Under 30?  You may be overpaying on your automobile insurance.  

I believe that automobile insurers are overcharging its customers that pay the highest premiums.  These customers are the young drivers whose rates are the highest.  I am not arguing that the rates for these drivers should be lowered because I am sure that statistics show the higher rates are justified given the driving records of the group taken as a whole.  I tried to get the Insurance Commissioner to change the rules but with no luck. 

Why are the younger drivers being overcharged?

First, let me explain that most policies run for a six month period.  As the driver ages, there are certain ages when the rate reduces.  In other words, you don't pay the same rate from age 16 through age 27 and then finally get a reduction.  All other factors remaining even, rates should come down on certain birthdays.  You should see that on your current bill or parents should notice that if you are paying for a child.  Given those facts, which you should verify with your particular insurance carrier, rates are reduced periodically.   However, you may not experience the reduction until your renewal period.  I recommend that if you fall into an age category that causes higher rates simply because of age, you call your insurance company on every birthday and ask if you are entitled to a lower rate. 

Why should I have to call my insurance company--won't they reduce my rates automatically?

No, I believe they will wait for the renewal date.  It then should become automatic.  However, if you call, you can ask that the rate be put into effect immediately.  They should then issue you a credit. 

Please give me an example of how this can save me money.

Let's say you pay a premium of $1,000 every six months.  Your policy period is July 1 through December 31.  Further you are turning 27 on August 1.  Because one of the birthday milestones is reached at age 27, your rate will decrease to $800.00 on your birthday but you will see that new rate until January 1.  They will not automatically place the new rate in effect on August 1 but, in my opinion, they should.  Thus you will overpay for your automobile insurance by $166.67.  This is calculated by multiplying the $200.00 saving by the remaining 5 months and then dividing by the term of 6 months. 

Looking at it in another way, you should be paying $166.67 for only one month ($1,000.00 divided by 6) and only $133.33 per month for the remaining 5 months ($800.00 divided by 6).  That's a savings of $33.33 per month for 5 months or $166.65.

Those savings can add up.  Can I recover past overcharges?

You should try.  If you believe your insurance company has overcharged you in the past, I suggest that you ask for a refund of past overcharges in addition to reducing your rate, if applicable, on your current birthday. 

Shouldn't the insurance companies be required to automatically reduce the rates on a birthday that calls for a rate reduction?

In my opinion, yes,  However the Insurance Commissioner sees no problems with this practice.  I see this as siding with the insurance companies and not looking out for the interest of the policyholders. 

If, you are able to save money with this idea, let me know in the comments section on my first page.  If the insurance company refuses to reduce your rate, let me know.  And remember, if you save some money, consider a donation to your favorite charity.