Does age matter for home insurance?
One of the most influential factors on premiums is the age of the home being insured. The older the house, the more expensive it may be to insure. An older home may have outdated wiring, faulty plumbing, or a leaky roof. All of these can lead to a possible insurance claim.
Car insurance is much more dependent on your age than home insurance. When it comes to home insurance, the age of the house is usually a much more important factor than the age of the homeowner! However, some carriers will use your age to help determine the premium on homeowner's coverage.
Age is one of the most important factors in determining your car insurance rate.
Car insurance is most expensive for teen drivers and then decreases as they get older. Rates level off between the age groups of 35 and 55, then rise slightly as senior drivers are seen as a bit riskier to insure.
Older homes are generally built with outdated construction materials and might have a different risk profile due to aging plumbing, electrical and heating systems. Here is a list of important factors to consider when shopping for insurance to adequately protect your older home.
Cheapest homeowners insurance for seniors
According to our research, Erie and Auto-Owners are the cheapest home insurance companies in the country for most people, including seniors. The national average cost of an Erie home insurance policy is $1,284 per year, while Auto-Owners' average policy is $1,406 per year.
Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.
The cost of homeowners and tenants insurance depends on a number of factors including: location, age and type of building. use of building (residence and/or commercial) proximity of fire protection services.
Your auto insurance policy could be canceled if: You neglected to pay your premium. Your driver's license was suspended or revoked. You were not honest on your application.
The average annual cost to insure a home in the United States is $1,602 in 2024. That's a 2% increase over the previous year, but an 18% increase from five years ago.
Will insurance rates go down in 2024?
Car insurance rates have risen sharply since the start of the COVID-19 pandemic, and current trends make it highly unlikely that they'll drop much in 2024.
AAA insurance premiums tend to be more expensive than the national average because AAA doesn't write its own policies. Each regional club operates independently and sells insurance policies underwritten by different agencies.
For elderly citizens with high-value homes, specialty insurers such as Chubb and AIG may represent good options. These insurers offer higher coverage limits for homes, personal property, and liability, ensuring your home can be restored to the same standard that it was previously in the event of a covered loss.
USAA, Allstate, and Chubb top our list of the best homeowners insurance companies for older homes based on their affordable rates and excellent coverage add-ons.
When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.
Up to 20% Savings for Members
You can customize your coverage with benefits and services designed especially for AARP members, including “New for Old” Protection and Disappearing Property Deductible†. Plus, you could save up to 20% when you bundle your home and auto policies.
State Farm, Auto-Owners and Erie provide the cheapest homeowners insurance, based on the MarketWatch Guides team's review.
| Provider | Star Rating | A.M. Best |
|---|---|---|
| Our Top Pick Allstate Get Quote | 4.8 | A+ |
| State Farm Learn More | 4.8 | A++ |
| American Family Learn More | 4.7 | A |
| Nationwide Learn More | 4.6 | A |
“The premiums are determined by the insurance carrier each year based on actuarial tables," says Frazzitta. "And they increase at each successive age because each year there is a bigger drain on the cash value due to the rising mortality charges."
Factors like where you live, your home's replacement cost, and your policy deductible generally affect your home insurance premiums the most.
