Best auto Insurance rates Ontario
Even if your driving habits remain the same and your record stays clean, the rate you pay for car insurance changes over time. Typically, auto insurance rates drop as drivers move into middle age, having acquired years of driving experience and loyalty discounts. Once you become a senior citizen, however, expect to pay more for car insurance. Here's what you need to know about saving on auto insurance in your 50s, 60s, 70s and beyond.
Car insurance rates for seniors
Auto insurance for older drivers often costs more, because senior drivers as a group are more accident-prone than their middle-aged counterparts. The reasons for this include age-related changes in hearing or vision, slower reflexes, health conditions and medications. In addition, regardless of accident severity, older drivers suffer graver injuries and more fatalities than younger people. This makes seniors more expensive to treat following an injury. These factors can increase insurers’ claim costs, and those costs are passed on.
The chart below shows fatality rates by age for drivers. By the time people hit their 80s and later, their auto-related death rates exceed those of teenage drivers.
Will your insurance premiums increase just because you join the ranks of "older" drivers? What if you have no accidents or tickets? That depends on your insurance company, but the answer is "probably." Insurance rates are partly determined by the entire group to which you belong, not just your own driving record. So if you live in Mayhem Metro, you may pay more than a driver from Safe City. If you drive a flashy convertible, you're statistically more likely to have an accident than if you've got a mundane minivan.
However, there's a flip side - many states mandate that drivers over 55 be given discounts for good driving and/or for taking approved driving courses.
Thirty-four states that require discounts for driver safety courses are:
- New Jersey
- New Mexico
- New York
- North Dakota
- Rhode Island
- South Carolina
- West Virginia
- Washington, DC
Senior auto insurance by decade
Here's how your age may affect your driving and your insurance costs in your 50s and beyond. "Not all insurance companies start charging higher rates at the same age, so it pays to shop around if you get a rate hike, " says Penny Gusner, consumer analyst for Insurance.com. "It all depends on the internal statistics within the insurance company, so some will raise rates in your 60s while others will wait until your late 70s."