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When do car insurance rates start to go down?

If you are paying what seems to be an excessively high car insurance rate, you can rest assured that in most cases it’s not a permanent situation. Your rates will eventually begin to come down once you meet certain criteria. How quickly that occurs depends on the reasons why your current premiums are so high.

As we go through these things, don’t forget that your car insurance premiums are linked to your driving habits and the type of vehicle you own. The more careless you are as a driver, the more money you will pay for insurance. Likewise, the more expensive your vehicle is, the more your car insurance company will charge.

So while there are things affecting your insurance premiums that you can’t control, there are other things you can. Controlling those things as best you can will bring your insurance rates down more quickly.

When will my 18-year-old son see a reduction in his rates?

According to statistics from the National Highway Transportation Safety Board, male drivers between the ages of 16 and 25 are responsible for the majority of crashes on American roads. The reason for this is quite likely the fact that young males tend to be greater risk takers than anyone else in our society. Their willingness to take greater risks also means they are more likely to drive in ways that will cause accidents. For this reason, this demographic pays among the highest insurance costs of all drivers.

If your 18-year-old son decides to go off to college and maintains good grades while he’s there, he’ll probably see some reduction in his car insurance rates. It won’t be a lot of money, but every little bit helps. If he should get married, he will also see a further reduction. Both of these factors bring car insurance rates down because they are an indication to your car insurance company that your son is acting in ways that are more responsible.

At the very least, your son will notice a dramatic reduction in his rates once he turns 25. At that age, he is considered to be significantly less of a risk than his younger peers are. Provided he maintains a clean driving record, that rate will remain relatively unchanged (except for the normal cost increases from inflation) until he reaches his early 30s. Between the ages of 35 and 55, he will enjoy probably the lowest rates of his lifetime. That age is considered the safest for all drivers.

What if my rates are high because of several speeding tickets?

Anyone who has had speeding tickets knows they are a killer when it comes to insurance rates. That stands to reason when you consider the fact that excessive speed is a contributor to a large number of car crashes. Car insurance companies do not like to see speeding

tickets because it means more risk for them. Therefore, if you have multiple tickets, you can expect to see your car insurance rates go up significantly. They will come back down if you make the effort to clean up your act.

How long it takes depends on the laws in your state and the way your car insurance company deals with tickets. Beginning with the former, state laws vary in terms of how long a speeding ticket remains on your driving record. On average, tickets will disappear from your record within three to five years. If the ticket was issued in conjunction with a more serious violation, such as DWI/DUI, it could remain on your record for as long as seven to ten years.

Where car insurance companies are concerned, each one tracks violations in a different way. Some allow speeding tickets to disappear after a year, provided you do not get any tickets or file accident claims. Others will hold onto the tickets for as long as your state keeps them on your record. Either way, your premiums will not begin to come down again until all of those tickets disappear from both state and insurance company records.

Can I reduce my rates by dropping collision coverage?

Collision and comprehensive insurance certainly add to the total premiums we pay. If you have an outstanding loan on your vehicle, you should carry both types of coverage. In fact, if you read the fine print of your loan agreement, you are probably required by your insurance company to carry both collision and comprehensive. But once your loan is paid off, that’s no longer required. You could drop both coverage and see a significant reduction in your premiums.

Whether you should do this depends on the value of your car and your own financial resources. If your car is valued at only $7,000-$8000 once your loan is paid off, it may not be worth it to continue the extra coverage because the car will continue to depreciate over the next couple of years. This is especially true if you have the financial resources to replace it. However, if you’re driving more expensive vehicle with a higher street value, you may want to continue collision and comprehensive until the car’s value comes down.

Is there anything else I can do to bring the cost of my insurance down?

There are many other things you can do to insure you’re paying the lowest insurance possible. For example, make the primary driver of your most expensive car the one individual in your household who is cheapest to insure. You should also ask your car insurance company about any discounts that apply to you, including safe driver discounts. Most drivers spend time also comparing car insurance companies due to the drastic differences in premiums between providers. Whether its a new policy or renewal of an existing policy you should always try to compare multiple quotes at least once a year to see how your current premiums reflect market rates.

Category: Insurance

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