Reader’s Question:

Im turning 25 next month. Is it true that I can get discount at the age of 25?

Bill

Houston, TX

I do not know any discounts that are given to policyholders when they turn 25 however your car insurance rate may be assessed in a different driver class now. Automobile insurance carriers partly base their auto insurance rates on driver classes. Age, sex driving record and claims history are some of the factors that are being considered when calculating your car insurance rates. The car insurance rates and the rating system vary from one insurance provider to another; but, rates tend to lower when one turns 25 years old. If you have several traffic violations and accident history, I do not think your rates will get lower.

Typically car insurance premiums are not adjusted mid-term because of changes in the car insurance policy. For instance, if you are a new driver and this is your first time to get a car insurance policy then you will be rated as such. Then, mid-policy you get a traffic violation, your car insurance rates aren’t re-calculated. Also, when your age changes mid-policy your car insurance rates typically will not be changed until you renew your car insurance policy.