by Guest » Tue Sep 17, 2013 07:50 am
Hi! I had a conversation with a P&C agent yesterday. He told me that Medicare is not going to save me if I get involved in a serious car accident. I’m living in Michigan and this thing only goes for my state. I was wondering if this is the reason why my rates are so high! I’ll turn 65 soon. Could anybody guide? Thanks!
Posted: Tue Sep 17, 2013 09:31 am Post Subject:
The cost of your insurance is excessive because you are quite aged and hence, pose a greater risk. On top of that, Michigan is a lot complicated state in terms of insurance law and has got the highest fees in the country.
The law is quite complex when it comes to health and auto insurance. In this case, your agent is well within his right to charge you a higher rate for the coverage.
Posted: Wed Sep 18, 2013 09:21 am Post Subject:
He told me that Medicare is not going to save me if I get involved in a serious car accident.
What does Medicare have to do with auto insurance? Nothing. What does one's own auto insurance have to do with paying medical bills? Very little, if anything at all.Adamsarthur completely misses the point when he replies, "The cost of your insurance is excessive because you are quite aged". It also shows that he knows nothing about auto insurance. A new driver age 18-25 has a higher likelihood of being involved in a collision. That, too, has some less to do with age than with years of driving experience. Drivers age 65 actually have a pretty low incidence of being involved in collisions, and their rates are not based primarily on age.
He also fails the test when he writes
In this case, your agent is well within his right to charge you a higher rate for the coverage.
Insurance companies set rates, not agents. Agents don't have any right to charge a person extra money at all, and brokers who charge their clients a fee based on age are committing an offense proscribed by law.When it comes to auto insurance, age is not the predominant factor in auto insurance premiums. The kind of vehicle and one's own driving record are far more important. In fact, drivers age 55 and older can get a DISCOUNT of up to 30% in most states just for completing a Mature Driver course every two or three years. That takes about an hour on a computer, and costs about $30-$40.
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