Auto insurance companies have different criteria when they decide upon premium rates for different drivers, and one of them is the age of the driver. Senior drivers and teen drivers need to pay higher premium rates than the rest of the drivers, according to the insurance company rule book. This holds true even if senior driver applying for the insurance policy is an experienced driver and has been driving for many years. There are many reasons for this but there are ways to counteract this clause and reduce the premium rates.
Senior drivers are considered risky by the insurance companies because they have low reflexes. This may come in the way of reacting faster in avoiding other driver’s mistakes on the roads. When driving, it is not only important to follow the traffic rules, but also important to drive defensively. Taking defensive driving lessons can help effectively in reducing the high premium rates to some extent. The senior driver applying for the policy needs to produce a certificate of defensive driving lessons in order to get the discount on the premium rates. Defensive driving teaches the drivers to avoid other driver’s mistakes and helps in avoiding accidents effectively. This makes a lot of difference to insurance companies, since there will be lesser chances of filing a claim.
Bundling up policies sometimes helps senior drivers get the discounts they want. Enrolling with a big group or family members can lower the premium rates for all of them, since insurance companies get to sell multiple insurance policies. Other good options are corporate insurance policies where the employees get to purchase the policies at the subsidized rates. Different insurance companies have different definitions of groups, and number of members in a group. Enquiring in different companies will give an idea of group insurance policies and their benefits. Before purchasing the auto insurance, senior drivers need to shop around, since they need to pay higher premium rates. Since there are many companies that can offer competitive rates, having the quotes from all companies and negotiating the premium rates is a good idea.
Model of the car plays an important role in deciding the premium rates. Since the senior drivers have to pay higher insurance due to the age factor, they have to do everything they can in other areas to reduce the premium rates. Installing safety equipment in the cars is one way of cutting the premium rates. Air bags, auto lock seat belts, and other safety equipment can ensure a safe drive, and reduce the premium rates. Also, updating very old model cars to later models can help in managing premium rates, since newer models are safer in roads. Also, insurance companies have a list of cars that are considered good on roads. Consulting the list and buying a car that is featured in the list can guarantee lower premium rates. Although they have to pay out high premium rates, senior drivers can do a lot to bring down the rates effectively, which means they can buy insurance without sacrificing on the necessary coverage.
