Talk about good news – here is one for you.
While most drivers in many U.S. States are suffering from high insurance rates, the story in Arizona is a bit different. Back in March, American Family, a Wisconsin-based company began offering their discounted rates to Arizona drivers. As we already know, this company is considered the third largest underwriter of casualty and property policies and ranked number five in the U.S. auto insurance arena. A weekly report revealed that the drivers in the Grand Canyon State would soon start to see a decline of as much as 7.2 percent in their insurance bills.
However, this is far from a big celebration because not all drivers will benefit from the discounted rates. People who drive old vehicles or those who are just carrying the minimum liability coverage as required by the Arizona law will be excluded.
If you own a much newer vehicle or carrying at least a full insurance coverage, then this is definitely a good news for you. Again, the discounts are computed according to some basic factors such as the model and make of your car, mileage and the location of the driver. Obviously, a driver that lives in the Phoenix area with a BMW will have to pay more than those in Flagstaff. Once the discounts start to roll in, all policyholders will begin to see the reductions in their insurance bills on their renewal.
However, for those low to moderate-income earners who are carrying minimum liability coverage, they will most likely experience a rise on their premiums.
What is causing the rates to change?
Unfortunately, American Family’s website has posted a very limited information as to why the premiums for full coverage holders will drop. But according to some analysis, it seems that the actuarial tables played a big influence this time. Other possible reasons for lowering the insurance cost are the fewer number of claims made and the rate of accidents in those areas is relatively small.
Just recently, one company has started to offer massive auto insurance discounts for people over the age of 40. Since many retirees and seniors are drawn to Arizona’s warm weather, the population from this particular age group has grown steady over the past few years. Senior drivers have always been regarded as high-risk drivers, but due to the technological innovations in health and advancement in medical facilities, many of them will continue to live fruitful, healthy and meaningful lives into their 70’s or 80’s.
This time, one company focused on the experience rather than the health issues, and it is good to know that some companies are closely following the same suit. This is a good news for senior policyholders whose limited income entirely depends on their monthly pensions.
You might be asking why only those who have newer cars and those who carry full coverage policies are being favored. Well, according to the statistics, new car owners will be unlikely to file numerous claims when we talk about collisions – and so in the end, the actuarial tables are still being used as the key determinant.