TUESDAY, FEBRUARY 8, 2011
The insurance place is one of the very few places where your age can be used to distinguish between citizens when it comes to their age. Insurers assess different charges for different citizens depending on their age. If you are a 16 year person and you think that you are going to be getting a greater premium than your 22 year old brother because you are better disciplined than him or her then you are making an incorrect analysis.
Insurance carriers assess their insurance prices according to 'brackets' or classes of people grouped together with certain universal properties. These categories could be different based on particular values like age, marital status, gender, community, credit worthiness etc. This article is constricted in its extent to the age aspect.
Young Drivers Groups:
Underneath Age 18: This is the age category where insurance price is the at record high. customers in this age group pay as much as 175% to 250% greater than mature operators. Since no one beneath age 18 will possess a CDL, any operator under the age of 18 using an auto that has business coverage may be risking rejection of coverage in the instance of an insurance claim.
Age 18 to 20: Individuals are still classified as young operators, and they still need to pay bigger premiums than mature drivers, although their prices are much less than the previous group. At age 18 individuals can obtain their CDL. Most insurance companies that could give consideration to them will not even look at there insurance submission for policies that include interstate setup coverage. Companies that authorize them to be on a commercial policy will set their coverage to intrastate operations.
Age 21 years to 24 years: This is the final bracket in the categorization of youth operators. Insurance rates for private insurance begin to cool with most insurance companies, in comparison with premiums presented to mature operators. At age 21 years the majority commercial insurance companies start to accept business auto insurance applicants with interstate exposure. All companies will add substantial premium extra charge for commercial operators under age 21 years, and some insurance companies may mandate a specific period of experience like 12 to 24 months of experience to look at them for insurance coverage.
Age 25 years to 69 years: The majority of insurance companies apply similar premiums for this age bracket, although a small number of insurance carriers begin to charge little raise in their rates just after age 60 years. Age does not seem to be important factor for this bracket.
Above Age 70 Years: Unfortunately insurance is where senior citizens get a surcharge, not a discount! There are significant studies made by insurance carriers and the National Highway Traffic Safety Administration- NHTSA www.nhtsa.gov which suggest that people over age 70 years start to lead to more auto accidents. For that reason, insurance companies take specified steps to implement the right rate with the most suitable medical reports from them. Most commercial polices do not cover drivers above age 71 or 72 years. On the personal insurance level, the bulk of companies halt allowing new polices for persons over 76 years of age, and other companies make the insurance rate very outlandish.
What else can be done to scale down the influence of age on premiums? There is not many things that you can do. Youth drivers and older operators are creating more highway accidents, relatively speaking, and they need to simply pay the price for that. Several insurance companies permit good student discounts for young student operators, and other companies may accept part time driver status on their policy. For older drivers, making certain that you have the accurate medical statement that confirms the physical and mental functionality of the old person to operate the vehicle is wanted to give to your insurance company. The lack of that statement to be provided in timely manner may end in ceasing the policy which might be very difficult to replace with a whole new company at a later stage.
Ed Sneineh, insurance professional for over 20 years, former college educator of insurance, and founder of InsuranceNavy.