Unfortunately age no longer is a factor, so turning 25 will have no bearing on the rate. The only factors now are the number of years of driving, which after 3 years everybody pays the same and driving record for tickets and accidents. The points for your accident will stay on for a three year period, starting this October. After 3 years the rates will come back down to what ever the normal rates are at the time.
What many people do not understand about the penalty for the accident is this. Most people are under the assumption that the insurance company gets the money that is being charge because of the points. That is only partially true. It is a state law that we charge the points and increase the premium. The state gets the vast majority of the penalty to put in the high risk pool they designed called the facility. This is similar to an assigned risk pool where high risk drivers are placed. Generally, the high risk drivers could not get coverage from standard companies like State Farm, so the state formed the facility as a source for high risk drivers to get insurance. Because these drivers cause more damage than the money collected in premiums, the state has to get the money from somewhere, so guess who pays. As in most cases in our society, one person is subsidizing another....
