Can a Maine Car Insurance Company Raise Rates Because of My Age?
 Although age is one of the many factors that are used to calculate premiums by auto insurance providers, according to Maine law it is strictly prohibited to raise a policyholder's rates based solely on age. The law was introduced to prevent insurers from raising a premium once a driver reaches the ages of 65, 70 and 75. Rate changes must be based on a multivariate analysis of loss expectation. In addition, a company cannot cancel or refuse to issue a policy based solely on age, credit information, or status as a volunteer driver.Factors that Can Cause ME Auto Insurance Rate ChangesAlthough rates cannot be raised once an individual reaches a certain age or enters into a new age group, consumers should be aware that there are many factors that can cause auto insurance companies to raise premiums that may be prevented by a motorist. The average motorist is aware that accumulating traffic citations will usually result in increased premiums and can be avoided by obeying the rules of the road. If a motorist is over the age of 65 and begins to acquire tickets or is involved in an accident than that can become legal grounds for a a rate increase; this is true regardless of a driver's age.A more obvious way to have a rate hike is being convicted of operating under the influence of drugs or alcohol. This is one of the most dangerous actions that a person can take behind the wheel and the chances of being involved in a traffic accident raises, therefore, insurers will view these individuals as a higher risk to insure and charge significantly higher amount for car insurance coverage. In some cases, the cause of a rate change may have nothing to do with motorists. Insurers who suffer significant losses with certain classifications of drivers or in certain geographical areas may see in increase in premiums across the board. If at any point a motorist sees a premium increase and it is not due to a traffic violation and/or accidents it may be a good idea to compare auto insurance quotes from other companies to see if a more affordable policy is available. Rate changes are not always negative. There are many times when a consumer will get a pleasant surprise and see premiums reduce. A driver who reaches the three year licensing mark and has maintained a good driving history could be entitles to a discount and the same may apply if a motorist had a few blemishes on a driving record and have not had any new violations in the past three years. Some motorists will even see a their rates lowered at the time of policy renewal; insurers appreciate loyalty and will usually show it by knocking a few bucks off of premiums.  Consumers should not only be aware of the fact that the price of automobile coverage is ever changing, but should also know their rights. If an individual receives a rate increase, it should be addressed with the insurer as to why the change in price. If a policyholder feels that the inflated premium is unlawful, the Maine Bureau of Insurance should be contacted to ensure that the insurer is legally charging a higher price for the policy. |