Yahoo Autos What Is Insurance for First Time Drivers Over 25?
What Is Insurance for First-Time Drivers Over 25?
Insurance for first-time drivers over 25 is a policy that covers drivers who are over the age of 25 years but have not previously had an insurance policy. Teen drivers traditionally pay the highest rates because they are less experienced drivers. They are higher risk than more experienced drivers and more likely to file a claim. Usually, insurance rates decrease when a driver reaches 25 years.
If you are a new driver, however, even if you are 25 years or older, you might be subject to higher rates. This is because as a new driver, you don't have the experience that a traditional 25-year-old has, which is what qualifies them for the insurance discount. You will likely experience rates similar to a 16-year-old driver.
Fortunately, according to Car Insurance Companies, you might receive discounts faster than a teenager. You might notice a decrease in rates within three years of driving experience. You might need to wait up to eight years to see a significant decrease, however. You should notice a significant decrease by the time you reach age 30, and insurance rates will continue to decrease in your 40s and 50s.
If you receive numerous traffic violations or at-fault accidents during this time, your insurance rates are unlikely to decrease, regardless of your age.
Where to Get the Best Insurance for New Drivers Over 25
If you are a new driver over the age of 25, you might find the best rates with the following providers:
USAA: Average six-month rate of $605
GEICO: Average six-month rate of $680
State Farm: Average six-month rate of $726
Progressive: Average six-month rate of $885
Liberty Mutual: Average six-month rate of $888
Farmers: Average six-month rate of $919
Reevaluate your coverage and rates after you have more driving experience. Once you are no longer considered a first-time driver, you will likely be able to qualify for better rates. Before renewing with your current provider, compare prices between different providers. If you maintained a good driving history during this time, you might also qualify for safe driver discounts.
Other Factors That Affect Insurance Rates
Being a new driver is not the only factor insurance providers consider when calculating rates. According to WalletHub, gender also makes a difference, especially as a first-time driver. Twenty-three-year-old male drivers can expect to pay, on average, 6.7 percent more than females of the same age. This amount decreases with age, with 24-year-old males paying, on average, 6 percent more than females of the same age. By age 25, the differences decrease to 2.5 percent.
Some states, however, prohibit insurance companies from charging different rates based on gender. These states include California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania.
Other factors companies consider when calculating your rates include:
Credit score
Driving record
The vehicle you drive
The number of miles you drive
The number of claims you have filed, though as a new driver, you will likely not have a history of claims
Your marital status might also affect your rates. Insurance companies usually consider married drivers to be more responsible and, thus, lower risk.
How to Find the Best Insurance Rates as a First-Time Driver
Fortunately, you can save on your insurance rates even if you are a first-time driver over the age of 25:
Avoid filing insurance claims: Some factors, such as filing a lot of claims in addition to your lack of experience, can lead to high rates. Before filing a claim, consider how much repairs will cost versus the increase in rates.
Reduce your insurance coverage: Always evaluate your coverage to make sure you don't have more than you need. Car Insurance Companies states that if your vehicle is older than 10 years or worth less than $4000, you might not need collision coverage. Just make sure you have the minimum amount required by your state and lender.
Bundle policies: If you carry other types of insurance, such as homeowner's or renter's, you might receive a discount for bundling your policies.
Routinely check for discounts: Qualifying for discounts can make your insurance premium more affordable. The many discounts available include safe driving, multi-vehicle, multi-policy, and good student.
Sign up for a telematics program: Some insurance providers have telematics programs. They install a device in your vehicle that measures your driving habits to prove you're a safe driver.
Shop around: Comparing quotes is the best way to find the most affordable rates as a first-time driver of any age.
The vehicle you drive will also affect your rates. If the vehicle is equipped with certain safety or anti-theft devices, you might receive an insurance discount. What discounts are available and who qualifies for them varies from provider to provider. For example, some insurance providers might require you to be under the age of 25 to qualify for a good student discount.
Your credit score also makes a difference. Many drivers notice a decrease in rates by age 25 because of an increase in credit score. Even if you are new to driving, you can maintain a good credit score to reduce your insurance rates.
Other discounts, such as bundling your policies, are usually available to all drivers. A green discount can save you a few dollars if you choose to receive your policy statements and invoices exclusively through email. You might also save money by paying your policy up-front. According to Insurance Panda, this could result in savings of as much as 5 percent.
If you're a new driver over the age of 25, you can expect to pay higher rates. But by comparing prices and taking advantage of discounts, you can find an affordable policy. Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
https://www.carinsurancecompanies.net/auto-insurance-for-new-drivers-over-25/
https://wallethub.com/answers/ci/insurance-for-first-time-drivers-over-25-2140722505/
https://www.insurancepanda.com/11840/getting-insurance-for-first-time-drivers-over-25/
https://www.caranddriver.com/car-insurance/a35877033/cheapest-car-insurance-for-16-year-old/
https://www.caranddriver.com/car-insurance/a35877083/cheap-insurance-for-truck/
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