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Why Premiums Are Lower on Auto Insurance for Seniors


Insurance companies have varying age brackets to classify seniors, but in general approximation; they are elderly drivers within the age range of 50 to 75 years old. Insurance firms impose lower premiums on auto insurance for seniors for a few good reasons.

Firstly, they give special consideration out of mere respect to seniority. These elders have long worked hard for the community. It is time to give back a little now that they are in their more advanced age. For lower premiums, they get the same features as stipulated in standard coverage insurance.

Also for their age, elders are believed to have mellowed down. This immediately classifies them as lower risk drivers. They are highly unlikely to figure in an accident, and therefore highly unlikely also to file for claims. Most seniors prefer to just stay on the slow lanes and hardly ever overtake. They are content to drive at a leisurely pace with no desire to speed up. With this kind of driving, chances are slim of getting involved in an accident.

Apart from age, insurance companies also look at how often seniors are out on the road. The fact that most seniors are retired from their jobs means they will not be driving that often, compared to when they were traveling daily to work 20 years ago. They will probably go out once in a while just to visit friends or go to the grocery store if they need to buy something. The lesser time they are on the road, the lower rate of accident, and the lower premium on auto insurance for seniors.

Their retirement is also a big consideration in giving them premium discounts. Insurance companies are aware that without jobs, they are not receiving regular income anymore. They are on a tighter budget. Some elderly folks will only rely on their retirement or government fund to cover their monthly expenses. Others rely solely on the financial support their children give.

Other than financial concerns, retiring from regular jobs also make seniors retreat to their provinces where cars are not that populated and driving is not very necessary. Without work, they see no reason to stay in the city; instead they opt to enjoy a fresher atmosphere in the rural areas. Accident rates here are low, and they can be granted premium discounts on their auto insurance for seniors because of this.

Upon reaching the age of 76, discounts on auto insurance for seniors are reconsidered. Their reflexes weaken because of old age, and thus they are considered high risk drivers already. In some cases, their insurance application will be denied to discourage them from driving.