Question: What changes with car insurance when a young driver turns 25 years old?

Answer: The quarter-century mark may not seem so significant at first glance. After all, by now you have traveled through the many rites of passage into adulthood and even enjoyed your freedom on the road for quite a while. That's exactly why it makes a difference to the cost of car insurance.

So what’s the big deal about 25? In the eyes of the auto insurance industry, at 25 a young driver is magically transformed into a more responsible person. Well, it’s not exactly magic, statistics do back up the idea that drivers under 25 are more prone to accidents.

As a result, in general, insurance companies will lower the premium of a driver when they turn 25 because they pose less risk.

The amount your premium goes down will vary from company to company.

So the first thing you need to do (once you've blown out the candles) is get quotes from at least three insurers to find out who's got your best rate.

Now keep in mind… turning 25 is just one of a dozen different things insurers take into consideration when figuring out your rate.

Do your homework and you could see rates go down as much as 20% (if you’ve got a clean driving record).

Makes every young driver want to celebrate, right?