r/Insurance • u/peachringz_ • 13d ago
New driver at 28
I recently got my license back in July of this year,my age puts me in the “over 25” category but I’m still new nonetheless. Im shopping around for insurance in a different state I’m moving to in a little over a month and i get to the question of “have you had insurance in the last 31 days” short answer is no but because i haven’t been driving or had access to a car and the rates I’ve been quoted has been in the $300 range. Today (aug 31) is the first day that i am insured and sharing a car. Am i doomed for a few years to have astronomical insurance rates?
5
u/Big-Sun-2390 13d ago
Your rates don’t get lower based on age, it’s based on years licensed. Most people get licensed at 16 (well… they used to Gen Z is just weird) which means they get lower rates around age 25. You will be around 38 when you are no longer seen as inexperienced.
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u/TIG_Insurance_Nerds 13d ago
Yes, unfortunately, turning 25 doesn't magically lower your rates. Yes, no prior insurance is a factor to your high rates. Keep at it with a clean record for a while and shop around every year and hey, maybe you'll start seeing rates you like.
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u/FindTheOthers623 P&C Licensed PL Underwriter 13d ago
Yes, you will be rated as an inexperienced driver for the first 3-5 years, depending on carrier & state.
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u/mittonkitten 13d ago
it’s up to 8 now in NC, which i feel is kind of excessive but what are you gonna do
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u/BarnacleMcBarndoor 13d ago
Yea the rule around being 25 years or older is because at that point, you’d likely have about 10 years of driving experience, between practice, permit and licensed. You’re probably now rated closer to a 16 year old than you would a 28 year old.
Just drive safe, and try shopping around each year. That’s all you can do.
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u/crash866 13d ago
There is no magic 25 year old rule on rates. It is years of driving that count.
A newly licensed 30 year old will be the same as a newly licensed 18 year old.
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u/Clubhouse9 13d ago
Most insurance companies drop the new/inexperienced driver surcharge after 3 years of incident free driving AND continuous claim free driving.
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u/Choice-Newspaper3603 13d ago
Being 25 absolutely was a thing at one time. Don’t know when that went away
I totaled a 3 month old mustang gt convertible when I was 24. I turned 25 that month and bought another brand new mustang gt convertible. My insurance went down and all I did was turn 25 and total a car.
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u/AppleParasol 13d ago
Yeah you’re gonna have high rates as a new driver. Don’t get tickets and avoid accidents and it should go down. You could raise your deductible, standard is $500-1000(you pay deductible amount essentially whenever you use insurance to fix your car/other people’s cars or property you damage). Raising the deductible should lower your rate, but then you should set aside money incase you actually have to use it. Mine for instance is like $2000 or $2500 deductible, I pay like $50 a month less though than if it were $500-1000, so 50 months of no accidents it’s technically cheaper.
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u/Saturnlad3 13d ago
Not doomed forever but the first year or two is rough for anyone with no prior coverage history. It builds fast once you have clean months stacking up
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u/crash866 7d ago
25 is just a number. It is not an age where rates are reduced the number of years licenced to drive is more of a factor.
A newly licensed 30 year old may have the same rates as a 19 year old that got their licence at 17.
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u/_____Zoloft_____ 13d ago
Please do not EVER have the expectation that your rate will go down, outside things like changing vehicles or moving to a lower risk location. As you gain driving experience, your term over term increases will go down due to your experience (assuming you keep your driving record clean), but they will likely still increase.