What determines senior car insurance rates?
Multiple factors are used to calculate car insurance rates for seniors. Where you live, the type of car you drive, your marital status, and even your annual mileage can all impact how much you’ll pay for seniors car insurance. Drivers of all ages might find it helpful to know which details insurance companies take into account when calculating insurance premiums. Keep reading to discover a few of the most important factors that determine the cost of senior car insurance.
Driving history
One of the top factors in determining the cost of seniors’ car insurance is the policyholder’s driving history. Driving history makes up both driving experience and driving record. Having several years, or in the likely case of a senior, decades of driving experience can work to your advantage, but only if you have a relatively clean record.
A clean record is free from speeding tickets, collisions, and DUIs. If you have a clean driving record, you may benefit from the best insurance rates for seniors. In contrast, senior drivers with records that include several incidents will likely see it reflected in your premium. Therefore, the most effective way to get the best car insurance rates for seniors is to drive safely and responsibly, obeying the rules of the road at all times.
Local laws
The cost of senior car insurance also depends on the amount of coverage you choose to buy, as well as the amount of coverage you are required to buy. Each Canadian province sets its own regulations relating to auto insurance, including the minimum amount of coverage required. For example, in Ontario, Alberta, and New Brunswick, drivers are legally required to carry $200,000 in third party liability coverage at all times. However, in Nova Scotia, drivers must carry a minimum of $500,000 in third party liability coverage. The higher the coverage requirement or the more coverage you choose to purchase, the more costly your policy will be.
Age
Most senior drivers know that age is a significant factor in determining car insurance costs. New drivers and senior drivers tend to pay more for car insurance for a variety of reasons.
*The age to qualify as a senior varies by province. Check with BrokerLink to see if you qualify.
Location
Where you live can directly impact how much you pay for car insurance. Typically, senior drivers that live in or frequently travel to major cities, such as Toronto, Montreal, or Vancouver, will pay a higher premium than those who live in rural areas. High-density areas translate to more traffic, which in the eyes of the insurance company, increases your odds of getting into an accident.
Another geographic factor that can influence the cost of seniors car insurance is if you live in an area prone to climate related incidents, such as flooding.
Car make, model, and year
The make, model, and year of your vehicle also matter when it comes to calculating car insurance premiums. These details help insurance companies evaluate how likely it is that your car will be stolen and how much your vehicle would cost to repair or replace if damaged or stolen. Insurance rates are typically highest for drivers of new or luxury vehicles and lower for drivers of older or used cars. However, if your car is new and equipped with safety features or anti-theft devices, the insurance company may take this into account.
Annual mileage
How frequently you drive your car is another factor that can impact your senior car insurance rate. If you drive very rarely, such as a few times each week, you are less likely to get into an accident and your insurance rate may be lower.
Conversely, if you spend a lot of time behind the wheel or you frequently drive at night or on major highways, then your chances of getting into a collision increase, along with the cost of your car insurance.
Marital status
Lastly, insurance providers may want to know your marital status when providing you with a seniors car insurance quote. This is because the data suggests that married people are more financially stable and responsible, which insurance companies believe translates to better driving. It might not seem fair, but the reality is that married drivers tend to pay less for car insurance than their single counterparts.
