as we've mentioned, prohibit using demographic data like age or gender to determine rates. Likewise, if you have a spotty driving record with multiple at-fault accidents or traffic violations, it's unlikely you'll get a rate reduction.

Consider Updating Your Car Insurance at 25

Your insurance provider isn't just going to hand you a rate reduction. That's not really how it works. So, does car insurance go down at 25? Yes, but you have to be proactive about it and make it happen.

Impact of Shopping Around

There are so many insurance companies on the market today. To get the best rates, it often comes down to simply shopping around. Every company weighs certain factors differently so it's important to get multiple quotes to understand who can offer you the best coverage for the best price. When you turn 25, it's possible you'll find better rates simply by aging up.

Thankfully, finding the best companies for insurance doesn't have to be difficult. Gone are the days of meeting with insurance agents or cold calling to get quotes. Today, you can do everything online.

Common Discounts

Once you're over 25, you're likely not eligible for discounts geared towards students or younger drivers. However, you are eligible for common discounts like those for maintaining a clean driving record or taking a defensive driving course. You can also save by bundling policies, like a homeowners or renter's insurance policy with your auto policy.

How Driving History Affects Premiums

Driving history is by far the most important factor in determining your insurance rates. Accidents and violations don't stay on your record forever, but depending on the company, they may be there for up to five years. If you've had multiple at-fault accidents or made several claims in recent years, you might be stuck with high premiums for a while longer. But if your bumpy driving history is back in your teen years, you can likely find a rate reduction after you turn 25.

Vehicle Type and Insurance Costs

Fancier vehicles tend to be more expensive to repair and replace, which means they're also more expensive to insure. Luxury and foreign vehicles usually carry higher premiums, as do electric vehicles since they have unique, expensive components.

How to Update Your Car Insurance for Maximum Savings

To get maximum savings when updating your car insurance, it's not enough to simply update. Here are a couple of tips to keep in mind.

Best Time to Update Your Policy

It's always good to assess your insurance policy based on needs and life changes. When you turn 25, you may be eligible for lower premiums. Some other good times to review your policy include:

  • Having a clean record for five years
  • After moving away from a busy city
  • Starting a work from home job that doesn't require commuting

Maximize Discounts and Coverage

Some of the best ways to save on car insurance is taking advantage of discount programs like defensive driving courses or bundling coverages. However, you can also save by making adjustments to your vehicle coverage amounts or raising your deductible.

Long-Term Savings From Regularly Updating Your Insurance

Regularly reviewing your insurance policy will help ensure you always have the best rates. Whether you've reached a major milestone by turning 25 or your driving habits have changed, use EverQuote's comparison tools to explore insurance companies and policies that make the most sense for you and your budget. There's no commitment; you'll just see exactly what you could be paying.

FAQs

Does insurance change when you turn 25?
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Auto insurance doesn't change when you turn 25, but you often do become eligible for reduced rates. This is because drivers aged 25 and older are statistically less likely to get into accidents or have traffic violations. You still have to pursue those rate reductions yourself.
Why is my insurance so high when I'm 25?
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If you're 25 and spending too much on auto insurance, you may be eligible for lower rates. Reach out to your insurance provider or use EverQuote's comparison tools to compare quotes.
At what age is car insurance most expensive?
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Car insurance tends to be most expensive for teen drivers and drivers over the age of 65. However, states like California, Massachusetts, and Hawaii prohibit companies from using age to determine rates.
Do I need to cancel my car insurance before switching?
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Yes, before you switch any car insurance policy, you should cancel the existing one first.