The Extent To Which Age Determines People's Insurance Rates
Copyright (c) 2011 Ed Sneineh
The insurance business is one of the very few places where age can be used to discriminate against people with regards to the amounts they pay for car insurance. Insurance companies charge different prices for different persons based on their ages. If you are a 16 year old customer and you think that you are going to be getting a better price than your 22 year old best friend because you are better disciplined than him or her then you are making an erroneous assumption.
Insurers categorize their insurance charges according to 'brackets' or categories of people, grouped together based on certain similar attributes. These classes could change based on particular standards like age, marital status, sex, ZIP code, consumer credit rating, etc. This review is narrow in its scope to the age factor.
Youth Operators Brackets: Under Age 18 Years: This is the age bracket where insurance premiums are the greatest. individuals in this age category pay as much as 175% to 250% greater than mature drivers. Since no one beneath age 18 years may obtain a CDL, any operator below the age of 18 years running an auto that has commercial insurance coverage may be risking denial of coverage in case of an insurance claim resulting from an accident caused by the young driver.
Ages 18 Years to 20 Years: People are still classified as young operators, and they still have to pay larger prices than mature operators, though their prices are lower than the previous bracket. At age 18 years individuals can possess their CDL. Most insurance companies that could give consideration to them will not even look at there insurance request for policies that require interstate activities coverage. Insurance companies that let them to be on a commercial policy will limit their coverage to intrastate activities.
Age 21 years to 24 years: This is the final group in the categorization of youthful operators. Insurance rates for private insurance start to cool with most insurers, in contrast with rates served to mature drivers. At age 21 years many commercial insurance carriers start to take commercial auto insurance applications with interstate bearing. All companies will incorporate special rate extra charge for commercial operators beneath age 21 years, and some insurers may mandate a specific period of knowledge like 12 to 24 months of experience to think about them for insurance.
Mature Drivers: Age 25 to 69 Years: Nearly all insurance carriers impose comparable premiums for this age group, although few insurers start to take small raise in their rates just after age 60 years. Age does not seem to be significant for this group of operators.
Old Drivers: Above Age 70 Years: There are crucial researches made by insurance carriers and the National Highway Traffic Safety Administration- NHTSA -nhtsa.gov- which imply that persons over age 70 years begin to create more traffic accidents. Therefore, insurance companies take specified actions to compel the proper rate with the most suitable medical reports from them. Many commercial auto polices do not cover operators over age 71 or 72 years. On the individual insurance level, the majority companies quit offering new polices for people more than 76 years of age, and other companies make the insurance premium very prohibitive.
What else can be done to reduce the effect of age on rates? There is not many things that we can do. Youth operators and older drivers are creating more street accidents, pretty much, and they must simply pay the cost of their accidents. Several insurance companies accept good student discounts for younger student drivers, and other companies may allow part time operator status on their policy. For older drivers, making certain that you have the correct medical record that confirms the physical and mental functionality of the old person to drive the auto is required to give to your insurance representative. The absence of that statement to be provided in timely manner may end in ceasing the policy which might be complicated to replace with another company afterwards.
About the Author
Edward Sneineh is affiliated with Insurance Navy http://www.insurancenavy.com , a leader in providing affordable car insurance quotes Chicago. You can have the chance to compare car insurance in Illinois on line.
Tell others about
this page:
Comments? Questions? Email Here