Question:
I used to get fairly good rates, but the price of my auto policy
has been on the rise since I turned 70. Why? Can you tell me
about senior citizen discounts for car insurance and ways to help
bring down my premium?
Answer:
Even if you've been an excellent driver for years, once you've
reach a certain age, auto insurance rates start to rise. The age at
which rates begin to increase varies by auto insurer, but typically
it's between 65 and 70. (See "
The cheapest age for car insurance
")
Insurance companies base rates on their own claims experiences;
yours is probably paying out more claims for drivers over a certain
age. Research tends to back them up:
- The Centers for Disease Control and Prevention (
CDC
) notes older drivers have age-related declines in cognitive
functioning and vision that along with physical ailments (such as
arthritis) that may affect their driving abilities.
- Statistics show that the older drivers are more susceptible
to injury and injuries are more severe when sustained in a car
accident due to physical frailty and existing medical
conditions.
- A report on older drivers by
TRIP
(a national nonprofit transportation research group) found that
although overall fatality rates have decreased in recent years,
the number of older drivers killed or involved in fatal crashes
remains disproportionately high. Drivers age 65 and older
account for eight percent of all miles driven in the nation, but
account for 17 percent of all traffic fatalities.
- Estimates say that, on average, 15 older adults are killed
and 500 are injured in car crashes every day.
There are, however, ways in which you can reduce your total
premium and help balance out the
base rates
increase that comes with the title of a "mature" driver. Ways
to save include:
- Get a mature driver discount. Many states require that
car insurance companies offer a discount if a senior-aged driver
completes an approved accident prevention course. The
discount typically can be up to 15 percent and last for three
years. (See "Defensive driving class discounts")
- Drive a safe car. Car insurance company give discounts
for items such as anti-lock brakes, airbags and other
manufacturer installed safety equipment. (See "Vehicle and safety
feature discounts")
- Drive less -- and let your insurer know. The fewer
miles you drive annually, the less possibility there is you will
be in an accident. Many insurance companies will offer reduced
rates if you limit your driving to, say, less than 10,000 miles
each year.
- Try out a telematics device in your car to get a discount.
Mature drivers can benefit from these pay-as-you-drive (PAYD) or
usage-based (UBI) auto insurance programs, such as Progressive's
Snapshot, since they typically not only drive less, but aren't on
the roads during "peak" hours. (See "Pay-as-you-drive
insurance plans" for a roundup of available PAYD offerings)
- Change your coverages. If you have a vehicle that is
older, think about dropping down to liability-only coverage. (See
"Is it time to drop comp and collision") If you keep
comprehensive and collision, then see about raising your
deductibles to save money. (See "Will higher deductibles save you
money?")
- Exclude drivers. If you have someone that is in your
household that no longer drives, such as an older relative who
has relinquished his or her license, see if you can exclude that
person from your policy and if that will drop your rates
down.
Depending upon your situation, there may be other discounts that
you are eligible for. Review our "Guide to car insurance
discounts" for more possible ways to obtain the cheapest insurance
rates possible. Then comparison shop for your next auto
insurance policy. Insurance companies rating system vary, so
you could save hundreds - if not thousands - a year just by
shopping around for the best deal.