Auto insurer asks to raise rates of Maine seniors based solely on age

[TexasTowelie]

In an unprecedented move, insurance provider Progressive Corp. is seeking state approval for rate changes that would allow the company to charge older Mainers higher auto insurance premiums based solely on their age.

The proposal by the Ohio-based company would apply to new customers in Maine who had reached a certain age, according to documents filed with the state Department of Professional and Financial Regulation’s Bureau of Insurance.

A hypothetical example that Progressive provided to the bureau shows a 65-year-old being charged 6 percent more than a 64-year-old based solely on the customer having reached age 65.

Increasing rates for seniors based on their age alone would be a major departure from the way most insurance companies operate nationwide and in Maine, which has a population that leads the states in average age. Traditionally, healthy drivers with flawless driving records see their premiums decrease as they age.

Read more: http://www.centralmaine.com/2016/07/19/auto-insurer-asks-to-raise-rates-of-maine-seniors-based-solely-on-age/

[No Vested Interest]

1. Would not an older driver drive less frequently and fewer miles, on average,

than a younger driver?
Would not a retiree log fewer miles, on average, than an employed person?

At any rate, a 6% jump in one year seems excessive, especially at age 65, when average life expectancy in the US is nearing age 80.

Would Progressive expect to raise the premium 6% every year?
That would be unsustainable for most drivers, as well as unreasonable.

[Hoppy]

2. I believe New Jersey has this rating system.

The problem with the geriatrics (I am 73) is their reaction time slows as do other faculties.

We have several senior citizen communities and accidents abound.

The typical response to the police officer is, "His car came out of nowhere."

Magic cars appear in Toms River, N.J. on a weekly basis.