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So I have an odd birthday and insurance timing issue. I am being told by damn near everyone I talk to about this that insurance premiums drop when you turn 21. I won't have had my license for three years until May, however (grandmother thought drivers ed at 16 was a dumb idea).
My current insurance ends in December. I turn 21 two months later. So would it be wise to just stay with a carrier until it normally ends 6mo later (which should be my 3rd holding a license as well) or switch?
My parent doesn't know as he didn't get a license around the same time and things were different back then. My grandmother also doesn't know as MNs insurance laws are different than what she knows. The other family I speak to are in the same boat: Age related changes, state related, or they (friends now) are on their parents insurance/older than me/got license sooner. Only one friend is in the same boat and she's in Arizona...
Typically, when you request cancellation of a policy, you are charged a penalty that amounts to about 10% of the return premium.
I suggest that, after your birthday, you get quotes from several insurance companies and compare the new premiums and see if there is enough of a difference to make the change worthwhile.
However, since you are on a 6 month policy and your 3 years comes in May I doubt if you'll save enough money before May to make a switch in December worthwhile.
Probably best to wait until the renewal that comes after May and then do some more comparison shopping if you didn't make the change in December.
Keep in mind that the longer you stay with one company, loss free, the better the discount is that you won't get by switching to a new company.
Also understand that a new company can cancel within 60 days for any reason. So if you end up with a ticket or accident within the first 60 days you could end up much higher rates.
It's illegal for insurance companies to rate your premium based on your age. It's done by years of driving experience. The vast majority of people are licensed very close to their 16th birthday which is why it's such a popular assumption that insurance goes down when you hit certain birthday milestones. Other companies don't care that you are 21, they can legally only rate you based on how long you've had your license. Someone who wasn't licensed until they were 30 is rated the same as a newly-licensed 16-year-old.
70A.05(2):Classification. Risks may be classified by any reasonable method for the establishment of rates and minimum premiums. Classifications may not be based on race, color, creed or national origin. Rates thus produced may be modified for individual risks in accordance with rating plans or schedules which establish standards for measuring probable variations in hazards, expenses, or both.
Do you see the word "age" in there?
Please don't make statements that you cannot back up by citing an authority.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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The drop in rates at 21 is not usually significant enough, especially for males, to change providers. At age 25 the difference is much greater, and for some companies, you can get a longevity discount if you stick with them.
I did consider staying with them but there's a few issues, which is why I'm wondering if switching would be worthwhile.
First is costs. I am being quoted less even AFTER an accident (thankfully nobody got hurt but that's another story) by another company as of now. Like about $40 less monthly for slightly better insurance. Another is location. The company I'm with doesn't cover out in the state I'm planning on moving to. The company I'm looking at is. It will be a couple months until I move anyway, maybe May if I had to be completely realistic. So I was wondering if it would even be worth switching to the company early or after my birthday.
But seeing as how staying with them might be the more beneficial route as of now, I'll stick with them and their random (and currently extremely aggravating) bills.
I did consider staying with them but there's a few issues, which is why I'm wondering if switching would be worthwhile.
First is costs. I am being quoted less even AFTER an accident (thankfully nobody got hurt but that's another story) by another company as of now. Like about $40 less monthly for slightly better insurance. Another is location. The company I'm with doesn't cover out in the state I'm planning on moving to. The company I'm looking at is. It will be a couple months until I move anyway, maybe May if I had to be completely realistic. So I was wondering if it would even be worth switching to the company early or after my birthday.
Great. Give us the important information 2 days into the thread after the previous responses are based on incomplete information.
But I'm not the one relying on strangers on the internet for advice on what could be an expensive decision.
Probably cause you have experience based on age and possible family/friends to make an informed decision, of which I clarified I don't and have no other options but to wing it or ask people who know better. So your comment and whatever the hell the second sentence is supposed to be (insult, rebuke, just a general comment???) is, as stated, irrelevant.
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