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When Do Car Insurance Rates Go Down?

Auto insurance rates can be understandably high for young drivers for reasons that stem primarily from inexperience. If you’re a young driver, you might be wondering: What age does my car insurance go down? Unfortunately, there’s no magic number for when your car insurance rate drops. It depends on various factors that insurance companies look at when determining your insurance rate. Let’s examine what factors can affect your policy’s price, and what actions you should take to reduce your car insurance rate.

What Factors Can Affect a Policy’s Price?

Insurance companies generally look at the financial risk you present before establishing your car insurance rate. According to the Insurance Information Institute, insurers commonly examine these factors:

  • Driving record — The cleaner your driving record, the lower your premium will be. If you’ve had multiple accidents or traffic violations, insurers will likely raise your premium since they’re taking on a bigger risk.
  • Driving frequency — The more you drive, the more likely you will get into an accident or get a ticket. Therefore, you’ll most likely pay more for your premium.
  • Location — Urban dwellers pay more for car insurance than rural drivers due to the higher risk for theft, vandalism, and accidents. Your car’s parked location — on the street or in a secure garage — can impact your insurance rate, too.
  • Car typeThe car you drive can affect your premium. Sports cars, for example, tend to cost more to insure because they’re built for speed, which increases the likelihood of an accident.
  • Age — Teenagers are generally a liability behind the wheel. Therefore, you might pay more for insurance if you are a teen driver or have a teenager operating your vehicle.

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How Can You Reduce Your Car Insurance Rate?

Here are some ways you can lower your car insurance rate:

  • Be a good driver — An accident or traffic violation will cause your rate to go up, so be a good driver behind the wheel. This means you should obey traffic laws and avoid eating, texting, and other distracting activities while driving. Mercury rewards you for being a good driver. If you go a specific period of time without getting into an accident or receiving a ticket, you might be eligible for a discount.
  • Download MercuryGO — Speaking of being a good driver, you should download MercuryGO. It’s a safe-driving app that offers real-time feedback to help improve your driving. You’ll save 5% right off the bat, and if you add a licensed teen driver to your policy, you can save up to 10%.
  • Seek discounts — Mercury offers a wide array of discounts to help you save on car insurance. We reward you for adding anti-theft car features, bundling home and auto policies, signing up for autopay, and more.

Car insurance rates can change over time due to a variety of factors. Knowing what causes your premiums to rise or fall can help you save on insurance rates in the future. Mercury provides quality coverage at an affordable price. Contact us today for a fast, free quote.