Beyond age, there are many other factors that will determine the car insurance rates for seniors above 65. This is because looking at age alone won’t be fair on both the part of the insurer and the policyholder.
As we already know, insurance laws vary from state to state across the United States. So, it’s important you fall back on a reliable insurance agent near you before taking your final decision.
But for the sake of this article, we shall be looking at the key factors that influence car insurance rates for seniors above 65.
1. Age of the Driver
Despite the fact that teens and seniors are the highest-risk categories, states like California, Hawaii and Massachusetts don’t allow auto insurance companies to rate drivers based on age. However, if you live in a state where auto insurance rates are determined based on your age, then be ready to pay more as a senior citizen.
2. Your Driving Record
Every car insurance company across the United States wants to know your driving record. It’s very important to them. If you are notorious for committing traffic offenses, you are likely getting a higher car insurance premium. The reason is pretty simple. And that’s because the insurer sees you as a huge risk to them. But on the other hand, you will get a better rate if you have a good driving record over the years.
3. Vehicle Type and What You Intend Using It for
The type of vehicle you buy will affect how much you pay for your car insurance. The value of your car and how popular the model is among thieves will also affect the cost of insurance. So will the cost of repairing your vehicle and any safety features it has or is missing. Also, a car used for personal use will cost less for insurance than for business purposes.
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4. Driving Experience
A novice driver of any age will pay more than a veteran driver. Seniors who have been driving for decades should reap the rewards of that experience in the form of lower rates initially, but rates can climb as they age.
5. A Compendium of Your Claims History
If you’ve been claims-free for at least three years, you’ll typically receive a discount. But if you have had a few fender-benders in the last several years, you’ll be seen as a bigger risk on the road and end up with higher premiums.
6. Where You Live
Where you and your car reside matters. There are different risks depending on whether you live in an urban or rural area or if your ZIP code is prone to severe weather such as hurricanes, tornadoes or frequent hail storms. If you’re looking to retire and plan on moving, check out our cost of the living tool to see if car insurance rates for seniors are better or worse in the cities you’re considering.
7. Annual Mileage
If you drive less, you pay less for car insurance, as being on the road less frequently poses a reduced risk to your insurer. If you recently started driving less – such as after retiring from work — tell your insurer, as your premiums might fall.
8. Coverage and Deductible
If you have higher coverage limits, your rates typically cost more. Despite this fact, we still recommend 100/300/100 liability coverage. Reducing these limits won’t save you a tremendous amount in premium costs, and having higher coverage limits gives you much better protection. If you want to save money, raise your deductible instead. Your deductible is what you pay out of pocket before your insurance policy kicks in. Read this article to learn about other advantages of insurance deductible and how it works.
9. How Often Your Cars Have Been Covered
To a large extent, your insurance history will also be considered before your premium is decided as a senior above 65. So, it will be in your best interest to stay on top of your bills and not have any car insurance coverage gap. You will get a better rate as a driver above 65 if there’s no coverage gap in your previous policies.
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Women typically have fewer accidents — and fewer serious wrecks — than men. They also have fewer driving-under-the-influence accidents. So, they tend to pay lower rates, especially during their teen and twilight years.
11. Credit history
Your credit history will have a great impact on your auto insurance rate. Most US states give insurers permission to charge higher auto insurance rates if the credit is not great. This is because insurers have shown that people with lower credit scores file more claims and are therefore at higher risk.
12. Are You Married or Single?
When you are married, you will be asked to pay less for car insurance because you are considered less risky than single drivers. The loss of a spouse can therefore affect your rate as you move from married to single status.
Are there US states that don’t allow insurers to use marital status to determine one’s car insurance rate? Oh yes! Hawaii, Massachusetts, Michigan and Montana do not allow marital status as a ranking factor. And other states, like Pennsylvania, have rules to prevent a “widow’s penalty” from occurring.