Car Insurance Rates Could Soon Drop For a Previously 'High-Risk' Group of Drivers

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When you consider the total costs of car ownership, car insurance is one of the most expensive components. While insurance rates can feel arbitrarily high, the rates are actually based on many specific factors like your history of accidents and risk level as a driver.
Demographic data can also help insurance companies determine a driver’s likelihood to file a claim. But a recent study on one group of drivers has found that they don’t present as much risk as insurance companies previously thought. This could mean cheaper car insurance for this group in the near future.
A senior male driver waves out the driver's window as he drives down the road in a silver sedan.
Older drivers have always been viewed as riskier | Twenty20

How are your car insurance rates determined?

Generally, car companies consider the same fundamental factors when evaluating a driver’s risk. They look at demographic data including age, gender, location, and marital status. Teens and seniors are often automatically classified as high-risk drivers.
Insurance companies also look at your credit score to get an idea of your risk as a policyholder. If your car is newer and flashier it’s more likely to be stolen and cost a lot to replace. Companies will also consider your vehicle type and any safety features installed.
Based on these types of information, companies will determine your risk factor and the corresponding premiums you’ll have to pay for the coverage you want.

A positive trend is emerging for older drivers

**MORE: [How to Tell if You'll Be Given a High-Risk Auto Insurance Rate ](** A new safety study from the[ Insurance Institute for Highway Safety]( (IIHS) suggests that the overall risk of seniors being involved in fatal crashes will continue to decrease. In 1997, the number of 70 and older drivers involved in fatal car accidents peaked.
Historically, the trends showed that the likelihood of being involved in a crash started to increase at age 70. As a result, insurance companies tend to place older drivers in a high-risk category.
The fatal crash percentage among those 70 and older has declined substantially over the past two decades. In fact, there were even greater declines in fatal crashes among drivers aged 70 and older than there were for drivers between 35 and 54.

How to get lower insurance rates as an older driver

The main findings from IIHS may indicate that drivers 70 and older are safer than previously thought.
One of the reasons might be the fact that people tend to practice safer driving behaviors as they get older. However, drivers older than 70 are at greater risk of physical and mental decline which adds to their risks on the road.
Both an increase in the number of licensed older drivers on the road, coupled with advances in medicine and automotive safety over the last two decades, have likely contributed to the decline in fatal crashes among this group, according toForbes.
As the risk decreases for older drivers, insurance companies might start to reassess their insurance rates for this group. In the future, companies might not automatically place older drivers into the high-risk category based on age and begin to look into other factors, like new technology available for cars, more carefully.
If you’re an older driver who doesn’t want to pay high premiums for your car insurance,Jerry can help you shop around for the most affordable rates. If you have safe driving habits, you shouldn’t have to overpay for insurance. The free app will make sure you’re getting the best rates for the coverage you need.

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