Reader’s Question:

Is it true that my grandfather here in Maryland would have to pay high car insurance rates for being a senior elderly driver?

Sean

Baltimore, MD

Yes, it is true that a car insurance provider can charge your grandfather there in Maryland higher rates. The thing about auto insurance is that its an industry that uses ‘risk’ as the basis of its business. The higher the likelihood of someone getting involved in a car crash, the higher the provider would have to compensate for loss due to settlements (which can be up to tens of thousands of dollars per accident) in the form of higher premiums. Unfortunately, seniors, as a group are viewed as a having one of the highest potentials of getting involved in car crashes, this does not necessarily meant that seniors are lousy drivers, quite the contrary. Statistics however, say something else about seniors getting involved in car crashes.

Another factor that makes car insurance more expensive for the elderly driver would be just that, because they are elderly. Due to the physical effects of aging, it would be much more difficult for them to drive for extended periods of time, to have a quick enough reflex and avoid collisions, or to see clearly due to poorer eyesight. Your grandfather might not fit this description however, companies basically takes a person’s age group as a significant factor in calculating insurance rates. Your grandfather might still save on car insurance if he decides to drive an older, less expensive vehicle or increase deductibles to offset the higher premiums on his auto insurance.

Still, one of the best ways to lower your premiums is to raise your deductible amount to the highest level, like $1,000. if you have been claim free for a few years you will save a bunch of money.  You only pay this amount when you have a claim and your carrier pays the claim.