Car Insurance - Turning 25

Ok I don't mean to make any of you feel old, I apologize in advance if I inadvertently do that.

Question: Does your insurance premium go down automatically or just when you get a new policy? I purchased a new policy about a month ago (12 month policy, but I pay month to month) and my 25th birthday is in a week. I am hoping that I didn't buy it at the exact wrong time (will have to wait 11 months for that supposedly "special" 25 to make a difference).

In the end there's nothing I can do about it, just would like to know.

You can always cancel and buy a new one if that is indeed the case.

Quote: bigfoot66

You can always cancel and buy a new one if that is indeed the case.

Thank you very, very much. If there isn't a consensus here I might just have to call them. Probably should have just done that to begin with, but this is easier.

Wow This is great news. I will be 25 in November.

I'm not that far removed from 25, and as I recall, the change did not take effect until my next Notice of Premium. I get a Notice of Premium every six months, and this one happened to come two months after my 25th birthday, my Premium was decreased and they gave me a credit off of that six months for the two months that I was already 25.

I would just call and ask them rather than switching, especially if you're satisfied with them anyway and have been a client for awhile. I have checked around on rates a couple of times in the past, but for all of the deductions you get for being a long-time customer, it's tough for anyone else to beat the rate with the same coverage. If you get a better rate, it's usually just smoke and mirrors blinding you to worse coverage and benefits.

I was with Geico when I turned 25, and my first policy renewal after my birthday showed essentially no change. I called them and asked "WTF?" They essentially replied with "that's not always true, lol sorry." I bitched and moaned but it didn't matter. I switched to Progressive and got a marginally lower rate for similar coverage, but for me the 25 year thing seemed to be a myth. Maybe my premiums were already pretty low.

I hope you have better luck!

It sounds like you need to, "Get to a better State."

Ok thanks, yeah I'll just have to give my agent a call. I had heard that the change wasn't that much, but I certainly hope it isn't nothing. I have a pretty high premium (significant coverage) plus the mother fucking piece of shit personal property tax. For those of you have no idea what a personal property tax is, it's essentially a tax on certain personal property. In Alexandria, VA it's 4.75% of the bluebook value of your car every year.

Cartax

We have no such tax on vehicles in Ohio, though there was one when I lived in West Virginia, but they have a tax on basically everything. I lived in Missouri, but cannot speak for it in that regard. I bought a new car when I lived in Kansas City and paid the sales tax on it, but I was there (with that car) for less than a year.

Just as some health insurance companies review premiums based upon your recent health some insurers take your recent driving history into account and your age at time of policy issuance. Many insurers who have already insured you at a high rate will automatically send a renewal notice at a high rate in the hope that you will simply pay it rather than shop for an alternative quotation even if they know that you now qualify for a lower rate if you were to apply for a new policy.

Most rates are determined by zip code of vehicle garaging and zip code of vehicle accidents with all uninsured, unidentified motorist claims attributed to your zip code of residence.

Shop around. And remember to renew policies promptly. A one day late payment of a renewal can result in denial of coverage particularly if you happen to have an accident during that time period.

Quote: FleaStiff

Just as some health insurance companies review premiums based upon your recent health some insurers take your recent driving history into account and your age at time of policy issuance. Many insurers who have already insured you at a high rate will automatically send a renewal notice at a high rate in the hope that you will simply pay it rather than shop for an alternative quotation even if they know that you now qualify for a lower rate if you were to apply for a new policy.

Most rates are determined by zip code of vehicle garaging and zip code of vehicle accidents with all uninsured, unidentified motorist claims attributed to your zip code of residence.

Shop around. And remember to renew policies promptly. A one day late payment of a renewal can result in denial of coverage particularly if you happen to have an accident during that time period.

Insurance companies also run credit checks on policy holders. Good credit can lower premiums in some cases.