The document discusses why car insurance rates typically decrease when a driver turns 25 years old. There are several key reasons for this. Firstly, by age 25 drivers usually have 8-9 years of experience with no accidents or violations, showing insurance companies they are a safe driver. Secondly, many people get married and start families by 25, further reducing risky behavior. Thirdly, older drivers are less likely to file claims, which is a major factor in determining insurance rates. Overall, turning 25 marks a point where statistics show drivers present lower risks for insurance companies.

1. I remember when I was just started driving.

2. I was just a teenager who loved having the
ability to drive somewhere instead of being
forced to walk or find a ride.

3. My parents though were not as happy as I
was when it came to me driving though.

4. The reason for this is that I was a teenager at
the time, and insurance is usually quite high
for teenagers.

5. My parents would always tell me that when I
turn 25 my insurance costs should go down.

6. I never really thought of it too much at the
time.

7. The reason for this is that my parents were
paying for my insurance, so it wasn’t
something that I needed to worry too much
about.

8. However, as a college student, and someone
who pays their own bills now the thought of
having cheaper insurance premiums does
seem nice.

9. Don’t get me wrong my premiums have gone
down some, but I can’t wait for the day
when I turn 25, so that my rates will get even
cheaper.

10. I now want to explain to everyone as to why
your insurance rates should go down by the
time you turn 25.

11. The first reason why a good portion of people’s
car insurance premiums decrease by the time that
they are 25 is that they usually have eight to nine
years worth of driving experience, and if this
experience doesn’t include any wrecks or moving
violations then there is a clear pattern that you
are a safe driver.

12. When insurance companies see this pattern
they recognize the fact that they don’t need
to charge you’re a higher premium in order
to cover the cost of insuring you.

13. An additional reason why insurance rates
tend to go down for people who are 25 is
that this is the average age when people
start to consider getting married and having
families.

14. A married individual is less likely to make
impulsive decisions that could put them or
their family in harm’s way.

15. This is another indicator to insurance
companies to charge a lower premium.

16. The third reason why insurance premiums
decrease when you turn 25 is that you are
less likely to file a claim.

17. In the state of Texas when a policy holder
files a claim the insurance company must
report it.

18. This means that even if your insurance
company doesn’t pay anything out for the
claim it stays on your record.

19. One of the most crucial factors from which
insurance companies determine premiums is
the number of claims.

20. Another reason why someone at least 25
may choose to not file a claim is that it is just
cheaper to pay for the repair than the
insurance premium.

21. This keep a claim from being filed which
decreases the chances of having a higher
insurance premium.

22. In conclusion, drivers should now have a
better understanding of why auto insurance
premiums are lower for people driving who
are at least 25 years old.