Car insurance rates and car insurance quotes may begin to go up after age 65 according to risk formulas used by all insurance companies. It may not seem fair, but it's nothing personal, just actuarial charts and probability curves. Read on to find out about older drivers and reasons their car insurance rates may begin to go up.
Car insurance rates are highest for those under age 25 followed by those over age 65. Although older drivers are more safety-conscious, following road rules and wearing safety belts, for example, older drivers also are physically slower. Older drivers are more likely to be killed or injured in a traffic accident, according to the National transportation Safety Board. Accident data shows that drivers in their 80s are less likely to avoid accidents they easily would have avoided in their 40s.
While each individual is different, natural aging results in decreased vision, reaction times and overall physical ability, according to the General Accounting Office that finds nearly one in five drivers in American will be over age 65 by the year 2030. Car insurance quotes are based on statistical probability for road-related injury or death. Age is a key factor determining how much car insurances will cost. Once car insurance quotes and car insurance rates go up, they tend to stay up with driver age, analysts say. However, how much rates increase depends on the state's laws and individual insurance company guidelines.
Vision plays a role since drivers must be able to identify road objects, lanes, traffic signs, and other vehicles on the road. Night vision has been shown to deteriorate greatly with age by researchers. Overall physical ability diminishes with age making it harder to control vehicles or respond as quickly to situations. The ability to steer quickly, hit the brakes fast enough or otherwise maneuver the vehicle slows with age. Dealing with heavy traffic can seem more challenging.
Cognitive function is considered to fall some with age, further slowing reaction time. Increasingly, older drivers may require brush-up driver's education sessions to sharpen skills to make up for physical challenges. Other factors causing car insurance quotes and car insurance rates to go up include loss of muscle strength, hearing, and even possibly effects of medication. Insurance companies divide older drivers into subgroups. Those ages 55 to 65 are considered lower risk and get better car insurance rates. Turning 65 also turns up the car insurance quotes.
Studies indicate drivers over age 65 have more fatalities per mile than any age group and are second only to 18 to 25 year olds in number of fatal crashes. That translates to higher risk for insurance company pay-outs, and higher rates.