Car insurance gets cheaper at twenty-five. When a person reaches the age of twenty-five, the quotes for motor vehicle insurance fall overnight. Quite literally. Many insurance companies have motor vehicle accident and roadway usage statistics that tell them, very clearly, that people under the age of twenty-five are more likely to get into accidents, and more likely to get into more serious accidents than just about any other group of consumers. As a result, they reserve the highest premium rates for teenage automobile insurance policies.
Once a person arrives at the twenty-fifth birthday, however, this all changes, and that person is offered new rates and access to many previously unattainable deductions and services. That person can now, among other things, rent a car from any of the major rental agencies with none of the previous restrictions.
Whether the individual motorist is above or below the age of twenty-five, certain basic kids of insurance coverage are required before that person can drive a vehicle on a public roadway. Every motorist is required to have insurance coverage in case he or she causes an accident that injures another person. The minimum limits vary from state to state, and different states require it under varying bodies of statutes, but protection for other people who might injured is pretty much standard across the country.
In addition to bodily injury coverage, newly mature drivers will maintain whatever other kinds of coverage is required in the state in which they live, and will pay less for it now. At this point, they might well be able to afford other types of insurance that they would have but were previously unable to for budgetary reasons.
Among the coverage they would do well to consider would be collision. This would cover them for any damage to their vehicles regardless of whether they were at fault. They might also want to maintain the highest deductible they could afford to reduce. That way the premium payment will be further reduced, and the risk of experiencing a hike in their insurance rates after a small accident is reduced. If the deductible covers the cost of smaller repairs, the insurance company will not be required to disburse money to fill a claim. Filing a claim, however small, always increases the chances that insurance rates will rise.
Loan companies and other entities that finance the purchase of cars always require collision coverage. It is a hedge against the possibility that the car could be totaled in an accident and the owner will be left unable to repay the loan. They always require this in conjunction with comprehensive coverage. With a comprehensive vehicle insurance policy, any damage or loss as a result of fire, theft, vandalism and so on is covered. Again, the size of the deductible is a matter for serious consideration, and the customer should perhaps opt for the highest deductible affordable, so as to reduce the premium payments but also to protect a little against a higher premium. Moreover, motor vehicle financing agencies will require this for the life of the loan.
At twenty-five, many drivers will not be thinking with any anxiety at all about the likelihood of a protracted illness or injury. Usually, too, the probability of an accident involving them is not seriously considered. However, these do occur, and could produce a situation that could trouble the young person for a very long time. It is important, therefore, that the 25 year old driver employ the newfound attractiveness to negotiate a policy that is financially appropriate, but that also provides a wide enough range of coverage.