Do Car Insurance Premiums Drop at 25?

Most young drivers have probably heard about the price drop on car insurance that’s supposed to happen when you turn 25. This is not always the case. In most circumstances, if your insurance premiums do start to drop as you get older, there are other factors at play.

Experience Matters More than Age

The earliest age you can get your full driver’s license in Canada is 16. As you get older, you gain more experience, which helps decrease the rate you pay. At age 25, you’d have around 9 years of experience—it would make sense that considering this, you could see a decrease in your insurance premium. If you got your license at 24, however, you probably won’t see as substantial a decrease at your next birthday as someone who has more experience from a younger age.

Age matters in that the older you get, the more driving experience you have. Keep in mind just because you turn 25, though, doesn’t mean you’ll automatically pay less for your insurance without considering anything else.

Related: Young Drivers & Car Insurance

How Your Driving History Affects Your Car Insurance

Another key factor to consider in addition to your age is your driving record. Statistics show that young drivers under 25 are more likely to get into an accident, but there’s no data to suggest that at 25, people suddenly become safer drivers.

Each year a young driver gains experience and doesn’t get into an accident, is an instance in which they could see their premium go down.  You’ll generally see your rates drop if you maintain a clean driving record as you grow older, and some insurers have loyalty discounts the longer you’re insured with them.

Unfortunately, there is no hard and fast rule that dictates an automatic discount on your auto insurance once you turn 25. Because there are several considerations that go into what each individual pays, it’s a tough myth to bust. Stay in contact with your broker over time to ensure you’re taking advantage of any other discounts you can get along the way, too!

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