Should You Hold Off on Buying a New Car Until Your Brother Turns 25? A Guide to Auto Insurance Considerations
Making the decision to purchase a new vehicle involves more than just choosing the right model and budget—it also includes understanding how your auto insurance costs might change based on your age, policy structure, and insurer. If you share a policy with a sibling, and you’re contemplating whether to wait until they hit the age of 25, it’s worth exploring how insurance rates are affected and what strategic options you might have.
The Context: Shared Policies and Age-Related Premiums
Imagine you’re in your early twenties, sharing an auto insurance policy with an older sibling who is just a year or two older. Both of you drive reliable, economical vehicles—say, 2013 Kia Souls—valued as dependable daily drivers. Recently, you’ve begun your full-time career and are considering upgrading to a newer vehicle, but your existing policy with Progressive costs around $1,072 for six months, covering basic liability, underinsured/uninsured motorist coverage, and medical payments. Notably, comprehensive and collision coverage, roadside assistance, and rental car benefits aren’t currently included.
Your brother is set to turn 25 in about six weeks. Traditionally, insurers often reduce premiums for drivers over 25 due to the statistically lower risk associated with this age group. This raises the question: Would it be financially advantageous to delay purchasing your new car until after your brother’s 25th birthday to benefit from more favorable insurance rates?
Understanding the Impact of Age on Coverage and Costs
In many cases, age can influence insurance premiums, particularly for liability and comprehensive coverage. For drivers under 25, rates tend to be higher due to increased risk profiles. When both drivers are on the same policy, the insurer may apply different pricing for each individual based on their age and driving history. Once your brother turns 25, you could potentially see a reduction in his portion of the policy costs, which may lower the overall premium.
However, it’s crucial to note that not all policy components are affected equally. Some insurers may adjust only the liability or driver-specific portions, while others might impact the entire policy premium. If your new vehicle requires comprehensive or collision coverage, or if you plan to add certain extras, these costs might not significantly change just because your brother’s age increases.
Comparing Insurance Options
While Progressive has been your provider, exploring alternatives like State Farm or Farmers could offer more
