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Qualifying For Mature Driver Discounts

by Joel Wheeler

Most auto insurance companies offer mature drivers multiple discounts on their auto insurance. Therefore, as you get older, you may begin to see the auto insurance premiums you pay drop in cost. As an older driver, there are several ways in which you can qualify for a variety of discounts available.

How Insurers Set Rates

Insurance companies consider multiple factors when deciding how much to charge you for an auto insurance policy. Your age is one of the statistically significant indicators that help insurers determine how likely you are to file a claim. Therefore, as you become a more experienced and mature driver, your birth date can be a "plus" factor.

  1. Auto insurance companies base rates on risk.

    When you get older and retire from work, you may be spending less of your time driving on the roadways. Driving less decreases the chances that you will be involved in an automobile accident.

  2. Your driving history speaks for itself.

    A long history of accident-free driving will qualify you for lower insurance rates. Your driving record affects your claims history, which can affect the insurance premium you pay. The number and amounts of the auto insurance claims you file over the years matter to insurance companies. Not having to file insurance claims puts you in your auto insurer's good graces since it hasn't had to pay you any money.

  3. You are rewarded for maintaining a well-established history of good credit. Insurers generally assume that if you are financially responsible, you are a responsible driver as well. Having good credit also shows that you make your payments on time -- a key factor an insurance company considers when determining your insurance risk score.

    In addition, insurance companies worry that if you have bad credit, you are more likely to file a claim. Studies suggest a correlation between a consumer's credit history and the probability that he or she will file an insurance claim.

Types of Discounts Available

Insurance companies vary in the amounts of the discounts they offer, but some companies offer multiple discounts to drivers in their fifties. Besides getting a discount when you turn 50 or 55 (age varies by company), additional auto insurance discounts for which you may qualify include:

  • Renewal, or loyalty, discount for staying with the same insurance company over the years

  • Low-mileage discount

  • Discounts offered by organizations such as AARP and AAA that make group policies available to their members

  • Discount offered to military veterans or their spouses

  • Discount offered to retired government employees

  • Discount offered for enrolling in and completing a defensive driving course

  • Discount if your income falls below a certain a amount (usually a state-funded program that provides the minimum coverage required by law)

You May Have to Ask

While many auto insurance companies promote the senior discounts they offer, not all do. Discounts aren't always automatic. Some insurers only give senior discounts to mature drivers who ask for them. Therefore, always ask what premium discounts an insurance company offers, particularly those available to mature drivers. Talk to an insurance company, like Village Insurance, for more information.