Youthful Driver Checklist
The Age 25 Myth
There is been this rumor for years to wait to come off your parent’s policy till you’re 25 and you will get a better insurance rate….. that is a myth!
Insurance works the same way credit works. If you don’t have established credit in your name, you will not have a good credit score.
The same thing happens in insurance. If you don’t have any insurance in your name, you won’t have a good insurance score. This means you will pay a higher rate.
Do You Know What an Insurance Score Is?
An insurance score is a numerical rating or score used by insurance companies to assess the risk associated with an individual or entity when providing insurance coverage.
Key Factors of an Insurance Score
What Else Affects Your Rate?
Things that affect your insurance rate are clean history, such as accidents, or even comprehensive filings like windshield claims, roadside claims, and rental claims all of these affect your insurance similarly to accident claims.
Shopping your insurance frequently and bouncing around from carrier to carrier also affects your insurance rate, and it’s not good practice.
You should never move insurance carriers more than once a year, and even that is now getting frowned upon in the current insurance rate climate. Also, the sooner you can get off your parent’s policy the faster you can improve your insurance score.
How Do You Improve Your Insurance Score?
Multi insurance discounts, such as having a roommate and getting multi-car, homeowners insurance or renters insurance also paired with your auto insurance as well as telematics in the current industry does not require a car plug-in and can be finalized in 90 days.
What are Telematics?
Carriers offer apps to download to your smartphone that checks for speeding, braking and acceleration in real-time. They’re very lenient. They provide a 10% discount upfront and you can earn up to an additional 30% in the 90 days.
Afterwards, delete the app and keep the discount, as long as you’re with that carrier. Between getting insurance early, not shopping it frequently, adding multiple discounts and taking advantage of telematics can make your insurance in some cases less expensive than what it was under your parent’s policy when done correctly.
However, the longer you wait the higher the rate. You can stay on your parent’s insurance until you’re 30, but you will not avoid the increase in insurance when switching over to your own plan.
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