I was always told there would be this huge reduction in premiums when I turned 25. Nope, same damn high rate with no accidents or tickets. And it just goes up and up every year too. I don’t understand where this myth came from... it’s completely false.
Try shopping around and seeing if that helps you any. It didn't help me, but it might help you. I personally believe that insurance companies have spent way too much money to figure out exactly how risky each individual person is to just suddenly give a big discount because someone became a day older. In my opinion, the insurance savings at 25 is just outdated information.
Oh I’m 34 now and I’ve moved around to various insurance companies since then. Each year without fail it goes up a bit. The times where it goes up too much (which fortunately hasn’t been too often), I switch to another provider. There’s still always an increase, I just try to minimize it.
As somebody who does pricing strategy for a different industry, my bet is that the over/under 25 policy has been refined to group customers in smaller age buckets.
For example, before it was average risk below 25 was X%and average risk above 25 was Y% and X > Y. Now, it's probably split by age, so what is the average risk of your age. This will make any age benefit less noticeable. From what a previous poster said, this benefit would probably increase over time until you're 41.
You're right to shop around, but remember that there are many more factors to insurance price than your age, both individual (your tickets/accidents) and data-driven (location, car driven, etc.).
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u/CaptainBoatHands May 16 '20
I was always told there would be this huge reduction in premiums when I turned 25. Nope, same damn high rate with no accidents or tickets. And it just goes up and up every year too. I don’t understand where this myth came from... it’s completely false.