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Is Your Birthday Affecting Your Car Insurance Rates?

woman blowing out candles on birthday cake with friends surrounding her

As you go through various stages of your life, your car insurance rate may change dramatically. Your automobile insurance price is affected by a variety of things, including your age. Several milestone birthdays will increase or decrease your car insurance rate, so it’s essential to be aware of them so you can budget appropriately. 

If your goal is to maintain cheap car insurance in Georgia, you must know what factors insurance companies use to set your rate so that you can plan accordingly. 

What Factors Affect Your Auto Insurance Rates in Georgia?

Your car insurance rate doesn’t depend on your age alone, and reaching a specific birthday won’t guarantee you cheap car insurance in Georgia. While it’s worth paying attention as birthdays approach, there are numerous other factors that car insurance companies use to calculate your rate. 

These are some of the factors: 

  • Level of Coverage Needed: The level of coverage you’ll be purchasing will affect the overall price of your insurance. A vehicle that has been financed will cost significantly more to insure, as most lenders insist that borrowers carry full coverage until the loan is paid in full. If you’ve paid off your vehicle, you may be able to lower your car insurance rate by dropping comprehensive and collision coverage and instead opting for only liability. 
  • Type of Vehicle: Certain vehicles cost more to insure because they are stolen more frequently and cost more to replace or because they cost more to repair if they are damaged. For example, sports cars and antique vehicles may have higher insurance rates, while moderately priced sedans may cost less. 
  • Your Credit Score: Many states allow insurance companies to use your credit score to determine your car insurance rate. If you have a low credit score, you may find that this also reflects the rate you pay for car insurance. If you diligently work to raise your score, you may be able to obtain a lower insurance rate, as well. 

What Birthdays Equal Lower Car Insurance Rates for Georgians?

While there are other factors to consider as well, age does play a part. There are specific milestone birthdays when you should reach out to your car insurance company to see if your rates will be lowering. Specifically, you should check in at age 25, 40, and 60 to see how these birthdays impact your car insurance rates. Your insurance agent can help update you as you reach these birthdays, providing you with a new quote that includes any rate changes. 

Based on Age, Who Pays the Highest Rate for Insurance?

Teenagers and younger adult drivers often pay the highest insurance rates. This age group is statistically involved in more accidents than any other, making them the highest risk group for an insurance company. You may be able to obtain a lower insurance rate for any teen drivers in your home by providing your car insurance agent with a copy of their report card or transcripts. Some insurance companies will reward good students with a discounted rate. 

As you enter your 20s, you must maintain a good driving record and a high credit score. These two factors will help you achieve the lowest possible auto insurance rating while you wait to turn 25. If you’re still in school, ask your car insurance agent if there is a good-student discount for college students, as well. These components will all help you get the cheapest Georgia car insurance possible. 

What Happens to Your Georgia Car Insurance Rate When You Turn 25?

While it’s common to see your insurance rate decrease when you reach your 25th birthday, this will depend on what your life looks like at the time. Car insurance companies commonly lower rates for reaching specific milestones like getting married, buying a house, and more. There may also be a small discount based on your age alone. 

Your 25th birthday alone won’t automatically give you a reduced rate. You’ll also need to avoid traffic violations, stay accident-free, and make sure your credit score stays as high as possible. Keeping these components in mind will help you maintain cheap auto insurance in Georgia. 

How Do Car Insurance Rates Change in Your 40s and 50s?

Individuals who avoid accidents and moving violations while maintaining a solid credit rating may find that their car insurance rate consistently decreases for around two decades. You’ll enjoy some of the lowest possible rates on car insurance during your 40s and 50s. 

middle aged african american woman in drivers seat of car smiling

What About Car Insurance in Your Golden Years?

Older drivers tend to have a somewhat higher risk of accidents than middle-aged drivers. Reflexes may begin to slow, night vision becomes poor, and it’s easier to become anxious and rattled behind the wheel. You may notice that your car insurance rates slightly increase once you turn 60. 

Are There Other Ways to Lower Your Car Insurance Rate?

Many car insurance companies offer a usage-based discount. These plans have you install a small transponder in your car or download an app. The electronic device then tracks your driving and makes a note of how frequently you drive, the types of roads you commonly use, and if you often speed, brake too hard, or make other operating errors that could cause an accident. After several months of utilizing the device while you drive, the car insurance company will set your rate based on how you use your vehicle. 

Get Covered with Southern Harvest!

Now that you know how car insurance companies make their decisions about your premiums, you know which birthdays to pay attention to and the steps you can take in the meantime to work on improving your rate. Work to improve your credit score, avoid moving violations, and drive carefully to prevent accidents. Following these steps will help you keep cheap car insurance in Georgia, which may drop even lower when you reach milestone birthdays. 

When you’re looking for the best possible rate on Georgia car insurance, reach out to the friendly professionals at Southern Harvest for quick, online quotes. Call us at 877-831-4677 or visit us at one of our convenient offices.