Home and auto insurance basics for seniors

Insurance needs change with people’s life situations.

“The best thing we tell people is to review your policy often, ask questions, and be knowledgable about why and when costs go up,” said Ember Ackerman, agent at Rural Mutual Insurance Company in Medford.

Several factors cause insurance prices to routinely change. Rates increase due to inflation, change depending on people’s life stages, and vary because of other risk indicators, such as driving record and car usage.

“Car insurance is rated off of statistics,” Ackerman said. She stated new drivers and seniors are statistically more likely to be involved in accidents. As a result, their auto insurance rates are generally higher. If someone drives two miles to work, they will pay less than if they drove 40 miles to work. Additionally, someone with zero accidents on their driving record will pay less than if they had three accidents on their record.

Turning to a senior-specific issue, many seniors find themselves being driven by another person. Before making the choice of who will be their driver, seniors should consider the insurance implications. “If someone drives you around in your car, that falls under your insurance,” Ackerman said.

Another point for seniors to consider is the type of insurance on their vehicles, especially if they have several. The vehicles that are not used as much may not need a fullcoverage insurance plan, allowing seniors to save money.

Considering home insurance, Ackerman recommended people answer the question, “What do you need at a time of a loss,” as they decide on a policy. For a person in the middle of their life raising a family, the answer may be full replacement of the home and property that was lost. As people age, their answer to that question could be different. Rather than full replacement, some seniors prefer a policy that pays out actual cash value at the time of a loss, giving them the flexibility to do as they please with the money.

Like auto insurance needs, people’s home insurance needs change, which means different policies and costs. Ackerman reiterated, “You should always be reviewing because circumstances continually change.”