Basic car insurance policy for drivers over 50 years old

Basic car insurance policy for drivers over 50 years old

A study done in 2012 by the National Highway Traffic Safety Administration revealed that a crash at 31 miles per hour, a woman aged 50 years old would have 10% chance of being seriously injured while an 80 year old would have a 40% risk factor. People over 50, while generally safe from DUI and speeding accidents tend to be very vulnerable to other types of accidents especially left-hand turns and cross traffic.

Basic car insurance for this age group generally focus more on aging and the layering of age-related problems like reflexive action and being able to react in enough time to prevent an unexpected situation. However, there is a growing population of drivers aged 50 and older who are responsible, alert, and physically fit to drive. There is also a greater number of older drivers on the road who would feel lost without their driver’s license, enjoy the feeling of being independent and free to drive whenever and wherever they want.

Most insurance companies understand this and give due respect to older drivers with a more appropriate car insurance plan.

First of all, 50 is not old. But, vision can be problematic especially at night and there are other physical conditions that can affect a person at this age. Fortunately, 99% of the common aging problems at age 50 are easy to find solutions for so driving will not be impaired. The primary advantage for drivers over 50 is experience and most car insurance companies welcome drivers with experience with special discounts. The discounts will depend on the following:

  • Driver’s record
  • Whether the driver has taken a recent defensive driving course
  • Driving time behind the wheel for low mileage discount
  • Type and year of vehicle

Unfortunately, the rates will increase with age because of the higher risk factors related to aging. There are ways to keep these higher rates from affecting your insurance budget. You could raise deductible, review your coverage and remove unnecessary coverage, and change the primary driver to a younger person like your children or spouse.

Signs that you should consider cutting down on your driving hours include declining vision, slow to react, loss of focus, and a tendency to get lost when driving or near misses.

There are a few myths about older drivers that you can debunk in case they are ever thrown at you. They are”

  1. Older drivers are less cautious, tend to get tired faster, drive slower, and are sheltered – In the UK, 19% of all licenses were issued to drivers 50 years and older and definitely 19% of the driving population are not overly caution, slow, or unusually tired.
  2. Compulsory retirement is gone – No, once you reach a certain age, the agency that issues drivers’ licenses have a procedure to check whether a driver in his 50s or older is competent enough to be behind the wheel. If you do not pass the test, you will be denied a driver’s license.

In addition, drivers past a certain age must report health problems or treatments that may affect driving skills. This does not mean that the driver’s license is automatically revoked or the car insurance is not renewed. It only means that further questioning and documents will be required to prove driving competency.

 

Medical Insurance Basics Coverage

Medical Insurance

medical_insurance

Medical Insurance is bought to protect one from expensive medical treatment, cost of medical emergencies, and to guarantee negotiated lower rates with selected physicians and hospitals through an accreditation scheme.

By 2014 under the Obamacare program, all individuals are required to have Medical Insurance or pay a tax penalty. This is known as the Individual Mandate. Individual Mandate refers to who are exempt from the tax penalty due to their circumstances. For instance, religious churches, people in jail, non-US citizens are all exempt from the program and the tax penalty.  For those who will not get the minimum Medical Insurance, the tax penalty may be 1% of the income, $95 per person, or $285 for a family of more than 3 members.

There are 2 kinds of Medical Insurance: Individual or Employer. The Individual Medical Insurance is voluntary so the amount and coverage will depend on the policy holder. It is assumed that the policy holder will get at least the minimum requirement under the law.

The Employer Medical Insurance is also known as a group plan. It has friendlier premiums because you are enrolled as a member of a large group. The insurance premium is automatically deducted from your pay.

Medical Insurance Basics

With Medical Insurance, there is a term called “Pre-existing conditions.” This refers to the increase in the premium based on a medical condition that exists at the time of application. A few examples would be hypertension, a smoking habit, or a family history of heart problems. The insurance company may also opt to add a clause in the policy protecting them from claims against pre-existing medical conditions. Fortunately, under the new health insurance for 2014, no insurance company can deny an application or charge higher for medical insurance based on pre-existing medical conditions.

The coverage of Medical Insurance also includes hospital stay, surgery, doctors’ fees, and lab or diagnostic fees and medical tests. Some plans also include Dental and Eye Insurance.

The Best Way To Shop For Medical Insurance

In anticipation of the new law in 2014, it pays to start shopping around for your best options. Here are a few quick tips:

  • You are not required to provide personal medical history to anyone
  • You should never give out your Social Security number as well as private finance account numbers like credit card and bank account numbers without verifying the request
  • Do ask as many questions as you want before agreeing to any policy
  • If you are suspecting someone of trying to commit fraud, you can report the incident to online Complaint Assistant of the Federal Trade Commission

If you are unemployed, you qualify for Medicaid and your children are covered under the Children’s Health Insurance Program. The amount of aid will be determined by an estimate of your household’s income for the year.  You may also be eligible for lower premium rates based on your income level. Part-time workers without medical insurance from their employer may also apply for lower premiums through Medicaid as well.

Insurance Basics Overview

What are Insurance Basics?  Premium – Deductibles – Copay

Basics of Insurance

Insurance has always been about protecting your interests and possessions against calamities, accidents, risks, or unforeseen events. By paying a monthly premium, you are storing funds with an insurance company to cover your financial needs in time of stress or a change in your normal routine.

There are different kinds of insurance and over the years insurance has become so specialized that it is possible to insure parts of the body, specific situations like flooding or weddings that did not push through, and even strange coverage like alien abduction and zombie attacks. Fortunately, most people stick to the mainstream insurance plans like Auto, Life, Medical, and Home insurance.

For all insurance types, there are similar basics such as:

Premium – This is the amount you pay every month to cover your insurance. There are some businesses that pay for part of the premium for their employees like health insurance.

Deductible – This is the amount you have to pay the insurance company after a claim has been approved for payment. For instance, your car is involved in an accident and would cost $500 to repair. You can file an insurance claim but will have to pay the agreed deductible written on the insurance policy before the insurance company pays for the repairs.

Copay – This is a flat rate that you are required to pay when you avail of coverage

Maximum – This is the final amount that an insurance company will pay. It is usually applied with a recurring expense like a medical condition

In almost all cases, insurance for auto is mandated by law. You can’t drive a car that isn’t insured. With the new Health Insurance Law in the United States which takes effect in 2014, Health Insurance will also be a requirement or a penalty tax will be levied on the non-paying individual. Related information here..

In most cases, a person is free to determine the amount of insurance he or she wants to purchase provided there are no loans or mortgages attached to the vehicle or property.