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Factors in Senior Car Insurance Pricing

There are many factors involved in senior car insurance pricing. Seniors are no different than any other drivers in that they need auto insurance in order to legally get their cars out on the roads and drive. Still, there are certain ways senior car insurance differs from other policies, owing to the specific needs of seniors and the things they bring to their policies. Seniors do not drive as much on average as the typical insured driver, although there is a wide range of driving habits among the senior population. The places they drive to and the stress level involved in their drives are not the same as those of the working population, although again, this is only on average and based on a generalization of group statistics. Senior drivers brings specific attributes to their own car insurance plans, attributes that directly influence the prices they pay for automobile protection. Some factors in senior car insurance pricing can be directly traced back to the insured driver, while others involve more external influences.

Driving Habits of Seniors

As a group, senior drivers do not put as many miles on their vehicles as their younger working counterparts. Since most of them are retired, the daily commute to work has been eliminated from most of their mileage needs. These miles are usually not fully replaced even by seniors who vacation a lot, since many of them choose to fly to their destinations and leave their cars at home. For this reason, seniors on average are rewarded for the low miles they put on their vehicles in the premiums they pay. Low mileage policies are more common among senior drivers than in any other age group of drivers. The percentage of drivers who qualify for low mileage discounts also tends to increase as they get older, so more elderly seniors qualify much more often than younger ones.

The driving habits of seniors play a large role in the determination of their car insurance pricing, just like these habits play a role for any group of drivers at any age. Auto insurance providers take the average miles driven into account when they calculate claims risk for any driver. But not just the mileage matters when insurers look at seniors' driving habits. They also examine rates of accidents and claims. For example, as seniors get older, after a time their accident rate per mile driven starts to go up. As a result, insurers are more inclined to raise rates for older drivers in response to accidents or moving violations.

Specific driving habits for individual drivers are just as important as statistical tendencies for whole groups. This is similar to the situation facing teen drivers, when individuals have to prove they are safe and responsible drivers, in spite of statistics showing they belong to a demographic known to be involved in high rates of accidents and other claims. In much the same way, but probably without the same stigma, seniors over a certain age are statistically tied to higher rates of accidents as they get older. To counteract the effects of these group statistics on your premiums, you have to stay accident-free as an individual and constantly prove your mettle behind the wheel. It doesn't seem quite fair, but it is what it is as far as car insurance is concerned. The industry is highly concerned with statistics, and it takes a lot to overcome the weight of industry research regarding general trends.

Insurance Factors in Your Favor

As a senior driver, there is little you can do about the industry's preoccupation with general statistics regarding whole groups of drivers. What you do have some control over is your own unique driving profile as it pertains to your auto insurance policy. To begin with, every driver at any age is well advised to simply obey the rules of the road and do their best to avoid accidents and other claim situations. If you are successful in doing this, there is a good chance you can keep your costs down in spite of an industry trend toward increasing rates for senior drivers.

Your credit history is another huge factor that can work in your favor given the right circumstances. Insurance research has yielded an understanding of a strong correlation between driving performance and credit scores. Drivers with higher scores demonstrate a tendency toward avoiding accidents and other claims costing insurers money, while drivers with lower scores lean more as a group toward increased rates of accidents and claims. For this reason, it is imperative to stay on top of your credit score. By this time you have surely become accustomed to the importance of your credit score and what goes into it in the first place. Having a renewed focus on your credit can help you as a car insurance customer the same way it helps you in other financial arenas.

Your driving record and your credit history might be the two most important factors you bring into your insurance profile as a customer. But there are other things you have some control over when it comes to your auto insurance. For example, the characteristics of your car can have a big impact. Buying a car with an array of safety and security features can help offset the cost of insuring it, because these features help a car become more impervious to theft attempts and better prepared to survive accidents.

For example, airbags and automatic seat belts installed by the factory can save you money on your policy. Anti-theft devices also can bring down your premium. You can find out exactly what kinds of features your provider is looking for while you are still in the process of shopping for a new car, to help you make choices on options that factor in the savings you'll get over the life of the car in your insurance premium.

Best Prices on Senior Insurance

As you get older, the money you have to work with tends to get tighter, and your flexibility for extra spending tends to decrease. Most of us are living on a fixed or very limited income once we retire. For this reason, getting the most value for your auto insurance plan becomes even more critical when you become a senior. You want to do everything you can to make sure you are maximizing your savings while at the same time getting the very best policy you can afford.

Fortunately, there are more options for auto insurance today than at any other time throughout our lives. With the advent of the online car insurance market, the ability for any driver to find affordable protection has increased. Regardless of your specific circumstances-your age, credit history, or your driving record-you can use your home computer to research your options and match up with a provider who can get you the kind of coverage you need.

Many different variables are involved in the determination of senior auto insurance premiums. Some of them are beyond your control. But others are variables you can swing in your favor. Find out more about your senior car insurance options and get the most value out of your policy.

 

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