Every driver looks for ways to save money on car insurance. While you may qualify for certain discounts, there are other times in which your insurance rates may drop.
As a rule, younger drivers pay more for car insurance. This is because younger drivers are generally less experienced and more likely to be involved in accidents. Keep in mind that car insurance rates are based primarily on how high risk you are to file a claim. The more likely you are to file a claim and cost the insurance provide compensation, the more you may pay for car insurance. This does mean that your car insurance rates tend to go down as you grow older. You will likely see the most significant drop in your car insurance rates once you turn 25. Your rates may not go up for age-related reasons until you reach your 70s.
Accidents Dropping from Your Record
Accidents can make your car insurance rates jump by a significant amount depending on the severity of the accident. They also remain on your record for varying lengths of time. A basic accident can remain on your record between 3 to 5 years, for example, which means that your car insurance rates will also be affected during this time. Violations such as DUIs and DWIs may remain on your record for as long as 10 years depending on your location.
Since an accident makes your car insurance premiums rise, you can also see a drop in your insurance premiums once the accident leaves your record. For example, if you get in a wreck and it remains on your record for three years, you can see a drop in your rates at the end of those three years. Remember to avoid distractions on the road and drive carefully to prevent car accidents.
Taking Someone Off Your Policy
In many cases, having another person on your policy can raise your insurance rates, as your new premiums account for the risks presented by both you and the other driver. This is especially true if you have a teen driver on your policy. Teen drivers can cause your insurance rates to jump by a significant amount, which means that you can see a drop in your premiums when your teenager leaves your policy for their own. It can also apply if you have another adult on your policy that has a bad record or a low credit score.
Also Read: Why Has My Car Insurance Premium Increased?
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