You asked if it is legal for an insurance company to increase an insured driver's auto insurance rates because the driver has gotten older.

Connecticut statutes (1) do not prohibit insurers from increasing auto insurance rates based on age and (2) permit insurers to group risks by classifications when establishing rates. The classification rates may be modified to generate a driver's rates based upon a rating plan, which the insurer must file with the insurance department. The rating plan may measure differences among risks that can be demonstrated to have a probable effect upon losses or expenses (CGS §§ 38a-665(d) and 38a-688(b)(3)).

Insurers do increase auto insurance rates for older drivers. The increase reflects actuarial data that shows older drivers as a group present an above average risk. However, age is one of numerous factors insurers consider when setting rates. The increased rates for older drivers usually occur in age bands and vary by insurance company, according to the Connecticut Insurance Department. For example, some companies begin the increases at age 50, others at age 60, and most by age 65. The amount of the rate increase also varies by company depending on what weight the insurer assigns for age.

For related information, the following are enclosed:

• 2004-R-0016, Higher Auto Insurance Premiums for Elderly Drivers

• 2004-R-0712, Rate Factors for Automobile Insurance

• 2005-R-0714, Automobile Insurance Rate Filing Process

• Summary for PA 06-104, which modifies rate filing requirements for personal lines, including auto insurance

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