Just Turned 25? Time to Look for a New Auto Insurance Policy

Insurance companies use various criteria to determine your car insurance rates. The age of the policy holder is one of the most important factors they consider. Since drivers over the age of 25 are less likely to have a car accident than teenagers and younger people, they get the best rates on auto insurance. If you just turned 25, then you should start searching for a new car insurance policy and take advantage of the cheaper rates right away.

Age and Other Rating Factors

Before you buy auto insurance, do proper research and try to understand how things work. First of all, you should know that insurance companies measure risk. The costs you will pay depend on a number of factors such as your age, gender, driving record, marital status, location and credit score. The type of vehicle you drive, as well as its year of manufacturing and the miles driven each year may influence your premiums too. Other factors include the driver’s experience, school grades, education, criminal record, claims history and occupation.

A Good Driving History Isn't Enough

Even with a good driving history, individuals who are under 25 pay more on car insurance. The good news is that there are many ways to lower your premiums and obtain substantial discounts. Getting multiple cars covered, taking defensive driving classes or keeping your vehicle in a secured area a night can help you save hundreds of dollars on auto insurance.

Know How Much Coverage You Need

One of the best ways to reduce costs is to buy the right amount of coverage. Although many states have minimum car insurance requirements, you should consider buying a more comprehensive policy. If you only purchase the minimum amount of coverage required, you might end up paying thousands of dollars from your pocket in the event of a car accident. Since auto insurance rates go down dramatically when drivers turn 25, you can afford paying more on a policy that offers great coverage.

Take Time to Compare

Saving money on auto insurance is easy for those who take the time to compare at least five quotes from different carriers. Whether you go online to search for car insurance quotes or you contact a few companies, be sure to get as many offers as possible. Look at the company's ratings, check its reputation and read unbiased customer reviews. When you compare quotes, consider both the price and the amount of coverage included in the policy you are interested in.

Other Insurance Tips

Increasingly, insurance company are offering discounts for adding safety features, approved alarms and other security devices on your vehicle. If you have both your home and your car insured with the same company, you will get even more discounts. For further savings, ask your insurance provider about low-mileage discounts and good driver discounts. Consider raising your deductible in order to make savings over the long run. Try to maintain a good credit score, join a professional group and insure more than one vehicle with the same car insurance provider.

- By Jessica Bosari

Jessica Bosari writes for CarInsuranceQuotesComparison.com. The site empowers consumers by offering practice insurance tips and advice so they can compare auto insurance and get the best rate every time.