Drivers of a certain age will always pay less for their auto insurance premiums when compared to their younger counterparts. This is a widespread industry practice that applies not only in California but also across North America. In parts of the country where there are larger populations of senior citizens, older drivers are even more likely to get discounts and lower rates as incentives because insurance companies don’t want to lose them as customers. For this reason, seniors may be entitled to multiple discounts. Here are a few other aspects of auto insurance San Diego senior drivers may find interesting.
Senior Discounts Are Based on Actuarial Science
While insurance executives and underwriters have the final say on premium rates and discounts, their decisions are based on reports and research conducted by actuaries. After drivers reach the age of 30, auto insurance rates start decreasing because drivers have more years of driving experience and are less likely to get speeding tickets. As for road traffic accidents, their incidence decreases sharply among older drivers. This data makes insurance companies more eager to reward seniors with lower premiums.
Discounts as a Marketing Strategy
Even though auto insurance rates drop for people between the ages of 30 and 60, many insurers raise their premium rates for drivers aged 60 and older. Once again, this is based on actuarial research, but it’s often compensated for with discounts. Simply put, it makes financial sense for insurance executives to retain seniors as policyholders, and a strategy in this regard is to market products with discounts.
The Graying of the United States
The effects of shifting demographics and aging populations are being felt all over the country. For example, in Florida’s Tampa-St. Petersburg metropolitan area, the senior population is quickly approaching 20 percent, and it isn’t a pedestrian-friendly region. It stands to reason that auto insurance providers have a lot to gain by enticing older drivers with discounts. In the future, premium rates may increase when more seniors are still on the road, but the traditional discounts that start at the age of 50 won’t go away. It should be noted that people are living longer and driving longer, thus making aging populations attractive to insurers.
Combining Multiple Discounts
Since seniors are more likely to be living on fixed incomes, it makes perfect sense for them to search for discounts, and certain clubs and organizations are willing to offer reduced rates for older adults. Veterans organizations and driving clubs such as the Automobile Association of America are known to partner with insurance companies to offer senior discounts. Moreover, completion of defensive driving courses may reduce premium rates even lower. Auto dealerships also play a role when they offer safer vehicles to older car buyers, particularly those equipped with driver-assist and anti-theft technology.
One advantage of growing older is the increased availability of senior discounts, including reduced premiums for auto insurance. Drivers of all ages who are searching for affordable auto insurance should reach out to the experienced professionals at Altra Insurance Services. In addition to auto coverage, we offer a variety of insurance products, including motorcycle, homeowners, and business insurance. San Diego residents can call one of our friendly agents today at (800) 719-9972 for a free quote.