“Why Your Auto Insurance May Still Be Expensive at 25 and How to Lower It”

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Does Auto Insurance Go Down at 25?

Auto insurance premiums tend to be higher for drivers under 25. However, age is just one of many factors that insurance companies consider when calculating your rate. There’s no guarantee that you’ll see a reduction in your premium on your 25th birthday. Here’s what you need to know.

Why Your Auto Insurance May Still Be Expensive at 25

While turning 25 can lead to lower premiums, several factors can still keep your rates high:

• Marital Status: Married policyholders often pay 5% to 15% less than single individuals.
• Location: Urban drivers usually pay more due to higher rates of accidents, theft, and vandalism.
• Vehicle Type: Different car models have varying insurance rates based on theft likelihood, safety features, and repair costs.
• Driving Record: Recent accidents or traffic violations can increase your premiums.
• Annual Mileage: More driving increases the likelihood of accidents, impacting your rate.
• Credit History: In most states, your credit history can affect your insurance rates.
• Coverage Level: The types and amounts of coverage you choose will influence your rate.

5 Ways to Lower Auto Insurance Costs

While you can’t control all factors affecting your car insurance rate, here are some ways to potentially lower your costs:

• Shop Around: Get quotes from multiple insurance companies to find the best rate.
• Adjust Coverage and Deductibles: Review your policy for optional coverage you may not need and consider increasing your deductible if you have an emergency fund.
• Bundle Your Insurance: Many insurers offer discounts for bundling multiple policies, such as auto and homeowners insurance.
• Take a Defensive Driving Course: Some insurers offer discounts for completing a defensive driving course.
• Improve Your Credit Score: Better credit can lead to lower insurance rates. Monitor your credit and take steps to improve it.

Maintain Good Credit to Keep Premiums Low

Since your credit can impact your insurance premiums, improving your credit may help you save. Monitoring your credit closely will give you the information you need to build and maintain a good credit score.

At O1ne Mortgage, we understand the importance of managing your finances effectively. If you have any mortgage service needs, call us at 213-732-3074. Our team is here to help you find the best solutions for your financial situation.

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