Icarus never few on wings constructed of feathers and wax, and just because you’re getting older doesn’t mean your auto insurance rates will decrease. Many factors drive auto insurance costs, and only some are within your control. Below are a few details you may find surprising…
- Older drivers have more accidents. This is a statistical fact. Sorry, but we cannot change the math. A cotton-topped eighty-eight year old grandma peering through the wheel of her 1972 Plymouth Fury III may be precious, but her insurance costs will be high. Yes, younger drivers have high accident rates as well. I’m training my sixteen year old son now and would much prefer driving with Grandma Fury. But if one looks strictly at age without the influence of any other factors, the frequency of accidents is high toward the beginning and end of our driving careers. Auto insurance rates reflect this, so they are high for new drivers and level off as experience builds, up until around twenty-six years old. Then we all enjoy a reprieve until they start to climb after sixty-five or seventy. Eventually, they may even surpass those paid in our youth.
- Longer commutes equate to higher rates. This is because commutes occur when the roads are packed, increasing the likelihood of an accident. They also occur at the beginning and end of the day, when drivers are more likely to be drowsy and have longer reaction times. Lesson here? Be alert and drink strong coffee.
- Your car may be a model that is popular among car thieves. Ever consider how crooks’ tastes in vehicles might affect your auto insurance? Check out the Forbes’ article on The Most Stolen New And Used Cars. If your car model is a common target, auto insurance rates will reflect it. You don’t see the Plymouth Aztec on there, do you? Lower your auto insurance by driving an ugly car.
- Your zip code may be blacklisted. Even your neighborhood can affect your rates. If your area shows an abnormally high claim rate for any reason, theft or accident, your insurance company will charge accordingly. Wait! Does this mean that if you live in a neighborhood full of bad drivers with higher accident rates, your premiums may be higher? Yes.
- Older cars can be rated higher than new models. One reason is the lack of safety features, leading to higher risk of injury and therefore higher auto insurance rates. Also, parts for older cars can be more expensive, increasing the cost of collision coverage. There are always exceptions, such as bumpers on new vehicles with proximity sensors.
- Areas with more uninsured drivers mean higher premiums. If you are in an accident and the offending driver is not insured, your own insurance often pays to repair your vehicle (depending upon your coverage selection). Did you realize more than one in four drivers on Florida roads do not have insurance? If while driving to Disneyland and you are in an accident, a very good chance exists the other person simply isn’t covered. Several other states are almost as bad. Thus, living or working in such areas means higher premiums. And the uninsured trend is rising. Review which states have the highest rate of uninsured drivers.
- Even where your car is stored makes a difference. If it parked in a locked garaged, that is best. A private driveway is good as well. But higher rates are given for parking lots, decks, public parking, and street parking.
This list is by no means exhaustive. Agents, comment or reply your own experiences!
Bankers Insurance LLC