2007-07-17 08:13:40 · 6 answers · asked by Richard L 2 in Business & Finance ➔ Insurance
Drivers under 25 are more likley to be in an accident, get a DUI, and/or drive recklessly.
By 25, the driver should have a fair amount of driving experience.
Driver's 25 and over are more likely to have a stable job, need more lines of insurance (homeowner's, life, etc.), they are more likely to have a family (driver's with families are typically safer) and are less likely to let their insurance lapse.
Driver's 25 and over are a much safer risk for insurance companies, so their premium is lower.
2007-07-17 08:23:45 · answer #1 · answered by Nate W 5 · 2⤊ 1⤋
Well, it depends on where you live. Some states say, after you've had your LICENSE for seven full years. It's not ALWAYS about age, but DRIVING EXPERIENCE.
And the reason why, is because statistics graph ages and claims, and show, among other things, that the over 70 crowd has more accidents per mile driven, but drive WAY fewer miles than any other group . . .the under 22 males have the highest pure claim incidents.
It's all about odds and numbers. And you have to have a cutoff SOMEWHERE, or people would want 22 years 3 months 4 days. So at some point in the game, you have to draw a line in the sand. That's where the line is for some companies/states.
2007-07-17 09:57:05 · answer #2 · answered by Anonymous 7 · 0⤊ 0⤋
Good question.
Statistics that the Insurance companies compile says that you're much less likely to have an auto accident once you've turned 25.
Should those statistics ever change, I'm sure that the premiums will be adjusted.
Insurance is nothing but a numbers game, and the insurance company is the bookie.
2007-07-17 08:16:51 · answer #3 · answered by Scotty Doesnt Know 7 · 0⤊ 1⤋
Every state is different. They figure the older you get, the more mature you are. Here in Ohio the biggest price drop is at 19, then it changes again at 21, 25, 30. It starts going back up in your 70's, just like you were a kid again.
2007-07-17 08:33:08 · answer #4 · answered by janice d 3 · 0⤊ 0⤋
I'm a 20 year old female in Nebraska, and I was surprised to see that my car insurance went down after I turned 20. It was very little, but it did indeed go down about $10 a month.
2007-07-17 16:51:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Because we are considered risky drivers before we hit 25. At least that is what the stats say!
2007-07-17 12:33:03 · answer #6 · answered by Cali Girl 3 · 0⤊ 0⤋