When men and women reach their senior years, they may discover their car insurance rates going up for no apparent reason. That's because some insurance companies automatically raise premiums for policyholders in this group. On average, seniors are at greater risk of being in vehicle collisions than they were during middle age. These individuals may want to shop for better rates, especially if they have an excellent driving record.
Insurance company underwriters understand that, despite years of experience, senior adults are more likely to cause collisions than those in early adulthood and middle age. However, young drivers are the highest-risk population group by far. That generally means their auto insurance premiums are the most expensive of all age groups.
Older individuals are more likely to have physical issues that cause difficulty with certain driving skills. Arthritis, for instance, can hinder the ability to rapidly turn the steering wheel or hit the brake pedal hard enough for an abrupt stop. Their night vision may not be as good as it once was. They also are more likely to be in collisions caused by other drivers if their reaction times are slower.
Yet many insurance companies provide discounted premiums for older customers with certain favorable characteristics from an underwriting point of view.
An example would be someone who drives a relatively low number of miles per year. That decreases the risk of an accident. Retired men and women might not travel many miles annually since they aren't commuting to work five days a week. The daily commute commonly is the main contributor to the number of annual miles on vehicles.
An independent insurance agent may know of companies that offer lower premiums for seniors who complete a mature driver course. Underwriters like this because most men and women never brush up on their driving skills after acquiring a license. They may not even hear about new regulations. Skills testing during the course makes it clear whether the driver should get extra practice in certain maneuvers or has developed some negative habits.
When a senior citizen is displeased with the rising car insurance premiums, this person may find lower rates for the same coverage with a different company. Addressing factors that underwriters view positively is important to be offered as low of a premium as possible.
For more information on senior discounts, contact an auto insurance agency near you.