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Auto Insurance & The 25 Milestone

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About a month ago I quoted auto insurance rates to get a pre-25 year old rate so that I could re-quote and get a post-25 year old rate. Well, the time now has come for me to re-quote and see what the “big 25 year old milestone auto insurance rate quote drop” people always talk about really amounts to…

Given my current plan (Liability only) where I paid $436.60 for six months, my post 25 year old rate dropped -$59.50 to a mere $377.10. Looking back, carrying $1000 deductibles on collision and comprehensive coverage would cost me $959.50 for six months… now, a mere one month later, it only costs me $808.50 (-$151).

As for Progressive, for identical coverage it actually costs more now, $497 – an increase of $49! For full coverage? $816.00, a jump of $79! As for “the rates of other top companies” – this time four companies (one of them Progressive) were listed, including our old friend State Farm Mutual Automobile Insurance Company. Two newcomers to the show are Erie Insurance Exchange and Erie Insurance Company (same company really but two quotes).

For my coverage, the Erie brothers show a rates of $205 to $232 and $230 to $269 (based on credit score) which is ridiculously cheap auto insurance. State Farm came back with a quote of $412 – still more expensive than Geico. For full coverage, State Farm would charge $750 (cheaper than all comers including Geico), and the Erie’s would charge at least $350 and $380 per six months.

(Incidentally, Erie Insurance Exchange is “better” and only accepts folks with at most one violation, all others fall to the Erie Insurance Company, hence the price differences)

To recap, in table form:

Company Coverage Pre-25 Price Post-25 Price % Diff
Geico No C/C $436.60 $377.10 -13.6%
Full $959.50 $808.50 -15.7%
Progressive No C/C $448 $497 +10.9%
Full $737.00 $816 +10.7%
State Farm Full $1,162 $750 -35.5%

So what’s the moral? You can probably expect a rate drop of at least 10% whenever you turn twenty-five. Is it a huge drop? Depends on your perspective but there is definitely a noticeable drop. I think my quoting from Progressive itself may have been flawed either this time or the first time because there is now way the price should’ve increased when all others dropped. What’s interesting is the appearance of Erie Insurance – as if to say they only trust drivers over twenty-five…

What other major auto insurance milestones have you reached and seen a big drop in insurance? I’m curious to see how significant each of these commonly assumed milestones truly are.

{ 13 comments, please add your thoughts now! }

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13 Responses to “Auto Insurance & The 25 Milestone”

  1. Matt says:

    Getting married is huge. My wife and I were both with the same company, and I merged her policy into mine and made that our joint policy. Our new price was the same as what I was paying by myself. We got the mulitcar dicount and I think I got a HUGE break for being married. I am not 25, so I haven’t gotten that break yet.

  2. jim says:

    Ha, but getting married costs a lot of money, turning 25 doesn’t. :)

  3. Matt says:

    Haha…that’s pretty freaking funny. I think getting older (turning 25) would actually lead to fewer grey hairs and hair loss…

  4. Matt (different one) says:

    The only other milestones that have affected my insurance have been moving (duh!) and going three years since my last moving violation (DUH!!!). After three years, they essentially disappear. (It’s now been 8 years…and thanks to having moved, I doubt I’ll ever get another.)

  5. Khyron says:

    I’m with State Farm for all of my insurances now (family thing). That’s renters insurance, auto insurance and some personal property stuff (computers mostly). When I turned 25, I saw the decrease in the auto insurance, but I can’t say how much it was. Right before I turned 30 a few weeks back, I went to find out what might happen to my auto insurance at that milestone. It worked out to a roughly $80 decrease per six months. According to the agent I was dealing with, SF gives a discount at 25, but the “now you’re 30 and REALLY less of a hazard” discount is where they really give discounts. I guess they tier the discount structure. Had I known about that before, I probably would have done more shopping around. My six month premium before turning 30 was about $595. Also, a problem with I encountered while living in California back in 2000-2002 will be coming off my record by year end, so I may see another slight drop. I’ll work all that out later.

  6. nickel says:

    It’s interesting that it doesn’t always go down. Kinda makes you wonder what Progressive is thinking.
    http://www.fivecentnickel.com/

  7. Karen says:

    I don’t know if this applies to all states, but I have heard murmurs that the new milestone age for males in NJ is 30. I guess any way they can rip you off, huh?

  8. jim says:

    Karen, what you say mirrors Khyron’s experiences with getting a huge break at 30, maybe it’s a national shift to making the major drop at 30 instead of at 25. In the end whatever age their actuaries come up with is what they use to assess your risk…

  9. Justin says:

    Well, I turned 25 2 days ago… I’ll let you guys know how much my insurance drops. I’m with The Personal, and living in Toronto, Canada. Keep you updated..

    Justin

  10. Neville says:

    Glad I read this in time, I just turned 25 and was wondering what kind of dicount I’d get!

    -Nev

  11. Jeff says:

    I just bought a car today and I’m about to turn 25 in 4 days! Kinda wondering if I should get a quote now or wait a little bit. What do you guys think? Will the companies be able to get me a drop based on my current quote a week from now?

  12. Sarah says:

    I would wait! Try AllState, they quoted me the cheapest rate for a full coverage plan that I felt good about.

  13. Jessi says:

    In my experience you will get a MUCH lower quote if you call up local insurance offices rather than get the quote online.


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