Senior Citizen Car Insurance Premiums Louisiana LA
Reader’s Question:
Is it legal for car insurance companies in Louisiana to raise their premiums for people over the age of 75?
Vincent
Baton Rouge, LA
All car insurance companies employ insurance risk selection methods to determine whether or not to insure an individual and to decide on what insurance premium to charge. The government can mandate insurance premiums. It can also be determined by car insurance companies based on the regulations set by the government. But if the premium is not mandated by the government, insurance actuaries derive their calculations on statistical data. This means that premiums may differ depending on various factors assumed to have impact on expected future claims. Car characteristics, car usage, coverage preferred, and the drivers’ profile are some of the factors that can be included.
Majority of car insurance providers charge higher premiums to drivers over 75 to offset the risk since senior citizens have a tendency to file claims more than most other ages. This way, car insurance companies are trying to minimize their liability for insuring a high-risk age group.
Since you are looking at lowering your premiums, shop around. Insurers use different methods to calculate risk. There is a good chance that you may find lower premiums from another company in Louisiana. It is best to talk with an car insurance agent who represents multiple companies, so that you can get as much information as you need about numerous company offers instead of calling the companies individually.
Tags: auto insurance claims, auto insurance premium, Car Insurance Company, high risk insurance, senior car insurance