Car insurance premiums act like bookends: they are high in our teenage years, settle at a reasonable rate in our adulthood, and then rise again as we become elderly.
The reasons for the increase in our insurance premiums as we age (particularly once we reach the age of 70) stem from health-related factors. Older drivers face some of the same risks as young drivers when it comes to paying a claim. The primary difference is that as we age, those risks are associated with declining health.
Everything from forgetfulness, poor vision and hearing, and arthritis mean that reaction times on the road slow, leading to an increased risk of getting into an accident. Even if you’re not at fault, you may not be as easily able to avoid an accident due to age and health.
There are other factors at play as well, including most seniors downsizing their automobiles as they age. For more information on what car insurance companies take into consideration as you age, as well as ways to save on your premiums, be sure to visit FOX Business for the full story.