All drivers go through life events that might influence their auto insurance prices, such as purchasing a new car or adding another driver to their coverage. However, there are several life events that older drivers share that might prompt a reassessment of their policy and likely alter their rates for the better or worse.
Bankrate consulted two vehicle insurance experts to identify the significant changes that older drivers should be aware of. Mike Barry is a vice president of the Insurance Information Institute, a nonprofit information service backed by the majority of insurance firms through its membership.
Travelers Insurance’s vice president is Elaine Baisden. She suggests that for senior drivers, any change in vehicle use should prompt a reassessment of their auto insurance. According to Barry, regardless of age or major life changes, every motorist should examine his vehicle insurance coverage once a year. Although the following five occurrences can occur in drivers of any age, older drivers are more prone to experience them due to typical ageing difficulties.
- You may be qualified for the following discounts: Many auto insurance companies provide discounts to older drivers with a clean driving record and who have completed a defensive driving course.
- Your interest rate may rise: Your auto insurance rate may rise as you get older owing to a variety of variables, including your age, driving history, and medical history.
- You may need to explore additional coverage: As you become older, you may want to consider adding personal injury protection or medical payments coverage to your vehicle insurance policy to assist cover any medical expenditures that may arise as a consequence of an accident.
- You may need to upgrade your coverage: As you become older, your vehicle insurance policy may need to be updated to reflect changes in your driving habits or lifestyle. For example, if you reduce your driving miles or begin taking public transit more frequently, you may be able to reduce your coverage and save money on your insurance.
- You should compare prices: It’s a good idea, like with any auto insurance policy, to shop about and compare quotes from different providers to obtain the greatest rate and coverage for your needs.
Retirement and the transition to a fixed income may have an impact on an older driver’s creditworthiness and capacity to pay his debts. Older drivers should be on the lookout for changes in their credit scores. This is not something that auto insurance companies generally examine, but other developments, such as an accident or a traffic citation, may prompt an insurer to do a more thorough investigation. A big decline in credit score revealed by such a check might have a negative impact on a car insurance rate.
